# TCL Zhonghuan Renewable Energy Technology (002129.SHE)

Canonical: https://gigainvestors.com/s/002129.SHE

Analysis as of: 2026-10-16T07:37:14.296Z. Financial observations: FY2004–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 9.23 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 2

- Operating margin variation: 214.01×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.06×

- FY2017: 0.07×

- FY2018: 0.04×

- FY2019: 0.09×

- FY2020: 0.09×

- FY2021: 0.12×

- FY2022: 0.11×

- FY2023: 0.08×

- FY2024: -0.39×

- FY2025: -0.25×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 24.5pp below the typical margin (limit 4pp)

- ROIC, median of available years: 4.7%

- ROIC, second-lowest year: -8.3%

- Typical minus recent gross margin: 24.5 pp

- Typical gross margin (annual median): 16.4%

- Recent gross margin (lower of latest and 3-year median): -8.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 22.5%

- ROIC including acquisitions, ten-year median: 3.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 2.4%

- FY2017: 3.6%

- FY2018: 2.6%

- FY2019: 5.9%

- FY2020: 5.7%

- FY2021: 12.9%

- FY2022: 11.7%

- FY2023: 5.8%

- FY2024: -13.9%

- FY2025: -8.3%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY -9.8B

- Net income, five-year total: CNY -4.8B

- Return on incremental invested capital: -21.7%

- Working capital / revenue, annual change: 0.4 pp

- Working capital / revenue, change between three-year averages: 4.1 pp

- Working capital / revenue, final three-year average: 0.9%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: CNY 3.8B

- FY2022: CNY 6.0B

- FY2023: CNY -2.6B

- FY2024: CNY -10B

- FY2025: CNY -6.5B

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 2.6% vs -8.3%

- Per-share earnings: 0.12 to -2.32 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.8%

- Ordinary dilution, 5-year annual growth: 1.1%

- Market cap gain: CNY -3.7B

- Cumulative retained earnings: CNY -5.3B

- Diluted shares, 10-year annual growth: 2.8%

- Diluted shares, 5-year annual growth: 1.1%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value change: CNY -2.44

- Per-share value, starting three-year median: CNY 0.12

- Per-share value, ending three-year median: CNY -2.32

- Buybacks concentrated in cheaper years (correlation): 0.70

- Average buyback yield: 0.5%

- Buyback history: 5 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 7.0B

- Cumulative net income, 10 years: CNY -1.2B

- ROIC, first three-year median: 2.6%

- ROIC, last three-year median: -8.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.12

- FY2017: CNY 0.18

- FY2018: CNY 0.18

- FY2019: CNY 0.26

- FY2020: CNY 0.29

- FY2021: CNY 1.02

- FY2022: CNY 1.70

- FY2023: CNY 0.86

- FY2024: CNY -2.47

- FY2025: CNY -2.32

### accounting: pass

- Sloan accruals: -9.2%

- Receivables to sales index (DSRI): 1.31×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.33×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.8%

- FY2017: -1.5%

- FY2018: -2.5%

- FY2019: -3.3%

- FY2020: -3.0%

- FY2021: -0.3%

- FY2022: 1.6%

- FY2023: -1.4%

- FY2024: -10.1%

- FY2025: -9.2%

## Holders

## Price story

Down 84% since Jun 2022 · sales +2.2%

Story as of 2026-10-16T10:00:08.866Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales +2.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 6.8B 

- FY2017: CNY 9.6B 

- FY2018: CNY 14B 

- FY2019: CNY 17B 

- FY2020: CNY 19B 

- FY2021: CNY 41B 

- FY2022: CNY 67B 

- FY2023: CNY 59B 

- FY2024: CNY 28B 

- FY2025: CNY 29B 

### Gross margin · FY2023

gross margin 16.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 13.2% 

- FY2017: 19.5% 

- FY2018: 15.9% 

- FY2019: 19.1% 

- FY2020: 18.6% 

- FY2021: 20.3% 

- FY2022: 16.0% 

- FY2023: 16.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in semiconductor equipment & materials; annual sales are CNY 29 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:14.296Z); FY2025: revenue 29038237000; grossProfit -2342650000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002129.SHE: TCL Zhonghuan Renewable Energy Technology Co.,Ltd. engages in the research, development, production, and sales of silicon materials in China and internationally. The company offers mono wafers and shingled modules. It is also involved in the photovoltaic power station business, including resource development, EPC engineering construction and management, intelligent operation, and maintenances services. The company was formerly known as Tianjin Zhonghuan Semiconductor Co., Ltd. and changed its name to TCL Zhonghuan Renewable Energy Technology Co.,Ltd. in June 2022. TCL Zhonghuan Renewable Energy Technology Co.,Ltd. was founded in 1958 and is headquartered in Tianjin, China. TCL Zhonghuan Renewable Energy Technology Co.,Ltd. operates as a subsidiary of TCL Technology Group Corporation.

### Why customers stay

It earns 4.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:14.296Z); FY2023: grossProfit / revenue = 16.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:14.296Z); FY2024: grossProfit / revenue = -22.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:14.296Z); FY2025: grossProfit / revenue = -8.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:14.296Z); 10-year return on capital observations [[2016,0.02434968742084948],[2017,0.03628285003236419],[2018,0.025590365476200288],[2019,0.05852310113311826],[2020,0.05680299052071317],[2021,0.1285029397527334],[2022,0.11655532524735282],[2023,0.05815456310804438],[2024,-0.13932665657092963],[2025,-0.08302889129907066]]; median 0.04654292027653868. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:14.296Z); FY2016: growth capex 1425845687; upkeep 666736162; owner earnings 402006294. Growth capex / owner earnings = 3.5468242867859177.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:14.296Z); FY2017: growth capex 2923696956; upkeep 960397884; owner earnings 584540817. Growth capex / owner earnings = 5.001698548623337.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:14.296Z); FY2018: growth capex 3961176520; upkeep 1457054161; owner earnings 632256822. Growth capex / owner earnings = 6.265138440847065.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:14.296Z); FY2019: growth capex 2693151918; upkeep 1950072926; owner earnings 903661423. Growth capex / owner earnings = 2.9802665572014795.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:14.296Z); FY2020: growth capex 1530341210; upkeep 2127002731; owner earnings 1088995383. Growth capex / owner earnings = 1.405277959750542.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:14.296Z); FY2021: growth capex 3285508342; upkeep 2816810497; owner earnings 3820149355.974. Growth capex / owner earnings = 0.8600470913164897.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:14.296Z); FY2022: growth capex 6893637242; upkeep 4319086000; owner earnings 5973365697.650012. Growth capex / owner earnings = 1.1540624818453746.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:14.296Z); Dividend observations: [[2016,455030779],[2017,511499220],[2018,772883462],[2019,922043265],[2020,1083690215],[2021,1112800494],[2022,1299106211],[2023,323395000],[2024,1049907000],[2025,1399290111.88]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 31.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002129.SHE SharesStats.PercentInsiders = 31.274 percentage points; cache date 2026-10-16.

### What the price says

The price is 1.3 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:14.296Z); Closing price 9.23 CNY; reporting-to-trading FX 1; FY2025 annual sales per share 7.263852913457145; price multiple 1.270675509260428. FY2025 cash earnings/share -1.636259566136043. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2017-11: CNY 9.97 per share

- 2017-12: CNY 11.49 per share

- 2018-01: CNY 9.48 per share

- 2018-02: CNY 9.10 per share

- 2018-03: CNY 10.36 per share

- 2018-04: CNY 11.37 per share

- 2018-05: CNY 9.43 per share

- 2018-06: CNY 7.83 per share

- 2018-07: CNY 8.43 per share

- 2018-08: CNY 7.44 per share

- 2018-09: CNY 7.61 per share

- 2018-10: CNY 5.70 per share

- 2018-11: CNY 6.59 per share

- 2018-12: CNY 7.23 per share

- 2019-01: CNY 8.41 per share

- 2019-02: CNY 9.68 per share

- 2019-03: CNY 9.92 per share

- 2019-04: CNY 10.16 per share

- 2019-05: CNY 10.14 per share

- 2019-06: CNY 9.76 per share

- 2019-07: CNY 10.18 per share

- 2019-08: CNY 10.87 per share

- 2019-09: CNY 12.11 per share

- 2019-10: CNY 11.50 per share

- 2019-11: CNY 10.11 per share

- 2019-12: CNY 11.81 per share

- 2020-01: CNY 15.68 per share

- 2020-02: CNY 17.58 per share

- 2020-03: CNY 14.29 per share

- 2020-04: CNY 17.17 per share

- 2020-05: CNY 17.55 per share

- 2020-06: CNY 22.46 per share

- 2020-07: CNY 24.33 per share

- 2020-08: CNY 21.67 per share

- 2020-09: CNY 22.15 per share

- 2020-10: CNY 23.34 per share

- 2020-11: CNY 22.31 per share

- 2020-12: CNY 25.50 per share

- 2021-01: CNY 27.26 per share

- 2021-02: CNY 26.28 per share

- 2021-03: CNY 28.29 per share

- 2021-04: CNY 27.63 per share

- 2021-05: CNY 28.80 per share

- 2021-06: CNY 38.60 per share

- 2021-07: CNY 50.06 per share

- 2021-08: CNY 54.00 per share

- 2021-09: CNY 45.87 per share

- 2021-10: CNY 52.36 per share

- 2021-11: CNY 45.00 per share

- 2021-12: CNY 41.75 per share

- 2022-01: CNY 42.90 per share

- 2022-02: CNY 47.98 per share

- 2022-03: CNY 42.70 per share

- 2022-04: CNY 39.02 per share

- 2022-05: CNY 43.60 per share

- 2022-06: CNY 58.89 per share

- 2022-07: CNY 50.87 per share

- 2022-08: CNY 48.11 per share

- 2022-09: CNY 44.76 per share

- 2022-10: CNY 39.50 per share

- 2022-11: CNY 41.57 per share

- 2022-12: CNY 37.66 per share

- 2023-01: CNY 42.44 per share

- 2023-02: CNY 43.65 per share

- 2023-03: CNY 48.46 per share

- 2023-04: CNY 41.58 per share

- 2023-05: CNY 37.15 per share

- 2023-06: CNY 33.20 per share

- 2023-07: CNY 29.09 per share

- 2023-08: CNY 25.65 per share

- 2023-09: CNY 23.38 per share

- 2023-10: CNY 18.46 per share

- 2023-11: CNY 16.68 per share

- 2023-12: CNY 15.64 per share

- 2024-01: CNY 12.30 per share

- 2024-02: CNY 13.52 per share

- 2024-03: CNY 11.84 per share

- 2024-04: CNY 10.43 per share

- 2024-05: CNY 11.05 per share

- 2024-06: CNY 8.65 per share

- 2024-07: CNY 8.73 per share

- 2024-08: CNY 8.23 per share

- 2024-09: CNY 10.36 per share

- 2024-10: CNY 12.67 per share

- 2024-11: CNY 10.52 per share

- 2024-12: CNY 8.87 per share

- 2025-01: CNY 8.35 per share

- 2025-02: CNY 8.99 per share

- 2025-03: CNY 8.89 per share

- 2025-04: CNY 7.66 per share

- 2025-05: CNY 7.58 per share

- 2025-06: CNY 7.68 per share

- 2025-07: CNY 8.15 per share

- 2025-08: CNY 8.38 per share

- 2025-09: CNY 9.05 per share

- 2025-10: CNY 9.46 per share

- 2025-11: CNY 9.39 per share

- 2025-12: CNY 8.57 per share

- 2026-01: CNY 9.41 per share

- 2026-02: CNY 10.32 per share

- 2026-03: CNY 8.78 per share

- 2026-04: CNY 8.66 per share

- 2026-05: CNY 9.75 per share

- 2026-06: CNY 12.02 per share

- 2026-07: CNY 8.83 per share

- 2026-08: CNY 9.51 per share

- 2026-09: CNY 9.20 per share

- 2026-10: CNY 9.32 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 1.94 per share, central CNY 2.17 per share, high CNY 2.30 per share

- FY2017: low CNY 2.86 per share, central CNY 3.33 per share, high CNY 3.60 per share

- FY2018: low CNY 4.49 per share, central CNY 5.57 per share, high CNY 6.19 per share

- FY2019: low CNY 5.66 per share, central CNY 7.17 per share, high CNY 8.05 per share

- FY2020: low CNY 5.88 per share, central CNY 7.56 per share, high CNY 8.53 per share

- FY2021: low CNY 10.92 per share, central CNY 14.39 per share, high CNY 16.41 per share

- FY2022: low CNY 16.23 per share, central CNY 21.81 per share, high CNY 25.06 per share

- FY2023: low CNY 14.37 per share, central CNY 19.33 per share, high CNY 22.22 per share

- FY2024: low CNY 6.92 per share, central CNY 7.53 per share, high CNY 8.35 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.