# Huali Industrial Group Company (300979.SHE)

Canonical: https://gigainvestors.com/s/300979.SHE

Analysis as of: 2026-10-16T07:37:08.032Z. Financial observations: FY2019–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

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

Share price: CNY 33.03 per share; close as of 2026-10-15.

Estimated value: low CNY 33.98 per share, central CNY 37.99 per share, high CNY 43.33 per share. Buy at or below the central value CNY 37.99 per share. Valuation as of 2026-10-16T07:37:08.032Z; scenarios are not confidence intervals.

Expected annual return: 11.3% at the stated quote. About 11.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: pass

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

- Financial history: 7 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.13×

Chart: Operating margin; fiscal year observations.

- FY2019: 0.14×

- FY2020: 0.17×

- FY2021: 0.21×

- FY2022: 0.20×

- FY2023: 0.20×

- FY2024: 0.21×

- FY2025: 0.17×

### moat: fail

- Recent gross margin fell 8.0pp below the typical margin (limit 4pp)

- ROIC, median of available years: 38.6%

- ROIC, second-lowest year: 33.5%

- Typical minus recent gross margin: 8.0 pp

- Typical gross margin (annual median): 24.7%

- Recent gross margin (lower of latest and 3-year median): 16.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.3%

- ROIC including acquisitions, ten-year median: 31.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2019: 42.2%

- FY2020: 38.6%

- FY2021: 41.9%

- FY2022: 38.7%

- FY2023: 33.5%

- FY2024: 37.0%

- FY2025: 26.7%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.80×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 13B

- Net income, five-year total: CNY 16B

- Return on incremental invested capital: 18.6%

- Working capital / revenue, annual change: 1.1 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.95×

- FY2022: 0.84×

- FY2023: 0.84×

- FY2024: 0.94×

- FY2025: 0.42×

### management: pass

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 41.9% vs 33.5%

- Per-share earnings: 1.81 to 2.75 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 2.4%

- Diluted shares, 5-year annual growth: 2.4%

- Per-share value growth: 11.0%

- Per-share value change: CNY 0.94

- Per-share value, starting three-year median: CNY 1.81

- Per-share value, ending three-year median: CNY 2.75

- Average buyback yield: 0.1%

- Buyback history: 1 years

- Debt-funded buybacks: Yes

- ROIC, first three-year median: 41.9%

- ROIC, last three-year median: 33.5%

Chart: Earnings per share; fiscal year observations.

- FY2019: CNY 1.73

- FY2020: CNY 1.81

- FY2021: CNY 2.37

- FY2022: CNY 2.77

- FY2023: CNY 2.74

- FY2024: CNY 3.29

- FY2025: CNY 2.75

### accounting: pass

- Sloan accruals: -2.4%

- Receivables to sales index (DSRI): 0.87×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.17×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.05×

Chart: Sloan accruals; fiscal year observations.

- FY2019: -4.9%

- FY2020: -11.2%

- FY2021: 2.1%

- FY2022: -1.6%

- FY2023: -2.5%

- FY2024: -3.4%

- FY2025: -2.4%

## Holders

## Price story

Down 63% since Dec 2021 · sales +4.1%

Story as of 2026-10-16T10:00:08.658Z; price observation 2026-10-15.

Price needs cash profits to shrink 1.1% a year for ten years

### Sales · FY2024–2025

sales +4.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2019: CNY 15B 

- FY2020: CNY 14B 

- FY2021: CNY 17B 

- FY2022: CNY 21B 

- FY2023: CNY 20B 

- FY2024: CNY 24B 

- FY2025: CNY 25B 

### Gross margin · FY2025

gross margin 16.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2019: 22.7% 

- FY2020: 23.1% 

- FY2021: 26.4% 

- FY2022: 24.7% 

- FY2023: 24.8% 

- FY2024: 26.3% 

- FY2025: 16.7% 

## Owner memo

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

### How it makes money

Operates in footwear & accessories; annual sales are CNY 25 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:08.032Z); FY2025: revenue 24980125000; grossProfit 4172921000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 300979.SHE: Huali Industrial Group Company Limited engages in the design, research and development, production, and sale of shoe soles, shoe materials, and footwear products in China and internationally. The company offers athletic and leisure shoes, and outdoor boots, as well as athletic sandals and slippers for professional sports, such as running, walking, trail running, hiking, basketball, skateboarding, skiing, mass sports, daily commuting, and fashion wear; and footwear technical consulting services. It is also involved in investment in the footwear industry; design, production, and operation of various molds, and knitted and woven shoe uppers; research and development of textile technology. The company was founded in 1995 and is based in Zhongshan, China.

### Why customers stay

Margins ranged from 16.7% to 26.3% during 2023–25; it earns 38.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:08.032Z); FY2023: grossProfit / revenue = 24.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:08.032Z); FY2024: grossProfit / revenue = 26.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:08.032Z); FY2025: grossProfit / revenue = 16.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:08.032Z); 7-year return on capital observations [[2019,0.42178236279109765],[2020,0.38554490500186367],[2021,0.41875579842498084],[2022,0.3869775690717516],[2023,0.3349833512938711],[2024,0.3697423750962334],[2025,0.26736720470634506]]; median 0.38554490500186367. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 25% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:08.032Z); Gross margin observations: [[2021,0.26440737901796346],[2022,0.24723216516225097],[2023,0.24793590982411487]]; range within 2 percentage points.

### Where the cash goes

Spends 16.9% of cash earnings on expansion; earns 18.6% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:08.032Z); FY2019: growth capex 0; upkeep 1328854207; owner earnings 880748091. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:08.032Z); FY2020: growth capex 0; upkeep 622050622; owner earnings 1674979157. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:08.032Z); FY2021: growth capex 717644976.590553; upkeep 559047251.409447; owner earnings 2617462943.300553. Growth capex / owner earnings = 0.27417579241279394.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:08.032Z); FY2022: growth capex 636107502.5184256; upkeep 1049183774.4815744; owner earnings 2720761512.5384254. Growth capex / owner earnings = 0.23379759658719512.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:08.032Z); FY2023: growth capex 0; upkeep 1155278134; owner earnings 2685935899.994. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:08.032Z); FY2024: growth capex 864133590.1988258; upkeep 836283334.8011742; owner earnings 3591299972.896826. Growth capex / owner earnings = 0.2406186051625745.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:08.032Z); FY2025: growth capex 227770355.87649202; upkeep 2461837289.083508; owner earnings 1350624805.954492. Growth capex / owner earnings = 0.16864073195777401.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:08.032Z); Incremental return on capital 0.1863865809457507, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:08.032Z); Dividend observations: [[2019,42697999],[2020,135440345],[2021,1196863785],[2022,1283700000],[2023,1463421801],[2024,1427021103.7],[2025,3906407152.85]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:08.032Z); FY2025: cash repurchases 69917564.83000001 CNY.

### Are managers owners

Insiders own 84.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 300979.SHE SharesStats.PercentInsiders = 84.482 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 1.1% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:08.032Z); Ten-year compound average after fade. Initial solved rate -0.02884185667139899. Price 33.03; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

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

- 2021-04: CNY 101.60 per share

- 2021-05: CNY 92.16 per share

- 2021-06: CNY 113.90 per share

- 2021-07: CNY 91.52 per share

- 2021-08: CNY 81.33 per share

- 2021-09: CNY 88.42 per share

- 2021-10: CNY 85.40 per share

- 2021-11: CNY 88.12 per share

- 2021-12: CNY 89.05 per share

- 2022-01: CNY 87.45 per share

- 2022-02: CNY 82.07 per share

- 2022-03: CNY 72.68 per share

- 2022-04: CNY 68.72 per share

- 2022-05: CNY 76.33 per share

- 2022-06: CNY 73.08 per share

- 2022-07: CNY 58.98 per share

- 2022-08: CNY 60.40 per share

- 2022-09: CNY 47.90 per share

- 2022-10: CNY 40.59 per share

- 2022-11: CNY 48.85 per share

- 2022-12: CNY 57.11 per share

- 2023-01: CNY 63.04 per share

- 2023-02: CNY 57.57 per share

- 2023-03: CNY 52.52 per share

- 2023-04: CNY 44.14 per share

- 2023-05: CNY 39.58 per share

- 2023-06: CNY 48.74 per share

- 2023-07: CNY 56.54 per share

- 2023-08: CNY 51.71 per share

- 2023-09: CNY 50.19 per share

- 2023-10: CNY 50.20 per share

- 2023-11: CNY 47.80 per share

- 2023-12: CNY 52.64 per share

- 2024-01: CNY 53.00 per share

- 2024-02: CNY 57.94 per share

- 2024-03: CNY 61.12 per share

- 2024-04: CNY 67.17 per share

- 2024-05: CNY 67.66 per share

- 2024-06: CNY 60.85 per share

- 2024-07: CNY 58.22 per share

- 2024-08: CNY 64.70 per share

- 2024-09: CNY 73.91 per share

- 2024-10: CNY 66.79 per share

- 2024-11: CNY 75.48 per share

- 2024-12: CNY 78.65 per share

- 2025-01: CNY 74.64 per share

- 2025-02: CNY 69.98 per share

- 2025-03: CNY 62.62 per share

- 2025-04: CNY 51.23 per share

- 2025-05: CNY 52.93 per share

- 2025-06: CNY 52.57 per share

- 2025-07: CNY 52.18 per share

- 2025-08: CNY 52.99 per share

- 2025-09: CNY 53.02 per share

- 2025-10: CNY 59.15 per share

- 2025-11: CNY 61.10 per share

- 2025-12: CNY 50.21 per share

- 2026-01: CNY 48.17 per share

- 2026-02: CNY 47.65 per share

- 2026-03: CNY 43.51 per share

- 2026-04: CNY 38.13 per share

- 2026-05: CNY 34.18 per share

- 2026-06: CNY 29.75 per share

- 2026-07: CNY 35.52 per share

- 2026-08: CNY 33.35 per share

- 2026-09: CNY 33.43 per share

- 2026-10: CNY 31.52 per share

## Annual estimated value (CNY per share)

- FY2023: low CNY 29.88 per share, central CNY 33.31 per share, high CNY 37.88 per share

- FY2024: low CNY 35.92 per share, central CNY 40.05 per share, high CNY 45.56 per share

- FY2025: low CNY 36.17 per share, central CNY 40.48 per share, high CNY 46.22 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

Prior published observations retained from 2026-10-15T06:42:57.698Z where newer inputs omit a numeric field or fiscal period.

## 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.

## Reported holder observations