# China Three Gorges New Energy Group (600905.SHG)

Canonical: https://gigainvestors.com/s/600905.SHG

Analysis as of: 2026-10-16T07:35:10.243Z. Financial observations: FY2016–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 3.48 per share; close as of 2026-10-15.

Estimated value: low CNY 1.98 per share, central CNY 2.24 per share, high CNY 2.58 per share. Buy at or below the central value CNY 2.24 per share. Valuation as of 2026-10-16T07:35:10.243Z; scenarios are not confidence intervals.

Expected annual return: 7.4% at the stated quote. About 7.4% 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

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.13×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.34×

- FY2017: 0.39×

- FY2018: 0.43×

- FY2019: 0.38×

- FY2020: 0.38×

- FY2021: 0.47×

- FY2022: 0.38×

- FY2023: 0.34×

- FY2024: 0.29×

- FY2025: 0.34×

### moat: fail

- ROIC median below threshold

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

- Recent gross margin fell 13.8pp below the typical margin (limit 4pp)

- ROIC, median of available years: 3.8%

- ROIC, second-lowest year: 3.1%

- Typical minus recent gross margin: 13.8 pp

- Typical gross margin (annual median): 55.6%

- Recent gross margin (lower of latest and 3-year median): 41.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 149.5%

- ROIC including acquisitions, ten-year median: 1.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 3.6%

- FY2017: 4.8%

- FY2018: 4.5%

- FY2019: 3.9%

- FY2020: 3.7%

- FY2021: 4.6%

- FY2022: 4.3%

- FY2023: 3.5%

- FY2024: 3.1%

- FY2025: 3.1%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.06×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 1.8B

- Net income, five-year total: CNY 31B

- Return on incremental invested capital: 3.5%

- Working capital / revenue, annual change: 12.1 pp

- Working capital / revenue, change between three-year averages: 91.3 pp

- Working capital / revenue, final three-year average: 61.6%

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

- FY2021: 0.87×

- FY2022: 0.85×

- FY2023: -0.26×

- FY2024: 0.88×

- FY2025: -3.60×

### management: pass

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 4.5% vs 3.1%

- Per-share earnings: 0.12 to 0.21 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.0%

- Diluted shares, 5-year annual growth: 0.0%

- Per-share value growth: 8.3%

- Per-share value change: CNY 0.09

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

- Per-share value, ending three-year median: CNY 0.21

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.0%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: CNY 44B

- ROIC, first three-year median: 4.5%

- ROIC, last three-year median: 3.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.05

- FY2017: CNY 0.12

- FY2018: CNY 0.14

- FY2019: CNY 0.10

- FY2020: CNY 0.13

- FY2021: CNY 0.24

- FY2022: CNY 0.25

- FY2023: CNY 0.25

- FY2024: CNY 0.21

- FY2025: CNY 0.13

### accounting: pass

- Sloan accruals: -4.4%

- Receivables to sales index (DSRI): 1.10×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 5.64×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.10×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.6%

- FY2017: -3.3%

- FY2018: -2.7%

- FY2019: -3.3%

- FY2020: -3.8%

- FY2021: -1.1%

- FY2022: -3.7%

- FY2023: -2.3%

- FY2024: -3.6%

- FY2025: -4.4%

## Holders

## Price story

Down 54% since Dec 2021 · sales -4.4%

Story as of 2026-10-16T10:00:03.872Z; price observation 2026-10-15.

Price needs cash profits to grow 6.7% a year for ten years

### Sales · FY2024–2025

sales -4.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 5.2B 

- FY2017: CNY 6.8B 

- FY2018: CNY 7.4B 

- FY2019: CNY 9.0B 

- FY2020: CNY 11B 

- FY2021: CNY 16B 

- FY2022: CNY 24B 

- FY2023: CNY 27B 

- FY2024: CNY 30B 

- FY2025: CNY 28B 

### Gross margin · FY2025

gross margin 41.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 52.4% 

- FY2017: 53.6% 

- FY2018: 56.0% 

- FY2019: 56.5% 

- FY2020: 57.4% 

- FY2021: 59.6% 

- FY2022: 58.4% 

- FY2023: 55.1% 

- FY2024: 52.6% 

- FY2025: 41.8% 

## Owner memo

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

### How it makes money

Operates in utilities renewable; annual sales are CNY 28.4 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:10.243Z); FY2025: revenue 28399420251.56; grossProfit 11874319892.8; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600905.SHG: China Three Gorges Renewables (Group) Co.,Ltd. engages in the development, investment, and operation of wind and solar energy in China. The company develops offshore wind power projects with a cumulative installed capacity of 7.0498 million kilowatts, onshore wind power projects with a cumulative installed capacity of over 7.5 million kilowatts, photovoltaic power stations with a cumulative installed capacity of over 7 gigawatts, and small and medium-sized hydropower project with an installed capacity of 220 megawatts. China Three Gorges Renewables (Group) Co.,Ltd. was founded in 1985 and is based in Beijing, China.

### Why customers stay

Margins ranged from 41.8% to 55.1% during 2023–25; it earns 3.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:10.243Z); FY2023: grossProfit / revenue = 55.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:10.243Z); FY2024: grossProfit / revenue = 52.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:10.243Z); FY2025: grossProfit / revenue = 41.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:10.243Z); 10-year return on capital observations [[2016,0.03558285962621245],[2017,0.04828044589450641],[2018,0.045248893342530655],[2019,0.039381937004661687],[2020,0.03725526238214824],[2021,0.045946580271878534],[2022,0.04327347262329292],[2023,0.03480159975316695],[2024,0.03130457833318584],[2025,0.030736208057635103]]; median 0.03831859969340497. 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 2026-10-16T07:35:10.243Z); FY2017: growth capex 4399858384.76; upkeep 2490758500; owner earnings 2450446440. Growth capex / owner earnings = 1.795533382382355.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:10.243Z); FY2019: growth capex 11064166770.88; upkeep 3210550000; owner earnings 2839736000. Growth capex / owner earnings = 3.896195551586485.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:10.243Z); FY2021: growth capex 24724546313.61; upkeep 5181604490; owner earnings 5624282083.43. Growth capex / owner earnings = 4.396035964563782.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:10.243Z); FY2022: growth capex 19879950073.59; upkeep 7850558000; owner earnings 6021685766.563206. Growth capex / owner earnings = 3.3013928066419527.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:10.243Z); FY2024: growth capex 19265592000; upkeep 11608173000; owner earnings 5356579757.763204. Growth capex / owner earnings = 3.5966218877033787.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:10.243Z); Dividend observations: [[2016,1111561474.37],[2017,1580251822.62],[2018,1421074988.71],[2019,5026365125.42],[2020,391130270],[2021,1082840900],[2022,607336559],[2023,6220096644],[2024,6576171000],[2025,6068234323.73]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 63.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600905.SHG SharesStats.PercentInsiders = 63.917 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 6.7% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:10.243Z); Ten-year compound average after fade. Initial solved rate 0.08279344842727687. Price 3.48; 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)

- 2021-06: CNY 6.36 per share

- 2021-07: CNY 6.12 per share

- 2021-08: CNY 5.50 per share

- 2021-09: CNY 7.37 per share

- 2021-10: CNY 7.24 per share

- 2021-11: CNY 6.64 per share

- 2021-12: CNY 7.51 per share

- 2022-01: CNY 6.86 per share

- 2022-02: CNY 7.13 per share

- 2022-03: CNY 6.14 per share

- 2022-04: CNY 5.82 per share

- 2022-05: CNY 6.21 per share

- 2022-06: CNY 6.29 per share

- 2022-07: CNY 6.28 per share

- 2022-08: CNY 6.10 per share

- 2022-09: CNY 5.63 per share

- 2022-10: CNY 5.57 per share

- 2022-11: CNY 5.80 per share

- 2022-12: CNY 5.65 per share

- 2023-01: CNY 5.75 per share

- 2023-02: CNY 5.59 per share

- 2023-03: CNY 5.48 per share

- 2023-04: CNY 5.42 per share

- 2023-05: CNY 5.43 per share

- 2023-06: CNY 5.37 per share

- 2023-07: CNY 5.39 per share

- 2023-08: CNY 4.92 per share

- 2023-09: CNY 4.78 per share

- 2023-10: CNY 4.80 per share

- 2023-11: CNY 4.60 per share

- 2023-12: CNY 4.37 per share

- 2024-01: CNY 4.43 per share

- 2024-02: CNY 4.62 per share

- 2024-03: CNY 4.69 per share

- 2024-04: CNY 4.69 per share

- 2024-05: CNY 4.67 per share

- 2024-06: CNY 4.36 per share

- 2024-07: CNY 4.86 per share

- 2024-08: CNY 4.57 per share

- 2024-09: CNY 4.85 per share

- 2024-10: CNY 4.75 per share

- 2024-11: CNY 4.56 per share

- 2024-12: CNY 4.37 per share

- 2025-01: CNY 4.20 per share

- 2025-02: CNY 4.20 per share

- 2025-03: CNY 4.23 per share

- 2025-04: CNY 4.26 per share

- 2025-05: CNY 4.29 per share

- 2025-06: CNY 4.26 per share

- 2025-07: CNY 4.33 per share

- 2025-08: CNY 4.25 per share

- 2025-09: CNY 4.25 per share

- 2025-10: CNY 4.25 per share

- 2025-11: CNY 4.18 per share

- 2025-12: CNY 4.09 per share

- 2026-01: CNY 4.11 per share

- 2026-02: CNY 4.16 per share

- 2026-03: CNY 4.26 per share

- 2026-04: CNY 4.09 per share

- 2026-05: CNY 4.17 per share

- 2026-06: CNY 3.71 per share

- 2026-07: CNY 3.90 per share

- 2026-08: CNY 3.71 per share

- 2026-09: CNY 3.52 per share

- 2026-10: CNY 3.55 per share

## Annual estimated value (CNY per share)

- FY2021: low CNY 2.62 per share, central CNY 2.92 per share, high CNY 3.31 per share

- FY2022: low CNY 2.60 per share, central CNY 2.92 per share, high CNY 3.34 per share

- FY2023: low CNY 2.70 per share, central CNY 3.05 per share, high CNY 3.52 per share

- FY2024: low CNY 2.18 per share, central CNY 2.47 per share, high CNY 2.84 per share

- FY2025: low CNY 2.06 per share, central CNY 2.33 per share, high CNY 2.68 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.