# Xian LONGi Silicon Materials (601012.SHG)

Canonical: https://gigainvestors.com/s/601012.SHG

Analysis as of: 2026-10-16T07:35:33.168Z. Financial observations: FY2007–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 10.77 per share; close as of 2026-10-15.

Estimated value: low CNY 9.88 per share, central CNY 10.38 per share, high CNY 11.05 per share. Buy at or below the central value CNY 10.38 per share. Valuation as of 2026-10-16T07:35:33.168Z; scenarios are not confidence intervals.

Expected annual return: 9.4% at the stated quote. About 9.4% 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: fail

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

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 2

- Operating margin variation: 1.00×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.15×

- FY2017: 0.24×

- FY2018: 0.13×

- FY2019: 0.19×

- FY2020: 0.18×

- FY2021: 0.13×

- FY2022: 0.13×

- FY2023: 0.09×

- FY2024: -0.12×

- FY2025: -0.06×

### moat: fail

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

- Recent gross margin fell 18.8pp below the typical margin (limit 4pp)

- ROIC, median of available years: 31.5%

- ROIC, second-lowest year: -14.1%

- Typical minus recent gross margin: 18.8 pp

- Typical gross margin (annual median): 19.6%

- Recent gross margin (lower of latest and 3-year median): 0.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 8.6%

- ROIC including acquisitions, ten-year median: 24.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 20.9%

- FY2017: 28.0%

- FY2018: 15.6%

- FY2019: 39.4%

- FY2020: 46.9%

- FY2021: 35.3%

- FY2022: 72.2%

- FY2023: 35.0%

- FY2024: -14.1%

- FY2025: -15.3%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.51×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 9.9B

- Net income, five-year total: CNY 20B

- Return on incremental invested capital: -276.7%

- Working capital / revenue, annual change: -2.6 pp

- Working capital / revenue, change between three-year averages: -18.3 pp

- Working capital / revenue, final three-year average: -3.2%

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

- FY2021: 0.94×

- FY2022: 0.96×

- FY2023: 0.47×

- FY2024: 1.38×

- FY2025: 0.93×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 20.9% vs -14.1%

- Per-share earnings: 0.25 to -0.85 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 5.4%

- Ordinary dilution, 5-year annual growth: 0.4%

- Market cap gain: CNY 113B

- Cumulative retained earnings: CNY 27B

- Diluted shares, 10-year annual growth: 5.4%

- Diluted shares, 5-year annual growth: 0.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: CNY -1.10

- Per-share value, starting three-year median: CNY 0.25

- Per-share value, ending three-year median: CNY -0.85

- Buybacks concentrated in cheaper years (correlation): -0.10

- Average buyback yield: 0.1%

- Buyback history: 5 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 1.2B

- Cumulative net income, 10 years: CNY 41B

- ROIC, first three-year median: 20.9%

- ROIC, last three-year median: -14.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.25

- FY2017: CNY 0.53

- FY2018: CNY 0.38

- FY2019: CNY 0.73

- FY2020: CNY 1.15

- FY2021: CNY 1.20

- FY2022: CNY 1.95

- FY2023: CNY 1.42

- FY2024: CNY -1.14

- FY2025: CNY -0.85

### accounting: pass

- Sloan accruals: -7.0%

- Receivables to sales index (DSRI): 0.66×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 5.3%

- FY2017: 6.8%

- FY2018: 3.5%

- FY2019: -4.9%

- FY2020: -2.8%

- FY2021: -3.3%

- FY2022: -6.8%

- FY2023: 1.6%

- FY2024: -2.5%

- FY2025: -7.0%

## Holders

## Price story

Down 85% since Oct 2021 · sales -14.8%

Story as of 2026-10-16T10:00:05.529Z; price observation 2026-10-15.

Price needs cash profits to grow 2% a year for ten years

### Sales · FY2024–2025

sales -14.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 12B 

- FY2017: CNY 16B 

- FY2018: CNY 22B 

- FY2019: CNY 33B 

- FY2020: CNY 55B 

- FY2021: CNY 81B 

- FY2022: CNY 129B 

- FY2023: CNY 129B 

- FY2024: CNY 83B 

- FY2025: CNY 70B 

### Gross margin · FY2025

gross margin 0.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 25.3% 

- FY2017: 31.7% 

- FY2018: 19.3% 

- FY2019: 27.8% 

- FY2020: 23.9% 

- FY2021: 19.9% 

- FY2022: 14.6% 

- FY2023: 14.5% 

- FY2025: 0.8% 

## Owner memo

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

### How it makes money

Operates in semiconductor equipment & materials; annual sales are CNY 70.3 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.168Z); FY2025: revenue 70347049950.42; grossProfit 569650360.45; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601012.SHG: LONGi Green Energy Technology Co., Ltd. manufactures and sells monocrystalline silicon wafers, solar modules, and green hydrogen equipment in China, Europe, the Asia Pacific, and the United States. The company offers monocrystalline silicon wafers, including tere, p-type, and n-type silicon wafers; high conversion rate components comprising Hi-MO X10, Hi-MO 9, Hi-MO 7, Hi-MO X6 Max, Hi-MO X6, Hi-MO 5m, and Hi-MO 5; green hydrogen production equipment that include ALK Hi1 and ALK G; and building photovoltaics, such as LONGi Hi ROOF S and E, as well as Longji Longding 6 and Longjin 3. It also provides solutions for distributed photovoltaic power stations, ground-mounted photovoltaic power stations, and building-integrated photovoltaics. The company was formerly known as Xi'an LONGI Silicon Materials Corp. and changed its name to LONGi Green Energy Technology Co., Ltd. in January 2017. LONGi Green Energy Technology Co., Ltd. was founded in 2000 and is based in Xi'an, China.

### Why customers stay

It earns 31.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.168Z); FY2023: grossProfit / revenue = 14.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.168Z); FY2024: grossProfit / revenue = 0%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.168Z); FY2025: grossProfit / revenue = 0.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.168Z); 10-year return on capital observations [[2016,0.20935470247192411],[2017,0.27983594188876915],[2018,0.1558759733698635],[2019,0.39420317640222563],[2020,0.4694794657143798],[2021,0.35270729611746676],[2022,0.7217137010158237],[2023,0.35022323845844033],[2024,-0.1405170693530228],[2025,-0.15282120118300468]]; median 0.31502959017360477. 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 2026-10-16T07:35:33.168Z); FY2016: growth capex 1683559742; upkeep 398270150; owner earnings 1547235768. Growth capex / owner earnings = 1.0881080807588983.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.168Z); FY2017: growth capex 3280148011; upkeep 665009729; owner earnings 3564525612. Growth capex / owner earnings = 0.9202200707879217.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.168Z); FY2018: growth capex 2757284216; upkeep 1066788929; owner earnings 2557964099. Growth capex / owner earnings = 1.0779213895448811.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.168Z); FY2019: growth capex 1335807044; upkeep 1353795301; owner earnings 5279552081. Growth capex / owner earnings = 0.2530152224101149.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.168Z); FY2020: growth capex 2784411637; upkeep 2042182000; owner earnings 8552369000. Growth capex / owner earnings = 0.32557197157886897.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.168Z); FY2021: growth capex 2026864039; upkeep 2877108000; owner earnings 8545356906.93. Growth capex / owner earnings = 0.2371889273994256.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.168Z); FY2022: growth capex 1738792066; upkeep 3268937000; owner earnings 14233947459.038. Growth capex / owner earnings = 0.12215810624591951.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.168Z); FY2023: growth capex 206430580.83264923; upkeep 9049133419.16735; owner earnings 5009984360.022649. Growth capex / owner earnings = 0.04120383737719213.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.168Z); Dividend observations: [[2016,126246607],[2017,430834156],[2018,669469586],[2019,720668355],[2020,1780242094],[2021,1155978839],[2022,1558401407],[2023,3162218565],[2024,1287310000],[2025,476093822.71]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 23.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601012.SHG SharesStats.PercentInsiders = 23.24 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 2% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:33.168Z); Ten-year compound average after fade. Initial solved rate 0.0160337474967146. Price 10.77; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.11692072965344238 → FY2025 -0.7931060048050169. Closing-price date 2026-10-15.

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

- 2016-11: CNY 4.06 per share

- 2016-12: CNY 3.95 per share

- 2017-01: CNY 4.30 per share

- 2017-02: CNY 4.34 per share

- 2017-03: CNY 4.66 per share

- 2017-04: CNY 5.00 per share

- 2017-05: CNY 4.36 per share

- 2017-06: CNY 5.04 per share

- 2017-07: CNY 6.59 per share

- 2017-08: CNY 6.31 per share

- 2017-09: CNY 8.69 per share

- 2017-10: CNY 9.67 per share

- 2017-11: CNY 9.44 per share

- 2017-12: CNY 10.74 per share

- 2018-01: CNY 11.35 per share

- 2018-02: CNY 10.15 per share

- 2018-03: CNY 10.10 per share

- 2018-04: CNY 10.15 per share

- 2018-05: CNY 9.97 per share

- 2018-06: CNY 6.89 per share

- 2018-07: CNY 6.47 per share

- 2018-08: CNY 5.61 per share

- 2018-09: CNY 5.86 per share

- 2018-10: CNY 5.59 per share

- 2018-11: CNY 7.68 per share

- 2018-12: CNY 7.20 per share

- 2019-01: CNY 9.15 per share

- 2019-02: CNY 11.18 per share

- 2019-03: CNY 10.77 per share

- 2019-04: CNY 11.58 per share

- 2019-05: CNY 12.16 per share

- 2019-06: CNY 11.79 per share

- 2019-07: CNY 13.13 per share

- 2019-08: CNY 14.11 per share

- 2019-09: CNY 13.38 per share

- 2019-10: CNY 11.65 per share

- 2019-11: CNY 12.17 per share

- 2019-12: CNY 12.67 per share

- 2020-01: CNY 14.82 per share

- 2020-02: CNY 15.66 per share

- 2020-03: CNY 12.67 per share

- 2020-04: CNY 15.72 per share

- 2020-05: CNY 16.54 per share

- 2020-06: CNY 20.78 per share

- 2020-07: CNY 28.98 per share

- 2020-08: CNY 32.29 per share

- 2020-09: CNY 38.27 per share

- 2020-10: CNY 38.77 per share

- 2020-11: CNY 35.05 per share

- 2020-12: CNY 47.04 per share

- 2021-01: CNY 54.87 per share

- 2021-02: CNY 53.30 per share

- 2021-03: CNY 44.90 per share

- 2021-04: CNY 50.71 per share

- 2021-05: CNY 52.09 per share

- 2021-06: CNY 63.46 per share

- 2021-07: CNY 61.37 per share

- 2021-08: CNY 63.90 per share

- 2021-09: CNY 58.91 per share

- 2021-10: CNY 69.78 per share

- 2021-11: CNY 62.44 per share

- 2021-12: CNY 61.57 per share

- 2022-01: CNY 50.08 per share

- 2022-02: CNY 55.48 per share

- 2022-03: CNY 51.56 per share

- 2022-04: CNY 48.54 per share

- 2022-05: CNY 56.57 per share

- 2022-06: CNY 66.63 per share

- 2022-07: CNY 61.50 per share

- 2022-08: CNY 51.20 per share

- 2022-09: CNY 47.91 per share

- 2022-10: CNY 47.98 per share

- 2022-11: CNY 45.78 per share

- 2022-12: CNY 42.26 per share

- 2023-01: CNY 48.15 per share

- 2023-02: CNY 44.24 per share

- 2023-03: CNY 40.41 per share

- 2023-04: CNY 34.87 per share

- 2023-05: CNY 28.82 per share

- 2023-06: CNY 28.67 per share

- 2023-07: CNY 29.85 per share

- 2023-08: CNY 26.55 per share

- 2023-09: CNY 27.28 per share

- 2023-10: CNY 24.13 per share

- 2023-11: CNY 21.23 per share

- 2023-12: CNY 22.90 per share

- 2024-01: CNY 19.35 per share

- 2024-02: CNY 21.24 per share

- 2024-03: CNY 19.51 per share

- 2024-04: CNY 18.20 per share

- 2024-05: CNY 18.59 per share

- 2024-06: CNY 14.02 per share

- 2024-07: CNY 14.50 per share

- 2024-08: CNY 13.81 per share

- 2024-09: CNY 17.56 per share

- 2024-10: CNY 19.74 per share

- 2024-11: CNY 18.50 per share

- 2024-12: CNY 15.71 per share

- 2025-01: CNY 14.90 per share

- 2025-02: CNY 16.71 per share

- 2025-03: CNY 15.85 per share

- 2025-04: CNY 14.70 per share

- 2025-05: CNY 14.38 per share

- 2025-06: CNY 15.02 per share

- 2025-07: CNY 15.76 per share

- 2025-08: CNY 17.17 per share

- 2025-09: CNY 18.00 per share

- 2025-10: CNY 21.11 per share

- 2025-11: CNY 18.57 per share

- 2025-12: CNY 18.20 per share

- 2026-01: CNY 17.88 per share

- 2026-02: CNY 18.32 per share

- 2026-03: CNY 17.54 per share

- 2026-04: CNY 16.46 per share

- 2026-05: CNY 13.89 per share

- 2026-06: CNY 13.12 per share

- 2026-07: CNY 12.99 per share

- 2026-08: CNY 12.07 per share

- 2026-09: CNY 11.21 per share

- 2026-10: CNY 11.05 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 2.53 per share, central CNY 2.75 per share, high CNY 3.05 per share

- FY2017: low CNY 4.11 per share, central CNY 5.35 per share, high CNY 6.07 per share

- FY2018: low CNY 6.21 per share, central CNY 8.42 per share, high CNY 9.70 per share

- FY2019: low CNY 10.86 per share, central CNY 14.41 per share, high CNY 16.47 per share

- FY2020: low CNY 19.16 per share, central CNY 25.87 per share, high CNY 29.78 per share

- FY2021: low CNY 26.36 per share, central CNY 36.09 per share, high CNY 41.76 per share

- FY2022: low CNY 33.68 per share, central CNY 45.19 per share, high CNY 51.89 per share

- FY2023: low CNY 32.85 per share, central CNY 43.84 per share, high CNY 50.24 per share

- FY2024: low CNY 19.53 per share, central CNY 21.28 per share, high CNY 23.61 per share

- FY2025: low CNY 11.13 per share, central CNY 11.68 per share, high CNY 12.40 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.