# Flat Glass Group (601865.SHG)

Canonical: https://gigainvestors.com/s/601865.SHG

Analysis as of: 2026-10-16T07:39:12.277Z. Financial observations: FY2012–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 8.83 per share; close as of 2026-10-15.

## 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: 0

- Operating margin variation: 0.41×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.26×

- FY2017: 0.17×

- FY2018: 0.15×

- FY2019: 0.18×

- FY2020: 0.30×

- FY2021: 0.27×

- FY2022: 0.14×

- FY2023: 0.14×

- FY2024: 0.06×

- FY2025: 0.10×

### moat: fail

- ROIC median below threshold

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

- Recent gross margin fell 11.6pp below the typical margin (limit 4pp)

- ROIC, median of available years: 9.9%

- ROIC, second-lowest year: 4.6%

- Typical minus recent gross margin: 11.6 pp

- Typical gross margin (annual median): 27.4%

- Recent gross margin (lower of latest and 3-year median): 15.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 26.6%

- ROIC including acquisitions, ten-year median: 8.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 24.7%

- FY2017: 12.7%

- FY2018: 8.4%

- FY2019: 10.7%

- FY2020: 19.4%

- FY2021: 15.2%

- FY2022: 8.9%

- FY2023: 9.1%

- FY2024: 3.2%

- FY2025: 4.6%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.45×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 4.1B

- Net income, five-year total: CNY 9.0B

- Return on incremental invested capital: 4.4%

- Working capital / revenue, annual change: -0.8 pp

- Working capital / revenue, change between three-year averages: -5.8 pp

- Working capital / revenue, final three-year average: 19.4%

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

- FY2021: 0.66×

- FY2022: 1.00×

- FY2023: 0.96×

- FY2024: -2.04×

- FY2025: -0.04×

### management: pass

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 12.7% vs 4.6%

- Per-share earnings: 0.30 to 0.43 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 4.9%

- Ordinary dilution, 5-year annual growth: 0.7%

- Diluted shares, 10-year annual growth: 4.9%

- Diluted shares, 5-year annual growth: 0.7%

- Per-share value growth: 4.6%

- Per-share value change: CNY 0.13

- Per-share value, starting three-year median: CNY 0.30

- Per-share value, ending three-year median: CNY 0.43

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.5%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 6.1B

- Cumulative net income, 10 years: CNY 13B

- ROIC, first three-year median: 12.7%

- ROIC, last three-year median: 4.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.34

- FY2017: CNY 0.24

- FY2018: CNY 0.23

- FY2019: CNY 0.39

- FY2020: CNY 0.73

- FY2021: CNY 0.99

- FY2022: CNY 0.99

- FY2023: CNY 1.17

- FY2024: CNY 0.43

- FY2025: CNY 0.42

### accounting: pass

- Sloan accruals: -4.6%

- Receivables to sales index (DSRI): 1.21×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.99×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.28×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -9.8%

- FY2017: 2.2%

- FY2018: 0.1%

- FY2019: 2.2%

- FY2020: -0.6%

- FY2021: 7.7%

- FY2022: 6.0%

- FY2023: 1.8%

- FY2024: -11.4%

- FY2025: -4.6%

## Holders

## Price story

Down 85% since Dec 2021 · sales -16.9%

Story as of 2026-10-16T10:00:10.602Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales -16.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 3.0B 

- FY2017: CNY 3.0B 

- FY2018: CNY 3.1B 

- FY2019: CNY 4.8B 

- FY2020: CNY 6.3B 

- FY2021: CNY 8.7B 

- FY2022: CNY 15B 

- FY2023: CNY 22B 

- FY2024: CNY 19B 

- FY2025: CNY 16B 

### Gross margin · FY2025

gross margin 15.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 36.8% 

- FY2017: 27.8% 

- FY2018: 27.0% 

- FY2019: 31.5% 

- FY2020: 42.4% 

- FY2021: 35.4% 

- FY2022: 22.0% 

- FY2023: 21.7% 

- FY2024: 15.1% 

- FY2025: 15.8% 

## Owner memo

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

### How it makes money

Operates in solar; annual sales are CNY 15.5 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:12.277Z); FY2025: revenue 15519098717; grossProfit 2458564224; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601865.SHG: Flat Glass Group Co., Ltd., together with its subsidiaries, engages in the manufacture and sale of glass products in the People's Republic of China, the rest of Asia, Europe, North America, and internationally. It operates through PV Glass, Household Glass, Architectural Glass, Float Glass, Mining Products, Electricity Generation Revenue, and Other Business segments. The company is also involved in the mining operations and sale of quartzite ores; investment, construction, operation, and maintenance of energy power plants; and sale and installation of natural gas pipelines. In addition, it offers supply chain management services; operates ports; and exports glass products. Further, the company engages in the development and sale of energy technologies and equipment; energy management; cargo handling and transportation; manufacturing and sale of equipment and non-metallic mineral products; research and development for new materials and technologies; manufacture and sale of photovoltaic glasses; and the construction of solar photovoltaic power stations, as well as the sale of electricity. It serves photovoltaic (PV) module manufacturers, glass processing manufacturers, glass wholesalers, furniture manufacturers and processing companies, furniture retailers, architectural contractors, architectural glass processing companies, and construction companies. Flat Glass Group Co., Ltd. was founded in 1998 and is headquartered in Jiaxing, the People's Republic of China.

### Why customers stay

Margins ranged from 15.1% to 21.7% during 2023–25; it earns 9.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:12.277Z); FY2023: grossProfit / revenue = 21.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:12.277Z); FY2024: grossProfit / revenue = 15.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:12.277Z); FY2025: grossProfit / revenue = 15.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:12.277Z); 10-year return on capital observations [[2016,0.2474509068313331],[2017,0.12706014890656814],[2018,0.08402035945020664],[2019,0.10722373481933807],[2020,0.1939012455380199],[2021,0.15201895798268733],[2022,0.0888845743742373],[2023,0.09101178047328352],[2024,0.032155446642003996],[2025,0.046292292510912735]]; median 0.0991177576463108. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back CNY 74.8 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:12.277Z); FY2016: growth capex 30011875.09800166; upkeep 364981124.90199834; owner earnings 471433875.09800166. Growth capex / owner earnings = 0.06366083704053467.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:12.277Z); FY2017: growth capex 17196413.2030859; upkeep 526175586.7969141; owner earnings 128015413.2030859. Growth capex / owner earnings = 0.13433080261831604.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:12.277Z); FY2019: growth capex 972591421; upkeep 329143087; owner earnings 717243717. Growth capex / owner earnings = 1.3560124654253332.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:12.277Z); FY2020: growth capex 1323972698.027556; upkeep 626155408.8724442; owner earnings 1400903733.1275558. Growth capex / owner earnings = 0.945084709762141.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:12.277Z); FY2021: growth capex 2511822855.6094704; upkeep 1256878878.3905296; owner earnings 1399923065.9654703. Growth capex / owner earnings = 1.7942577822140302.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:12.277Z); FY2022: growth capex 6766314223; upkeep 1305018162; owner earnings 2120257072.684. Growth capex / owner earnings = 3.1912706766423513.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:12.277Z); FY2023: growth capex 3791958852; upkeep 1820384355; owner earnings 2644533372.436. Growth capex / owner earnings = 1.4338858006193562.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:12.277Z); Dividend observations: [[2016,261275000],[2017,124245000],[2018,6480000],[2019,140400000],[2020,127049000],[2021,321928988],[2022,741173921],[2023,559615055],[2024,1571204254],[2025,335796278.34]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:12.277Z); FY2025: cash repurchases 74768333 CNY.

### Are managers owners

Insiders own 66% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601865.SHG SharesStats.PercentInsiders = 65.99199999999999 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 2026-10-16T07:39:12.277Z); Closing price 8.83 CNY; reporting-to-trading FX 1; FY2025 annual sales per share 6.662182046711992; price multiple 1.3253915816302104. FY2025 cash earnings/share -0.016254153548517707. Closing-price date 2026-10-15.

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

- 2019-02: CNY 6.79 per share

- 2019-03: CNY 14.60 per share

- 2019-04: CNY 13.19 per share

- 2019-05: CNY 12.23 per share

- 2019-06: CNY 10.16 per share

- 2019-07: CNY 8.99 per share

- 2019-08: CNY 10.42 per share

- 2019-09: CNY 10.13 per share

- 2019-10: CNY 9.15 per share

- 2019-11: CNY 9.75 per share

- 2019-12: CNY 12.13 per share

- 2020-01: CNY 13.12 per share

- 2020-02: CNY 12.85 per share

- 2020-03: CNY 10.21 per share

- 2020-04: CNY 12.87 per share

- 2020-05: CNY 13.02 per share

- 2020-06: CNY 18.80 per share

- 2020-07: CNY 22.79 per share

- 2020-08: CNY 24.04 per share

- 2020-09: CNY 29.92 per share

- 2020-10: CNY 40.80 per share

- 2020-11: CNY 34.40 per share

- 2020-12: CNY 39.90 per share

- 2021-01: CNY 35.08 per share

- 2021-02: CNY 32.36 per share

- 2021-03: CNY 26.91 per share

- 2021-04: CNY 28.44 per share

- 2021-05: CNY 30.37 per share

- 2021-06: CNY 39.53 per share

- 2021-07: CNY 42.85 per share

- 2021-08: CNY 58.65 per share

- 2021-09: CNY 46.15 per share

- 2021-10: CNY 55.01 per share

- 2021-11: CNY 45.53 per share

- 2021-12: CNY 57.94 per share

- 2022-01: CNY 48.84 per share

- 2022-02: CNY 49.00 per share

- 2022-03: CNY 45.00 per share

- 2022-04: CNY 40.60 per share

- 2022-05: CNY 43.93 per share

- 2022-06: CNY 38.10 per share

- 2022-07: CNY 41.09 per share

- 2022-08: CNY 40.03 per share

- 2022-09: CNY 32.70 per share

- 2022-10: CNY 34.30 per share

- 2022-11: CNY 35.19 per share

- 2022-12: CNY 33.31 per share

- 2023-01: CNY 37.59 per share

- 2023-02: CNY 34.55 per share

- 2023-03: CNY 34.31 per share

- 2023-04: CNY 30.63 per share

- 2023-05: CNY 32.28 per share

- 2023-06: CNY 38.51 per share

- 2023-07: CNY 35.05 per share

- 2023-08: CNY 30.88 per share

- 2023-09: CNY 28.32 per share

- 2023-10: CNY 25.80 per share

- 2023-11: CNY 25.31 per share

- 2023-12: CNY 26.70 per share

- 2024-01: CNY 20.41 per share

- 2024-02: CNY 21.78 per share

- 2024-03: CNY 28.49 per share

- 2024-04: CNY 26.63 per share

- 2024-05: CNY 24.62 per share

- 2024-06: CNY 20.10 per share

- 2024-07: CNY 18.85 per share

- 2024-08: CNY 16.86 per share

- 2024-09: CNY 20.22 per share

- 2024-10: CNY 28.75 per share

- 2024-11: CNY 25.50 per share

- 2024-12: CNY 19.69 per share

- 2025-01: CNY 19.03 per share

- 2025-02: CNY 21.73 per share

- 2025-03: CNY 17.80 per share

- 2025-04: CNY 15.02 per share

- 2025-05: CNY 14.37 per share

- 2025-06: CNY 15.21 per share

- 2025-07: CNY 16.28 per share

- 2025-08: CNY 17.76 per share

- 2025-09: CNY 17.25 per share

- 2025-10: CNY 18.51 per share

- 2025-11: CNY 16.14 per share

- 2025-12: CNY 15.67 per share

- 2026-01: CNY 16.11 per share

- 2026-02: CNY 17.08 per share

- 2026-03: CNY 14.19 per share

- 2026-04: CNY 13.52 per share

- 2026-05: CNY 11.66 per share

- 2026-06: CNY 10.51 per share

- 2026-07: CNY 10.08 per share

- 2026-08: CNY 10.03 per share

- 2026-09: CNY 9.22 per share

- 2026-10: CNY 9.24 per share

## Annual estimated value (CNY 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.