# China National Nuclear Power (601985.SHG)

Canonical: https://gigainvestors.com/s/601985.SHG

Analysis as of: 2026-10-16T07:34:21.192Z. 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 9.41 per share; close as of 2026-10-15.

## Checklist

### understandable: pass

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

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.16×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.21×

- FY2017: 0.28×

- FY2018: 0.26×

- FY2019: 0.22×

- FY2020: 0.25×

- FY2021: 0.27×

- FY2022: 0.28×

- FY2023: 0.30×

- FY2024: 0.29×

- FY2025: 0.37×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 3.9%

- ROIC, second-lowest year: 3.3%

- Typical minus recent gross margin: 0.8 pp

- Typical gross margin (annual median): 42.2%

- Recent gross margin (lower of latest and 3-year median): 41.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 70.2%

- ROIC including acquisitions, ten-year median: 2.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 2.6%

- FY2017: 3.6%

- FY2018: 3.6%

- FY2019: 3.3%

- FY2020: 4.0%

- FY2021: 4.9%

- FY2022: 5.0%

- FY2023: 5.4%

- FY2024: 3.8%

- FY2025: 4.6%

### 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: -0.58×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY -26B

- Net income, five-year total: CNY 46B

- Return on incremental invested capital: 5.3%

- Working capital / revenue, annual change: 2.9 pp

- Working capital / revenue, change between three-year averages: 23.0 pp

- Working capital / revenue, final three-year average: 43.4%

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

- FY2021: 0.93×

- FY2022: 0.97×

- FY2023: -0.58×

- FY2024: -2.65×

- FY2025: -1.45×

### management: fail

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

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 3.6% vs 4.6%

- Per-share earnings: 0.29 to 0.46 (three-year endpoint medians)

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

- Management verdict uses per-share economic progress: Yes

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

- Ordinary dilution, 5-year annual growth: 3.3%

- Market cap gain: CNY 68B

- Cumulative retained earnings: CNY 36B

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

- Diluted shares, 5-year annual growth: 3.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 6.1%

- Per-share value change: CNY 0.17

- Per-share value, starting three-year median: CNY 0.29

- Per-share value, ending three-year median: CNY 0.46

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 14B

- Cumulative net income, 10 years: CNY 70B

- ROIC, first three-year median: 3.6%

- ROIC, last three-year median: 4.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.29

- FY2017: CNY 0.29

- FY2018: CNY 0.30

- FY2019: CNY 0.30

- FY2020: CNY 0.34

- FY2021: CNY 0.44

- FY2022: CNY 0.47

- FY2023: CNY 0.55

- FY2024: CNY 0.46

- FY2025: CNY 0.45

### accounting: pass

- Sloan accruals: -3.8%

- Receivables to sales index (DSRI): 0.89×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 4.02×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.12×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.0%

- FY2017: -5.1%

- FY2018: -5.8%

- FY2019: -6.1%

- FY2020: -6.6%

- FY2021: -6.7%

- FY2022: -8.1%

- FY2023: -6.0%

- FY2024: -4.8%

- FY2025: -3.8%

## Holders

## Price story

Up 27% since Oct 2023 · sales +6.2%

Story as of 2026-10-16T10:00:00.189Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales +6.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 30B 

- FY2017: CNY 34B 

- FY2018: CNY 39B 

- FY2019: CNY 47B 

- FY2020: CNY 52B 

- FY2021: CNY 63B 

- FY2022: CNY 71B 

- FY2023: CNY 75B 

- FY2024: CNY 77B 

- FY2025: CNY 82B 

### Gross margin · FY2025

gross margin 41.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 40.8% 

- FY2017: 39.5% 

- FY2018: 41.3% 

- FY2019: 41.8% 

- FY2020: 44.4% 

- FY2021: 43.9% 

- FY2022: 45.3% 

- FY2023: 44.3% 

- FY2024: 42.5% 

- FY2025: 41.3% 

## Owner memo

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

### How it makes money

Operates in utilities regulated electric; annual sales are CNY 82.1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.192Z); FY2025: revenue 82075495244.95; grossProfit 33914388480.64; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 41.3% to 44.3% during 2023–25; it earns 3.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.192Z); FY2023: grossProfit / revenue = 44.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.192Z); FY2024: grossProfit / revenue = 42.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.192Z); FY2025: grossProfit / revenue = 41.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.192Z); 10-year return on capital observations [[2016,0.02552981883144621],[2017,0.03557887353935096],[2018,0.03563574652026714],[2019,0.033081093442813805],[2020,0.03992446935599501],[2021,0.04852067890883864],[2022,0.0500139027728187],[2023,0.054300518981809605],[2024,0.03755126197304859],[2025,0.04629623682138383]]; median 0.038737865664521795. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 45% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.192Z); Gross margin observations: [[2021,0.43852987975352825],[2022,0.4528811084864109],[2023,0.44323136222574006]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.192Z); FY2016: growth capex 16939852344.93; upkeep 6908471000; owner earnings 4488674000. Growth capex / owner earnings = 3.7739101447175716.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.192Z); FY2017: growth capex 15485788657.71; upkeep 8023707000; owner earnings 4533316000. Growth capex / owner earnings = 3.415995853302527.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.192Z); FY2018: growth capex 13517637704.400002; upkeep 9655604000; owner earnings 4736863000. Growth capex / owner earnings = 2.853710927337354.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.192Z); FY2019: growth capex 12945116800.11; upkeep 11603972000; owner earnings 4757610000. Growth capex / owner earnings = 2.7209285334674345.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.192Z); FY2020: growth capex 12154127132.52; upkeep 11778564000; owner earnings 5995452000. Growth capex / owner earnings = 2.0272244915846214.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.192Z); FY2021: growth capex 11061152352.919998; upkeep 14061526000; owner earnings 7637840794.004. Growth capex / owner earnings = 1.4482040999864032.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.192Z); FY2022: growth capex 35090288296.36; upkeep 15419312000; owner earnings 8702349039.785856. Growth capex / owner earnings = 4.032277737416918.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.192Z); Dividend observations: [[2016,8844055266.58],[2017,9694356750.39],[2018,10620928099.78],[2019,1923851600],[2020,1898986213],[2021,2269282535],[2022,2827560263],[2023,3210158427],[2024,14986246000],[2025,13638666382.24]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 63.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601985.SHG SharesStats.PercentInsiders = 63.547 percentage points; cache date 2026-10-16.

### What the price says

The price is 2.4 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.192Z); Closing price 9.41 CNY; reporting-to-trading FX 1; FY2025 annual sales per share 3.9960612674515064; price multiple 2.3548187503144167. FY2025 cash earnings/share -0.6554961663382404. Closing-price date 2026-10-15.

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

- 2016-10: CNY 6.76 per share

- 2016-11: CNY 7.32 per share

- 2016-12: CNY 7.06 per share

- 2017-01: CNY 7.05 per share

- 2017-02: CNY 7.28 per share

- 2017-03: CNY 7.26 per share

- 2017-04: CNY 7.74 per share

- 2017-05: CNY 7.72 per share

- 2017-06: CNY 7.81 per share

- 2017-07: CNY 7.82 per share

- 2017-08: CNY 7.72 per share

- 2017-09: CNY 7.46 per share

- 2017-10: CNY 7.79 per share

- 2017-11: CNY 7.35 per share

- 2017-12: CNY 7.35 per share

- 2018-01: CNY 7.60 per share

- 2018-02: CNY 7.19 per share

- 2018-03: CNY 6.72 per share

- 2018-04: CNY 6.67 per share

- 2018-05: CNY 6.12 per share

- 2018-06: CNY 5.65 per share

- 2018-07: CNY 5.74 per share

- 2018-08: CNY 5.85 per share

- 2018-09: CNY 6.01 per share

- 2018-10: CNY 5.57 per share

- 2018-11: CNY 5.32 per share

- 2018-12: CNY 5.27 per share

- 2019-01: CNY 5.39 per share

- 2019-02: CNY 5.99 per share

- 2019-03: CNY 6.05 per share

- 2019-04: CNY 5.88 per share

- 2019-05: CNY 5.52 per share

- 2019-06: CNY 5.56 per share

- 2019-07: CNY 5.63 per share

- 2019-08: CNY 5.39 per share

- 2019-09: CNY 5.29 per share

- 2019-10: CNY 5.06 per share

- 2019-11: CNY 4.86 per share

- 2019-12: CNY 5.00 per share

- 2020-01: CNY 4.85 per share

- 2020-02: CNY 4.59 per share

- 2020-03: CNY 4.40 per share

- 2020-04: CNY 4.33 per share

- 2020-05: CNY 4.03 per share

- 2020-06: CNY 4.09 per share

- 2020-07: CNY 4.34 per share

- 2020-08: CNY 4.66 per share

- 2020-09: CNY 4.39 per share

- 2020-10: CNY 4.43 per share

- 2020-11: CNY 4.91 per share

- 2020-12: CNY 4.92 per share

- 2021-01: CNY 5.15 per share

- 2021-02: CNY 5.17 per share

- 2021-03: CNY 5.50 per share

- 2021-04: CNY 5.22 per share

- 2021-05: CNY 5.21 per share

- 2021-06: CNY 5.06 per share

- 2021-07: CNY 4.80 per share

- 2021-08: CNY 5.48 per share

- 2021-09: CNY 7.21 per share

- 2021-10: CNY 6.85 per share

- 2021-11: CNY 6.83 per share

- 2021-12: CNY 8.30 per share

- 2022-01: CNY 7.05 per share

- 2022-02: CNY 7.40 per share

- 2022-03: CNY 8.11 per share

- 2022-04: CNY 7.13 per share

- 2022-05: CNY 7.26 per share

- 2022-06: CNY 6.86 per share

- 2022-07: CNY 6.17 per share

- 2022-08: CNY 6.37 per share

- 2022-09: CNY 5.85 per share

- 2022-10: CNY 6.03 per share

- 2022-11: CNY 6.24 per share

- 2022-12: CNY 6.00 per share

- 2023-01: CNY 6.04 per share

- 2023-02: CNY 6.06 per share

- 2023-03: CNY 6.39 per share

- 2023-04: CNY 6.90 per share

- 2023-05: CNY 7.04 per share

- 2023-06: CNY 7.05 per share

- 2023-07: CNY 7.31 per share

- 2023-08: CNY 7.20 per share

- 2023-09: CNY 7.30 per share

- 2023-10: CNY 7.42 per share

- 2023-11: CNY 7.03 per share

- 2023-12: CNY 7.50 per share

- 2024-01: CNY 8.29 per share

- 2024-02: CNY 8.68 per share

- 2024-03: CNY 9.19 per share

- 2024-04: CNY 9.24 per share

- 2024-05: CNY 9.58 per share

- 2024-06: CNY 10.66 per share

- 2024-07: CNY 11.03 per share

- 2024-08: CNY 10.94 per share

- 2024-09: CNY 11.15 per share

- 2024-10: CNY 10.06 per share

- 2024-11: CNY 9.43 per share

- 2024-12: CNY 10.43 per share

- 2025-01: CNY 9.76 per share

- 2025-02: CNY 9.58 per share

- 2025-03: CNY 9.21 per share

- 2025-04: CNY 9.23 per share

- 2025-05: CNY 9.58 per share

- 2025-06: CNY 9.32 per share

- 2025-07: CNY 9.19 per share

- 2025-08: CNY 8.91 per share

- 2025-09: CNY 8.71 per share

- 2025-10: CNY 8.98 per share

- 2025-11: CNY 8.63 per share

- 2025-12: CNY 8.65 per share

- 2026-01: CNY 8.61 per share

- 2026-02: CNY 8.52 per share

- 2026-03: CNY 9.05 per share

- 2026-04: CNY 8.99 per share

- 2026-05: CNY 9.04 per share

- 2026-06: CNY 9.03 per share

- 2026-07: CNY 9.06 per share

- 2026-08: CNY 8.89 per share

- 2026-09: CNY 9.07 per share

- 2026-10: CNY 9.13 per share

## Annual estimated value (CNY per share)

- FY2017: low CNY 4.06 per share, central CNY 5.04 per share, high CNY 5.81 per share

- FY2018: low CNY 4.47 per share, central CNY 5.51 per share, high CNY 6.36 per share

- FY2019: low CNY 5.57 per share, central CNY 7.11 per share, high CNY 8.21 per share

- FY2020: low CNY 5.26 per share, central CNY 6.54 per share, high CNY 7.51 per share

- FY2021: low CNY 5.90 per share, central CNY 7.87 per share, high CNY 9.12 per share

- FY2022: low CNY 6.47 per share, central CNY 9.06 per share, high CNY 10.57 per share

- FY2023: low CNY 6.33 per share, central CNY 8.94 per share, high CNY 10.46 per share

- FY2024: low CNY 6.86 per share, central CNY 9.59 per share, high CNY 11.17 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.