# Hoshine Silicon Ind (603260.SHG)

Canonical: https://gigainvestors.com/s/603260.SHG

Analysis as of: 2026-10-16T07:37:12.609Z. Financial observations: FY2012–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 31.25 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: 1

- Operating margin variation: 0.60×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.15×

- FY2017: 0.26×

- FY2018: 0.30×

- FY2019: 0.14×

- FY2020: 0.18×

- FY2021: 0.46×

- FY2022: 0.27×

- FY2023: 0.13×

- FY2024: 0.09×

- FY2025: 0.02×

### moat: fail

- ROIC median below threshold

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

- Recent gross margin fell 22.1pp below the typical margin (limit 4pp)

- ROIC, median of available years: 11.7%

- ROIC, second-lowest year: 3.3%

- Typical minus recent gross margin: 22.1 pp

- Typical gross margin (annual median): 29.4%

- Recent gross margin (lower of latest and 3-year median): 7.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 18.7%

- ROIC including acquisitions, ten-year median: 6.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 14.8%

- FY2017: 24.6%

- FY2018: 27.2%

- FY2019: 9.0%

- FY2020: 9.9%

- FY2021: 37.9%

- FY2022: 13.5%

- FY2023: 4.2%

- FY2024: 3.3%

- FY2025: 0.6%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: -0.28×

- Cash conversion uses consolidated totals: No

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

- Net income, five-year total: CNY 15B

- Return on incremental invested capital: 0.4%

- Working capital / revenue, annual change: -1.7 pp

- Working capital / revenue, change between three-year averages: -13.7 pp

- Working capital / revenue, final three-year average: -34.6%

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

- FY2021: 1.00×

- FY2022: -0.36×

- FY2023: -3.56×

- FY2024: -0.35×

- FY2025: 0.17×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 24.6% vs 3.3%

- Per-share earnings: 0.77 to 1.48 (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: 3.2%

- Ordinary dilution, 5-year annual growth: 4.8%

- Market cap gain: CNY 28B

- Cumulative retained earnings: CNY 14B

- Diluted shares, 10-year annual growth: 3.2%

- Diluted shares, 5-year annual growth: 4.8%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 8.5%

- Per-share value change: CNY 0.71

- Per-share value, starting three-year median: CNY 0.77

- Per-share value, ending three-year median: CNY 1.48

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.5%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 4.6B

- Cumulative net income, 10 years: CNY 22B

- ROIC, first three-year median: 24.6%

- ROIC, last three-year median: 3.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.77

- FY2017: CNY 1.81

- FY2018: CNY 2.98

- FY2019: CNY 1.17

- FY2020: CNY 1.51

- FY2021: CNY 7.64

- FY2022: CNY 4.79

- FY2023: CNY 2.24

- FY2024: CNY 1.48

- FY2025: CNY -2.55

### accounting: pass

- Sloan accruals: -8.4%

- Receivables to sales index (DSRI): 1.04×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.17×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.7%

- FY2017: -2.9%

- FY2018: 9.7%

- FY2019: -1.5%

- FY2020: 0.8%

- FY2021: 14.9%

- FY2022: 10.7%

- FY2023: 3.9%

- FY2024: -3.1%

- FY2025: -8.4%

## Holders

## Price story

Down 81% since Oct 2021 · sales -23.2%

Story as of 2026-10-16T10:00:08.830Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales -23.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 4.6B 

- FY2017: CNY 7.0B 

- FY2018: CNY 11B 

- FY2019: CNY 8.9B 

- FY2020: CNY 9.0B 

- FY2021: CNY 21B 

- FY2022: CNY 24B 

- FY2023: CNY 27B 

- FY2024: CNY 27B 

- FY2025: CNY 20B 

### Gross margin · FY2025

gross margin 7.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 30.8% 

- FY2017: 38.7% 

- FY2018: 40.8% 

- FY2019: 27.8% 

- FY2020: 28.1% 

- FY2021: 52.8% 

- FY2022: 34.3% 

- FY2023: 19.9% 

- FY2024: 17.0% 

- FY2025: 7.3% 

## Owner memo

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

### How it makes money

Operates in chemicals; annual sales are CNY 20.5 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.609Z); FY2025: revenue 20498545487.94; grossProfit 1493819605.04; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 603260.SHG: Hoshine Silicon Industry Co., Ltd. engages in the production and sale of silicon-based materials in China and internationally. It offers solar panels, including N-type monocrystalline high-efficiency bifacial modules; silicon metals, silicon metal powders, and fine silicon metal powders; and graphitized carbon electrodes. The company also provides silicone monomers comprising methyltrichlorosilane, dimethyldichlorosilane, trimethylchlorosilane, and methyldichlorosilane; silane intermediates that include tetramethyldisiloxane, dimethylcyclosiloxane, hexamethylcyclotrisiloxane, octamethylcyclotetrasiloxane, and decamethylcyclopentasiloxane; methyl vinyl and liquid silicone rubbers; room temperature vulcanized silicone rubbers; acetic and neutral silicon sealants; silicon fluid, such as hydroxyl terminated polydimethylsiloxane linear, high boiling silicone oil, methyl hydrogen silicone fluid, polydimethylsiloxane, and vinyl terminated silicone fluid; and precipitated and fumed silica products. Its products are used in aerospace, military, electronic communications, photovoltaic new energy, health care, automobile, and other applications. The company was incorporated in 2005 and is headquartered in Cixi, China.

### Why customers stay

Margins ranged from 7.3% to 19.9% during 2023–25; it earns 11.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.609Z); FY2023: grossProfit / revenue = 19.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.609Z); FY2024: grossProfit / revenue = 17%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.609Z); FY2025: grossProfit / revenue = 7.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.609Z); 10-year return on capital observations [[2016,0.14796805019986292],[2017,0.24620454451341714],[2018,0.2715360937291883],[2019,0.09025261167016965],[2020,0.0990239954116389],[2021,0.37880035053651967],[2022,0.13465552270777212],[2023,0.042445119755488064],[2024,0.03250022567696451],[2025,0.005895826571436483]]; median 0.1168397590597055. 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 161.3 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.609Z); FY2016: growth capex 60036711.33000004; upkeep 486254636; owner earnings 651603435. Growth capex / owner earnings = 0.09213688588059706.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.609Z); FY2017: growth capex 1720598708.02; upkeep 489082985; owner earnings 1516972375. Growth capex / owner earnings = 1.1342320640611534.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.609Z); FY2018: growth capex 1987477148.0700002; upkeep 736197331; owner earnings 2805177399. Growth capex / owner earnings = 0.7085031944070643.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.609Z); FY2019: growth capex 0; upkeep 1467806955.93; owner earnings 628581980.0699999. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.609Z); FY2020: growth capex 38881991.92959881; upkeep 1266382316.4504013; owner earnings 1244413423.5495987. Growth capex / owner earnings = 0.031245236666357035.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.609Z); FY2021: growth capex 1374844440.65; upkeep 1273780381; owner earnings 8220456039.978. Growth capex / owner earnings = 0.16724673594309247.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.609Z); Dividend observations: [[2016,124083917.28],[2017,142995615],[2018,466779974.2],[2019,549400000],[2020,215740000],[2021,272020000],[2022,1621990021],[2023,1883859492],[2024,1750836691],[2025,1296500503.43]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.609Z); FY2025: cash repurchases 161298803.86279678 CNY.

### Are managers owners

Insiders own 73.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 603260.SHG SharesStats.PercentInsiders = 73.434 percentage points; cache date 2026-10-16.

### What the price says

The price is 1.8 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.609Z); Closing price 31.25 CNY; reporting-to-trading FX 1; FY2025 annual sales per share 17.477050916857092; price multiple 1.788059103830757. FY2025 cash earnings/share -0.4403116913137912. Closing-price date 2026-10-15.

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

- 2017-11: CNY 40.94 per share

- 2017-12: CNY 40.53 per share

- 2018-01: CNY 47.22 per share

- 2018-02: CNY 42.04 per share

- 2018-03: CNY 46.96 per share

- 2018-04: CNY 49.31 per share

- 2018-05: CNY 55.15 per share

- 2018-06: CNY 50.41 per share

- 2018-07: CNY 48.04 per share

- 2018-08: CNY 41.86 per share

- 2018-09: CNY 39.46 per share

- 2018-10: CNY 35.16 per share

- 2018-11: CNY 32.57 per share

- 2018-12: CNY 31.29 per share

- 2019-01: CNY 33.54 per share

- 2019-02: CNY 40.71 per share

- 2019-03: CNY 43.50 per share

- 2019-04: CNY 36.06 per share

- 2019-05: CNY 34.99 per share

- 2019-06: CNY 33.61 per share

- 2019-07: CNY 31.46 per share

- 2019-08: CNY 30.25 per share

- 2019-09: CNY 32.35 per share

- 2019-10: CNY 27.92 per share

- 2019-11: CNY 27.37 per share

- 2019-12: CNY 29.47 per share

- 2020-01: CNY 27.90 per share

- 2020-02: CNY 26.69 per share

- 2020-03: CNY 24.62 per share

- 2020-04: CNY 23.29 per share

- 2020-05: CNY 24.70 per share

- 2020-06: CNY 27.34 per share

- 2020-07: CNY 31.50 per share

- 2020-08: CNY 29.31 per share

- 2020-09: CNY 28.25 per share

- 2020-10: CNY 30.09 per share

- 2020-11: CNY 39.16 per share

- 2020-12: CNY 33.44 per share

- 2021-01: CNY 44.29 per share

- 2021-02: CNY 46.60 per share

- 2021-03: CNY 44.50 per share

- 2021-04: CNY 59.75 per share

- 2021-05: CNY 64.01 per share

- 2021-06: CNY 76.91 per share

- 2021-07: CNY 104.66 per share

- 2021-08: CNY 215.93 per share

- 2021-09: CNY 179.49 per share

- 2021-10: CNY 164.77 per share

- 2021-11: CNY 154.33 per share

- 2021-12: CNY 131.97 per share

- 2022-01: CNY 105.00 per share

- 2022-02: CNY 149.50 per share

- 2022-03: CNY 104.65 per share

- 2022-04: CNY 79.44 per share

- 2022-05: CNY 93.12 per share

- 2022-06: CNY 117.96 per share

- 2022-07: CNY 98.17 per share

- 2022-08: CNY 112.20 per share

- 2022-09: CNY 109.55 per share

- 2022-10: CNY 95.70 per share

- 2022-11: CNY 89.40 per share

- 2022-12: CNY 82.94 per share

- 2023-01: CNY 92.99 per share

- 2023-02: CNY 97.99 per share

- 2023-03: CNY 83.01 per share

- 2023-04: CNY 73.23 per share

- 2023-05: CNY 67.36 per share

- 2023-06: CNY 70.02 per share

- 2023-07: CNY 71.98 per share

- 2023-08: CNY 61.76 per share

- 2023-09: CNY 60.41 per share

- 2023-10: CNY 57.25 per share

- 2023-11: CNY 49.66 per share

- 2023-12: CNY 51.00 per share

- 2024-01: CNY 43.80 per share

- 2024-02: CNY 53.00 per share

- 2024-03: CNY 49.25 per share

- 2024-04: CNY 48.35 per share

- 2024-05: CNY 52.80 per share

- 2024-06: CNY 46.71 per share

- 2024-07: CNY 47.85 per share

- 2024-08: CNY 49.84 per share

- 2024-09: CNY 60.03 per share

- 2024-10: CNY 59.01 per share

- 2024-11: CNY 59.10 per share

- 2024-12: CNY 55.56 per share

- 2025-01: CNY 51.94 per share

- 2025-02: CNY 53.93 per share

- 2025-03: CNY 54.86 per share

- 2025-04: CNY 51.05 per share

- 2025-05: CNY 48.97 per share

- 2025-06: CNY 47.40 per share

- 2025-07: CNY 52.65 per share

- 2025-08: CNY 52.73 per share

- 2025-09: CNY 49.45 per share

- 2025-10: CNY 49.57 per share

- 2025-11: CNY 56.30 per share

- 2025-12: CNY 52.70 per share

- 2026-01: CNY 49.70 per share

- 2026-02: CNY 51.30 per share

- 2026-03: CNY 40.46 per share

- 2026-04: CNY 44.60 per share

- 2026-05: CNY 38.07 per share

- 2026-06: CNY 48.26 per share

- 2026-07: CNY 33.54 per share

- 2026-08: CNY 34.72 per share

- 2026-09: CNY 31.55 per share

- 2026-10: CNY 32.65 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 3.98 per share, central CNY 4.42 per share, high CNY 5.00 per share

- FY2017: low CNY 8.04 per share, central CNY 8.82 per share, high CNY 9.85 per share

- FY2018: low CNY 18.83 per share, central CNY 21.36 per share, high CNY 24.72 per share

- FY2019: low CNY 14.90 per share, central CNY 16.94 per share, high CNY 19.65 per share

- FY2020: low CNY 15.20 per share, central CNY 17.27 per share, high CNY 20.03 per share

- FY2021: low CNY 48.16 per share, central CNY 54.70 per share, high CNY 63.40 per share

- FY2022: low CNY 44.01 per share, central CNY 61.80 per share, high CNY 72.16 per share

- FY2023: low CNY 23.38 per share, central CNY 32.68 per share, high CNY 38.10 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.