# National Silicon Industry Group (688126.SHG)

Canonical: https://gigainvestors.com/s/688126.SHG

Analysis as of: 2026-10-16T07:36:02.575Z. 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 19.17 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

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

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 4

- Operating margin variation: 4.00×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.41×

- FY2017: 0.33×

- FY2018: 0.04×

- FY2019: -0.05×

- FY2020: 0.07×

- FY2021: 0.07×

- FY2022: 0.12×

- FY2023: 0.06×

- FY2024: -0.34×

- FY2025: -0.50×

### moat: fail

- ROIC median below threshold

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

- Recent gross margin fell 63.4pp below the typical margin (limit 4pp)

- ROIC, median of available years: 0.9%

- ROIC, second-lowest year: -8.0%

- Typical minus recent gross margin: 63.4 pp

- Typical gross margin (annual median): 13.6%

- Recent gross margin (lower of latest and 3-year median): -49.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 96.6%

- ROIC including acquisitions, ten-year median: -0.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -4.8%

- FY2017: 7.0%

- FY2018: 0.8%

- FY2019: -1.1%

- FY2020: 1.1%

- FY2021: 1.3%

- FY2022: 5.0%

- FY2023: 1.4%

- FY2024: -8.0%

- FY2025: -8.5%

### 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

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY -12B

- Net income, five-year total: CNY -1.8B

- Return on incremental invested capital: -7.1%

- Working capital / revenue, annual change: 0.8 pp

- Working capital / revenue, change between three-year averages: 13.3 pp

- Working capital / revenue, final three-year average: 57.6%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: CNY 126M

- FY2022: CNY 309M

- FY2023: CNY -3.3B

- FY2024: CNY -4.5B

- FY2025: CNY -4.3B

### management: fail

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 0.8% vs -8.0%

- Per-share earnings: 0.01 to -0.35 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: -7.8%

- Diluted shares, 5-year annual growth: -7.8%

- Per-share value change: CNY -0.36

- Per-share value, starting three-year median: CNY 0.01

- Per-share value, ending three-year median: CNY -0.35

- Buyback history: 0 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: CNY -1.6B

- ROIC, first three-year median: 0.8%

- ROIC, last three-year median: -8.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY -0.05

- FY2017: CNY 0.12

- FY2018: CNY 0.01

- FY2019: CNY -0.05

- FY2020: CNY 0.02

- FY2021: CNY 0.06

- FY2022: CNY 0.12

- FY2023: CNY 0.07

- FY2024: CNY -0.35

- FY2025: CNY -0.53

### accounting: pass

- Sloan accruals: -2.7%

- Receivables to sales index (DSRI): 0.81×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.06×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.5%

- FY2017: 1.7%

- FY2018: -4.6%

- FY2019: -9.8%

- FY2020: -2.0%

- FY2021: -1.0%

- FY2022: -0.5%

- FY2023: 1.6%

- FY2024: -0.6%

- FY2025: -2.7%

## Holders

## Price story

Down 52% since Jun 2026 · sales +9.7%

Story as of 2026-10-16T10:00:06.595Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales +9.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 270M 

- FY2017: CNY 694M 

- FY2018: CNY 1.0B 

- FY2019: CNY 1.5B 

- FY2020: CNY 1.8B 

- FY2021: CNY 2.5B 

- FY2022: CNY 3.6B 

- FY2023: CNY 3.2B 

- FY2024: CNY 3.4B 

- FY2025: CNY 3.7B 

### Gross margin · FY2023

gross margin 13.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 13.8% 

- FY2017: 23.1% 

- FY2018: 21.8% 

- FY2019: 13.3% 

- FY2020: 9.6% 

- FY2021: 13.7% 

- FY2022: 21.4% 

- FY2023: 13.5% 

## Owner memo

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

### How it makes money

Operates in semiconductor equipment & materials; annual sales are CNY 3.7 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:02.575Z); FY2025: revenue 3716030000; grossProfit -1849227000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 688126.SHG: National Silicon Industry Group Co., Ltd. engages in the research and development, production, and sale of semiconductor silicon wafers and other high-end semiconductor materials in China and internationally. It offers 200mm and smaller semiconductor silicon wafers, as well as SOI wafers; 300mm semiconductor silicon wafers; and customized silicon wafers. The company was incorporated in 2015 and is based in Shanghai, China.

### Why customers stay

It earns 0.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:02.575Z); FY2023: grossProfit / revenue = 13.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:02.575Z); FY2024: grossProfit / revenue = -12.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:02.575Z); FY2025: grossProfit / revenue = -49.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:02.575Z); 10-year return on capital observations [[2016,-0.04839557175421758],[2017,0.06952465651537398],[2018,0.00772286582246769],[2019,-0.011432274811695977],[2020,0.011018602674656559],[2021,0.013407508133960811],[2022,0.050192799659993896],[2023,0.01412006902336828],[2024,-0.07989057983284589],[2025,-0.08524633324581565]]; median 0.009370734248562124. 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 2026-10-16T07:36:02.575Z); FY2017: growth capex 654069298; upkeep 20026700; owner earnings 223553348. Growth capex / owner earnings = 2.9257861886282286.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:02.575Z); FY2018: growth capex 812978190; upkeep 157208579; owner earnings 11205740. Growth capex / owner earnings = 72.55015643768283.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:02.575Z); FY2020: growth capex 774145508; upkeep 403374331; owner earnings 87070848. Growth capex / owner earnings = 8.89098390313139.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:02.575Z); FY2021: growth capex 858319244; upkeep 465434504; owner earnings 126243029.208. Growth capex / owner earnings = 6.7989436675019865.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:02.575Z); FY2022: growth capex 2082705812; upkeep 577266581; owner earnings 308875204.1953865. Growth capex / owner earnings = 6.742871501859158.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:02.575Z); Dividend observations: [[2016,10358820.05],[2017,50136327],[2018,50136327],[2019,102503449],[2020,94871111],[2021,91678842],[2022,103754509],[2023,105350419],[2024,286510147],[2025,223637206.47]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 28.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 688126.SHG SharesStats.PercentInsiders = 28.243000000000002 percentage points; cache date 2026-10-16.

### What the price says

The price is 14.4 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:02.575Z); Closing price 19.17 CNY; reporting-to-trading FX 1; FY2025 annual sales per share 1.328644379226862; price multiple 14.428240016455737. FY2025 cash earnings/share -1.5343497296098807. Closing-price date 2026-10-15.

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

- 2020-04: CNY 15.84 per share

- 2020-05: CNY 30.80 per share

- 2020-06: CNY 34.28 per share

- 2020-07: CNY 51.30 per share

- 2020-08: CNY 42.82 per share

- 2020-09: CNY 34.06 per share

- 2020-10: CNY 32.08 per share

- 2020-11: CNY 35.10 per share

- 2020-12: CNY 33.12 per share

- 2021-01: CNY 31.06 per share

- 2021-02: CNY 28.23 per share

- 2021-03: CNY 23.52 per share

- 2021-04: CNY 24.60 per share

- 2021-05: CNY 24.93 per share

- 2021-06: CNY 29.18 per share

- 2021-07: CNY 37.60 per share

- 2021-08: CNY 29.99 per share

- 2021-09: CNY 28.66 per share

- 2021-10: CNY 28.21 per share

- 2021-11: CNY 29.64 per share

- 2021-12: CNY 25.82 per share

- 2022-01: CNY 23.40 per share

- 2022-02: CNY 24.29 per share

- 2022-03: CNY 21.93 per share

- 2022-04: CNY 20.90 per share

- 2022-05: CNY 22.38 per share

- 2022-06: CNY 22.98 per share

- 2022-07: CNY 20.21 per share

- 2022-08: CNY 20.60 per share

- 2022-09: CNY 17.85 per share

- 2022-10: CNY 20.31 per share

- 2022-11: CNY 19.26 per share

- 2022-12: CNY 17.61 per share

- 2023-01: CNY 20.88 per share

- 2023-02: CNY 20.09 per share

- 2023-03: CNY 23.39 per share

- 2023-04: CNY 23.82 per share

- 2023-05: CNY 22.40 per share

- 2023-06: CNY 20.90 per share

- 2023-07: CNY 21.09 per share

- 2023-08: CNY 20.36 per share

- 2023-09: CNY 19.77 per share

- 2023-10: CNY 18.13 per share

- 2023-11: CNY 17.66 per share

- 2023-12: CNY 17.32 per share

- 2024-01: CNY 14.19 per share

- 2024-02: CNY 15.41 per share

- 2024-03: CNY 13.24 per share

- 2024-04: CNY 13.27 per share

- 2024-05: CNY 13.53 per share

- 2024-06: CNY 13.81 per share

- 2024-07: CNY 15.36 per share

- 2024-08: CNY 14.69 per share

- 2024-09: CNY 18.98 per share

- 2024-10: CNY 22.48 per share

- 2024-11: CNY 21.57 per share

- 2024-12: CNY 18.82 per share

- 2025-01: CNY 17.83 per share

- 2025-02: CNY 20.56 per share

- 2025-03: CNY 18.57 per share

- 2025-04: CNY 17.43 per share

- 2025-05: CNY 18.52 per share

- 2025-06: CNY 18.72 per share

- 2025-07: CNY 18.59 per share

- 2025-08: CNY 20.74 per share

- 2025-09: CNY 25.80 per share

- 2025-10: CNY 22.86 per share

- 2025-11: CNY 21.19 per share

- 2025-12: CNY 21.64 per share

- 2026-01: CNY 22.41 per share

- 2026-02: CNY 21.72 per share

- 2026-03: CNY 16.90 per share

- 2026-04: CNY 20.61 per share

- 2026-05: CNY 27.70 per share

- 2026-06: CNY 39.89 per share

- 2026-07: CNY 23.48 per share

- 2026-08: CNY 24.70 per share

- 2026-09: CNY 23.38 per share

- 2026-10: CNY 20.48 per share

## Annual estimated value (CNY per share)

- FY2020: low CNY 0.56 per share, central CNY 0.57 per share, high CNY 0.58 per share

- FY2021: low CNY 0.99 per share, central CNY 1.06 per share, high CNY 1.15 per share

- FY2022: low CNY 3.73 per share, central CNY 3.82 per share, high CNY 3.95 per share

- FY2023: low CNY 2.67 per share, central CNY 2.75 per share, high CNY 2.86 per share

- FY2024: low CNY 1.89 per share, central CNY 1.97 per share, high CNY 2.09 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.

## Reported holder observations