# Qi An Xin Technology Group (688561.SHG)

Canonical: https://gigainvestors.com/s/688561.SHG

Analysis as of: 2026-10-16T07:39:25.310Z. Financial observations: FY2017–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 28.57 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: 9 years

- Years with declining revenue: 1

- Years with a net loss: 7

- Operating margin variation: 1.02×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.86×

- FY2018: -0.52×

- FY2019: -0.17×

- FY2020: -0.08×

- FY2021: -0.10×

- FY2022: -0.00×

- FY2023: 0.00×

- FY2024: -0.33×

- FY2025: -0.30×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: -13.9%

- ROIC, second-lowest year: -45.8%

- Typical minus recent gross margin: -4.6 pp

- Typical gross margin (annual median): 59.8%

- Recent gross margin (lower of latest and 3-year median): 64.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.5%

- ROIC including acquisitions, ten-year median: -12.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -45.8%

- FY2018: -48.0%

- FY2019: -16.6%

- FY2020: -7.2%

- FY2021: -7.5%

- FY2022: -0.2%

- FY2023: 0.3%

- FY2024: -14.2%

- FY2025: -13.9%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY -3.3B

- Net income, five-year total: CNY -3.1B

- Return on incremental invested capital: -16.3%

- Working capital / revenue, annual change: 0.9 pp

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

- FY2021: CNY -630M

- FY2022: CNY 31M

- FY2023: CNY 101M

- FY2024: CNY -1.5B

- FY2025: CNY -1.4B

### management: fail

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: -45.8% vs -13.9%

- Per-share earnings: -1.67 to -1.85 (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: 0.1%

- Diluted shares, 5-year annual growth: 0.1%

- Per-share value change: CNY -0.18

- Per-share value, starting three-year median: CNY -1.67

- Per-share value, ending three-year median: CNY -1.85

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.3%

- Buyback history: 2 years

- Debt-funded buybacks: Yes

- ROIC, first three-year median: -45.8%

- ROIC, last three-year median: -13.9%

Chart: Earnings per share; fiscal year observations.

- FY2017: CNY -1.67

- FY2018: CNY -1.78

- FY2019: CNY -0.85

- FY2020: CNY -0.49

- FY2021: CNY -0.83

- FY2022: CNY 0.08

- FY2023: CNY 0.10

- FY2024: CNY -2.02

- FY2025: CNY -1.85

### accounting: pass

- Sloan accruals: -8.8%

- Receivables to sales index (DSRI): 0.78×

- 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.

- FY2017: -2.2%

- FY2018: 1.2%

- FY2019: 8.7%

- FY2020: 2.9%

- FY2021: 5.5%

- FY2022: 9.6%

- FY2023: 5.2%

- FY2024: -7.0%

- FY2025: -8.8%

## Holders

## Price story

Down 69% since Nov 2021 · sales +1%

Story as of 2026-10-16T10:00:10.763Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales +1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: CNY 821M 

- FY2018: CNY 1.8B 

- FY2019: CNY 3.2B 

- FY2020: CNY 4.2B 

- FY2021: CNY 5.8B 

- FY2022: CNY 6.2B 

- FY2023: CNY 6.4B 

- FY2024: CNY 4.3B 

- FY2025: CNY 4.4B 

### Gross margin · FY2024

gross margin 56%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 74.6% 

- FY2018: 55.1% 

- FY2019: 56.7% 

- FY2020: 59.4% 

- FY2021: 59.8% 

- FY2022: 64.2% 

- FY2023: 64.3% 

- FY2024: 56.0% 

## Owner memo

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

### How it makes money

Operates in software infrastructure; annual sales are CNY 4.4 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:25.310Z); FY2025: revenue 4391609900; grossProfit 4391609900; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 688561.SHG: Qi An Xin Technology Group Inc., a cybersecurity company, provides cybersecurity products and services for government and enterprises in China and internationally. The company provides security operations and response, threat intelligence, network and perimeter security, endpoint and identity security, and forensics products. It also operates a security operations center that provides threat detection, data acquisition, analysis, real-time coordination and response, achieving early perception, and awareness of potential threats. Qi An Xin Technology Group Inc. was incorporated in 2014 and is headquartered in Beijing, China.

### Why customers stay

Margins ranged from 56% to 100% during 2023–25; it lost 13.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:25.310Z); FY2023: grossProfit / revenue = 64.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:25.310Z); FY2024: grossProfit / revenue = 56%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:25.310Z); FY2025: grossProfit / revenue = 100%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:25.310Z); 9-year return on capital observations [[2017,-0.4575622291357924],[2018,-0.4803235495780662],[2019,-0.16554327112723888],[2020,-0.07219198495945661],[2021,-0.07505349741128373],[2022,-0.0021100416706550306],[2023,0.002917346643572591],[2024,-0.1420787252065494],[2025,-0.1390126995240644]]; median -0.1390126995240644. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 8 of 9 years; bought back CNY 62 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:25.310Z); FY2022: growth capex 0; upkeep 187096648.1; owner earnings 30879518.426. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:25.310Z); FY2023: growth capex 0; upkeep 112256775; owner earnings 101398846.916. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:25.310Z); Dividend observations: [[2017,41731],[2018,0],[2019,2101131.09],[2020,25418292],[2021,30099894.74],[2022,16662666.85],[2023,30664359],[2024,55114250],[2025,66360950.88]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:25.310Z); FY2025: cash repurchases 62042560.55249999 CNY.

### Are managers owners

Insiders own 59.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 688561.SHG SharesStats.PercentInsiders = 59.13 percentage points; cache date 2026-10-16.

### What the price says

The price is 4.4 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:25.310Z); Closing price 28.57 CNY; reporting-to-trading FX 1; FY2025 annual sales per share 6.448093413592974; price multiple 4.430767076012375. FY2025 cash earnings/share -1.9832006394088284. Closing-price date 2026-10-15.

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

- 2020-07: CNY 126.00 per share

- 2020-08: CNY 102.63 per share

- 2020-09: CNY 98.96 per share

- 2020-10: CNY 89.75 per share

- 2020-11: CNY 105.01 per share

- 2020-12: CNY 126.10 per share

- 2021-01: CNY 114.99 per share

- 2021-02: CNY 104.12 per share

- 2021-03: CNY 88.58 per share

- 2021-04: CNY 92.91 per share

- 2021-05: CNY 92.30 per share

- 2021-06: CNY 92.31 per share

- 2021-07: CNY 92.46 per share

- 2021-08: CNY 89.99 per share

- 2021-09: CNY 81.93 per share

- 2021-10: CNY 91.51 per share

- 2021-11: CNY 93.58 per share

- 2021-12: CNY 87.92 per share

- 2022-01: CNY 75.33 per share

- 2022-02: CNY 68.87 per share

- 2022-03: CNY 58.66 per share

- 2022-04: CNY 49.36 per share

- 2022-05: CNY 48.15 per share

- 2022-06: CNY 55.80 per share

- 2022-07: CNY 50.84 per share

- 2022-08: CNY 49.77 per share

- 2022-09: CNY 43.08 per share

- 2022-10: CNY 62.80 per share

- 2022-11: CNY 61.00 per share

- 2022-12: CNY 65.77 per share

- 2023-01: CNY 78.08 per share

- 2023-02: CNY 76.06 per share

- 2023-03: CNY 69.80 per share

- 2023-04: CNY 59.09 per share

- 2023-05: CNY 59.42 per share

- 2023-06: CNY 51.81 per share

- 2023-07: CNY 50.70 per share

- 2023-08: CNY 53.67 per share

- 2023-09: CNY 51.46 per share

- 2023-10: CNY 46.07 per share

- 2023-11: CNY 45.00 per share

- 2023-12: CNY 40.09 per share

- 2024-01: CNY 29.74 per share

- 2024-02: CNY 34.99 per share

- 2024-03: CNY 31.50 per share

- 2024-04: CNY 30.90 per share

- 2024-05: CNY 26.06 per share

- 2024-06: CNY 23.62 per share

- 2024-07: CNY 24.16 per share

- 2024-08: CNY 22.60 per share

- 2024-09: CNY 31.88 per share

- 2024-10: CNY 31.72 per share

- 2024-11: CNY 30.58 per share

- 2024-12: CNY 26.83 per share

- 2025-01: CNY 25.04 per share

- 2025-02: CNY 38.38 per share

- 2025-03: CNY 34.23 per share

- 2025-04: CNY 30.75 per share

- 2025-05: CNY 30.16 per share

- 2025-06: CNY 33.98 per share

- 2025-07: CNY 36.06 per share

- 2025-08: CNY 39.98 per share

- 2025-09: CNY 36.06 per share

- 2025-10: CNY 39.05 per share

- 2025-11: CNY 37.52 per share

- 2025-12: CNY 35.58 per share

- 2026-01: CNY 37.18 per share

- 2026-02: CNY 35.75 per share

- 2026-03: CNY 29.49 per share

- 2026-04: CNY 30.11 per share

- 2026-05: CNY 26.79 per share

- 2026-06: CNY 23.98 per share

- 2026-07: CNY 27.03 per share

- 2026-08: CNY 26.84 per share

- 2026-09: CNY 29.90 per share

- 2026-10: CNY 29.99 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.

## Reported holder observations