New Risk • May 16
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 467% The company is paying a dividend despite having no free cash flows. Dividend yield: 3.9% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 467% Paying a dividend despite having no free cash flows. Earnings have declined by 25% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (8.3% average weekly change). Reported Earnings • Apr 25
First quarter 2026 earnings released First quarter 2026 results: EPS: CN¥0.04. Revenue: CN¥104.3m (up 19% from 1Q 2025). Net income: CN¥6.72m (down 37% from 1Q 2025). Profit margin: 6.4% (down from 12% in 1Q 2025). The decrease in margin was driven by higher expenses. Announcement • Apr 25
Zhejiang TongLi Transmission Technology Co., Ltd., Annual General Meeting, May 25, 2026 Zhejiang TongLi Transmission Technology Co., Ltd., Annual General Meeting, May 25, 2026, at 14:45 China Standard Time. Location: The Company's Meeting Room, Rui'an, Zhejiang China New Risk • Apr 19
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 8.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 12% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.0% average weekly change). Announcement • Mar 31
Zhejiang TongLi Transmission Technology Co., Ltd. to Report Q1, 2026 Results on Apr 25, 2026 Zhejiang TongLi Transmission Technology Co., Ltd. announced that they will report Q1, 2026 results on Apr 25, 2026 Announcement • Dec 31
Zhejiang TongLi Transmission Technology Co., Ltd. to Report Fiscal Year 2025 Results on Apr 25, 2026 Zhejiang TongLi Transmission Technology Co., Ltd. announced that they will report fiscal year 2025 results on Apr 25, 2026 Reported Earnings • Oct 29
Third quarter 2025 earnings released: EPS: CN¥0.089 (vs CN¥0.093 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.089 (down from CN¥0.093 in 3Q 2024). Revenue: CN¥115.5m (up 9.8% from 3Q 2024). Net income: CN¥13.2m (down 4.8% from 3Q 2024). Profit margin: 11% (down from 13% in 3Q 2024). The decrease in margin was driven by higher expenses. Announcement • Sep 30
Zhejiang TongLi Transmission Technology Co., Ltd. to Report Q3, 2025 Results on Oct 29, 2025 Zhejiang TongLi Transmission Technology Co., Ltd. announced that they will report Q3, 2025 results on Oct 29, 2025 Announcement • Jul 02
Zhejiang TongLi Transmission Technology Co., Ltd. to Report First Half, 2025 Results on Aug 28, 2025 Zhejiang TongLi Transmission Technology Co., Ltd. announced that they will report first half, 2025 results on Aug 28, 2025 Declared Dividend • Jun 16
Dividend reduced to CN¥0.20 Dividend of CN¥0.20 is 60% lower than last year. Ex-date: 18th June 2025 Payment date: 18th June 2025 Dividend yield will be 0.5%, which is lower than the industry average of 2.0%. Sustainability & Growth Dividend is covered by earnings (34% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 26 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to decline by 62% to shift the payout ratio to a potentially unsustainable range, which is more than the 2.9% EPS decline seen over the last 5 years. Announcement • May 30
Zhejiang Tongli Transmission Technology Co., Ltd. Approves Cash Dividend for 2024 Zhejiang TongLi Transmission Technology Co., Ltd. held its Annual General Meeting of 2024 on 26 May 2025 and approved cash dividend distribution of CNY 2.00000000 per ten shares (tax included). New Risk • May 19
New major risk - Revenue and earnings growth Earnings have declined by 6.8% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (12% average weekly change). Earnings have declined by 6.8% per year over the past 5 years. High level of non-cash earnings (32% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (11% net profit margin). New Risk • May 05
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 11% Last year net profit margin: 17% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (12% average weekly change). Earnings have declined by 6.8% per year over the past 5 years. High level of non-cash earnings (32% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (11% net profit margin). New Risk • May 03
New major risk - Revenue and earnings growth Earnings have declined by 3.5% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (12% average weekly change). Earnings have declined by 3.5% per year over the past 5 years. Minor Risk Paying a dividend despite having no free cash flows. Reported Earnings • Apr 29
Full year 2024 earnings released: EPS: CN¥0.48 (vs CN¥0.74 in FY 2023) Full year 2024 results: EPS: CN¥0.48 (down from CN¥0.74 in FY 2023). Revenue: CN¥428.0m (down 8.5% from FY 2023). Net income: CN¥52.0m (down 36% from FY 2023). Profit margin: 12% (down from 17% in FY 2023). The decrease in margin was driven by lower revenue. Announcement • Apr 29
Zhejiang TongLi Transmission Technology Co., Ltd., Annual General Meeting, May 26, 2025 Zhejiang TongLi Transmission Technology Co., Ltd., Annual General Meeting, May 26, 2025, at 14:45 China Standard Time. Valuation Update With 7 Day Price Move • Apr 14
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥38.51, the stock trades at a trailing P/E ratio of 67.9x. Average trailing P/E is 36x in the Machinery industry in China. Total returns to shareholders of 31% over the past year. Announcement • Mar 31
Zhejiang TongLi Transmission Technology Co., Ltd. to Report Q1, 2025 Results on Apr 29, 2025 Zhejiang TongLi Transmission Technology Co., Ltd. announced that they will report Q1, 2025 results on Apr 29, 2025 Valuation Update With 7 Day Price Move • Mar 28
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to CN¥44.30, the stock trades at a trailing P/E ratio of 78.1x. Average trailing P/E is 42x in the Machinery industry in China. Total returns to shareholders of 26% over the past year. Valuation Update With 7 Day Price Move • Feb 26
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥45.03, the stock trades at a trailing P/E ratio of 79.4x. Average trailing P/E is 40x in the Machinery industry in China. Total returns to shareholders of 37% over the past year. Valuation Update With 7 Day Price Move • Feb 12
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥38.49, the stock trades at a trailing P/E ratio of 67.9x. Average trailing P/E is 36x in the Machinery industry in China. Total returns to shareholders of 41% over the past year. Announcement • Dec 31
Zhejiang TongLi Transmission Technology Co., Ltd. to Report Fiscal Year 2024 Results on Apr 29, 2025 Zhejiang TongLi Transmission Technology Co., Ltd. announced that they will report fiscal year 2024 results on Apr 29, 2025 Valuation Update With 7 Day Price Move • Nov 05
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥36.12, the stock trades at a trailing P/E ratio of 63.7x. Average trailing P/E is 35x in the Machinery industry in China. Total loss to shareholders of 19% over the past year. Reported Earnings • Oct 28
Third quarter 2024 earnings released: EPS: CN¥0.13 (vs CN¥0.20 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.13 (down from CN¥0.20 in 3Q 2023). Revenue: CN¥105.2m (down 10% from 3Q 2023). Net income: CN¥13.9m (down 35% from 3Q 2023). Profit margin: 13% (down from 18% in 3Q 2023). The decrease in margin was driven by lower revenue. Announcement • Sep 30
Zhejiang TongLi Transmission Technology Co., Ltd. to Report Q3, 2024 Results on Oct 28, 2024 Zhejiang TongLi Transmission Technology Co., Ltd. announced that they will report Q3, 2024 results on Oct 28, 2024 Valuation Update With 7 Day Price Move • Sep 30
Investor sentiment improves as stock rises 31% After last week's 31% share price gain to CN¥32.69, the stock trades at a trailing P/E ratio of 51.3x. Average trailing P/E is 29x in the Machinery industry in China. Total loss to shareholders of 28% over the past year. Reported Earnings • Aug 28
Second quarter 2024 earnings released: EPS: CN¥0.13 (vs CN¥0.22 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.13 (down from CN¥0.22 in 2Q 2023). Revenue: CN¥130.4m (up 2.3% from 2Q 2023). Net income: CN¥14.6m (down 39% from 2Q 2023). Profit margin: 11% (down from 19% in 2Q 2023). The decrease in margin was driven by higher expenses. New Risk • Aug 22
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 7.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (33% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.1% average weekly change). Announcement • Jun 29
Zhejiang TongLi Transmission Technology Co., Ltd. to Report First Half, 2024 Results on Aug 28, 2024 Zhejiang TongLi Transmission Technology Co., Ltd. announced that they will report first half, 2024 results on Aug 28, 2024 Declared Dividend • Jun 06
Dividend of CN¥0.50 announced Shareholders will receive a dividend of CN¥0.50. Ex-date: 12th June 2024 Payment date: 12th June 2024 Dividend yield will be 1.5%, which is lower than the industry average of 2.0%. Sustainability & Growth Dividend is covered by earnings (70% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The company is yet to establish a track record of dividend growth or stability as it hasn't paid a regular dividend for at least 2 years. Earnings per share has grown by 8.7% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Jun 05
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥34.99, the stock trades at a trailing P/E ratio of 48.5x. Average trailing P/E is 29x in the Machinery industry in China. Total returns to shareholders of 42% over the past year. Announcement • Apr 30
Zhejiang TongLi Transmission Technology Co., Ltd., Annual General Meeting, May 20, 2024 Zhejiang TongLi Transmission Technology Co., Ltd., Annual General Meeting, May 20, 2024, at 14:45 China Standard Time. Location: The Company's Meeting Room, Rui'an, Zhejiang China Reported Earnings • Apr 29
First quarter 2024 earnings released: EPS: CN¥0.14 (vs CN¥0.16 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.14 (down from CN¥0.16 in 1Q 2023). Revenue: CN¥90.3m (down 5.9% from 1Q 2023). Net income: CN¥15.2m (down 13% from 1Q 2023). Profit margin: 17% (down from 18% in 1Q 2023). The decrease in margin was driven by lower revenue. Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to CN¥27.15, the stock trades at a trailing P/E ratio of 34.1x. Average trailing P/E is 30x in the Machinery industry in China. Total returns to shareholders of 30% over the past year. Announcement • Mar 30
Zhejiang TongLi Transmission Technology Co., Ltd. to Report Q1, 2024 Results on Apr 29, 2024 Zhejiang TongLi Transmission Technology Co., Ltd. announced that they will report Q1, 2024 results on Apr 29, 2024 Valuation Update With 7 Day Price Move • Feb 02
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CN¥28.83, the stock trades at a trailing P/E ratio of 36.2x. Average trailing P/E is 26x in the Machinery industry in China. Total returns to shareholders of 19% over the past year. New Risk • Jan 22
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Chinese stocks, typically moving 7.8% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (7.8% average weekly change). High level of non-cash earnings (32% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Announcement • Dec 30
Zhejiang TongLi Transmission Technology Co., Ltd. to Report Fiscal Year 2023 Results on Apr 29, 2024 Zhejiang TongLi Transmission Technology Co., Ltd. announced that they will report fiscal year 2023 results on Apr 29, 2024 Announcement • Nov 17
Zhejiang TongLi Transmission Technology Co., Ltd. Announces Management Changes Zhejiang TongLi Transmission Technology Co., Ltd. at its 3rd Extraordinary General Meeting of 2023 on 14 November 2023 approved Election of Chen Ronghua as non-independent director, Election of Jin Guoda and Deng Xiaozhong as independent directors and Election of Yang Wei and Wu Kejian as non-employee supervisors. Reported Earnings • Oct 25
Third quarter 2023 earnings released: EPS: CN¥0.77 (vs CN¥0.32 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.77. Revenue: CN¥117.2m (down 5.7% from 3Q 2022). Net income: CN¥21.5m (down 18% from 3Q 2022). Profit margin: 18% (down from 21% in 3Q 2022). The decrease in margin was driven by lower revenue. Announcement • Sep 30
Zhejiang TongLi Transmission Technology Co., Ltd. to Report Q3, 2023 Results on Oct 25, 2023 Zhejiang TongLi Transmission Technology Co., Ltd. announced that they will report Q3, 2023 results on Oct 25, 2023 New Risk • Aug 29
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 21% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (18% average weekly change). High level of non-cash earnings (21% accrual ratio). Minor Risk Dividend is not well covered by cash flows (320% cash payout ratio). Reported Earnings • Aug 29
Second quarter 2023 earnings released Second quarter 2023 results: EPS: CN¥0.85. Net income: CN¥23.8m (up CN¥23.8m from 2Q 2022). Valuation Update With 7 Day Price Move • Aug 17
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥51.41, the stock trades at a trailing P/E ratio of 59.5x. Average trailing P/E is 34x in the Machinery industry in China. Valuation Update With 7 Day Price Move • Jul 20
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to CN¥66.42, the stock trades at a trailing P/E ratio of 76.9x. Average trailing P/E is 37x in the Machinery industry in China. Valuation Update With 7 Day Price Move • Jul 03
Investor sentiment improves as stock rises 44% After last week's 44% share price gain to CN¥50.30, the stock trades at a trailing P/E ratio of 58.2x. Average trailing P/E is 38x in the Machinery industry in China. New Risk • Jun 16
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 8.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (206% cash payout ratio). Share price has been volatile over the past 3 months (8.1% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Jun 15
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to CN¥31.18, the stock trades at a trailing P/E ratio of 36.1x. Average trailing P/E is 35x in the Machinery industry in China. Announcement • May 26
Zhejiang TongLi Transmission Technology Co., Ltd. Approves Cash Dividend for 2022 Zhejiang TongLi Transmission Technology Co., Ltd. announced that at its AGM held on 22 May 2023, the shareholders approved 2022 profit distribution plan as cash dividend/10 shares (tax included): CNY 10.00000000. Valuation Update With 7 Day Price Move • May 19
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥39.98, the stock trades at a trailing P/E ratio of 28.9x. Average trailing P/E is 36x in the Machinery industry in China.