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GCL New Energy Holdings (HKSE:00451) ROE % : -75.02% (As of Dec. 2023)


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What is GCL New Energy Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. GCL New Energy Holdings's annualized net income for the quarter that ended in Dec. 2023 was HK$-2,077.2 Mil. GCL New Energy Holdings's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was HK$2,768.9 Mil. Therefore, GCL New Energy Holdings's annualized ROE % for the quarter that ended in Dec. 2023 was -75.02%.

The historical rank and industry rank for GCL New Energy Holdings's ROE % or its related term are showing as below:

HKSE:00451' s ROE % Range Over the Past 10 Years
Min: -58.57   Med: -9.13   Max: 16.92
Current: -41.96

During the past 13 years, GCL New Energy Holdings's highest ROE % was 16.92%. The lowest was -58.57%. And the median was -9.13%.

HKSE:00451's ROE % is ranked worse than
93.63% of 424 companies
in the Utilities - Independent Power Producers industry
Industry Median: 5.86 vs HKSE:00451: -41.96

GCL New Energy Holdings ROE % Historical Data

The historical data trend for GCL New Energy Holdings's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

GCL New Energy Holdings ROE % Chart

GCL New Energy Holdings Annual Data
Trend Mar14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.64 -24.68 -17.10 -37.35 -43.76

GCL New Energy Holdings Semi-Annual Data
Mar14 Sep14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -33.18 -24.32 -53.72 -13.77 -75.02

Competitive Comparison of GCL New Energy Holdings's ROE %

For the Utilities - Renewable subindustry, GCL New Energy Holdings's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


GCL New Energy Holdings's ROE % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, GCL New Energy Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where GCL New Energy Holdings's ROE % falls into.



GCL New Energy Holdings ROE % Calculation

GCL New Energy Holdings's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=-1274.954/( (3578.709+2248.188)/ 2 )
=-1274.954/2913.4485
=-43.76 %

GCL New Energy Holdings's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Jun. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=-2077.152/( (3289.543+2248.188)/ 2 )
=-2077.152/2768.8655
=-75.02 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is two times the semi-annual (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


GCL New Energy Holdings  (HKSE:00451) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=-2077.152/2768.8655
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-2077.152 / 894.178)*(894.178 / 9643.1805)*(9643.1805 / 2768.8655)
=Net Margin %*Asset Turnover*Equity Multiplier
=-232.3 %*0.0927*3.4827
=ROA %*Equity Multiplier
=-21.53 %*3.4827
=-75.02 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=-2077.152/2768.8655
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-2077.152 / -1843.046) * (-1843.046 / -271.16) * (-271.16 / 894.178) * (894.178 / 9643.1805) * (9643.1805 / 2768.8655)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.127 * 6.7969 * -30.33 % * 0.0927 * 3.4827
=-75.02 %

Note: The net income data used here is two times the semi-annual (Dec. 2023) net income data. The Revenue data used here is two times the semi-annual (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


GCL New Energy Holdings ROE % Related Terms

Thank you for viewing the detailed overview of GCL New Energy Holdings's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


GCL New Energy Holdings (HKSE:00451) Business Description

Traded in Other Exchanges
Address
28 Xinqing Road, Industrial Park, GCL New Energy Center, Suzhou, CHN
GCL New Energy Holdings Ltd is an investment holding company that engages in the sale of electricity and development, construction, operation, and management of solar power plants. The company generates nearly all of its revenue from China.
Executives
Elite Time Global Limited
Asia Pacific Energy Fund Limited
Credit Suisse Trust Limited
Dongsheng Photovoltaic Technology (hong Kong) Limited
Gcl Technology Holdings Limited
Zhu Gongshan
Zhu Yufeng
Xie Xin Ji Cheng Ke Ji Gu Fen You Xian Gong Si
Invesco Exchange-traded Fund Trust Ii - Invesco Solar Etf 2106 Person having a security interest in shares
Invesco Capital Management Llc 2102 Investment manager
The Bank Of New York Mellon Corporation 2201 Interest of corporation controlled by you
Shang Hai Qi Xun Tou Zi Guan Li You Xian Gong Si 2201 Interest of corporation controlled by you
Ying Kou Qi Yin Tou Zi Guan Li You Xian Gong Si 2201 Interest of corporation controlled by you
Jiang Su Xie Xin Jian She Guan Li You Xian Gong Si 2201 Interest of corporation controlled by you
Ju Rong Xie Xin Ji Cheng Ke Ji You Xian Gong Si 2201 Interest of corporation controlled by you

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