Key Insights

• China Baoli Technologies Holdings' Annual General Meeting to take place on 3rd of September
• Total pay for CEO Wei Ning Chu includes HK$2.64m salary
• The total compensation is 104% higher than the average for the industry
• China Baoli Technologies Holdings' EPS grew by 55% over the past three years while total shareholder loss over the past three years was 80%

Shareholders of China Baoli Technologies Holdings Limited (HKG:164) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 3rd of September. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Comparing China Baoli Technologies Holdings Limited's CEO Compensation With The Industry

Our data indicates that China Baoli Technologies Holdings Limited has a market capitalization of HK$56m, and total annual CEO compensation was reported as HK$2.7m for the year to March 2024. This was the same amount the CEO received in the prior year. Notably, the salary which is HK$2.64m, represents most of the total compensation being paid.

On comparing similar-sized companies in the Hong Kong Tech industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.3m. Accordingly, our analysis reveals that China Baoli Technologies Holdings Limited pays Wei Ning Chu north of the industry median.

Talking in terms of the industry, salary represented approximately 75% of total compensation out of all the companies we analyzed, while other remuneration made up 25% of the pie. China Baoli Technologies Holdings pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at China Baoli Technologies Holdings Limited's Growth Numbers

China Baoli Technologies Holdings Limited has seen its earnings per share (EPS) increase by 55% a year over the past three years. It achieved revenue growth of 3.2% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has China Baoli Technologies Holdings Limited Been A Good Investment?

With a total shareholder return of -80% over three years, China Baoli Technologies Holdings Limited shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

China Baoli Technologies Holdings pays its CEO a majority of compensation through a salary. Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 4 warning signs for China Baoli Technologies Holdings (of which 3 are potentially serious!) that you should know about in order to have a holistic understanding of the stock.

Important note: China Baoli Technologies Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.