Walvax Biotechnology (300142.SZ) Financial Risk Assessment Report

According to the latest financial data, Walvax’s accounts receivable scale has exceeded its annual operating revenue, and this ratio is far beyond the normal range [0].

1. Abnormal Payment Collection Cycle
   • Accounts receivable turnover days are approximately
     485 days (about 16.2 months)
   • The normal accounts receivable turnover period for the biopharmaceutical industry is usually
     60-120 days
   • The company’s payment collection efficiency is only
     1/4 to 1/8
     of the industry average

2. Cash Flow Pressure
   • Although the company’s current ratio of 3.52 and quick ratio of 3.20 indicate acceptable short-term liquidity [0]
   • high accounts receivable imply significant uncertainty in actual cash recovery
   • 2024 revenue was significantly lower than market expectations (-26.50%) [0], further exacerbating cash pressure

1. Bad Debt Risk Exposure
   • As seen in the annual report, the company has provisioned for bad debts on some accounts receivable [1]
   • Bad debt provisions for high-risk portfolios amount to RMB 24.792 million, with a provision ratio of 24.29% [1]
   • There is a possibility of further provision for impairment losses

2. Operating Capital Occupation
   • A large amount of funds are occupied by customers free of charge, increasing financial costs
   • Affects the company’s R&D investment and market expansion capabilities

3. Impact on Investor Confidence
   • The stock price has fallen by 9.74% in the past year and 71.10% over three years [0]
   • The market has concerns about the company’s financial quality

1. Short-term
   : High accounts receivable indicate weak bargaining power and major flaws in payment collection management
2. Medium-term
   : Insufficient profitability, revenue below expectations, and fundamental pressure
3. Long-term
   : Need to observe whether the company can improve customer structure and strengthen accounts receivable management

• Trend of accounts receivable in subsequent financial reports
• Status of bad debt provisions
• Revenue recovery status and signs of cash flow improvement

[0] Jinling API Data - Walvax Biotechnology Financial Analysis, Stock Performance and Financial Indicators (https://financial-api.data.com)

[1] Walvax Biotechnology 2024 Semi-Annual Report (https://www.walvax.com/uploadfile/d90a81adc5934f13b590f417966ffe12.pdf)