Chenguang Electric Motor's Accounts Receivable Turnover Days Hit a New High, Revealing Multiple Industry Risks

Based on the searched information [1][2], I will analyze the industry risks reflected by Chenguang Electric Motor’s accounts receivable turnover days hitting a new high.

During the IPO reporting period of Chenguang Electric Motor, the accounts receivable problem has become increasingly prominent [1]:

• The book values of accounts receivable at the end of each reporting period were RMB 152.5178 million, RMB 188.5875 million, RMB 300.5847 million, and RMB 291.3677 million respectively
• The proportions of accounts receivable to current assets at the end of the respective periods were 41.88%, 38.80%, 48.78%, and 47.94% respectively
• As of June 30, 2025, the balance of accounts receivable accounted for almost half of current assets

• During each reporting period, it was 2.94 times/year, 3.89 times/year, 3.14 times/year, and 2.75 times/year respectively
• The average of comparable companies was 3.4 times/year, 3.8 times/year, 3.86 times/year, and 3.66 times/year respectively

This means Chenguang Electric Motor’s accounts receivable turnover days are approximately 133 days (365 ÷ 2.75), while the industry average is about 100 days (365 ÷ 3.66).

The new high in accounts receivable turnover days indicates that Chenguang Electric Motor has weak discourse power in the industrial chain:

• The payment cycle of downstream customers has been extended
• The company is forced to provide longer credit periods to customers to maintain orders
• This reflects intensified industry competition and reduced bargaining power of enterprises

Chenguang Electric Motor’s liquidity indicators are significantly lower than the industry average [1]:

Excessively long accounts receivable collection cycles directly increase the company’s cash recovery pressure,

Chenguang Electric Motor’s top five customers change frequently [1]:

• Top five customers from January to June 2025: Kaiteli, Roborock Technology, Delma, Aipu Electric Appliances, Chunju Electric Appliances
• Only Kaiteli was in the top five in 2024
• Compared with 2023, only Kaiteli remained in 2025

Frequent customer turnover means that the objects of accounts receivable are constantly changing,

Revenue verification issues revealed by regulatory inquiries [2]:

• Some sales contracts do not clearly stipulate acceptance terms
• Missing logistics documents lead to the disruption of the goods delivery evidence chain
• Customer sign-off sheets have problems such as proxy signing and missing signatures

These internal control defects increase the risk that accounts receivable cannot be confirmed.

The company’s accounts receivable turnover rate has continued to decline (from 3.89 to 2.75 times/year), while revenue growth has slowed down [2]:

• 2024 revenue growth rate was 15.91%, significantly lower than 42.93% in 2023
• Some major customers such as Chuanou Electric Appliances and Jingong Electric Appliances have shown a downward trend in revenue in 2024

This combination of ‘slowing revenue growth + decelerating accounts receivable turnover’ is a

Currently, the utility sector is performing weakly overall. On January 5, 2026, the industry dropped by -4.19%, ranking the worst among all industries [0]. This reflects:

1. The industry as a whole is facing capital pressure
2. The payment capacity of downstream customers has decreased
3. The industry’s prosperity is in a downward cycle

Chenguang Electric Motor’s accounts receivable turnover days hitting a new high reflects

• Liquidity risk and internal control defects at the company level
• Declining industry prosperity and intensified competition at the industry level
• Weakened bargaining power at the industrial chain level

Investors should focus on the company’s cash flow management and customer credit risk control capabilities, and carefully evaluate the investment value of the IPO.

[1] Electric Eel Express - ‘Chenguang Electric Motor IPO: Capacity Utilization Differs Greatly from Peers, Business Sustainability Questioned Twice’ (http://mp.cnfol.com/27009/article/1767497402-142195895.html)

[2] NetEase Finance - ‘Chenguang Electric Motor Beijing Stock Exchange IPO: Hidden Worries Under Overstated Performance, Overcapacity and Compliance Risks’ (https://www.163.com/dy/article/KIDTR5ER0556BOWG.html)

[0] Jinling API Data