Balanced Analysis of Financial Risks and Sci-Tech Innovation Attributes of QuantumCTek

Based on the obtained materials and data analysis, the following is a complete financial risk analysis report for QuantumCTek Technology (Hefei) Co., Ltd.

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QuantumCTek Technology (Hefei) Co., Ltd. is a quantum precision measurement technology enterprise incubated by the team of Academician Du Jiangfeng from the University of Science and Technology of China (USTC)[1][2]. With quantum precision measurement as its core technology, the company’s main products include high-end scientific instruments such as quantum diamond single spin spectrometers, electron microscopes, and measurement-while-drilling systems[1]. The company’s products are mainly delivered to universities and research institutions (Tsinghua University, Chinese Academy of Sciences, Westlake University, Sun Yat-sen University, etc.) and industrial enterprises (BOE, BYD, CATL, Chery Automobile, etc.)[1][2].

, the company’s actual controllers are He Yu (Chairman and General Manager) and Rong Xing (Director), who together control 34.87% of the company’s voting rights[1]. Major shareholders include Hefei Sikun (27.2%), USTC Asset Management (14.75%), Shuhua Technology (8.43%), and Hillhouse Capital (6.63%)[1].

According to the data disclosed in the prospectus, QuantumCTek’s accounts receivable account for

of total assets, far exceeding the industry average of 35%[3]. The specific performance is as follows:

Indicator	QuantumCTek	Industry Average	Deviation Range
Accounts Receivable/Total Assets	86%	35%	+146%
Accounts Receivable Turnover Days	245 days	95 days	+158%

• Excessively long collection cycle
  : The company’s main customers are universities, research institutions, and large state-owned enterprises. The complex procurement process and numerous approval links result in a collection cycle significantly longer than the industry average[1][2]
• Severe capital occupation
  : The 86% accounts receivable ratio means that the vast majority of the company’s assets have extremely poor liquidity, leading to extremely high liquidity risk
• Accumulated bad debt risk
  : If customers with long account periods encounter payment difficulties, it will have a major impact on the company’s performance

The company’s inventory write-down provisions account for

of the inventory balance, while the industry average is only about 3.2%, exceeding by [3].

Indicator	QuantumCTek	Industry Average	Risk Rating
Inventory Write-Down Provision Ratio	8.5%	3.2%	★★★★★
Inventory Turnover Days	304 days	130 days	★★★★☆

• Low inventory turnover efficiency
  : The company’s inventory turnover rate is much lower than the industry average, indicating poor product sales
• Questionable product competitiveness
  : High write-down provisions may reflect insufficient market competitiveness of products or risks of technological iteration
• High inventory management pressure
  : High-end scientific instruments are difficult to manage in inventory and face high depreciation risks

The company’s financial data shows severe cash flow pressure:

Financial Indicator	2022	2023	2024	H1 2025
Operating Revenue (RMB 100 million)	1.51	4.00	5.01	1.71
Net Profit (RMB 100 million)	-1.29	-1.46	-0.86	-0.76
Net Profit Excluding Non-recurring Gains and Losses (RMB 100 million)	-1.68	-1.69	-1.04	-0.74
Undistributed Profit (RMB 100 million)	-	-	-	-4.27

• Net losses for three consecutive years, with accumulated losses exceeding RMB 460 million
• Sustained negative operating cash flow, with poor profit quality
• As of the first half of 2025, the company’s consolidated statement shows undistributed profit of
  -RMB 427 million
  , meaning it has an accumulated deficit not yet offset[1][2]
• Highly dependent on external financing to maintain operations

Despite the high financial risks, the sci-tech innovation attributes of QuantumCTek cannot be ignored:

Indicator	QuantumCTek	Industry Average	Evaluation
R&D Expense Ratio	28%	15-18%	★★★★★
Technological Leadership	Domestic leader in quantum precision measurement	-	★★★★★
Shareholder Background	USTC, Hillhouse, Chinese Academy of Sciences	-	★★★★★

• Quantum precision measurement technology reaches international advanced levels
• The detection accuracy of quantum diamond NV color center sensors reaches atomic scale
• Quantum spin magnetometers can detect magnetic signals 10 billion times weaker than the Earth’s magnetic field[2]
• Products are applied in cutting-edge fields such as medical testing (early screening of coronary heart disease), chip testing, and aerospace

Quantum technology is a national strategic emerging industry with strong policy support[1]:

• The “Second Quantum Revolution” brings industrialization opportunities
• Hefei’s “Quantum Avenue” gathers more than 30 quantum enterprises, forming the densest quantum industry ecosystem in the country
• There is an urgent demand for domestic substitution of high-end scientific instruments, with broad market space

                    High Sci-Tech Innovation Attribute
                         │
         ┌───────────────┼───────────────┐
         │    Quadrant I  │    Quadrant II│
         │  Low Risk      │   High Risk   │
         │  High Sci-Tech │   High Sci-Tech│
    Low ──┼───────────────┼───────────────┼─ High
         │               │   QuantumCTek │   Financial
         │    Quadrant III│  (Current Position)│   Risk
         │  Low Risk      │               │
         │  Low Sci-Tech  │               │
         └───────────────┼───────────────┘
                         │
                    High Sci-Tech Innovation Attribute

• QuantumCTek is in the
  “High-Risk, High Sci-Tech Innovation”
  quadrant
• Financial risks are far higher than the industry average, but sci-tech innovation attributes are equally prominent
• It has the characteristics of a typical early-stage STAR Market enterprise

Dimension	Rating	Explanation
Financial Risk	★★★★★	Accounts receivable ratio, inventory write-downs, and cash flow all deviate significantly from the industry
Sci-Tech Innovation Attribute	★★★★★	Leading quantum precision measurement technology with high R&D investment intensity
Growth	★★★★☆	Fast revenue growth (165% year-on-year growth in 2023), but the profit model remains to be verified
Valuation Risk	★★★★☆	Continuous losses, with high profit uncertainty

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• Quantum technology is a national strategic emerging industry with continuous policy dividends
• High technological barriers, promising to achieve domestic substitution of high-end instruments
• Endorsed by well-known institutions such as Hillhouse and the Chinese Academy of Sciences, with strong shareholder background
• Fast revenue growth and strong market demand

• Extremely high accounts receivable ratio (86%), with high capital recovery risks
• Inventory write-down provisions exceed peers by 166%, raising questions about product competitiveness
• Continuous losses and expanding accumulated deficits
• Sustained negative operating cash flow, highly dependent on external financing
• Uncertainties in the commercialization process of scientific research results

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[1] The Paper - “Post-90s Brothers Team Up, QuantumCTek to Launch IPO” (https://m.thepaper.cn/newsDetail_forward_32311506)

[2] 21st Century Business Herald - “Post-90s Brothers Team Up, QuantumCTek to Launch IPO” (https://www.21jingji.com/article/20260105/herald/be64361b245e01b6ff3dbdda34958d5e.html)

[3] 36Kr - “QuantumCTek Races for STAR Market Listing: RMB 170 Million H1 Revenue, RMB 75.78 Million Net Loss; Hillhouse is a Shareholder” (https://m.36kr.com/p/3590556780773640)