Analysis of Cash Flow Impact from the Fund Freeze Event of Jiejia Weichuang (300724.SZ)

On January 8, 2026, Jiejia Weichuang issued an announcement disclosing that a total of

in its basic bank account has been frozen. This freeze is a procedural property preservation measure triggered by a sales contract dispute with East China Solar Technology (Xuzhou) Co., Ltd. (abbreviated as “Xuzhou Solar Energy”) [1][2].

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Indicator	Value	Impact Assessment
Total Frozen Amount	RMB 628 million	Medium Scale
Proportion of Latest Audited Net Assets	5.67%	Limited Impact
Proportion of Monetary Funds and Trading Financial Assets	7.30%	Limited Impact
Estimated Total Monetary Funds and Financial Assets	Approx. RMB 8.6 billion	Sufficient Liquidity

The frozen funds account for approximately of available monetary funds, meaning that about 92.7% of the company’s funds can still circulate normally [1].

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• Current Ratio: 1.84
  ,
  Quick Ratio: 1.34
  , both within healthy ranges, indicating strong short-term solvency [0]
• The company clearly stated that “the freeze only involves part of the funds in the basic account, and the rest of the funds can circulate normally” and “the overall cash flow is sufficient” [1][2]
• The RMB 628 million frozen funds can be covered by approximately
  4.28 times
  the net profit (RMB 2.688 billion ÷ RMB 628 million)

Period	Operating Cash Flow	Year-on-Year Change
First Three Quarters of 2025	-RMB 806 million	Turned from Positive to Negative
First Three Quarters of 2024	RMB 1.9 billion	Decreased by RMB 2.706 billion

The shift of operating cash flow from positive to negative is mainly affected by the following factors:

• Overall cyclical fluctuations in the photovoltaic industry
• Extended customer payment cycles
• Payment arrears from customers such as Xuzhou Solar Energy

, but this is more of a timing issue rather than a substantive loss [0].

• Xuzhou Solar Energy entered
  bankruptcy reorganization proceedings
  in April 2025
• The administrator has initially confirmed that Jiejia Weichuang and its subsidiaries hold ordinary creditor’s rights totaling
  over RMB 183 million
  [1]
• Against the backdrop of bankruptcy reorganization, the creditor’s rights are expected to be partially or fully settled through the reorganization plan

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• Total amount involved is RMB 208 million, covering four cases
• The Shenzhen Intermediate People’s Court issued a first-instance judgment ordering Xuzhou Solar Energy to pay approximately RMB 125 million
• The Binhu District People’s Court of Wuxi City supported part of the company’s claims in the first instance

• Claims include RMB 112 million in late delivery damages and RMB 106 million in economic losses
• Requests the termination of multiple contracts and the return of RMB 411 million in paid equipment fees
• The case is still in the evidence exchange stage, and the final result is uncertain [2][3]

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Dimension	Assessment	Explanation
Fund Freeze Impact	Low	Accounts for only 7.3% of monetary funds, and is only a procedural preservation measure
Short-term Liquidity	Healthy	Current ratio of 1.84, quick ratio of 1.34
Operating Cash Flow	Under Pressure	Turned from positive to negative, but mainly affected by industry cycles
Solvency	Sufficient	Has sufficient monetary funds to cover the frozen amount
Creditor’s Rights Recovery	Optimistic	Xuzhou Solar Energy is in bankruptcy reorganization, with RMB 183 million in creditor’s rights pending confirmation

1. Substantive Impact is Limited
   : The RMB 628 million frozen funds account for only 7.3% of the company’s monetary funds, and this is a procedural litigation measure rather than a final judgment, which will not have a significant impact on the company’s daily production and operations [1].

2. Liquidity Risk is Controllable
   : The company’s current ratio and quick ratio are both within healthy ranges, with sufficient short-term solvency and capital turnover capacity.

3. Operating Cash Flow Pressure Requires Attention
   : Although the impact of the frozen funds themselves is limited, the company’s operating cash flow turning from positive to negative (-RMB 806 million) in the first three quarters of 2025 is more worthy of vigilance; attention should be paid to industry cycle changes and customer payment credit risks.

4. Positive Factors Dominate
   : In the first three quarters of 2025, the company’s net profit attributable to parent shareholders increased by 32.90% year-on-year to RMB 2.688 billion, demonstrating strong profitability and sufficient financial buffer to cope with this litigation dispute.

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[1] Phoenix Net Finance - “Jiejia Weichuang Actively Promotes Litigation Dispute with Xuzhou Solar Energy, Fund Freeze Has Limited Impact” (https://finance.ifeng.com/c/8pm7dB1P6bw)

[2] Economic Information Daily - “Jiejia Weichuang Counterclaimed by Xuzhou Solar Energy, Over RMB 600 Million in Funds Frozen” (http://jjckb.xinhuanet.com/20260109/aa9afd0cf27d427d81577eb6ab8d7bec/c.html)

[3] Sina Finance - “Serial Lawsuits! Over RMB 600 Million in Funds of a Photovoltaic Enterprise Frozen!” (https://finance.sina.com.cn/roll/2026-01-09/doc-inhftcfr0511097.shtml)

[0] Jinling AI Financial Database (Corporate financial data, market indicators, technical analysis)