Funding Chain Risk Analysis Report of Guoxia Technology (2655.HK)

Based on the detailed financial data I collected, I now present a comprehensive analysis report on the accounts receivable turnover days and funding chain status of Guoxia Technology (2655.HK).

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Guoxia Technology is a Chinese technology company focusing on energy storage system solutions and products, which was listed on the Main Board of the Hong Kong Stock Exchange on December 16, 2025. The company’s business covers energy storage applications in large-scale power source side, grid side, as well as industrial and commercial and household scenarios, with “AI + Energy Storage” as its core strategic positioning. The company launched its global offering on December 8, 2025, with an issue price of HK$20.1 per share, planning to raise HK$680 million[1][2].

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According to financial data, the trade receivables turnover days of Guoxia Technology have shown a significant deterioration trend[1][2]:

Period	Accounts Receivable Turnover Days	YoY Change
2022	56.2 days	Base Period
2023	119.0 days	+111.7%
2024	120.6 days	+1.3%
H1 2025	181.8 days	+50.7%

There is a discrepancy between the 198 days mentioned by the user and the 181.8 days in H1 2025, which may reflect further deterioration in H2 2025 or the latest quarter. Regardless of which data is used, it shows that the company’s capital recovery cycle has increased by more than 3 times in the past three years, a rate of change that is relatively rare in the industry.

As of the end of H1 2025, the company’s total trade receivables and notes reached

, an increase of RMB 440 million compared to the end of 2024, representing a growth rate of 86.3%[1]. More critically, , which means that for every RMB 1 of revenue the company generates, RMB 0.64 is occupied by customers free of charge, creating enormous pressure on the company’s cash flow.

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The company’s operating cash flow has been in a net outflow state for a long time, and only turned positive briefly in 2024[1][2]:

Period	Net Operating Cash Flow	Status
2022	-RMB 30.32 million	Net Outflow
2023	-RMB 72.91 million	Net Outflow
2024	+RMB 3.73 million	Minor Inflow
H1 2025	-RMB 200 million	Significant Net Outflow

The net cash outflow in H1 2025 expanded significantly compared to the full year of 2024, indicating that while the company’s business is expanding rapidly, its cash recovery capability has not improved synchronously, but instead shows a trend of accelerated deterioration.

As of the end of H1 2025, the company’s book cash is only

[1]. Combined with the company’s recent business expansion plans and capital expenditure needs, this cash reserve level is particularly tight. Based on the company’s net operating cash outflow rate of RMB 200 million in H1 2025, the existing cash can only support approximately of operating expenses.

In terms of investment activities, the company continues to carry out capacity expansion and equipment investment, and the pressure of capital outflow remains unabated. Although financing activities had net inflows of RMB 234 million and RMB 125 million in 2024 and H1 2025 respectively, they mainly rely on external financing. Once the capital market environment changes or investor confidence is insufficient, the company will face the risk of financing difficulties.

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Guoxia Technology faces a serious issue of

[1][2]:

Period	Revenue Share of Top 5 Customers
2022	98.9%
2023	84.5%
2024	66.5%
H1 2025	77.7%

This structure has led to a serious lack of bargaining power for the company. In order to maintain cooperative relationships with major customers, the company has to continuously extend customer credit periods, which directly leads to the continuous rise in accounts receivable turnover days. High customer concentration means that the company is highly dependent on a single or a few customers. Once major customers encounter financial difficulties or terminate cooperative relationships, the company’s revenue and cash flow will suffer a major impact.

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The company’s profitability shows a clear downward trend[2]:

Period	Gross Profit Margin	Net Profit Margin
2022	25.1%	17.1%
2023	26.7%	9.0%
2024	15.1%	4.8%
H1 2025	12.5%	0.8%

The gross profit margin dropped from 25.1% in 2022 to 12.5% in H1 2025, a decrease of 50.2%; the net profit margin plummeted from 17.1% to 0.8%, a decrease of 95.3%. This phenomenon of “increasing revenue without increasing profit” reflects that the company has been forced to cut prices for promotions in fierce competition, while its cost control capability is insufficient, and its profit margin has been severely compressed.

Although public information does not disclose the company’s specific short-term and long-term loan data, its debt repayment pressure can be inferred from the following indicators:

1. The ratio of monetary funds to total assets is only 2.69%
   [2], indicating that the company’s cash reserves are extremely scarce
2. The ratio of net operating cash flow to current liabilities
   was -36.97% and -25.41% in 2022 and 2023 respectively. Although it turned positive to 0.39% in 2024, it deteriorated to -15.29% in H1 2025[2]
3. The book cash of RMB 56.07 million corresponds to accounts receivable of RMB 950 million, with a recovery cycle of more than half a year

If accounts receivable cannot be recovered in a timely manner, the company may face the risk of being unable to repay maturing debts on schedule.

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Based on the above analysis, Guoxia Technology’s funding chain faces the following core risks:

1. Excessively long accounts receivable turnover days
   : Increased from 56 days to over 181 days, with a large amount of capital occupied and difficult to recover
2. Continuous cash flow loss
   : Net outflow of RMB 200 million in H1 2025, with only RMB 56.07 million left in book cash
3. High customer concentration
   : The share of top 5 customers has long exceeded 65%, with weak bargaining power and passively extended credit periods
4. Deteriorating profitability
   : Gross profit margin and net profit margin continue to decline, with net profit margin only 0.8% in H1 2025
5. Insufficient cash reserves
   : At the current outflow rate, cash can only support approximately 3 months of operations

The company’s funding chain status is in a

state. Although the IPO financing of approximately HK$680 million is expected to temporarily ease cash flow pressure, if the accounts receivable turnover days cannot be effectively improved and operating cash flow remains negative, the company may face the risk of funding chain rupture within the next 12-18 months. Investors need to closely monitor the company’s cash flow improvement, accounts receivable recovery progress, and customer structure optimization progress after listing.

1. The company’s cash usage plan and capital management strategy after IPO
2. Whether there is a turning point in accounts receivable turnover days
3. Progress in developing new customers and changes in customer concentration
4. Whether the gross profit margin can stabilize and rebound
5. The impact of capacity expansion plans on cash flow

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[1] Sina Finance - “Guoxia Technology Launches Global Offering: HK$680 Million Financing Scale Requires 18 Underwriters” (https://finance.sina.com.cn/stock/observe/2025-12-10/doc-inhaiiyz0390708.shtml)

[2] CyberQuote (HK) - “IPO Report Analysis of Guoxia Technology Co., Ltd.” (https://research.cyberquote.com.hk/page/htm/kc/share_recommend/pdf/2655Report.pdf)

[3] Guoxia Technology Financial Report Summary (https://tool.stockstar.com/summary/caibao/02655)