Analysis of Operating Cash Flow and Cash Generation Capacity of Guoxia Technology (02655.HK)

Based on collected financial data and market information, I will provide a comprehensive analysis of Guoxia Technology’s operating cash flow.

Based on publicly disclosed financial data, Guoxia Technology’s operating cash flow has shown a

trend:

Time Period	Net Operating Cash Flow	Trend
2022	-RMB 30.3 million	Sustained Outflow
2023	-RMB 72.9 million	Deteriorated ↑
2024	+RMB 3.0 million	Briefly Turned Positive
H1 2025	-RMB 204.9 million	Sharply Deteriorated ↑

:

• The cumulative net operating cash outflow from 2022 to H1 2025 is approximately
  RMB 305 million
  [1][2]
• The outflow scale in H1 2025 is
  68 times
  that of the full year 2024, and the deterioration rate is worrying[3]

---

Accounts receivable is the

dragging down Guoxia Technology’s cash flow:

Time Point	Trade Receivables	Percentage of Revenue	Turnover Days
End of 2022	RMB 41.59 million	29.32%	56.7 days
End of June 2025	RMB 952 million	137.8%	198 days

Key Insights:

• Trade receivables surged
  22 times in two and a half years
  , far outpacing revenue growth[2][4]
• Turnover days extended from 56.7 days to 198 days, and the collection speed decreased by nearly
  4 times
• In H1 2025, trade receivables accounted for 137.8% of revenue, meaning a large portion of revenue is only “paper profit”[5]

Guoxia Technology’s business focus has undergone a

[3][4]:

Business Segment	2022	H1 2025
Residential Energy Storage in Europe	72.1% of Revenue	9.1%
Large-scale Energy Storage in China	12.2% of Revenue	74.2%

Characteristics of Domestic Large-scale Energy Storage Business:

• Large project value, long payment cycle, high competition intensity
• Requires enterprises to
  advance funds
  significantly, leading to extended collection cycles
• Gross margin is only 12.5%, far lower than the over 25% of residential energy storage

It is disclosed that Guoxia Technology has even adopted a competitive practice of “providing loans to potential customers without binding purchase obligations”, and this

has further exacerbated cash flow pressure[2].

---

Financial Indicator	2022	2023	2024	H1 2025
Gross Margin	25.1%	26.7%	15.1%	12.5%
Net Profit Margin	17.1%	9.0%	4.8%	0.8%
Net Profit	RMB 24.3 million	RMB 28.1 million	RMB 49.1 million	RMB 5.6 million

:

• Net profit margin dropped from 17.1% to 0.8%, and profit margins have been compressed to the
  brink of breakeven
  [1][5]
• Gross margin has nearly “halved”, reflecting intensified industry competition and the impact of price wars

Indicator	Value	Risk Assessment
Ending Cash Balance	RMB 46.687 million	Tight
Short-term Borrowings	RMB 331 million	High
Cash-to-Short-Term-Debt Ratio	0.14x	Severely Insufficient
Leverage Ratio (Debt/Equity)	128.8%	Relatively High

: A cash-to-short-term-debt ratio of 0.14x means the company’s cash reserves can only cover 14% of its short-term debts, resulting in [5].

In H1 2025, Guoxia Technology’s R&D expenditure accounted for only

, significantly lower than the median of for the A-share energy storage industry[3]. For a technology company positioned with the “AI+Energy Storage” strategy, weak R&D intensity may weaken its long-term competitiveness and profitability.

---

Guoxia Technology’s

, based on the following main reasons:

1. Sustained hemorrhage in operating cash flow
   : Except for a brief positive turn in 2024, net outflows occurred in all other periods, and the situation deteriorated sharply in H1 2025
2. Dilemma of revenue growth without profit growth
   : Revenue grew 6 times but net profit margin dropped from 17.1% to 0.8%, and scale expansion failed to translate into effective profits
3. High accounts receivable risk
   : RMB 952 million in trade receivables accounts for 137.8% of revenue, with large-scale capital occupation and extended collection cycles
4. Prominent liquidity pressure
   : Cash-to-short-term-debt ratio is only 0.14x, leading to severe insufficiency in short-term debt-servicing capacity

• Major Customer Dependence Risk
  : The top customer, CALB Group, accounts for 41.7% of revenue, raising concerns about business independence and risk concentration[3]
• Industry Cycle Risk
  : Intensified competition and ongoing price wars in the energy storage industry may further erode profits and cash flow
• Related Party Relationship Risk
  : CALB Group is both a customer, supplier, and shareholder, drawing attention to the fairness of pricing

The company is currently in a phase of “trading scale for time”, and alleviating cash flow pressure through IPO financing is an important consideration. It is recommended that investors focus on its

, , and , and carefully assess investment risks.

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[1] Guoxia Technology Financial Report Summary - Stock Star (https://tool.stockstar.com/summary/caibao/02655)

[2] Sina Finance - How Guoxia Technology Competes in the Energy Storage Sector (https://finance.sina.com.cn/roll/2026-01-11/doc-inhfxzzm7516520.shtml)

[3] Solarbe - Gross Margin Nearly Halved, What Are the Odds of Guoxia Technology’s Second IPO Attempt? (https://cn.solarbe.com/news/20251107/50012043.html)

[4] Sina Finance - Guoxia Technology (02655.HK) “Surged” on its First Trading Day, Why Has Gross Margin Been Declining? (https://cj.sina.cn/articles/view/7750929051/1cdfdca9b00101c774)

[5] Yahoo Finance - The Energy Storage Dilemma of High-Growth, Low-Profit Guoxia Technology (https://hk.finance.yahoo.com/news/高增長低利潤-果下科技的儲能困局-235806670.html)