Analysis of Accounts Receivable Turnover and Capital Chain Risks for Guoxia Technology (2655.HK)

Based on the detailed information collected, I will conduct a comprehensive analysis of Guoxia Technology’s accounts receivable turnover days and capital chain risks.

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Metric	2022	2023	2024	H1 2025
Accounts Receivable Turnover Days	56.2 days	98.0 days	181.8 days	198 days
Accounts Receivable Amount (RMB 100 million)	0.416	1.658	5.205	9.523
Gross Profit Margin	25.1%	26.7%	15.1%	12.5%
Net Profit Margin	17.1%	9.0%	4.8%	0.8%
Operating Cash Flow (RMB 100 million)	-0.303	-0.729	-0.519	-2.049
Cash and Cash Equivalents (RMB 100 million)	0.86	1.24	1.03	0.467
Current Ratio	-	-	-	1.1x
Quick Ratio	-	-	-	0.9x
Leverage Ratio	-	-	-	128.8%

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Guoxia Technology’s accounts receivable turnover days surged sharply from 56.2 days in 2022 to 198 days in H1 2025, representing an increase of over

in four years [1][2]. This figure has approached the upper limit of the 30-180 day credit period provided by the company to major customers, indicating that the company’s collection capacity is approaching its limit.

Trade receivables and notes receivable skyrocketed from

at the end of 2022 to at the end of June 2025, an increase of over in four years, far outpacing the revenue growth rate during the same period (about 6x), reflecting the company’s adoption of aggressive credit policies to drive sales growth [1][2].

As of the end of June 2025, the company’s trade receivables (after deducting loss provisions) amounted to approximately

, of which:

• Within 1 year: approximately RMB 816.8 million (accounting for 96.7%)
• 1-2 years: approximately RMB 27.9 million (accounting for 3.3%)
• Impairment provisions: RMB 15.3 million

Although the age structure of receivables is acceptable, considering the company’s

, any increase in bad debt provisioning will significantly squeeze profits [1][2].

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The company’s operating cash flow has shown a trend of

, with the scale continuing to expand:

• 2022: -RMB 30.3 million
• 2023: -RMB 72.9 million
• 2024: -RMB 51.9 million
• H1 2025:
  -RMB 204.9 million
  [1][2]

Three consecutive years of net cash outflows reveal a rigid vicious cycle of “scale expansion - capital occupation”: the company needs to advance funds to secure projects, and the extended collection period further exacerbates the cash flow gap.

• Cash-to-short-term-debt ratio is only 0.07
  (cash and cash equivalents of RMB 46.7 million vs. interest-bearing borrowings of RMB 334 million), meaning the company’s cash reserves can only cover approximately 7% of its short-term debts [1][2]
• Current ratio of 1.1x, quick ratio of 0.9x
  : Short-term solvency is weak; a quick ratio below 1 means the company will face liquidity pressure if it relies on quickly realizable assets
• Leverage ratio of 128.8%
  : Total debt/shareholders’ equity exceeds 100%, indicating a high level of financial leverage

The balance of cash and cash equivalents has continued to decline: from RMB 86 million at the end of 2022, RMB 124 million at the end of 2023, and RMB 103 million at the end of 2024, to

at the end of June 2025 [1][2]. The company’s capital buffer space is already very limited.

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The company’s business focus has completely shifted from overseas residential energy storage (the European market accounted for 72.1% in 2022) to domestic large-scale energy storage (the Chinese market accounted for 81.8% in H1 2025). The domestic large-scale energy storage track is characterized by “large project amounts, long payment cycles, and high competition intensity”, which directly led to a significant lengthening of accounts receivable turnover days [1][2].

To expand scale and pursue an IPO, the company has adopted a series of aggressive measures:

• Offering aggressive credit policies (30-180 day credit periods)
• Extreme competitive practice of “providing loans to potential customers without binding purchase obligations” [1]
• Sacrificing collection speed and profit margins to gain market share

Revenue increased from RMB 142 million in 2022 to RMB 1.026 billion in 2024 (a compound annual growth rate of 168.9%), but the growth rate of net profit is far lower than that of revenue: net profit in H1 2025 was only

, and the net profit margin fell to 0.8%, approaching the break-even point [1][2].

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Based on the following key signals, the controllability of Guoxia Technology’s capital chain risks is

:

Risk Dimension	Assessment Result	Explanation
Short-term Solvency	High Risk	Cash-to-short-term-debt ratio of 0.07, quick ratio of 0.9
Cash Flow Status	High Risk	Sustained and expanding operating cash flow net outflows
Accounts Receivable Quality	Medium-High Risk	Turnover days of 198 days approaching the upper limit
Profitability	High Risk	Net profit margin of 0.8%, extremely thin profit margin
Financial Leverage	Medium-High Risk	Leverage ratio of 128.8%

1. Refinancing Pressure
   : The company needs to rely on external financing or supply chain account period management to maintain capital turnover. There is uncertainty about whether it can continue to receive capital market financing support after listing [1][2]
2. Bad Debt Risk
   : If the payment capacity of downstream customers (mainly state-owned power enterprises and large energy companies) declines or the payment period is further extended, bad debt losses will have a significant impact on the company
3. Liquidity Crisis
   : Cash and cash equivalents are only RMB 46.7 million, while interest-bearing borrowings reach RMB 334 million. A liquidity crisis may occur once credit tightens

• The company has successfully listed on the Hong Kong Stock Exchange, raising approximately HK$680 million in its IPO, which can partially ease capital pressure [1]
• The age structure of receivables is relatively healthy, with only 3.3% of accounts receivable being over 1 year old
• The residential energy storage business (overseas market) still maintains a compound annual growth rate of 42.7%, which may become a support point for cash flow improvement

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Guoxia Technology’s accounts receivable turnover days reach

, and the controllability of its capital chain risks is . The company’s rapid expansion is built on aggressive credit policies and sustained cash flow outflows, and its financial buffer space is already very tight. Although IPO proceeds can provide short-term capital support, if the company cannot effectively improve collection efficiency and enhance profitability, it will face significant liquidity pressure and financial risks.

:

• Whether accounts receivable turnover days will decline in subsequent reporting periods
• Whether operating cash flow can turn positive
• Whether gross profit margin and net profit margin can stabilize and rebound
• Capital utilization efficiency after IPO fundraising

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[1] Gantanhang Energy Storage - “A Standard Sample of Energy Storage Involution: How Did Dark Horse Guoxia Technology Achieve Rapid Growth?” (https://m.sohu.com/a/974861063_211762)

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