Cash Flow Health Analysis Report for Shuangjie Electric (SZ300444)

Now let me prepare the complete cash flow health analysis report for you:

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Shuangjie Electric (Beijing Shuangjie Electric Co., Ltd.) is a listed company focusing on the industrial machinery sector. Its stock price has performed strongly since 2026, rising by over 121% in the past year, with a current market capitalization of approximately USD 11.84 billion[0]. However, the strong stock performance shows a clear divergence from its cash flow fundamentals.

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Fiscal Year	Operating Cash Flow (CNY)	YoY Change
2020	+158 million	-
2021	-272 million	-272.5%
2022	-210 million	+22.9%
2023	+206 million	+198.1%
2024	-645 million	-413.2%

• Negative operating cash flow in 3 out of 5 years (60%)
• Highly volatile operating cash flow
  , which deteriorated sharply in 2024, turning from a surplus to a deficit of 645 million yuan
• Operating cash flow shows a “rollercoaster” trend, lacking stable cash generation capacity

Fiscal Year	Free Cash Flow (CNY)
2020	-76 million
2021	-645 million
2022	-304 million
2023	-238 million
2024	-872 million

• Negative free cash flow for 5 consecutive years
  , never turning positive
• The free cash flow gap widened to 872 million yuan in 2024, a record high
• Capital expenditure (Capex) accounts for a relatively high proportion, with the 2024 Capex/revenue ratio reaching 6.5%[0]

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Indicator	2024 Data	Industry Reference	Evaluation
Operating Cash Flow/Revenue	Negative	>10%	❌ Severely Abnormal
Free Cash Flow/Revenue	Negative	>5%	❌ Severely Abnormal
EV/Operating Cash Flow	-10.39x	8-15x	❌ Negative Value Abnormal
P/OCF Ratio	-8.59x	10-20x	❌ Negative Value Abnormal
Income Quality Index	-7.97	>1.0	❌ Severely Deteriorated
Current Ratio	1.24	1.5-2.0	⚠️ Below Average
Cash Ratio	0.73	>0.5	✅ Acceptable

• Debt-to-Equity Ratio
  : Rose to 1.07x in 2024 (0.49x in 2023), indicating a significant increase in leverage[0]
• ROE (Return on Equity)
  : Only 4.98% in 2024, a relatively low level
• Interest Coverage Ratio
  : 2.60x, indicating weak debt-servicing capability

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1. Deteriorating Accounts Receivable Turnover
   • Accounts Receivable Turnover Days: Reached
     235.8 days
     in 2024 (169.3 days in 2023)
   • The collection period has been significantly extended, occupying a large amount of working capital

2. Slowing Inventory Turnover
   • Inventory Turnover Days:
     216 days
     in 2024 (137.2 days in 2023)
   • Severe inventory backlog, with cash flow tied up in inventory

3. Extended Accounts Payable Period
   • Accounts Payable Turnover Days:
     268.6 days
     in 2024 (140.5 days in 2023)
   • While extending payment terms can relieve cash flow pressure in the short term, it is unsustainable

Operating Cash Flow Gap = Operating Revenue × Operating Cash Flow Ratio
                ≈ 3.47 billion yuan × (negative value)
                
Free cash flow remaining negative indicates:
- The company cannot generate sufficient cash from its core operations
- Capital expenditure intensity is high, with expansion consuming a large amount of cash
- Relies on external financing to maintain operations

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Indicator	Data	Contradiction
Stock Price Gain in Past Year	+121.52%	Contradicts fundamentals
P/E (Price-to-Earnings Ratio)	68.48x	Built on fragile earnings
Operating Cash Flow	-645 million yuan	Cannot support valuation

: The stock price increase may be driven by market sentiment, theme speculation, or liquidity, rather than supported by fundamental improvements.

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1. Sustained negative operating cash flow
   – Lack of cash generation capacity from core businesses
2. Negative free cash flow for 5 consecutive years
   – The company has been consuming cash rather than creating value
3. Deteriorating working capital management
   – Significant slowdown in accounts receivable and inventory turnover
4. Rapidly rising leverage
   – Debt-to-equity ratio doubled in one year, increasing financial risk
5. Divergence between cash flow and valuation
   – High valuation is built on fragile fundamentals

Dimension	Score	Explanation
Operating Cash Flow Stability	2/10	Frequently negative, highly volatile
Free Cash Flow Generation	0/10	Negative for 5 consecutive years
Working Capital Efficiency	3/10	Turnover days deteriorated significantly
Debt-Servicing Capability	5/10	Current ratio >1 but below average
Earnings Quality	2/10	Severe divergence between cash flow and profits
Composite Score	2.4/10	Unhealthy

• If operating cash flow fails to improve, the company may face a
  liquidity crisis
• High leverage combined with negative cash flow,
  debt default risk
  deserves attention
• The current stock price gain lacks fundamental support, with high
  valuation reversion risk

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: [0] Jinling AI Financial Database

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