Analysis of Accounts Receivable Collection Cycle for Zhanxin Semiconductor and the Military Industry

Jiangsu Zhanxin Semiconductor Technology Co., Ltd. is an integrated circuit R&D and manufacturing company dedicated to the development of power management chips, whose products are widely used in various equipment fields such as sea, land, air, and space [1]. The company is a stake-held company of listed firm Hongda Electronics (300726.SZ), with Hongda Electronics indirectly holding a 13.79% stake [2]. In December 2025, Jiangsu Zhanxin submitted an application for an initial public offering (IPO) and listing on the ChiNext board to the Shenzhen Stock Exchange, which was accepted [2].

According to the information found, the issue of accounts receivable collection cycles in the military industry did attract market attention during the 2024-2025 period. Relevant data shows that some military enterprises are facing pressure from extended accounts receivable collection cycles, which is mainly related to the following factors:

1. Trend of Extended Payment Terms
   : From the industry overall perspective, the accounts receivable collection days of some military enterprises show an increasing trend, especially in related fields such as auto parts [3].

2. Increased Financial Pressure
   : A surge in accounts receivable leads to tight cash flow for enterprises, increases financial costs, and affects their normal operations and R&D investment capabilities.

3. Industry Specificity
   : The main customers of the military industry are military and government agencies; long contract execution cycles and complex acceptance procedures result in inherently relatively long collection cycles.

The issue of accounts receivable collection cycles in the military industry needs to be viewed from the following dimensions:

• Order Stability
  : Although collection cycles may be extended, the overall order demand in the military industry maintains a stable growth trend.
• Policy Support
  : The continuous advancement of national defense modernization provides a stable source of orders for the industry.
• Financial Risk Management
  : Enterprises need to strengthen accounts receivable management and optimize customer credit evaluation systems.

For investors focusing on the military semiconductor sector, it is recommended to pay key attention to:

1. Companies’ cash flow status and accounts receivable turnover efficiency
2. The degree of diversification in customer structure
3. The status of existing orders and future growth potential
4. Companies’ technological competitiveness and market position

It should be noted that Jiangsu Zhanxin is currently in the IPO application phase, with limited information disclosure; investors are advised to closely monitor its subsequent prospectus and regulatory inquiry responses to obtain more detailed financial and business information.

[1] Jiangsu Zhanxin Semiconductor Technology Co., Ltd. - Company Information (https://m.qcc.com/firm/e63542277159728c9340dcbdb7c20665.html)

[2] Hongda Electronics: Subsequent progress of Jiangsu Zhanxin’s IPO application remains uncertain - National Business Daily (https://www.nbd.com.cn/articles/2025-12-24/4193729.html)

[3] 2025 Q3 Report and Related Industry Data (https://gbres.dfcfw.com/Files/iimage/20251210/DE750FD499847EEAE08C8565368B72A4_w1080h551.png)