Analysis Report on Fund Freeze and Litigation Risks of Jiejiaweichuang (300724.SZ)

Based on comprehensively collected data and market information, I provide you with an in-depth analysis report on the fund freeze incident and litigation risks of Jiejiaweichuang (300724.SZ).

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On January 8, 2026, Jiejiaweichuang issued an announcement disclosing that an additional RMB 316 million in its basic bank account was frozen. As of the announcement date, the total amount of frozen funds in the company’s bank accounts was approximately RMB 628 million [1]. This freeze is a procedural property preservation measure triggered by a sales contract dispute with East China Photovoltaic Technology (Xuzhou) Co., Ltd. (hereinafter referred to as “Xuzhou Photovoltaic Energy”), implemented by the Peixian People’s Court of Jiangsu Province in accordance with the Civil Ruling (2026) Su 0322 Zhi Bao No. 8 [2].

Time	Event
May 2023	Jiejiaweichuang and its subsidiaries signed a Sales and Purchase Contract with Xuzhou Photovoltaic Energy, with a total contract value of RMB 587 million
June 2023	Signed a Contract Amendment Agreement, with the total value adjusted to RMB 587 million
July-September 2023	All main production line equipment was delivered, and the acceptance qualification certificate issued by Xuzhou Photovoltaic Energy was obtained
November 2024	Xuzhou Photovoltaic Energy owed RMB 177 million in equipment payments; Jiejiaweichuang filed a lawsuit, involving a total amount of RMB 208 million
April 2025	Xuzhou Photovoltaic Energy filed a counterclaim; the Peixian People’s Court ruled to accept Xuzhou Photovoltaic Energy’s bankruptcy reorganization application
July 2025	Xuzhou Photovoltaic Energy changed its litigation claims, requesting to terminate the contract and return RMB 411 million in equipment payments
January 2026	The total frozen funds reached RMB 628 million, and the case is still in the evidence exchange stage [3]

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Indicator	Value	Assessment
Total frozen amount	RMB 628 million	—
Ratio to net assets	5.67%	Medium impact
Ratio to monetary funds and tradable financial assets	7.30%	Limited impact
Nature of frozen account	Basic account (partial funds)	Not fully frozen

Based on financial data calculations, Jiejiaweichuang’s monetary funds and tradable financial assets are approximately RMB 8.603 billion, and the frozen amount accounts for only 7.30%, a relatively limited proportion. The company clearly stated that “the freeze only involves part of the funds in this account, and the remaining unfrozen funds can still be used normally” [1]. Looking at the financial data for the first three quarters of 2025, the company’s operating cash flow was -RMB 806 million, showing a certain outflow pressure, but the overall cash flow remains sufficient.

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This case features a typical “two-way litigation” characteristic, with both parties acting as plaintiff and defendant:

• Number of lawsuits: 4, involving a total amount of RMB 208 million
• Adjudicated cases: The Shenzhen Intermediate People’s Court ruled that Xuzhou Photovoltaic Energy and its shareholders shall jointly pay approximately RMB 125 million in equipment payments and liquidated damages
• Pending adjudication: 2 lawsuits filed by subsidiaries, involving an amount of RMB 66.4758 million
• Core claim: Recover the overdue equipment payments and protect its legitimate rights and interests

• Counterclaim amount: Claims RMB 112 million in liquidated damages for delayed delivery and RMB 106 million in economic losses
• Core claim: Terminate six procurement contracts (total value RMB 587 million), return the paid equipment payments of RMB 411 million, and return all equipment
• Current status: After three court hearings, the case is still in the evidence exchange stage [2]

Based on existing evidence, Jiejiaweichuang holds a relatively favorable legal position:

1. Equipment delivered and accepted as qualified
   : The company completed the delivery of all equipment in September 2023, and obtained the full equipment acceptance qualification certificate issued by Xuzhou Photovoltaic Energy [3]
2. Project has been put into operation
   : The parent company of Xuzhou Photovoltaic Energy disclosed through official channels that the project was officially put into operation in August 2023, with an initial production capacity of 4GW, and the conversion efficiency of battery cells reached over 26.5%
3. Claims confirmed by the opposing party
   : In July 2025, the administrator of Xuzhou Photovoltaic Energy initially reviewed and confirmed that Jiejiaweichuang holds claims of RMB 125 million against Xuzhou Photovoltaic Energy, Changzhou Jiejiachuang holds RMB 30.9538 million, and Jiejiachuang Intelligent holds RMB 27.6357 million, all of which are general claims [2]

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On April 23, 2025, the Peixian People’s Court of Jiangsu Province ruled to accept the bankruptcy reorganization case of Xuzhou Photovoltaic Energy based on the application of Zhejiang Kaiying New Materials Co., Ltd., and appointed a liquidation team as the administrator. Currently, it is publicly recruiting reorganization investors [2].

Impact Dimension	Analysis
Claim confirmation	The administrator has initially confirmed that the total general claims of Jiejiaweichuang and its subsidiaries exceed RMB 183 million
Recovery risk	The recovery ratio of general claims in bankruptcy proceedings is uncertain, usually lower than 50%-70%
Time cycle	The bankruptcy reorganization cycle is relatively long (usually 6-18 months), and there is a time value loss in fund recovery
Initiative	Senior management of Jiejiaweichuang has traveled to Peixian multiple times to coordinate with the liquidation team and actively promote the reorganization matters

The bankruptcy reorganization procedure is both a challenge and an opportunity for Jiejiaweichuang:

• Challenge
  : General claims are ranked after secured claims in the bankruptcy repayment sequence, so the actual recovery rate may be affected
• Opportunity
  : The company is actively involved in the recruitment of reorganization investors; if it can promote the successful reorganization of Xuzhou Photovoltaic Energy, the probability of claim recovery will be significantly increased

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As a leading enterprise in photovoltaic equipment, Jiejiaweichuang has achieved steady growth in operating performance in the first three quarters of 2025:

Indicator	Value	Year-on-Year Change
Operating revenue	RMB 13.106 billion	+6.17%
Net profit attributable to parent company shareholders	RMB 2.688 billion	+32.90%
Non-net profit after deducting non-recurring gains and losses	RMB 2.463 billion	+26.68%
Gross profit margin	Approximately 30%	Remain stable

From the perspective of financial health indicators, the company’s overall financial status is good:

• Current ratio: 1.84 (healthy level)
• Quick ratio: 1.34 (relatively sufficient)
• Asset-liability ratio: Approximately 45% (reasonable level in the industry)
• ROE: 28.13% (excellent)

A comprehensive assessment shows that the fund freeze incident has limited actual impact on the company’s operations:

1. Controllable impact on cash flow
   : The frozen amount accounts for only 7.3% of available funds, and the company clearly stated that “cash flow is sufficient”
2. No significant impact on production and operation
   : The company responded that “it will not have a significant impact on daily production and operation activities”
3. Business independence
   : The equipment sales business has been delivered, and subsequent payment collection does not affect the recognition of current period revenue
4. Customer concentration risk
   : The risk exposure of a single customer is controllable, and the company’s customer structure is diversified

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Time Period	Change Rate	Evaluation
1 day	-0.78%	Mild pullback
5 days	+7.66%	Strong rebound
1 month	+14.50%	Strong increase
6 months	+81.06%	Significant increase
1 year	+71.96%	Significantly outperforms the market

Based on technical analysis indicators [0]:

• Trend judgment
  : In an uptrend (to be confirmed), a buy signal appeared on January 8
• Key price levels
  : Support level at RMB 98.45, resistance level at RMB 106.55, next target at RMB 110.99
• RSI indicator
  : In the overbought zone, with risk of short-term pullback
• Beta coefficient
  : 0.37 (relative to the Shenzhen Component Index), with good anti-drop performance

From the stock price performance, the market’s reaction to this incident is relatively mild. The stock price only pulled back slightly by 0.78% after the fund freeze announcement, indicating that investors remain confident in the company’s fundamentals and litigation prospects. This may be based on the following factors:

1. The freeze is a procedural preservation measure, not a final judgment
2. The company holds a favorable evidentiary position in the litigation
3. The bankruptcy reorganization administrator has confirmed the company’s claims
4. The main business continues to grow, and the valuation is attractive

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Risk Dimension	Risk Score	Risk Level	Explanation
Capital liquidity	2/5	Low	The proportion of frozen funds is limited, which does not affect overall operations
Uncertainty of litigation results	4/5	Medium-High	The case is complex, and the result is difficult to predict
Bankruptcy claim recovery	3/5	Medium	The recovery rate is uncertain, but claims have been confirmed
Impact on production and operation	1/5	Very Low	The company clearly stated that there is no significant impact
Customer concentration	2/5	Low	The exposure to a single customer is controllable

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The fund freeze incident of Jiejiaweichuang has exerted certain pressure on the company’s stock price in the short term, but based on the following factors, the medium- and long-term impact is limited:

1. Favorable legal position
   : The equipment has been delivered and accepted as qualified, and Xuzhou Photovoltaic Energy has confirmed the company’s claims
2. Solid fundamentals
   : Performance continues to grow, and financial status is healthy
3. Sufficient liquidity
   : The proportion of frozen funds is limited, which does not affect daily operations
4. Mild market reaction
   : The stock price has a strong trend, and investor confidence is sufficient

1. Uncertainty of litigation results
   : Xuzhou Photovoltaic Energy’s counterclaim amount is large; if the company loses the lawsuit, it may face significant losses
2. Bankruptcy claim recovery risk
   : The recovery rate of general claims is uncertain
3. Prolonged fund freeze
   : The litigation cycle may be long, and the frozen funds cannot be unfrozen in the short term
4. Industry cycle fluctuations
   : Changes in photovoltaic industry prosperity may affect the company’s performance

• Short-term
  : Pay attention to the progress of the litigation and the fund freeze situation; stock price pullbacks can be regarded as buying opportunities
• Medium-term
  : Pay attention to the impact of Xuzhou Photovoltaic Energy’s bankruptcy reorganization result on the company’s claim recovery
• Long-term
  : Continue to be optimistic about the development of the photovoltaic equipment industry; as a leading enterprise, the company is expected to benefit

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[1] Sina Finance - “Serial Lawsuits! Over RMB 600 Million of Funds of a Photovoltaic Enterprise Frozen!” (https://finance.sina.com.cn/roll/2026-01-09/doc-inhftcfr0511097.shtml)

[2] Economic Information Daily - “Jiejiaweichuang Sued by Xuzhou Photovoltaic Energy in Counterclaim, Over RMB 600 Million of Funds Frozen” (http://jjckb.xinhuanet.com/20260109/aa9afd0cf27d427d81577eb6ab8d7bec/c.html)

[3] Securities Times - “Jiejiaweichuang Actively Promotes Litigation Dispute with Xuzhou Photovoltaic Energy, Impact of Fund Freeze is Limited” (https://www.stcn.com/article/detail/3583472.html)

[0] Jinling AI Financial Database - Company financial data, technical analysis and market data