Jiejia Weichuang (300724.SZ) 2025 First Three Quarters Performance Analysis: Reasons for 32.9% Net Profit Growth but Deteriorated Cash Flow

Based on the data and research reports I have obtained, let me provide an in-depth analysis of the reasons for Jiejia Weichuang’s 32.9% net profit growth but deteriorated cash flow in the first three quarters of 2025.

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According to the latest financial data, Jiejia Weichuang achieved the following in the first three quarters of 2025 [5]:

Indicator	Value	Year-on-Year Change
Total Revenue	RMB 13.11 Billion	+6.17%
Net Profit	RMB 2.688 Billion	+32.90%
Gross Profit Margin	29.07%	—
Net Profit Margin	20.52%	—
ROE	21.95%	—

: Net profit increased by 32.9% year-on-year, but operating cash flow deteriorated significantly. The EV/OCF (Enterprise Value/Operating Cash Flow) ratio stood at , indicating negative operating cash flow [0][5].

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: According to the notes to the 2024 annual report, the company’s accounts receivable from “Group A” (Entity 1) amounted to , but the bad debt provision made exceeded , with a provision ratio of over [2]. This means the actual recoverable amount from this customer is only about RMB 232 million, representing extremely high bad debt risk.

: From an industry comparison perspective, the company is classified as an “aggressive” accounting treatment model. Its low depreciation/capital expenditure ratio indicates that the company may be aggressive in revenue recognition and credit policies [0].

: As can be seen from the chart data, the company’s major liabilities (contract liabilities, notes payable, and accounts payable) changed significantly between 2024 and 2025 [1].

: As a photovoltaic equipment manufacturer, the company has a long product acceptance cycle. Downstream customers (photovoltaic cell manufacturers) have seen a decline in payment capacity amid the industry’s downturn cycle, leading to an increase in inventory turnover days and massive occupation of working capital.

: In the first half of 2025, peers such as Maiwei Co., Ltd. saw revenue decline (-13.5%). The profitability pressure on industry customers has led to extended equipment acceptance cycles [3]. Although Jiejia Weichuang maintained growth relying on its leading position in TOPCon equipment, its collection pressure increased significantly.

: The company’s continuous R&D investment and capacity expansion in perovskite equipment and pan-semiconductor fields require significant upfront capital investment, which puts pressure on cash flow in the short term.

:

• Net profit is accounting profit under the accrual basis, mainly affected by revenue recognition and expense matching
• Operating cash flow reflects actual cash receipts and payments, affected by factors such as accounts receivable collection, inventory changes, and accounts payable turnover
• The company achieved profit growth through aggressive revenue recognition, but lagging cash collection led to deteriorated cash flow

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Based on available financial chart data, Jiejia Weichuang’s free cash flow shows a clear downward trend [1]:

Period	Free Cash Flow
2020-2023	Sustained Positive
2024	Turned Negative
2025 Q1-Q3	Significantly Deteriorated

This trend stands in stark contrast to net profit growth, indicating that the company’s profit quality is declining.

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1. Accounts Receivable Bad Debt Risk
   : Excessive exposure to a single customer; if bad debts actually occur, it will have a major impact on profits
2. Cash Flow Breakage Risk
   : If the continuous outflow of free cash flow cannot be reversed, it will affect the company’s sustainable operating capability
3. Industry Cycle Risk
   : Fluctuations in the photovoltaic industry’s capacity expansion cycle directly affect equipment demand and collection capability

1. Sufficient Handheld Orders
   : Perovskite equipment orders continue to grow, accounting for over 60% of global orders in 2025 [3]
2. Leading Technological Advantage
   : The company maintains a leading position in TOPCon and perovskite equipment fields
3. Relatively Abundant Liquidity
   : Current ratio of 1.84 and quick ratio of 1.34, indicating acceptable short-term solvency [0]

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The core reasons for Jiejia Weichuang’s 32.9% net profit growth but deteriorated cash flow in the first three quarters of 2025 are as follows:

1. Decline in Accounts Receivable Quality
   : Large-scale bad debt provisions reflect increased customer credit risk
2. Increased Working Capital Occupation
   : Inventory and accounts receivable are growing faster than revenue
3. Aggressive Accounting Policies
   : Relaxation of credit standards and revenue recognition timelines to pursue profit growth
4. Industry Cycle Transmission
   : Overall pressure on the photovoltaic industry has increased the difficulty of cash collection

: The company’s subsequent actual bad debt write-offs, progress in accounts receivable collection, and whether cash flow can improve in 2026. If cash flow continues to deteriorate, its valuation will face compression pressure even if profit growth is maintained.

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[0] Jinling API Financial Data
[1] Eastmoney.com - Jiejia Weichuang Financial Chart Analysis (https://np-newspic.dfcfw.com/)
[2] Jiejia Weichuang Investor Interaction Platform (http://www.stcn.com/quotes/index/sz300724.html)
[3] Eastmoney Wealth Account - In-Depth Comparative Analysis of Maiwei Co., Ltd. and Jiejia Weichuang (https://caifuhao.eastmoney.com/news/20251228091122360629710)
[4] Eastmoney Wealth Account - Comparative Analysis of Jiejia Weichuang and Maiwei Co., Ltd.'s Future 5-Year Performance, Profit Growth and Valuation (https://caifuhao.eastmoney.com/news/20251224202449361914920)
[5] Eastmoney.com - Jiejia Weichuang (300724) Stock Data (http://quote.eastmoney.com/sz300724.html)