In-Depth Analysis of Accounts Receivable and Capital Turnover Pressures for Wondfo Biotech (300482.SZ)

Now, based on the obtained data, I will provide a comprehensive analysis of Wondfo Biotech’s accounts receivable and capital turnover pressures.

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Indicator	Data	YoY Change	Assessment
Accounts Receivable (2024)	RMB 12.8 billion	To be judged in conjunction with historical data	Extremely large scale
Accounts Receivable (2025 Q3)	RMB 1.046 billion	+18.27%	Increasing collection pressure
Monetary Funds	RMB 205 million	-22.35% (down from RMB 264 million)	Tightening capital chain
Net Profit Attributable to Shareholders (2025E)	RMB 46 - 69 million	-87.71% to -91.81%	Sharp profit decline
Non-Recurring Net Profit (2025E)	-RMB 7.5 million to -RMB 15 million	Loss-making	Operating pressure
Current Ratio	7.78	-	Strong short-term solvency

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Based on public data [1][2], Wondfo Biotech’s accounts receivable issues are mainly reflected in the following aspects:

• Accounts receivable reached RMB 12.8 billion in 2024
  , a figure that is relatively high in the In Vitro Diagnostic (IVD) industry
• Accounts receivable in the first three quarters of 2025 was RMB 1.046 billion
  , up 18.27% year-on-year, while revenue in the same period fell 22.52% year-on-year
• The growth rate of accounts receivable far outpaces that of revenue, indicating a significant weakening of collection capability

From an industry analysis perspective [2]:

• The proportion of accounts receivable with an aging of over 1 year is on the rise
• Policy pressures in the healthcare industry (volume-based procurement, DRG cost control) have led to extended payment cycles for hospital clients
• The company needs to fully accrue bad debt provisions, which will further erode profits

Wondfo Biotech’s main clients are medical institutions and distributors:

• In-hospital business
  is under “volume and price pressure” due to healthcare industry policies [1]
• Hospital clients generally have long collection cycles, and are affected by medical insurance payment reforms
• Capital pressures from downstream clients are transmitted upstream

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Cash Flow Indicator	Situation Analysis	Impact
Monetary Funds	Down from RMB 264 million to RMB 205 million, -22.35% YoY [2]	Tightening Capital Chain
Operating Cash Flow	Growth rate of expense spending (32.96%) far outpaces revenue decline
Interest-Bearing Liabilities	Slight increase in scale, financial expenses rising

According to financial data [2]:

• Accounts Receivable Turnover Days
  : Have increased, collection speed has slowed
• Inventory Turnover Days
  : Have increased simultaneously, reflecting a slowdown in overall operational rhythm
• Deteriorating operational efficiency
  has led to increased capital stagnation

Data for the first three quarters of 2025 shows [2]:

• The combined proportion of sales, general and administrative, and financial expenses to operating revenue reaches
  38.99%
• Up
  32.96%
  year-on-year
• The growth rate of expenses far outpaces the decline in revenue, severely compressing profit margins

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Indicator	Value	Industry Comparison
Current Ratio	7.78	Significantly higher than industry average (approx. 2-3x)
Quick Ratio	6.95	Low inventory proportion, sufficient quick assets
Cash Ratio	Approx. 0.3-0.4	Insufficient coverage of current liabilities by cash-like assets

: While the current ratio and quick ratio indicate strong short-term solvency, , and monetary funds have dropped to a low level of RMB 205 million.

• The company has suspended the “Knowledge City Production Base Construction Project” with a total investment of RMB 768 million [1]
• After adjustment, the planned raised capital investment has been reduced from RMB 750 million to RMB 450 million
• As of the end of October 2025, only RMB 50.5387 million has been invested
• Indicates that the company is contracting investments to preserve cash

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• Continuous sharp profit decline
  : 2025 expected net profit attributable to shareholders to drop over 87% [1]
• First-ever loss in non-recurring net profit
  : Operating level has recorded losses
• Gross margin under pressure
  : Gross margin in the first three quarters of 2025 was 60.3%, down 3.13 percentage points YoY [2]

• Accounts receivable collection risk
  : The RMB 12.8 billion in accounts receivable faces pressure for bad debt provisioning
• Tight cash flow
  : Declining monetary funds, rising interest-bearing liabilities
• Deteriorating turnover efficiency
  : Both turnover days have increased, leading to capital stagnation

• Deepening volume-based procurement policy, impact expected to persist until 2026 [2]
• DRG test package splitting suppresses test volume and prices
• The IVD industry is generally in a downturn and in a consolidation phase

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Assessment Dimension	Rating	Explanation
Accounts Receivable Quality	Medium-High Risk	Large scale, fast growth rate, potential aging extension
Cash Flow Status	Medium-High Risk	Declining monetary funds, increasing expense spending
Turnover Efficiency	Medium-High Risk	Slowdown in both accounts receivable and inventory turnover
Short-Term Solvency	Low Risk	High current ratio, sufficient quick assets
Long-Term Solvency	Medium Risk	Responding by contracting investments, capital chain still under pressure
Overall Rating	Medium-High Risk	Need to closely monitor cash flow management

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1. Strengthen accounts receivable management
   : Establish a stricter credit control system to shorten collection cycles
2. Optimize customer structure
   : Increase the proportion of advance payment clients, reduce reliance on hospital credit terms
3. Control expense spending
   : Streamline sales hierarchies, reduce channel costs
4. Continue contracting investments
   : Maintain stable cash flow, avoid aggressive expansion

1. Track changes in the
   aging structure of accounts receivable
   in the 2025 annual report
2. Monitor whether
   operating cash flow improves
   in Q1 2026
3. Pay attention to the actual impact of volume-based procurement policy changes on
   in-hospital business
4. Observe whether overseas business expansion can become a
   new growth engine

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The issue of Wondfo Biotech’s RMB 12.8 billion in accounts receivable indeed warrants high attention. Based on data analysis:

1. Capital pressures are real
   : Declining monetary funds, growing accounts receivable, and slowing turnover efficiency all indicate that the company faces certain capital turnover pressures
2. However, short-term solvency is acceptable
   : A current ratio of 7.78x indicates strong short-term solvency
3. Operational inflection point has not yet arrived
   : Volume-based procurement policies and industry downturn will persist, and the company is still in a transitional pain period
4. The key lies in cash flow management
   : The company has already adopted contraction measures such as suspending investments; future focus should be on improvements in operating cash flow

: If accounts receivable collection continues to deteriorate or industry policies further tighten, the company may face greater capital pressures. It is recommended to continuously track changes in the company’s financial data.

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[1] Sina Finance - “Inflection Point Not Yet Arrived, Wondfo Biotech Records First Loss in Ten Years of Listing, In-Hospital Business Hit by Double Pressure on Volume and Price” (https://finance.sina.com.cn/roll/2026-01-12/doc-inhfzysp6790686.shtml)

[2] Tencent News - “Inflection Point Not Yet Arrived, Wondfo Biotech Records First Loss in Ten Years of Listing” (https://news.qq.com/rain/a/20260112A068MG00)

[3] Jinling AI - Company fundamentals and financial data