In-depth Financial Risk Analysis Report of Zhixin Co., Ltd. (603352)

Based on the above search results, I have obtained detailed financial information of Zhixin Co., Ltd. Now let me provide you with a systematic and comprehensive risk analysis:

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(Stock Code: 603352) was listed on the Main Board of the Shanghai Stock Exchange on January 15, 2026. It is an auto parts enterprise deeply engaged in the field of automotive stamping and welding parts and related molds, with major customers including well-known automakers such as Changan Automobile, Geely Automobile, NIO Inc., Li Auto Inc., BYD Co., Ltd. [1][2].

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Period	Sales Amount to Top 5 Customers (10,000 yuan)	Percentage of Operating Revenue
2022	154,436.31	73.86%
2023	204,512.71	79.77%
2024	231,003.80	74.82%
H1 2025	109,081.74	68.00%

• Changan Automobile: 91,119.57 ten thousand yuan (29.51%)
• Geely Automobile: 71,871.75 ten thousand yuan (23.28%)
• NIO Inc.: 33,435.92 ten thousand yuan (10.83%)
• BYD Co., Ltd.: 17,376.01 ten thousand yuan (5.63%)
• Li Auto Inc.: 17,200.56 ten thousand yuan (5.57%) [3]

• As of the end of each reporting period, the combined balance of the top five accounts receivable accounted for
  82.65%, 81.43%, 76.49%, and 62.85%
  respectively [4]

Such a highly concentrated customer structure means that nearly 70% of the company’s revenue relies on the top five customers, with Changan and Geely contributing more than 50% of the revenue alone. If major customers’ operations deteriorate or cooperative relationships break down, it will have a significant adverse impact on the company.

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Time Point	Book Value of Accounts Receivable (10,000 yuan)	Percentage of Current Assets
End of 2022	86,264.32	55.68%
End of 2023	92,865.82	52.18%
End of 2024	113,268.07	57.42%
End of H1 2025	105,278.78	48.31%

• Zhixin Co., Ltd.: 2.71-2.83 times/year
• Industry peer average: 3.27-3.63 times/year [5]

The company explained that this is mainly due to the growth of new energy vehicle business, as such customers usually settle payments via bank transfer, resulting in a relatively high proportion of accounts receivable. However, this phenomenon also reflects that the company is in a relatively weak position in bargaining with downstream customers, leading to a longer capital recovery cycle.

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• As of June 30, 2025, the overdue accounts receivable from Hozon New Energy Automobile Co., Ltd. (the main entity of Neta Auto) amounted to
  12.9453 million yuan
  . In view of the customer’s entry into bankruptcy reorganization proceedings, the full amount of bad debt provision has been made and claims have been filed [1]
• In 2024, the accounts receivable bad debt loss in the company’s credit impairment loss was
  -25.3362 million yuan
  , mainly due to individual provision of expected credit loss for accounts receivable related to Neta Auto’s vehicle projects [1]
• A large amount of asset impairment loss was also provisioned for inventories related to the Neta Auto project

• BAIC Yinxiang Automobile Co., Ltd.: 2.8 million yuan of overdue accounts receivable (full provision made)
• Zhejiang Shiyuan Auto Parts Co., Ltd.: 7.31 million yuan of overdue accounts receivable (full provision made)
• Evergrande Auto: 0.49 million yuan of accounts receivable fully provisioned in 2023 [5]

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1. Bad Debt Provision Policy:
   For customers with obviously deteriorated credit status and low possibility of future repayment, the company makes individual bad debt provisions for such accounts receivable and recognizes expected credit losses. The company stated that the provision for accounts receivable bad debts is sufficient [1]

2. Customer Structure Adjustment:
   From January to June 2025, the sales proportion of the top five customers dropped from 74.82% to 68.00%, showing an improving trend [4]

3. Inventory Impairment Management:
   The company has formulated the “Asset Impairment Provision Management Measures”, and makes provision for inventory write-downs in accordance with the lower of cost and net realizable value principle

4. IPO Fundraising to Supplement Working Capital:
   It plans to raise 1.329 billion yuan, part of which will be used to supplement working capital to improve the capital situation [2]

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Risk Item	Risk Level	Explanation
Customer Concentration	High	Top five customers account for over 70% of revenue, high revenue dependence
Accounts Receivable	Medium-High	Scale continues to rise, turnover rate lower than industry average
Bad Debt Risk	Medium-High	Multiple customers defaulted, high pressure from bad debt provisions
Customer Credit	Medium-High	Shuffle in new energy vehicle industry, risk transmission from customers

1. Continuously Monitor Changes in Customer Structure:
   Track whether the proportion of the top five customers continues to decline and the progress of new customer development

2. Monitor Accounts Receivable Quality:
   Pay attention to changes in account age structure, overdue amounts and collection status

3. Assess Industry Prosperity:
   The impact of changes in the competitive pattern of the automotive industry, especially the new energy vehicle industry, on the company’s customers

4. Pay Attention to Fundraising Utilization Efficiency:
   Whether the IPO fundraising can effectively improve the company’s capital situation and operational efficiency

5. Track Subsequent Customer Default Incidents:
   Pay close attention to the occurrence of new customer credit risk incidents

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The core risks faced by Zhixin Co., Ltd. lie in the dual pressures of

and . Although the company has adopted risk mitigation measures such as bad debt provisioning, the consecutive operational crises of multiple customers (Neta Auto, BAIC Yinxiang, Evergrande Auto, etc.) reflect certain shortcomings in the company’s customer risk assessment and credit management. Investors need to pay close attention to the progress of the company’s customer structure optimization, improvement in accounts receivable turnover, and the occurrence of new customer credit risk incidents.

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[1] Sina Finance - “Spillover Effects of Neta Auto’s Bankruptcy: Zhixin Co., Ltd. Provisions for Large-Scale Bad Debts for Two Consecutive Years” (https://finance.sina.com.cn/wm/2025-10-23/doc-infuwnhn9457335.shtml)

[2] CFi.cn - “Prompt Announcement of the Initial Public Offering and Listing on the Main Board of Chongqing Zhixin Industrial Co., Ltd.” (https://www.cfi.net.cn/p20260114000665.html)

[3] Sina Finance - “Zhixin Co., Ltd. (603352) Company Announcement - 8-1-1 Inquiry Response of the Issuer and Intermediaries in the First Round” (http://money.finance.sina.com.cn/corp/view/vCB_AllBulletinDetail.php?stockid=603352&id=11427402)

[4] CNfol.com - “Customers Default One After Another, Debt Surges by 70%! The Dangerous ‘Financial Techniques’ Behind Zhixin Co., Ltd.'s IPO” (http://news.cnfol.com/chanyejingji/20251103/31761475.shtml)

[5] Eastmoney.com/Xueqiu - Prospectus and Risk Analysis of Zhixin Co., Ltd. (https://gbres.dfcfw.com/Files/iimage/20260105/)

[6] Shanghai Stock Exchange - Prospectus of Chongqing Zhixin Industrial Co., Ltd. (https://static.sse.com.cn/stock/disclosure/announcement/c/202509/002073_20250929_R652.pdf)