Financial Risk Analysis of High Accounts Receivable at Sifang Jingchuang (300300.SZ)

Now I will provide you with a comprehensive financial risk analysis report on the high accounts receivable of Sifang Jingchuang.

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Sifang Jingchuang (Shenzhen Sifang Jingchuang Information Co., Ltd., stock code: 300300.SZ) is a banking-focused fintech service provider, offering fintech software development services, consulting services, and system integration services to banks, regulatory authorities, and other financial institutions in mainland China, Hong Kong, and Southeast Asia[1]. The company submitted an IPO application to the Hong Kong Stock Exchange on December 24, 2025[1].

According to the latest market data, the company’s current market capitalization is approximately USD 792 million, with a stock price of USD 11.88, a price-earnings ratio as high as 195.71x, and a price-to-book ratio of 55.84x, showing typical high valuation characteristics[0]. Although the stock price has risen by more than 330% in the past year, financial health indicators show severe structural problems.

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According to financial data analysis, Sifang Jingchuang’s accounts receivable has remained at a high level for a long time[0][2]:

Time Node	Accounts Receivable (RMB million)	Percentage of Total Assets	Percentage of Current Assets
End of 2023	323.70	26.73%	81.21%
End of 2024	245.06	23.38%	66.40%
Q3 2025	245.86	25.10%	69.54%

• The scale of accounts receivable has long remained at a high level of over RMB 250 million
• Accounts receivable has long accounted for over 25% of total assets, indicating that approximately one-quarter of the company’s total assets are occupied by customers
• It has long accounted for over 65% of current assets, reaching a maximum of 81.21%, meaning the quality of current assets is heavily dependent on the collection of accounts receivable

According to industry analysis data, Sifang Jingchuang’s accounts receivable turnover days rebounded from 74 days in 2024 to 93 days in the first three quarters of 2025, with operational efficiency deteriorating significantly[3]. Even more concerning:

As of October 31, 2025, only 19.2% of accounts receivable has been collected, and the remaining 80.8% faces collection uncertainty[3].

This data indicates that the company may face risks of collection difficulties for a large amount of accounts receivable. If bad debts occur, based on the current scale of accounts receivable, it will directly erode nearly 40% of the current net profit[3].

An alarming phenomenon is:

. In the first three quarters of 2025, the company’s revenue fell 14.4% year-on-year to RMB 454 million, but accounts receivable surged 31.5% compared to the end of 2024[3]. This divergent trend of “declining revenue, rising accounts receivable” implies:

1. Deteriorating collection capacity
   : Longer payment cycles for customers
2. Declining revenue quality
   : Recognized revenue is difficult to convert into cash inflows
3. Increasing capital occupation costs
   : A large amount of capital is occupied by customers free of charge

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The root cause of Sifang Jingchuang’s accounts receivable risks lies in its extremely concentrated customer structure[1][3][4]:

Period	Revenue Contribution of Top 5 Customers	Revenue Contribution of Largest Customer
2023	87.8%	38.8%
2024	90.1%	42.4%
First Three Quarters of 2025	89.4%	54.0%

• Top five customers contribute nearly 90% of revenue
  (89.4%), far exceeding the industry average (about 25%)
• Dependence on the largest customer reaches 54%
  , surging 11.6 percentage points compared to 2024
• Compared to the average customer concentration of 25% among industry leaders, Sifang Jingchuang’s risk exposure far exceeds the industry warning level[3]

The prospectus discloses that Sifang Jingchuang’s largest customer is “a listed banking group in Hong Kong”, and the two parties have cooperated for over 20 years[3]. However, regulatory documents show that this customer also purchases similar services from Sifang Jingchuang’s competitors, posing a clear risk of business substitution.

• If this customer cuts its procurement volume by 10%, the company’s annual revenue will decrease by approximately RMB 40 million
• It will directly affect net profit by about 15%[3]
• Once cooperation with this customer is terminated or reduced, the company’s business will face a “cliff-like” decline

This high degree of dependence means that the quality of the company’s accounts receivable is highly dependent on the solvency and willingness of a few major customers. Once major customers encounter financial difficulties or strategic adjustments, accounts receivable will face significant bad debt risks.

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Financial data shows that Sifang Jingchuang’s current ratio has long been below the healthy level of 1[0][2]:

Time Node	Current Ratio	Industry Healthy Level
End of 2023	0.44	>1.5
End of 2024	0.43	>1.5
Q3 2025	0.43	>1.5

A current ratio below 1 means:

. As the main component of current assets, the collection efficiency of accounts receivable directly determines the company’s short-term solvency.

The company’s asset-liability ratio has remained at a high level of over 80%[2][3]:

Time Node	Asset-Liability Ratio
End of 2023	84.40%
End of 2024	83.60%
Q3 2025	85.15%

The combination of high asset-liability ratio and high accounts receivable further amplifies the company’s financial risks.

Data on quarterly operating cash flow in 2025 shows[2]:

• Q1 2025: -RMB 30.72 million
• Q2 2025: -RMB 25.06 million
• Q3 2025: -RMB 26.34 million
• Cumulative 2025: -RMB 82.12 million

Continuously negative operating cash flow means that the company’s daily operations are fully supported by external financing or book profits, and its cash flow situation is extremely unhealthy.

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Concurrent with the rise of client-side risks is the concentration on the supplier side[3]:

Period	Procurement Ratio of Top 5 Suppliers	Procurement Ratio of Largest Supplier
2023	63.5%	17.4%
2024	82.6%	44.8%
First Three Quarters of 2025	88.9%	65.2%

: Sifang Jingchuang’s largest supplier has a dual identity as both a “customer + supplier”[3][4]. This dual relationship has obvious conflicts of interest:

• As a customer, it may use its position as a purchaser to pressure prices down
• As a supplier, it may raise service prices
• Data shows that the price of technical services Sifang Jingchuang purchases from this supplier is approximately 18% higher than the market average

Even more severely, this supplier was once penalized by regulators for data security issues. If service interruption occurs, it will directly affect the delivery of 35% of the company’s ongoing projects, involving contract amounts exceeding RMB 300 million[3].

The company’s revenue structure shows severe regional imbalance[3][4]:

• In the first three quarters of 2025,
  revenue from the Hong Kong market soared to 81.5%
• Revenue from mainland China plummeted by 59.6%
• 12.8% of Hong Kong revenue depends on financial infrastructure and innovation services, mainly serving regulatory projects such as the Hong Kong Monetary Authority

This structure of high dependence on a single market means:

• If Hong Kong’s digital financial regulatory policies are adjusted, it may directly affect the stability of nearly 40% of the company’s revenue
• Policy cyclical fluctuations will directly affect the progress of project collection

Although the company’s overall net profit has grown significantly, contract cost impairment losses have increased for two consecutive years[3][4]:

• 2024: RMB 9.166 million
• First three quarters of 2025: RMB 9.423 million
• Cumulative provision over two years: RMB 18.59 million

This reflects problems in the execution of some projects, which may lead to the inability to collect related accounts receivable normally.

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Risk Dimension	Indicator Value	Risk Rating
Accounts Receivable/Total Assets	25.10%	High Risk
Accounts Receivable Turnover Days	93 days	High Risk
Current Ratio	0.43	High Risk
Asset-Liability Ratio	85.15%	High Risk
Customer Concentration	89.4% from Top 5 Customers	Extremely High Risk
Dependence on Largest Customer	54.0%	Extremely High Risk
Operating Cash Flow	Cumulative -RMB 82.12 million in 2025	High Risk

Based on the above financial data, the impact of high accounts receivable on the company’s finance can be quantified as follows:

1. Bad Debt Impact
   : If the bad debt ratio of accounts receivable rises to 10%, it will directly erode net profit by approximately RMB 24 million (accounting for 36% of net profit in the first three quarters of 2025)

2. Liquidity Pressure
   : A current ratio of 0.43 means that for every RMB 1 of current liabilities, there is only RMB 0.43 of current assets to cover it, most of which are accounts receivable

3. Cash Flow Pressure
   : The cumulative operating cash flow in 2025 is -RMB 82.12 million. If accounts receivable cannot be effectively collected, the cash flow gap will continue to expand

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High Accounts Receivable
      │
      ├──► Extremely High Customer Concentration (54% from Largest Customer)
      │         │
      │         └──► Single Customer Default → Significant Bad Debt Losses
      │         └──► Loss of Bargaining Power → Passive Acceptance of Unfavorable Payment Terms
      │
      ├──► Dual Concentration on Suppliers (65.2% from Largest Supplier)
      │         │
      │         └──► Rising Procurement Costs → Gross Margin Under Pressure
      │         └──► Supply Chain Risks → Project Delivery Interruption
      │
      ├──► High Regional Dependence on Hong Kong (81.5%)
      │         │
      │         └──► Policy Change Risks → Volatility in Regulatory Projects
      │         └──► Exchange Rate Fluctuation Risks → Revenue Uncertainty
      │
      └──► Deteriorating Liquidity
                │
                └──► Short-Term Debt Repayment Pressure → Rising Financing Costs
                └──► Negative Operating Cash Flow → Continuous Dependence on External Financing

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The problem of high accounts receivable at Sifang Jingchuang,

. The company’s accounts receivable risks have the following characteristics:

1. Large Scale
   : Accounts receivable has long accounted for over 25% of total assets
2. Slow Turnover
   : Turnover days exceed 90 days, with collection efficiency deteriorating
3. High Concentration
   : Top five customers contribute nearly 90% of revenue, and the single largest customer contributes over 54%
4. Poor Quality
   : Only 19.2% of accounts receivable has been collected

Combined with high customer concentration, dependence on suppliers with dual identities, regional policy risks, and other factors, the company’s accounts receivable faces

.

Based on the above analysis, Sifang Jingchuang’s financial risks are mainly reflected in:

• Accounts Receivable Bad Debt Risk
  : High proportion of uncollected accounts receivable has significant uncertainty
• Liquidity Risk
  : Current ratio has long been below 1, casting doubt on short-term solvency
• Customer Concentration Risk
  : Dependence on a single customer exceeds 50%, making business stability fragile
• Cash Flow Risk
  : Operating cash flow is continuously negative, relying on external financing to maintain operations

For investors, it is recommended to make prudent decisions after fully considering the above risk factors. The company’s “high gross profit” is more a result of business contraction and concentration, rather than a reflection of improved capabilities[4]. In the Hong Kong stock market, investors pay more attention to cash flow sustainability, business structure stability, and transparency of risk exposure, which are exactly the weak links the company currently faces[4].

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[0] Jinling API - Company Profile and Financial Data of Sifang Jingchuang (300300.SZ)

[1] Securities Times - “A-Listed Company Sifang Jingchuang Submits Application to Hong Kong Stock Exchange: Raising Funds on One Hand, Generous Dividends on the Other” (https://www.stcn.com/article/detail/3563658.html)

[2] Jinling API - Balance Sheet and Cash Flow Statement Data of Sifang Jingchuang

[3] Sina Finance - “Sifang Jingchuang Races for Hong Kong IPO: Customer Concentration Surges 11.6% to 54%, Supplier Dependence Soars 20.4% Hiding Supply Interruption Risks” (https://finance.sina.cn/2025-12-25/detail-inhcymnt3747600.d.html)

[4] Hong Kong Stock Research Institute - “Revenue Falls by Nearly 15%, But Profit Surges: What’s the Secret Behind Sifang Jingchuang’s ‘High Gross Profit’?” (https://news.qq.com/rain/a/20251231A05OVJ00)