Xin Lang Zheng Quan·2025-10-30 03:32Core Viewpoint - The company, Xiechuang Data, has reported significant revenue growth in its third-quarter results, but its operating cash flow has turned negative, raising concerns about its financial health and sustainability in the rapidly evolving computing power service sector [1][2][3]. Financial Performance - In the first three quarters of 2023, Xiechuang Data achieved revenue of 83.3 billion yuan, a year-on-year increase of 54.43%, and a net profit attributable to shareholders of 6.98 billion yuan, up 25.3% [2][3]. - The company's operating cash flow for the same period was -1.37 billion yuan, a drastic decline from a positive cash flow in the previous year, attributed to increased inventory and longer customer payment cycles [3][5]. Debt and Financial Burden - Xiechuang Data's interest-bearing debt surged by nearly 9 billion yuan in just nine months, reaching 108.77 billion yuan by the end of the third quarter of 2025, leading to a significant increase in the company's debt-to-asset ratio from 55.66% to 78.33% [5][6]. - Financial expenses skyrocketed, with interest expenses rising by 454% and total financial costs increasing by 2277% year-on-year [6][5]. Business Model and Market Position - The company is transitioning towards computing power services, with this segment's revenue growing from zero in the first half of 2024 to 12.21 billion yuan, accounting for 24.7% of total revenue by the first half of 2025 [2][4]. - Despite the growth in revenue, the gross margin for the computing power services is around 20%, indicating potential challenges in profitability [8]. Employee and R&D Concerns - Xiechuang Data has experienced a continuous decline in R&D personnel and R&D expense ratio, with employee turnover rates exceeding 100% for three consecutive years, raising concerns about talent retention and future growth [14][16][18]. - The company reported a decrease in R&D personnel from 384 at the end of 2024 to 361 by mid-2025, alongside a drop in R&D expense ratio from 3.3% to 2.2% [15][16]. Shareholder Actions - The controlling shareholder of Xiechuang Data has sold shares worth approximately 600 million yuan, indicating a move to capitalize on the high stock price amid the current market enthusiasm for computing power services [11][13].