Xiangyu Technology Investigation | Tens of Millions in Revenue Yet Forms Over 500 Million Yuan in Accounts Receivable: Three Major Questions Remain Unanswered

Daily Economic News Reporter: Wu Zepeng, Ke Yang    Daily Economic News Editor: Xu Shaohang

At the end of January this year, Xiangyou Technology (SH600476, stock price 10.87 yuan, market value 1.75 billion yuan) released its 2025 performance forecast, estimating a net loss of 370 million to 550 million yuan, with negative net assets at the end of the period, and the stock facing delisting risk warning. The core reason for the huge loss is that the company expects to recognize impairment provisions of up to 280 million to 460 million yuan for accounts receivable and long-term receivables.

On the evening of March 16, Xiangyou Technology announced that it was under investigation by the China Securities Regulatory Commission for suspected illegal information disclosure.

A deep investigation by Daily Economic News found that the projects Xiangyou Technology has focused on expanding in recent years, such as the “Zhihui Kangxin multifunctional terminal,” raise unresolved questions about their business logic. Important clients and suppliers related to these projects also show many anomalies.

Question 1: Why take on huge accounts receivable risks for relatively modest income?

Xiangyou Technology’s main business was originally centered on the postal industry. Over a decade ago, the company advocated “concentrating resources to strengthen the postal industry and cautiously expand into other sectors.” However, in recent years, the company has made strategic adjustments, implementing a “technology + market” expansion strategy in 2022 to accelerate development outside the postal sector.

Starting in 2023, the company began collaborating with Tianjin Moshutong Environmental Technology Co., Ltd. (hereinafter referred to as Moshutong) on business outside the postal industry. According to the announcement, from 2022 to 2024, Xiangyou Technology’s revenue from “other industries” was 11 million, 166 million, and 155 million yuan respectively. Among these, Moshutong was the second-largest customer in 2023 and the largest in 2024, with transaction amounts of 36.24 million and 65.31 million yuan respectively.

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Figure: Tianjin Moshutong Environmental Technology Co., Ltd. Photo by Wu Zepeng, Daily Economic News

However, the reporter found an abnormal phenomenon in the transactions between Xiangyou Technology and Moshutong: although the transaction amount is only a few tens of millions of yuan, the long-term accounts receivable have reached billions.

As of December 31, 2023, Moshutong’s long-term receivables totaled 344 million yuan, with all aged within one year. By December 31, 2024, this figure surged to 517 million yuan, with 189 million yuan aged within one year and 328 million yuan over one year.

Why is there such a huge gap between transaction amounts and receivables? When responding to the stock exchange inquiry, Xiangyou Technology explained that during the execution of the “Zhihui Kangxin multifunctional terminal” project, the company acted as an intermediary service provider, mainly responsible for supervising the production process during device procurement, pre-shipment device testing, hardware-software integration testing during installation, and technical support during acceptance. “The sales of this terminal adopt installment payments, and based on the substance of the transaction, revenue is recognized on a net basis.” In simple terms, Xiangyou Technology only recognized a modest service fee income, while the entire contract amount was recorded as long-term receivables.

By the end of 2024, the contract amount for this project was about 474 million yuan, but the revenue recognized under the net method was only 51.6 million yuan. This means that Xiangyou Technology, with a revenue scale of only tens of millions, bears the risk of billions in receivables.

On the other hand, in July 2025, Xiangyou Technology disclosed that as of June 30, 2025, the cumulative amount of receivables that met collection conditions was 195 million yuan, but only 20.97 million yuan had been collected. The company explained that the delay was mainly due to client funding issues and slow payments, and stated that “we have communicated with the client, and future payments will proceed normally.”

However, in the 2025 performance forecast, the company announced that “some clients’ payments are overdue, involving significant transaction amounts and large receivable balances. The company has repeatedly communicated with these clients but has not received payments or obtained written payment commitments.”

Xiangyou Technology has not disclosed the names of these overdue clients. When the reporter inquired about this, the company responded that “we rely on the investigation by regulatory authorities and our own review,” but also mentioned that “payment collection and communication with the clients are not very smooth.”

A review of Xiangyou Technology’s 2025 semi-annual report shows that the accounts receivable at the end of the period mainly involved clients within the postal system, with no individual receivable exceeding 100 million yuan. The total long-term receivables at the end of the period was 514 million yuan, all from Moshutong. This indicates that the significant impairment of receivables causing the sharp decline in performance is highly likely related to the long-term receivables from Moshutong.

For Xiangyou Technology, why take on huge accounts receivable risks for relatively modest transfer income?

Question 2: Why go “around” the supply chain that could be directly accessed?

Even more puzzling is the design of the transaction chain for this project.

According to Xiangyou Technology’s reply to the inquiry, in the “Zhihui Kangxin multifunctional terminal” project, the company’s role is intriguing. The reply disclosed that before Xiangyou Technology’s involvement, Moshutong had already established a long-term business relationship and business model with the end customer, Shanghai Shentong Metro, forming a closed-loop: Tianjin Chuangjie Dian New Material Co., Ltd. (hereinafter referred to as Chuangjie Dian) was responsible for terminal integration and manufacturing, Jiangsu Shenyuan Electric Engineering Co., Ltd. handled installation and construction, and Moshutong, as the general contractor, was responsible for overall project coordination from design to delivery.

However, after Xiangyou Technology joined, the originally straightforward direct supply model was disrupted—Chuangjie Dian, the original supplier, had to sell products to Xiangyou Technology, which then resold to Moshutong.

This creates a confusing business scenario: a well-established “manufacturer—general contractor—owner” chain has an intermediate Xiangyou Technology inserted, which does not undertake core equipment manufacturing or key material supply, but only performs auxiliary functions such as supervision and testing.

Xiangyou Technology provided limited explanation for this change, merely stating it was “recommended by the end customer after completing relevant procurement procedures.” Regarding business rationality, the reply stated: “All parties in the full project chain can form a complementary business loop, ensuring efficient project progress, which fully reflects the matching and reasonableness of the business.”

But from a commercial common sense perspective, why introduce an intermediate link that only performs auxiliary tasks, artificially increasing transaction costs, when a mature supply chain could operate directly?

Question 3: Why does a major client’s company front still display a supplier sign?

With these questions in mind, the Daily Economic News reporter conducted on-site visits to relevant companies.

At Jimei Industrial Park, 11A Jimei Industrial Park, Xiqing Economic and Technological Development Zone, Tianjin, the reporter found Moshutong. Company staff revealed that the company currently has about 20 employees. This number roughly matches the publicly available information indicating 14 insured employees in 2024. In the company’s display area on the first floor, staff introduced products related to the Shanghai Metro project.

At the same address, the reporter also found another key company—Chuangjie Dian. A staff member at Moshutong said that Chuangjie Dian also operates at this location. Another employee further explained that Chuangjie Dian is “owned by a friend of the boss.”

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Figure: Moshutong and Chuangjie Dian signs at the same address, photo by Wu Zepeng, Daily Economic News

Notably, in its reply to regulatory inquiries, Xiangyou Technology previously stated that Tianjin Moshutong and Tianjin Chuangjie Dian are not related, only acknowledging that their business registration phone numbers and emails have appeared as duplicates, which was caused by a third-party intermediary agency.

As for shared office space, this was not disclosed in Xiangyou Technology’s reply. The reporter found through business registration data that Moshutong’s registered and office address is Tianjin Xiqing Economic and Technological Development Zone, Jimei Industrial Park, 11A, which is also the address Chuangjie Dian disclosed in 2021.

However, after 2021, Chuangjie Dian changed its address to “No. 21, Factory Yard 27, Minhe Road, Xiqing Economic and Technological Development Zone, Tianjin.” The reporter visited this location and found a two-story building. Inside the office, no signs or signs related to Chuangjie Dian were visible. An employee inside said they had no impression of Chuangjie Dian. Additionally, a courier serving the area said they had “never heard of this company.”

In fact, the same situation occurred with another major client of Xiangyou Technology. Tianjin Lidel Eco-Environmental Technology Co., Ltd. (hereinafter referred to as Lidel) was Xiangyou Technology’s second-largest client in 2024, with a transaction amount of 14.28 million yuan and receivables of 16.14 million yuan at year-end. The materials cited by Xiangyou Technology show that the company had zero insured employees in 2023.

How can a company with no insured employees have transactions exceeding millions with a listed company? The reporter visited Lidel’s registered address at No. 309-38, Hong Kong Street, Jinnan District, Tianjin. On-site investigation found that the room 309 did not exist in the building. An office staff member confirmed, “I haven’t heard of this company.”

According to Xiangyou Technology’s disclosures, Lidel is a controlling shareholder of Chuangjie Dian, and both are under the same control. Xiangyou Technology stated that after collaborating with Moshutong on the Zhihui Kangxin multifunctional terminal project, it was recommended by Moshutong to cooperate with Lidel on digital infrastructure products for rail transit.

On the evening of March 16, Xiangyou Technology announced that it was under investigation by the China Securities Regulatory Commission for suspected illegal information disclosure. The reporter contacted Xiangyou Technology to inquire about the investigation, Moshutong’s payment issues, and other questions. In response, Xiangyou Technology said that the specific situation was awaiting the results of the CSRC investigation. Many questions remain unanswered pending the investigation. Daily Economic News will continue to follow up.