Anlan Wanjin's Glory and Hidden Concerns: Revenue Surges While Cash Flow Comes Under Pressure, with Overreliance on Key Clients and Lagging R&D

Written by Planet

Source | Beiduo Business & Beiduo Finance

Driven by the recent wave of AI computing infrastructure investment, high-speed copper cable interconnect technology has become one of the most favored sub-sectors within the data communications supply chain. Jiangsu Anlan Wanjin Electronics Co., Ltd. (hereinafter 'Anlan Wanjin'), positioned at the forefront of this trend, has submitted an impressive track record as it knocks on the door of the Shanghai Stock Exchange Main Board.

However, while its prospectus highlights the tailwinds from mass production of single-lane 224Gbps high-speed copper cables, it also reveals underlying concerns and cracks that cannot be obscured by high growth alone. Rising client concentration, simultaneous inventory and accounts receivable buildup, and a persistently declining R&D investment ratio have made Anlan Wanjin’s IPO path highly contentious.

As the halo of 'leading high-speed cable technology' faces scrutiny over financial fundamentals, can Anlan Wanjin’s IPO withstand dual scrutiny from regulators and capital markets? This article attempts to cut through the fog of financial data to uncover the true substance and underlying reality behind its high-growth narrative.

I. Tailwinds from computing power drive strong earnings momentum

High-speed communication cables—data transmission cables specifically designed for artificial intelligence and high-performance computing scenarios—are critical components connecting AI servers, data centers, edge computing devices, and smart hardware. They feature high data rates, low signal loss, low latency, electromagnetic interference resistance, high signal integrity, and long-term stability.

According to Tianyancha and the company’s prospectus, Anlan Wanjin entered the traditional data center server high-speed copper cable market in 2019, focusing on the R&D, manufacturing, and sales of high-speed electronic wires and specialty cables for data communications. The company has since built an integrated product portfolio comprising 'high-speed copper cables + specialty cables + electroacoustic components' and has concurrently expanded into optical connectivity solutions.

In its prospectus, Anlan Wanjin states that it is among the earliest domestic companies to develop and achieve mass production of single-lane 112Gbps and 224Gbps high-speed copper cables. Its 224Gbps product represents the highest single-lane transmission speed currently achievable at scale in the industry, underscoring its leading position in high-speed cable technology.

Anlan Wanjin’s products are embedded in global computing and consumer electronics supply chains, serving end customers including NVIDIA, Huawei, and Google—major global providers of computing infrastructure—as well as Apple, Samsung, Belkin, and other leading global consumer brands. Its solutions are applied across data centers, AI computing clusters, consumer electronics, intelligent vehicles, and industrial automation.

Benefiting from the golden window of surging AI computing demand, Anlan Wanjin’s revenue has grown exponentially, reaching RMB 284 million, RMB 524 million, and RMB 12.99 billion in 2023, 2024, and 2025 (the 'reporting period'), respectively, representing a compound annual growth rate (CAGR) of 113.69%.

The company’s net profit attributable to shareholders surged from RMB 170.624 million in 2023 to RMB 2.43 billion in 2025, reflecting a CAGR of 277.59%. Notably, its year-over-year net profit growth in 2025 alone reached 217.02%, significantly outpacing revenue growth—a clear indication of pronounced economies of scale and meaningful improvements in profitability structure.

In 2024 and 2025, Anlan Wanjin’s high-speed copper cable segment generated revenues of RMB 2.66 billion and RMB 9.97 billion, respectively. According to certification from the China Electronic Components Association, the company held global market shares of 4.19% and 8.42% in data center high-speed copper cables during those years, ranking among the top three players in this specialized segment for two consecutive years.

Anlan Wanjin also disclosed that it is currently engaged in the development, prototyping, and process refinement of high-speed copper cables with single-lane transmission speeds of 448Gbps and beyond, with some 448Gbps products already successfully developed and submitted as samples to key customers.

II. High Customer Concentration, Cash Flow and Inventory Under Pressure

However, the figures on the income statement have not fully translated into actual cash inflows on Anlan Wanjin’s books. During the reporting periods, its net cash flow from operating activities amounted to -RMB 105.393 million, RMB 313.777 million, and RMB 101.356 million, respectively—a stark 'scissors gap' compared to its rapidly growing net profit.

In its prospectus, Anlan Wanjin candidly acknowledged that its core business is still in a growth phase. Rising revenues have driven a corresponding increase in accounts receivable, but certain year-end receivables remained within their credit terms and had not yet been collected. Meanwhile, to ensure timely fulfillment of downstream orders, the company must procure inventory in advance, further increasing capital tied up in inventory.

Over the reporting periods, Anlan Wanjin’s accounts receivable rose from RMB 992.130 million in 2023 to RMB 4.18 billion in 2025. Although its share of current assets declined from 59.18% to 39.94%, nearly 40% of its revenue remains tied up on the balance sheet, underscoring persistent pressure on collection efficiency.

Moreover, by the end of 2025, Anlan Wanjin’s inventory carrying value had reached RMB 2.17 billion—more than triple the RMB 506.018 million recorded at the end of 2023—and accounted for approximately 20.76% of current assets. Combined with accounts receivable, these two items locked up roughly three-fifths of the company’s current assets, jointly raising questions about the 'quality' of its earnings.

If the persistent 'bleeding' of working capital could be attributed to temporary growing pains typical of an expansion phase, then the company’s high customer concentration poses a more formidable structural challenge. During the reporting periods, sales to Anlan Wanjin’s top five customers accounted for 75.75%, 80.74%, and 86.81% of total revenue, respectively—an upward trend year after year.

Among them, Amphenol alone contributed 49.33% of Anlan Wanjin’s total sales in 2025, effectively claiming half of the company’s annual revenue. As of the same period, Anlan Wanjin’s accounts receivable balance from Amphenol stood at approximately RMB 1.82 billion, representing 41.30% of total accounts receivable. Collectively, receivables from the top five customers accounted for 85.49% of the total.

Although the high-speed copper interconnect industry inherently exhibits a high degree of customer concentration, Anlan Wanjin’s dual dependence on a few key clients—both in sales and collections—means its operational performance is tightly coupled with those customers. Should any of them adjust procurement strategies or extend payment terms, the company could face simultaneous impacts on both revenue scale and asset quality.

III. Declining R&D Investment, Technological Moat Under Scrutiny

In this IPO attempt, Anlan Wanjin plans to raise RMB 1.2 billion, of which nearly RMB 1 billion will be allocated to projects including intelligent manufacturing of data center core components, construction of standardized laboratories, and smart factory development. Additionally, RMB 341.479 million is earmarked for technology R&D support centers in Dongguan and Hangzhou.

Anlan Wanjin stated that, following the construction of new production lines for high-speed copper cables used in data centers and ultra-fine specialty wires for consumer electronics, optimization of automation and digitalization levels in existing production lines, and integration of R&D resources, the company is expected to overcome current technological and capacity bottlenecks, further solidifying its core technology moat and industry leadership.

In terms of scale, Anlan Wanjin’s R&D expenses during the reporting periods were RMB 148.71 million, RMB 199.34 million, and RMB 341.38 million, respectively, totaling nearly RMB 700 million over three years dedicated to generational product upgrades and expansion into new application areas, with absolute R&D spending consistently increasing at a compound annual growth rate of approximately 51.51%.

However, it should be noted that Anlan Wanjin’s R&D expense ratios were 5.23%, 3.80%, and 2.63% in respective years, showing a year-on-year decline. Compared with peer listed companies in the same industry, its R&D expense ratios in 2024 and 2025 were also below the industry averages of 5.05% and 4.70%, with the gap widening further.

Although Anlan Wanjin attributes the decline in its R&D expense ratio to passive dilution caused by revenue scale expansion and differences in product mix and customer structure compared to peer listed companies, as of the end of 2025, the company’s R&D team comprised only 77 members, accounting for less than 5% of its total workforce.

For a technology-intensive enterprise with annual revenue exceeding RMB 1.2 billion, three major product portfolios, and downstream customers spanning both data centers and consumer electronics, having an R&D team of fewer than 100 people represents an undeniably thin staffing configuration—raising legitimate external concerns about its technological moat and product iteration capabilities.

It should be noted that the high-speed copper cable industry is currently advancing toward higher frequencies, faster speeds, and finer miniaturization, with ongoing R&D and mass production progressing toward 448 Gbps and 896 Gbps standards. If Anlan Wanjin fails to promptly address its R&D shortcomings, its current first-mover advantage could gradually erode with the launch of next-generation products.

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