Financial Analysis and Supply Chain Position Assessment of ChangXin Memory Technologies (CXMT)

Based on the public information I collected, the following is an analysis of the financial data of ChangXin Memory Technologies Group Co., Ltd. (CXMT):

As CXMT has not yet been listed, its prospectus has not been fully disclosed, so

[1]. However, its supply chain position can be inferred from the disclosed financial information:

Indicator	H1 2025	2024	2023	2022
Total Assets (in RMB 100 million)	2,899	2,716	1,928	1,477
Asset-Liability Ratio	57.65%	61.61%	66.22%	56.52%
Operating Revenue (in RMB 100 million)	154.4	241.8	90.9	82.9
Monetary Funds (in RMB 100 million)	429.22	-	-	-
Fixed Assets (in RMB 100 million)	1,715.93	-	-	680

According to public information, CXMT’s upstream involves

[1]:

• Equipment Dependence
  : In terms of equipment, CXMT’s manufacturing process has evolved to around 20nm, but domestic suppliers are unable to provide high-end lithography equipment required for this node, so it is completely dependent on imports
• Supplier Concentration
  : As a typical capital and technology-intensive industry, CXMT continues to carry out capacity expansion and process iteration, and has certain procurement scale advantages over upstream equipment and material suppliers

CXMT has carried out in-depth cooperation with

[1][2]:

• Diversified Customer Structure
  : The sales share of the top five customers is relatively dispersed, reducing the risk of dependence on a single customer
• Increased Market Position
  : According to Omdia data, CXMT has become the “No. 1 in China, No. 4 globally” DRAM manufacturer, with a global market share of approximately 3.97%[2]

• As a leading domestic memory chip enterprise, it has the background of national strategic support
• Full-year revenue is expected to reach RMB 55-58 billion in 2025, and scale effects are gradually emerging
• Improved operating cash flow: The net cash flow from operating activities in H1 2025 was RMB 4,250,519,000[1]

• The accumulated loss from 2022 to 2025 is approximately RMB 37 billion, resulting in significant financial pressure
• High fixed asset depreciation: Fixed asset depreciation reached RMB 14.875 billion in 2024[2]
• High R&D investment ratio (19%-50%), creating continuous pressure on capital

CXMT holds a position of in the supply chain:

1. Relative to Upstream
   : Due to heavy reliance on imports for high-end equipment and materials, and being constrained by overseas suppliers in core equipment such as EUV lithography machines, its bargaining power is limited
2. Relative to Downstream
   : As the only domestic enterprise capable of mass-producing DRAM, it has certain customer stickiness and advantages in domestic substitution
3. Improved Cash Flow
   : In Q3 2025, revenue increased by 148.8% year-on-year, and the comprehensive gross profit margin rose to 35%. The full-year net profit is expected to reach RMB 2-3.5 billion in 2025[2]

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As CXMT has not yet been listed and detailed financial data in its prospectus has not been fully disclosed, detailed indicators such as specific accounts payable turnover days and accounts payable amount cannot be accurately calculated. It is recommended to pay attention to the subsequent disclosure documents of its STAR Market IPO for more detailed financial information.

[1] Shanghai Stock Exchange - Sponsorship Letter for the Listing of ChangXin Memory Technologies Group Co., Ltd. (http://static.sse.com.cn/stock/disclosure/announcement/c/202512/002170_20251230_HQ08.pdf)
[2] Securities Times - “The First Stock of Memory Chips” Epic IPO! RMB 300 Billion CXMT is Coming (https://www.stcn.com/article/detail/3571683.html)