Analysis of ChangXin Memory Technologies' Inventory Management: Inventory Down 17.41% YoY, Capacity Utilization Reaches 94.63%

Based on the collected information, I will provide a detailed analysis of ChangXin Memory Technologies’ inventory management.

According to the prospectus data disclosed by the Shanghai Stock Exchange (SSE), ChangXin Memory Technologies’ inventory is

, [1]. This figure reflects the company’s positive results in inventory management.

Indicator	End of June 2025	2024	2023	2022
Inventory (RMB 100 Mil)	31.49	38.13	Approx. 45	Approx. 55
YoY Change	-17.41%	-	-	-
Capacity Utilization	94.63%	92.46%	87.06%	85.45%

As can be seen from the data, ChangXin Memory Technologies’ inventory shows a

, while its capacity utilization , indicating that the company’s inventory management efficiency is significantly improving[1][2].

• Inventory decreased by 17.41% YoY, indicating that the company has effectively controlled inventory overstock
• Inventory turnover rate continues to optimize, and sales efficiency is improved
• Turnover efficiency has improved in all links such as finished goods, raw materials, and work-in-progress

• Capacity utilization reaches 94.63%
  : Indicates a high degree of matching between production and market demand
• H1 2025 revenue reached RMB 15.438 billion, which is close to the full-year 2024 level
• The compound annual growth rate (CAGR) of sales volume of main DRAM products is as high as 82.34%

• Unit production cost of main DRAM products continues to decline:
  • Down 10.16% YoY in 2023
  • Down 25.70% YoY in 2024
  • Further decreased by 17.85% in H1 2025 compared to full-year 2024

• High technical threshold
  : DRAM products have rapid technological iterations, and inventory management requires accurate forecasting
• High price volatility
  : The price of DDR5 32GB products rose from USD 135 in July 2025 to USD 450 in January 2026 (an increase of over 230%)[3]
• Capital-intensive
  : Fixed assets soared from RMB 68 billion in 2022 to RMB 171.593 billion in H1 2025

• Economies of scale emerging
  : Capacity ramp-up drives marginal cost reduction
• Optimized product structure
  : The proportion of high-margin products such as DDR5 and LPDDR5 has increased
• Optimized customer structure
  : The revenue contribution from the top five customers stably stays at around 60%, and customer quality has improved

• Full-year 2025 revenue is expected to reach RMB 55-58 billion, and inventory turnover is expected to further accelerate
• With the expansion of mass production scale of DDR5 products, inventory management efficiency will continue to improve
• The storage super cycle driven by the explosive demand for AI provides a favorable market environment for inventory management

• Technological iteration risk
  : Continuous R&D investment is required to maintain technological leadership
• Market price volatility
  : Sharp fluctuations in DRAM prices may affect inventory value
• Capacity expansion risk
  : There is still RMB 32.3 billion in projects under construction, requiring a balance between capacity expansion and inventory management

The data showing ChangXin Memory Technologies’ inventory of RMB 3.149 billion, down 17.41% YoY, indicates that the company has achieved significant results in inventory management:

1. Effective inventory control
   : The decline in inventory and growth in revenue form a favorable contrast
2. Smooth production and sales alignment
   : Capacity utilization reaches 94.63%, indicating a high degree of matching between production and market demand
3. Good cost control
   : Unit production cost continues to decline, and economies of scale are beginning to emerge

Overall, ChangXin Memory Technologies’ inventory management has transformed from “extensive” to “refined”, laying a solid foundation for the company to achieve profitability in 2025 (expected net profit of RMB 2-3.5 billion).

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[1] Shanghai Stock Exchange (SSE) Official Website - Prospectus of ChangXin Memory Technologies Group Co., Ltd. (http://static.sse.com.cn/stock/disclosure/announcement/c/202512/002170_20251230_HQ08.pdf)

[2] Caijing New Media - Q1-Q3 2025 Revenue Reaches RMB 32.084 Billion! ChangXin Memory Technologies’ Prospectus Reveals the Growth Code of Domestic Memory Chips (https://i.ifeng.com/c/8pXIqoIKum1)

[3] Jiemian News - From a RMB 37 Billion Loss to Profitability Reversal: Insights from ChangXin Memory Technologies’ IPO (https://www.jiemian.com/article/13874829.html)