Amlogic(SH:688099) Di Yi Cai Jing·2025-09-17 10:36Core Viewpoint - The acquisition of Chip Micro by Jingchen Co. at a significantly high premium raises questions about the strategic rationale behind the purchase, given the company's poor financial performance and lack of revenue. Group 1: Acquisition Details - Jingchen Co. announced the acquisition of 100% equity in Chip Micro for 316 million yuan, which represents a premium of over 500% compared to the company's audited net assets of 50.97 million yuan [1][4]. - The acquisition price is based on a previous valuation of 430 million yuan from a financing round, but it was discounted to align with the total paid-in capital of shareholders [2]. - The founder, Sun Dian, effectively exits with almost no compensation, receiving only 112,000 yuan for a portion of his shares, while venture capital firms receive the majority of the payout [2][3]. Group 2: Financial Performance - Chip Micro reported zero revenue for 2024 and only 679,300 yuan for the first half of 2025, with cumulative net losses exceeding 130 million yuan over two years [1][5]. - The lack of performance guarantees or compensation arrangements in the acquisition means Jingchen Co. will bear the full risk of underperformance in Chip Micro's technology conversion [5]. Group 3: Strategic Implications - Jingchen Co. aims to enhance its capabilities in the wireless communication sector through this acquisition, integrating Chip Micro's technology assets and R&D team to strengthen its competitive position in the AIoT solutions market [5]. - The acquisition is seen as a move to expand into the Internet of Things (IoT) and related fields, despite the current lack of scalable revenue from Chip Micro's core products [5]. Group 4: Financial Health of Jingchen Co. - In the first half of the year, Jingchen Co. achieved revenue of 3.33 billion yuan, a year-on-year increase of 10.42%, and a net profit of 497 million yuan, up 37.12% [6]. - However, the company experienced a net cash outflow of 632 million yuan from operating activities, a significant decline compared to the previous year, attributed to increased prepayments for raw material purchases [6].