Core Viewpoint - The strategic investment of 500 million yuan by Jia Yuan Technology in En Da Tong marks a significant move into the rapidly growing optical module sector, reflecting the transformation anxiety of traditional manufacturing and the capital's pursuit of hard technology under the AI infrastructure wave [1][5]. Group 1: Optical Module Sector - The global optical module market has grown from 77.5 billion yuan in 2020 to an estimated 126.7 billion yuan in 2024, with a compound annual growth rate of 13.1%, projected to exceed 295.4 billion yuan by 2029 [2]. - En Da Tong, established in 2017, has quickly entered the market with high-speed optical modules and active/passive devices, achieving revenues of 1.477 billion yuan and a net profit of 97.94 million yuan in 2024, with 2025 H1 revenues nearing 1.316 billion yuan and net profits reaching 121 million yuan [2]. Group 2: Jia Yuan Technology's Transformation - Jia Yuan Technology, a leader in lithium battery copper foil, has faced challenges such as industry overcapacity and intensified price wars, leading to a significant loss in net profit in 2024 [3]. - The investment in En Da Tong is seen as a critical strategy for Jia Yuan Technology to tap into the growth potential of the optical module sector, leveraging synergies in customer base, product offerings, and supply chain integration [3]. - The collaboration is expected to enhance financial performance, with En Da Tong's original shareholders committing to a minimum net profit of 143 million yuan in 2025, providing Jia Yuan Technology with a safeguard for its investment [3]. Group 3: Industry Insights - The case of Jia Yuan Technology illustrates a new paradigm for traditional manufacturing transformation, emphasizing the importance of strategic equity investments to enter high-growth sectors while maintaining core business operations [5]. - This approach allows companies to mitigate the risks associated with direct transformation and share in industry benefits through financial investments, highlighting the shift from product-centric competition to ecosystem-based competition in the AI era [5].

Core Insights - The article emphasizes the importance of strategic determination and value transmission in becoming an industry leader, particularly in the context of Guangdong Jiabao Group, a benchmark enterprise in the dried fruit and candied fruit industry [3][4]. Group 1: Growth Engines for Traditional Enterprises - The overall market size for the dried fruit and candied fruit industry is estimated to be between 80-100 billion, with the goal of capturing at least 60-70% market share [4]. - The company has successfully achieved annual sales exceeding 100 million packages for products like nine-process dried tangerine peel, figs, and mango sauce [3][4]. - The company focuses on creating a product-driven agile system to adapt quickly to market demands and consumer feedback [4][9]. Group 2: User-Centric Decision Making - The company adopts a user-oriented approach where frontline suggestions can directly reach decision-makers, allowing for rapid decision-making [7]. - Online platforms are utilized effectively to engage directly with consumers, enabling quick adjustments based on market changes [8]. - The company encourages a culture of bold suggestions without the fear of accountability, promoting a fast-paced innovation environment [10]. Group 3: Supply Chain Co-creation Model - The company employs a full supply chain model, ensuring both upstream farmers and downstream consumers benefit from a shared resource platform [18][19]. - A unique approach of advance payment for raw materials and signed planting agreements with farmers ensures stability and reduces risks for suppliers [20][21]. - Collaboration with agricultural research institutions and suppliers enhances product development and quality control [23]. Group 4: Flexible Organizational Transformation - The company emphasizes gratitude and respect for the legacy of previous generations while integrating new talent into the organization [27][28]. - A structured approach to transitioning roles for older employees ensures their experience is utilized effectively, either as consultants or suppliers [29][30]. - The company conducts ceremonial events to honor the legacy of past workers while fostering a sense of continuity and respect within the organization [32][33]. Group 5: Successor Cultivation Mechanism - The company identifies four key qualities for successors: sincerity, gratitude, learning ability, and courage [34][35]. - The approach to successor training involves gradual exposure to responsibilities without imposing expectations too early [37]. - The company believes that instilling good qualities in the next generation is as important as direct succession [37]. Group 6: Entrepreneurial Growth and Breakthroughs - The company faced significant challenges upon the current leader's succession, leading to strategic decisions that prioritized cash flow and core competencies [38][39]. - A deep reflection process helps the leadership understand the intrinsic value of their business and its significance to the family legacy [41][42]. - The company has established a ten-year strategic plan that has provided clarity and focus, allowing for consistent growth despite market fluctuations [55][56]. Group 7: Strategic Decision-Making and Values - The company’s strategic foundation is rooted in traditional cultural values, particularly Wang Yangming's philosophy, which aids in self-reflection and internal strength [66]. - Western management theories complement these traditional values, providing a balanced approach to growth and operational efficiency [67].