Core Viewpoint - Guangdong Dongyangguang Technology Holdings Co., Ltd. plans to invest in Changzhou Zonghui Chip Semiconductor Technology Co., Ltd. through a capital increase, aiming to enhance its position in the data center liquid cooling technology sector by leveraging synergies with optical chip technology [1][3][10]. Summary by Sections 1. Overview of Related Transactions - The company will invest CNY 90 million to acquire 2.575% of Zonghui Chip's new registered capital of CNY 795,205.23, while its affiliate, Ningbo Yongcheng Dongyangguang Venture Capital Fund, will invest CNY 60 million for a 1.717% stake [1][2]. - This transaction has been approved by the company's board and does not require shareholder approval [2][4]. 2. Purpose and Reasons for the Transaction - The investment aims to address the growing demand for high-speed, low-energy data transmission in data centers, integrating optical chips and liquid cooling technology to enhance efficiency and reliability [3][10]. - Zonghui Chip is recognized as a leading player in the VCSEL chip sector, with strong capabilities in technology iteration and industry chain integration [3][10]. 3. Basic Information about the Investment Target - Changzhou Zonghui Chip Semiconductor Technology Co., Ltd. was established on November 18, 2015, with a registered capital of CNY 29.024 million [6][7]. - The company specializes in chip design, manufacturing, and sales of electronic products, with total assets of CNY 89.487 million and a net loss of CNY 5.829 million reported [7][8]. 4. Pricing Policy and Basis for the Transaction - The transaction pricing was determined based on a pre-investment valuation of CNY 3.285 billion, reflecting the market expectations and the company's industry characteristics [8][9]. 5. Impact on the Company - This investment is a strategic move to extend the company's reach into the upstream core components of data centers, enhancing its competitive edge in the liquid cooling technology sector [10][11]. - The funding for this transaction will come from the company's own resources, ensuring no adverse impact on its financial status [11].