Core Viewpoint - The article discusses the surprising decision of a nearly 400 billion market cap company, 晶晨股份 (Jingchen Co.), to spend 316 million to acquire a struggling company, 芯迈微 (Chinmai Micro), which has reported significant losses and minimal revenue, raising questions about the rationale behind this move and its potential impact on the company's upcoming IPO [1][3][5]. Group 1: Acquisition Details - Jingchen Co. has acquired Chinmai Micro for 316 million, despite Chinmai Micro having accumulated losses exceeding 130 million and only generating 670,000 in revenue in the first half of the year [1][3]. - The founder of Chinmai Micro, 孙滇明 (Sun Dianming), sold 60.57% of his shares for just 1.12 million, with 21.8% of his shares transferred for 0, indicating a significant undervaluation of the company [3][5]. - The acquisition is seen as a desperate measure by Sun to alleviate financial pressures, potentially linked to performance guarantees that could require him to buy back shares if the company fails [5][7]. Group 2: Financial Performance and Market Context - Jingchen Co. reported a revenue of 3.33 billion and a net profit of 497 million, but the growth rate has slowed significantly from 28.33% in the previous year to just 10.42% [5][7]. - The acquisition is intended to fill a gap in communication technology, aiming to create a technology matrix that includes cellular, optical, and Wi-Fi communications, but there are doubts about whether the market will respond positively to this strategy [5][7]. - Chinmai Micro operates in a competitive space dominated by established players like 卓胜微 (Zhuoshengwei) and 唯捷创芯 (Weijie Chuangxin), making it challenging for Chinmai to gain market traction [5][7]. Group 3: Risks and Concerns - The acquisition price of 316 million for a company with a net asset value of only 35.9 million raises concerns about potential goodwill impairment if Chinmai Micro continues to underperform [5][7]. - There is skepticism about whether the integration of Chinmai Micro into Jingchen Co. will be successful, as ongoing losses could negatively impact Jingchen's financial statements [5][7]. - The overall situation is likened to a high-stakes gamble, with uncertainties surrounding the outcomes for both companies involved, highlighting the risks inherent in such strategic decisions [7].