Core Viewpoint - Yangyuan Beverage is increasing its investment in private equity through a 1 billion yuan capital increase to its subsidiary fund, despite a decline in its main business revenue and profit [1][2]. Group 1: Investment Strategy - The 1 billion yuan capital increase will be used for new project investments, not for existing projects [2]. - Yangyuan Beverage's private equity fund, Qianhong Investment, was established in May 2021 with an initial size of 3 billion yuan, with Yangyuan contributing 2.997 billion yuan [2]. - Qianhong Investment has invested a total of 2.954 billion yuan in seven companies, with a significant 1.6 billion yuan investment in Changjiang Storage, representing 54% of the total investment [2][3]. Group 2: Financial Performance - In the first half of 2025, Yangyuan Beverage reported revenue of 2.465 billion yuan, a year-on-year decline of 16.19%, and a net profit of 744 million yuan, down 27.76% [1][6]. - The core product, walnut milk, accounts for 89% of revenue, with sales dropping from 765,200 tons in 2019 to 565,300 tons in 2024 [6]. - The company has seen negative growth across all major sales regions, with the exception of the Southwest region, where sales have declined by double digits [6][7]. Group 3: Market Challenges - The plant protein beverage industry is experiencing a decline, with a 3.94% drop in sales from 2019 to 2023, facing competition from dairy products and other beverage categories [6]. - Yangyuan Beverage's reliance on a single product has weakened its risk resilience, prompting a shift towards cross-industry investments [7]. - New product revenues remain small and have limited contribution to overall growth, despite an increase in the number of distributors [7].

Core Insights - Traditional food companies like Jinzi Ham and Yangyuan Beverage are making significant investments in the semiconductor industry, raising questions about their motivations and the potential for success in this new sector [1][4][5] Group 1: Investment Moves - Jinzi Ham announced plans to invest up to 300 million RMB in Zhongsheng Microelectronics, acquiring up to 20% equity, despite the latter's low revenue of 51,000 RMB and a net loss of 20.37 million RMB in the first seven months of the year [1][2] - Yangyuan Beverage invested 1.6 billion RMB in Changjiang Storage Technology, acquiring 0.99% equity, with the investment framed as a financial move rather than a strategic one [2][3] Group 2: Market Potential - The global optical device market is projected to reach 52 billion USD by 2029, with a compound annual growth rate of 11%, driven by data center interconnect demand [2] - Jinzi Ham's investment in Zhongsheng Microelectronics is seen as a bet on future market potential, despite the current lack of profitability [2][4] Group 3: Company Performance - Yangyuan Beverage reported a 16.19% decline in revenue to 2.465 billion RMB and a 27.76% drop in net profit to 744 million RMB in the first half of 2025, marking the first time in three years that both metrics declined [5][7] - Jinzi Ham's revenue fell by 14.73% to 170 million RMB, with net profit down 25.11% to 22.92 million RMB in the same period [6] Group 4: Strategic Rationale - Both companies are leveraging their brand strength and market positioning to explore new growth avenues in the semiconductor sector, with Jinzi Ham focusing on optical communication chips and Yangyuan Beverage eyeing storage chips [4][6] - The investments are seen as a way to tap into the growing demand for advanced technology products, particularly in AI and data storage [3][4]

Core Viewpoint - Yangyuan Beverage, the parent company of "Six Walnuts," announced an investment of 1.6 billion yuan in Yangtze Memory Technologies Co., Ltd. (YMTC), acquiring a 0.99% stake, aligning with the company's strategic development and exploring equity investment business models [1][4]. Group 1: Company Overview - Yangyuan Beverage, established in 1997, is a leading plant-based protein beverage company in China, known for its flagship brands including Six Walnuts and Yangyuan Plant Milk [2]. - As of the latest closing, Yangyuan Beverage's stock price is 23.86 yuan per share, with a total market capitalization of 30.07 billion yuan [3]. Group 2: Investment Details - The investment in YMTC confirms the semiconductor giant's actual valuation at approximately 161.62 billion yuan [4]. - YMTC, founded in July 2016, is a leading domestic storage chip company with a registered capital of 105.27 billion yuan, specializing in chip design, manufacturing, packaging, testing, and system solutions [4]. - The investment round includes 16 enterprises, such as Agricultural Bank of China Financial Assets and Shanghai State-owned Assets, alongside Yangyuan's investment through its controlled entity, Wuhu Wenmingquan Hong Investment Management Partnership [4].