Core Viewpoint - Jinzi Ham plans to invest no more than 300 million CNY to acquire up to 20% equity in Zhongsheng Microelectronics, focusing on the promising optical communication chip sector [2][6][8]. Investment Details - The investment will be conducted through capital increase and will be divided into two rounds, with the final amount and shareholding ratio to be determined after due diligence [7][11]. - The first round of investment is estimated at 100 million CNY, based on Zhongsheng Micro's pre-investment valuation of 1 billion to 1.3 billion CNY, indicating a potential appreciation rate of 9710% [11]. Company Background - Zhongsheng Micro was founded in 2019 by core R&D personnel from a US optical communication chip design company and has been recognized as a "future unicorn" in China [7][8]. - The company specializes in the development of high-speed optical module core chips, with products used in AI, cloud computing, and telecommunications [8]. Financial Performance - Zhongsheng Micro has not yet achieved profitability, reporting revenues of 204,900 CNY in 2024 and a net loss of 38.83 million CNY [9][10]. - For the first seven months of 2025, the company generated revenues of 511,100 CNY with a net loss of 20.37 million CNY [9][10]. Strategic Shift - Jinzi Ham's investment is part of a broader strategy to utilize idle funds effectively and align with the trends of the digital economy, aiming to enhance future business opportunities and improve performance [8][12]. - The company has faced challenges in its core business, leading to a decline in revenue from its traditional ham products [14][15][17]. Recent Changes in Control - The investment marks the first major move by the new controlling shareholder, Zheng Qingsheng, who took control of Jinzi Ham in June 2025 [21][22]. - Zheng Qingsheng has a background in real estate and automotive sales, indicating a shift in the company's strategic direction towards the semiconductor industry [22].