Core Viewpoint - Recently, Jingchen Co., Ltd. announced its intention to acquire 100% equity of Chip Micro Semiconductor (Jiaxing) Co., Ltd. for a cash consideration of RMB 316 million, despite Chip Micro's projected revenue of zero in 2024 and a net loss exceeding RMB 40 million [1][6]. Group 1: Acquisition Details - The acquisition price of RMB 316 million represents a premium over the audited net assets of Chip Micro as of the end of 2024 [1]. - Chip Micro was founded in August 2021 and has completed five rounds of financing, with investors including Junlian Capital and Huashan Capital [1]. - The founder of Chip Micro, Sun Dian, transferred 21.8035% of his shares at a price of zero, indicating a potential "cost recovery exit" strategy [2][6]. Group 2: Financial Performance - Chip Micro's revenue for 2024 is projected to be zero, with only RMB 68,000 in revenue for the first half of 2025, while incurring a net loss of over RMB 40 million [1][6]. - As of mid-2025, Chip Micro's net assets are only RMB 35.903 million, suggesting financial instability without further financing or ownership changes [1]. Group 3: Strategic Implications - Jingchen Co., Ltd. aims to integrate Chip Micro's communication technology to enhance its capabilities in AIoT, automotive, and wearable sectors, thereby expanding its technological moat [7]. - The acquisition occurs during a critical period for Jingchen, as it is preparing for a Hong Kong IPO while facing a slowdown in revenue growth [6][7]. - The competitive landscape in the Wi-Fi RF chip sector is intense, with established players like Zhaosheng Micro, Weijie Chuangxin, and Xidi Micro recording significant revenues, which poses a risk to Chip Micro's market entry and profitability [7].