Core Viewpoint - Jinzi Ham is expanding into the semiconductor industry by investing up to 300 million yuan to acquire up to 20% of Zhongsheng Microelectronics, marking a strategic move to diversify beyond its traditional meat products business [1][3]. Group 1: Company Background and Strategic Moves - Jinzi Ham, primarily engaged in ham products and traditional meat products, has faced slow growth in its main business due to market factors, prompting the need for diversification [3]. - The investment in Zhongsheng Microelectronics is the first major capital action under the new control of Zheng Qingsheng, who became the controlling shareholder in June 2023 [1][7]. - The company has a history of cross-industry investments, including ventures into rare earths, internet finance, new energy vehicles, and healthcare, although past attempts have not significantly boosted performance [6][7]. Group 2: Investment Details and Market Context - The investment will occur in two rounds, with the first round involving a 100 million yuan capital increase based on a pre-investment valuation of Zhongsheng Microelectronics between 1 billion and 1.3 billion yuan [4]. - Zhongsheng Microelectronics, founded in 2019, focuses on high-speed optical module core chips and has been recognized in the "China Future Unicorn TOP 100" list for 2024 and 2025, although it has yet to achieve profitability [3][4]. - The optical module chip market is expected to grow rapidly due to the global AI data center construction wave, presenting a potential opportunity for Jinzi Ham to benefit from technological advancements [8]. Group 3: Challenges and Risks - There are concerns regarding the high valuation of Zhongsheng Microelectronics, with a potential increase of 9710% based on the lowest valuation, which may lead to risks of impairment in long-term equity investments [4]. - Jinzi Ham's management may face challenges in technical accumulation and management capabilities in the semiconductor sector, which could impact the success of this investment [4][5]. - The company's previous cross-industry investments have not yielded significant results, raising questions about the effectiveness of this new strategy [6][7].

Core Viewpoint - Jinzi Ham may face a change in actual control as the current controller, Ren Guilong, is planning to transfer shares, which could lead to a change in the company's control [1][2] Group 1: Shareholder Changes - The current actual controller, Ren Guilong, holds 18.83% of the company's shares and became the actual controller in 2021 through share acquisition [2] - Ren Guilong's entry as the actual controller involved a change from the original intended controller, Ren Qifeng, due to conditions related to the acquisition [2] - The previous actual controller, Shi Yanjun, has been reducing his stake, with a total of 14.01 million shares sold recently, decreasing his holding from 6.16% to below 5% [3] Group 2: Financial Performance - Jinzi Ham's revenue has been declining since Ren Guilong took control, with a slight recovery in 2023, achieving revenue of 344 million yuan, a year-on-year increase of 9.62% [4] - The net profit attributable to the parent company was 62 million yuan in 2023, reflecting a year-on-year growth of 55.19% [4] - The main products, ham and specialty meat products, generated 54.46% and 22.26% of revenue respectively, with both categories experiencing revenue growth in 2024 but a decline in gross margin [6] Group 3: Industry Context - The overall ham industry faced challenges in 2023, with reduced customer spending and declining sales reported by major companies [7] - Despite the industry's difficulties, the company remains optimistic about future demand for meat products, emphasizing the need to adapt to market and consumer preferences [7]

Core Viewpoint - The company reported a revenue of 344 million yuan for 2024, marking a year-on-year growth of 9.62%, and a net profit of 62.17 million yuan, up 55.19% year-on-year, indicating a return to revenue growth after three years [1] Financial Performance - The revenue for 2024 is significantly lower than the 710 million yuan achieved in 2020, and the net profit increase was largely due to the sale of an equity stake in an associate company [1] - The ham products generated 187 million yuan in revenue, accounting for 54.46% of total revenue, while specialty meat products contributed 76.54 million yuan, representing 22.26% [5] - Both product categories saw revenue growth in 2024, but gross margins declined: ham product gross margin decreased by 1.51 percentage points, and specialty meat product gross margin fell by 15.49 percentage points [5] Market Environment - The overall ham industry faced challenges last year, with a decline in both price and volume, attributed to economic downturns and weak consumer demand [6] - Despite the industry's struggles, the company remains optimistic about future growth, emphasizing the ongoing demand for safe and healthy meat products [7] Strategic Initiatives - The company is actively developing its prepared dishes business, which is still in the trial sales phase, with six products currently under development [8] - The company previously attempted to diversify into cloud computing services but has since decided to sell its stake in the cloud technology company, realizing a profit of 30.15 million yuan from this sale [9] - The company is exploring international markets to enhance brand visibility and product exports through participation in international exhibitions and establishing overseas sales networks [9]