Core Viewpoint - The investment by Jinzi Ham is a strategic move to acquire up to 20% of Zhongsheng Microelectronics, a company specializing in optical communication chips, amidst the backdrop of declining traditional meat product sales and the need for diversification [1][4]. Group 1: Investment Details - Jinzi Ham's wholly-owned subsidiary plans to invest no more than 300 million yuan in Zhongsheng Microelectronics through a capital increase [1]. - The investment will occur in two rounds, with the first round of 100 million yuan based on a pre-investment valuation of 1 billion to 1.3 billion yuan, indicating a potential appreciation rate of 9710% if calculated at the lower end of the valuation [3]. Group 2: Zhongsheng Microelectronics Overview - Zhongsheng Microelectronics, established in 2019, focuses on the research and design of high-speed optical module core chips, including TIA and Driver chips, which are essential for AI computing centers, 5G/5.5G base stations, and cloud computing data centers [2]. - The company has achieved mass production testing of chips required for 400G/800G optical modules and has completed the R&D design for chips needed for 1.6T and above speed optical modules [2]. Group 3: Financial Performance and Challenges - Zhongsheng Microelectronics reported revenue of only 51.11 thousand yuan from January to July 2025, with a net loss of 20.37 million yuan, highlighting the challenges of high R&D investment and a mismatch in commercialization cycles [3]. - Jinzi Ham's traditional business has been under pressure, with a 14.73% year-on-year decline in revenue to 170 million yuan and a 25.11% drop in net profit to 22.92 million yuan in the first half of 2025 [4]. Group 4: Strategic Implications - The investment is seen as a last-ditch effort for Jinzi Ham to pivot from its declining core business, which has faced challenges from consumer upgrades and previous unsuccessful diversification attempts [4]. - The combination of traditional meat products and semiconductor technology reflects a broader trend of digital transformation in traditional industries and the capital market's enthusiasm for domestic substitution themes [5].