According to the Zhitong Finance APP, HSSM (002290.SZ) announced that recently, the company signed an "Investment Framework Agreement" with Yizhi Electronics and its legal representative and founder Mr. Xu Ruhao. The company plans to increase its investment in Yizhi Electronics with its own funds or raised funds of 250 million yuan (RMB, the same below), with Yizhi Electronics' pre-investment overall valuation estimated at 2.25 billion yuan. After this investment, the company is expected to hold a 10% stake in Yizhi Electronics.

It is reported that Yizhi Electronics has an efficient and mature R&D and business team, with strong team cohesion and execution ability, possessing core intellectual property rights, and its technology level is advanced in the country. The target company's CPU products and market objectives are clear, having successfully entered the market and gained recognition from well-known customers. In the current era of rapid AI development, Yizhi Electronics itself has good market development prospects and high investment value.

At the same time, from the business perspective, the company's holding subsidiary Shanghai Haixi Technology Co., Ltd. (hereinafter referred to as "Haixi Technology") has certain synergies and complementarities with Yizhi Electronics' business. Haixi Technology is a comprehensive high-tech enterprise engaged in software and hardware design, R&D, sales, and operation and maintenance in the field of artificial intelligence, based on domestically produced AI chips. Its products include servers for intelligent computing centers, AI all-in-one machines, and data platforms for large models. Haixi Technology is committed to providing customers with AI infrastructure design, software and hardware construction, and computing power operation and maintenance services, and has established a complete after-sales service system with an experienced project delivery and after-sales team. Yizhi Electronics is one of the core enterprises in the domestic CPU field, possessing advanced ARM architecture, with products applied in multiple industries, designing intelligent chips that integrate top AI algorithms and advanced process technologies, and building AI hardware platforms to provide industry application solutions. Yizhi Electronics can support Haixi Technology in using ARM CPUs as the computing core for AI devices in various price-sensitive and heat-sensitive small scenarios; Haixi Technology can help Yizhi Electronics' products reach downstream customers more quickly and widely. Based on business synergy and complementarity, in August 2024, Haixi Technology and Yizhi Electronics will sign a cooperation agreement to collaborate on innovative intelligent applications based on the new generation of heterogeneous integrated processor chips with ARM CPUs, jointly launching fully domestically produced AI solutions for multiple industries. The two parties have successfully cooperated in supplying cloud gaming server products.

Based on successful business cooperation, Haixi Technology and the company further understand the detailed situation of Yizhi Electronics' products, management team, business competitiveness, etc., and are optimistic about Yizhi Electronics' development prospects. Therefore, they plan to further bind the business cooperation relationship through investment in Yizhi Electronics, jointly expanding market opportunities in the chip and computing power field in the AI era. In the future, the company, Haixi Technology, and Yizhi Electronics will adhere to the principle of "common development and win-win cooperation" to further strengthen cooperation in R&D, market expansion, and other aspects to achieve mutual benefits