Zongyi Co., Ltd. (600770) Limit-Up Analysis: Capital Competition and Risk Assessment Driven by Major Asset Restructuring

Zongyi Co., Ltd. (600770) hit the daily limit on January 22, 2026, closing at RMB 6.80, marking 2 consecutive trading days of limit-ups, with the day’s transaction volume reaching RMB 1.203 billion and turnover rate surging to 13.79%[0][1]. The core driving factor for this limit-up is the major asset restructuring the company is advancing—planning to acquire control of Jilai Micro, a power semiconductor IDM enterprise, to form an integrated industrial chain layout of “chip design + wafer manufacturing + packaging and testing”[1].

From a timeline perspective, the company’s stock trading exhibited significant abnormal volatility between January 20 and 22. The turnover rate surged from 1.47% on January 20 to 13.79% on January 22, an increase of more than 8 times, indicating intense capital competition in the market[1][3]. Meanwhile, the company was listed on the Dragon and Tiger List due to the cumulative deviation of closing price gains reaching 20% in three consecutive days, attracting regulatory attention[1].

Data from the Dragon and Tiger List reveals the complexity of current market sentiment. In terms of main capital, a net inflow of RMB 79.4799 million was recorded on January 22, accounting for 6.61% of the day’s transaction volume, indicating that institutional capital is actively participating[1]. More indicative is the margin purchase data: the margin purchase amount has grown by over 50% for 2 consecutive days, reaching RMB 173 million on January 22, with the margin balance rising to RMB 424 million (accounting for 4.80% of the circulating market value)[2]. The continuous inflow of leveraged capital indicates that the market holds optimistic expectations for this restructuring.

However, the capital side is not entirely optimistic. Hot money recorded a net outflow of RMB 69.54 million on the day, and retail capital recorded a net outflow of over RMB 103 million[3]. This pattern of “main capital entering, hot money and retail capital exiting” reflects obvious short-term profit-taking pressure in the current market. Considering that the company’s net profit excluding non-recurring items was -RMB 9.1724 million in the first three quarters of 2025, there is tension between its loss-making fundamentals and aggressive concept speculation[3].

From a valuation perspective, the current stock price is already in a historical high range. The closing price of RMB 6.80 is only a stone’s throw away from the 52-week high of RMB 7.55, while the price-to-earnings (P/E) ratio is as high as 175.84 times, far exceeding the industry average[0]. More importantly, the company’s ROE is only 1.47%, and its operating profit margin is -10.30%, showing typical characteristics of “high valuation, low profitability”[0].

It is worth noting that Jilai Micro, as the acquisition target, has certain fundamental support. Its products have been recognized by leading customers such as Midea, BYD, and ZTE, and its power semiconductor chip revenue increased by 4.24% year-on-year in 2024[1]. If the acquisition is successfully completed and effectively integrated, it may bring substantial performance growth to the listed company. However, major asset restructuring still requires regulatory approval, and there is uncertainty regarding the progress and outcome of the approval.

This incident reflects the capital operation logic under the wave of semiconductor localization. Zongyi Co., Ltd.'s original core businesses cover information technology, new energy, and equity investment. By acquiring Jilai Micro to enter the power semiconductor segment, it represents a typical path for traditional enterprises to pivot to a hot sector[1]. Jilai Micro has 4-6 inch wafer lines and 4-8 inch compatible packaging and testing lines, with relatively complete IDM capabilities[1].

From an industry perspective, mergers and acquisitions (M&A) and integration in the semiconductor sector are accelerating. As core components in fields such as new energy vehicles, photovoltaics, and energy storage, there is an urgent demand for domestic substitution of power semiconductors. If Zongyi Co., Ltd.'s acquisition is successful, it will not only reshape the company’s own fundamentals but may also trigger revaluation of similar “cross-sector transformation” cases in the market.

are reflected in three aspects: First, the sharp rise in turnover rate (from 1.47% to 13.79%) indicates rapid share turnover, significantly amplifying volatility risks[3]; Second, the net outflow of hot money suggests that short-term speculative capital is taking profits[3]; Third, the company reported losses in the first three quarters, with insufficient fundamental support[3]. The current valuation level of 175x P/E means that the market has fully priced in optimistic expectations, and any factor that falls short of expectations may lead to a sharp pullback.

mainly come from the uncertainty of the restructuring. Major asset restructuring needs to go through a regulatory approval process, and there is a possibility of being rejected or required to adjust the plan. In addition, there is uncertainty about whether the synergistic effects after integrating Jilai Micro can be released as scheduled.

If the restructuring progresses smoothly, the company will form a complete power semiconductor IDM industrial chain, and its valuation logic is expected to shift from “event-driven” to “growth-driven”. Referring to comparable company cases, semiconductor enterprises with complete IDM capabilities usually enjoy higher valuation premiums. From the capital side, the continuous entry of margin traders indicates that leveraged capital is optimistic about future performance. If the company can attract more institutional investors to hold shares for the long term, the stability of the stock price will be enhanced.

The current stock price is operating in a key resistance area. The 52-week high of RMB 7.55 constitutes the primary resistance level, and the integer level of RMB 7 is a psychological resistance level. In terms of support levels, the 5-day moving average (around RMB 5.80), 10-day moving average (around RMB 5.30), and 20-day moving average (around RMB 5.56) form a multi-layer support system[0]. Considering the large cumulative increase in the recent period (17.41% increase in 5 days, 26.39% increase year-to-date), the risk of short-term technical pullback is accumulating[0].

Scenario	Probability	Trigger Conditions	Predicted Range
Strong Momentum Continuation	35%	Restructuring approved + Semiconductor sector support	¥8.00-8.50
High-Range Fluctuation	40%	Restructuring uncertainty + Profit-taking pressure	¥5.80-7.00
Pullback Confirmation	25%	Negative performance news + Overall market correction	¥5.00-5.50

Investors should focus on the following catalysts: the progress of regulatory approval for the acquisition of Jilai Micro, changes in capital flow in the subsequent Dragon and Tiger List, whether the turnover rate returns to normal levels, and the overall sentiment of the semiconductor sector.

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Zongyi Co., Ltd.'s current limit-up is mainly driven by expectations of major asset restructuring, with the plan to acquire control of Jilai Micro to build out a power semiconductor IDM industrial chain. The capital side shows a differentiated pattern of “main capital entering, leveraged capital being active, hot money and retail capital exiting”, reflecting market divergence on restructuring expectations. The company currently has a relatively high valuation (175x P/E) and reported losses in the first three quarters, with tension between fundamentals and concept speculation. The future trend will depend on the progress of restructuring approval, performance improvement, and overall market risk appetite. Investors should closely monitor the progress of regulatory approval and changes in the capital side, and prudently evaluate the trade-off between short-term volatility risks and medium- to long-term integration opportunities.