Summary of Key Points
Zhong Zhaozha, China’s richest person, has made his first foray into the AI large-model sector by indirectly investing approximately 350 million yuan in DeepSeek through his private equity fund. Meanwhile, traditional industrial capital firms such as Ningde Times, Jiuan Medical, Tangchen Best Health, and Qipiwolf have also flocked to invest in AI and hard technology, reflecting a trend of traditional industrial capital shifting towards technology sectors.
I. China’s Richest Person, Zhong Zhaozha, Makes His First foray into AI Large-Model Technology: 350 Million Yuan in DeepSeek
Zhong Zhaozha’s investment was not made directly; instead, it was carried out through several layers of intermediaries: his Guanzi Venture Capital → Tianjin Hengxing (Guanzi holds 43.7% of the shares) → Tianjin Huiqi (Tianjin Hengxing holds over 50% of the shares) → Hangzhou Chengli (Tianjin Huiqi holds 5% of the shares) → DeepSeek. Tianjin Huiqi and Tianjin Hengxing were both established in May or June of this year, specifically for the purpose of investing in DeepSeek, with Guanzi Venture Capital ultimately investing around 350 million yuan.
Zhong Zhaozha has primarily focused on the industrial sector (with companies like Nongfu Mountain Spring and Wantai Biology) and his investments have been concentrated in the pharmaceutical and new materials industries. This is his first foray into the highly competitive AI large-model field. Like DeepSeek’s founder, Liang Wenfeng, both are low-key individuals who avoid public attention, making this collaboration a partnership of “low-profile players.”
II. Zhong Zhaozha’s Technology Investment Portfolio: Three Platforms Focusing on Hard Technology
Zhong Zhaozha oversees three main investment platforms, all characterized by a “low-profile but precise” approach:
1. Guanzi Venture Capital (established in 2021): Invests in pharmaceutical companies (Saimeruo Biology) and new materials (Jiake New Materials), as well as the AI-based optical chip company Xizhi Technology.
2. Qiantang New Materials Laboratory (established in 2024, with an initial fund of 1 billion yuan): Prefers investing in startups led by scientists, focusing on hard technology (companies like Qiming Photonics in photonics chips and Shanghai Superconductor in high-temperature superconductors). Many of the companies invested in have moved their headquarters near Hangzhou Yangshengtang for easier management.
3. Kunshan Gewu Zhizhi Fund: Invests in early-stage technologies, such as the solid-state battery company Zhibang Lithium Battery (investing 500 million yuan for a 10% stake) and the space computing company Zhongke TianSuan.
Together, these three platforms form Zhong Zhaozha’s investment network covering pharmaceuticals, new materials, AI, and hard technology.
III. The “Old Money” Group in DeepSeek’s Financing: Traditional Industrial Capital Flocking to AI
DeepSeek’s initial round of financing included not only Zhong Zhaozha but also a group of traditional industrial leaders:
- Ningde Times: Invested 5 billion yuan, making it one of the largest investors.
- Jiuan Medical: Invested 750 million yuan through a fund and also in AI companies like Yuezhi Dianmian and Zhiyuan Robotics.
- Tangchen Best Health: Indirectly holds 0.04% of DeepSeek’s shares and also invested in Yuezhi Dianmian and Jieyue Xingchen.
- Qipiwolf’s Zhou Shaoxiong: Invested 150 million yuan through a partnership and also in companies like Moore Threads (AI chips) and Yushu Technology (robots).
These traditional industrial firms, which were previously involved in consumer goods and manufacturing, are now pouring their resources into AI and hard technology, indicating a collective shift in their investment strategies.
IV. Why Are Traditional Industrial Capital Focusing on Technology? The Times Have Changed
These firms have made significant profits in the past through consumer goods, real estate, and the internet sectors, but these industries are now growing more slowly. AI and hard technology represent new growth opportunities, with potential in areas such as large models, robotics, and chips.
They have two advantages: first, they possess substantial cash flows (for example, Nongfu Mountain Spring generates billions of yuan annually); second, they understand business logic and know which technologies have practical applications. As Haier’s founder once said, “There are no successful companies; there are only companies that adapt to the times.” They do not want to be stuck with past achievements and are seeking new opportunities to thrive in the current era.
This collective investment in AI reflects traditional industrial capital’s effort to align their resources with the future, directing their funds towards technology sectors with potential for explosive growth.
Conclusion
From Zhong Zhaozha to Ningde Times, traditional industrial capital is shifting from earning profits from consumer goods to investing in technology. This is not just individual investment decisions but a trend across the entire industrial landscape. As old industries reach their growth limits, new technological trends present opportunities that no one wants to miss.