However, Zhu Xingming, who was born in technology, also has a unique understanding of company management. In his eyes, the essence of enterprise management is the management of people, “talent is not competitiveness, the ability to manage talent is competitiveness.”

In this speech, the word “paranoid” appears 13 times. Zhu Xingming once described himself as “half paranoid” in an interview. In his view, “paranoia” is characterized by anti-nature shading, independent thinking, independent action, not affected by the emergence of emotions. Huichuan’s future requires a system of continuous high-speed iteration, but it also requires paranoia. He believes that Huichuan needs to create a free space for “paranoia”, “a company without paranoia, the company will not succeed.”

In an interview with Forbes in 2021, Zhu Xingming focused on corporate management and change. The word “change” also appeared 36 times in the speech “The Pain of Evolution, the Light of Life.” Since 2019, Huichuan Technology has introduced external consultants to implement management changes, aiming to build a corporate governance structure that supports sales of more than 10 billion yuan and ask for dividends from management.

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As an entrepreneur from Huawei, Zhu Xingming also introduced the concept of Huawei in enterprise management, especially the incentive for talents.

From 2013 to 2022, Huichuan Technology implemented a total of 6 stock option incentive plans and a long-term incentive shareholding plan. The number of people covered by the stock option incentive plan has increased from more than 200 to more than 800. As of the end of 2022, in addition to 3 independent directors of Huichuan Technology, the remaining 14 people all have shareholding. iFind data show that the total compensation and A-share market value of these 14 people in 2022 are more than 30 million yuan, and 9 people are more than 2 billion yuan.

In his speech in 2022, Zhu Xingming stressed that the management is not a moat, the system is not a moat, and the iteration of the system is a moat. In 2023, the performance of Huichuan Technology continued to be sluggish, with almost zero growth in total operating revenue in the first quarter, and only 4.15% year-on-year growth in net profit attributable to shareholders of the parent company. Huichuan’s business is also transforming from hardware and industrial control in the past to software and digital energy management.

The new stage and new business decided that Huichuan technology and Zhu Xingming should further iterate the system. In today’s digital transformation has become a consensus, endurance will once again become whether Huichuan can come out of adversity and stand out.