DeepGlint Technology’s Founder Resigns From CEO Position

TMTPOST — DeepGlint Technology, China’s first publicly traded AI company on the Sci-Tech Innovation Board of the Shanghai Stock Exchange, announced on Monday evening that Zhao Yong, the founder, chairman, and CEO of the company, had submitted his resignation due to the company’s business development needs.

In his resignation letter, Zhao expressed his intent to step down from the CEO role while continuing to serve as the chairman and stay in the strategic committee and nominating committee, and compensation committee of the board. He will remain a core technical figure and retain the position of chief scientist.

The company’s board of directors appointed Wu Yizhou, a current board member and assistant general manager, as the new CEO. Additionally, Zhang Qiang, the chairman and CEO of Shenzhen ECAS Technology Co., Ltd., recently acquired by DeepGlint Technology, was named the vice general manager.

Zhao's decision to step down has raised considerable attention, as he was the founder and a key figure in the company’s development, with his resignation marking a rare occurrence in the AI industry, where founders typically maintain their leadership in the management.

According to market analysis, the leadership change comes after the company’s acquisition of ECAS Technology, which has paved the way for DeepGlint Technology to enter the defense industry, allowing Zhao more time to focus on research and development rather than market expansion.

Zhao graduated from Fudan University with a bachelor’s and master’s degree in electronics, and went on to earn a Ph.D. in computer engineering from Brown University in the United States. Specializing in computer vision and computational imaging, Zhao co-founded DeepGlint Technology in April 2013 and led the company as CEO. Under his leadership, the company successfully developed the “DeepGlint Unmanned Surveillance and Security System” and later expanded into other areas such as smart finance, urban management, smart commerce, and the metaverse.

In March 2022, the company became the first AI computer vision company to be listed on the Shanghai Stock Exchange’s Sci-Tech Innovation Board, briefly achieving a market capitalization of 10 billion yuan. However, its market value has since fallen to around 4 billion yuan. For the 2023 fiscal year, the company reported revenue of 262 million yuan, with a net loss attributable to the parent company of 90 million yuan, the majority of which came from its smart finance products. As of the end of 2023, the company employed 316 R&D staff, representing 70.38% of its total workforce.

In August 2023, Sequoia China reduced its holdings in DeepGlint Technology by 0.49 percentage point, decreasing its stake from 5.49% to 4.99%, no longer holding more than 5% of the company’s shares. The divestment was part of normal market operations, as Sequoia had been an early investor and needed to meet fund expiration and LP redemption demands.

Despite these financial challenges, the company has continued to explore new growth opportunities, particularly in the military and defense sectors. On Monday, the company announced a 50 million RMB investment in ECAS, a manufacturer of domestic military equipment. Following the acquisition, DeepGlint became the largest shareholder, holding 23.42% of ECAS’s shares, and gained control of 54.68% of the voting rights, positioning itself as a key player in the military defense industry.

The leadership transition at DeepGlint follows a similar move seen at SenseTime, another AI giant, where founder Tang Xiao’ou stepped down as CEO, with the company focusing on new strategic directions.

Wu Yizhou, the newly appointed CEO, is a professional with a strong background in consulting and investment. She holds a master’s degree from Renmin University and previously worked for major firms such as KPMG and Deloitte before moving to leadership roles in various companies.

Zhang Qiang, a highly experienced engineer and the newly appointed vice CEO, holds a Ph.D. in engineering and has extensive experience in the tech and defense sectors. He will work alongside Wu to drive DeepGlint’s future growth, particularly in the burgeoning military technology field.

(Note: 1US$ equals 7.2553 yuan.)