Summary of Key Points
ZhuiMi, a technology company that initially achieved global dominance with its floor sweepers, later deviated from its product focus and engaged in a “capital game.” It used funds from local state-owned assets for expansion, relied on press conferences to drive research and development (with products serving as a means to raise capital), and set unrealistic valuation targets (doubling in value within half a year). Now, the company is facing financial difficulties, with delayed payments from major suppliers and unpaid exhibition fees. An investigation team has been dispatched, and Yu Hao, the public face of the “genius entrepreneur,” has become the lever through which capital manipulates resources—while the investors can walk away unscathed, he bears all the risks. This reflects the collapse of a business model that relies on storytelling to attract investment and also indicates stricter regulatory oversight of capital operations.
1. The Investigation Team’s Intervention: More Serious Than Expected
Many people thought the local government’s “inspection” of ZhuiMi’s partnerships was just a formality, involving filling out forms and asking questions. However, the revelation that an investigation team had already been conducting on-site audits and reviewing documents is a significant shift. The investigation began in mid-to-late May, with the outbreak of issues such as a ban on public statements and a sharp drop in stock prices only occurring on June 5th. This suggests that the problems were much more serious than initially speculated, far beyond minor compliance violations.
2. Financial Strains: Major Supplier Delays and Unpaid Exhibition Fees
ZhuiMi’s financial issues are not isolated incidents; they represent a systemic crisis at the corporate level:
- A major electromechanical supplier, with whom ZhuiMi has collaborated for three years, delayed payment by 10 days for the first time.
- The company spent 80 million yuan to secure a entire exhibition hall for the AWE event but still hasn’t paid its advertisers.
With an annual revenue claim of 4 billion yuan, how could ZhuiMi not have the funds for such expenses? It’s like someone who always wears luxury brands but suddenly can’t even afford food—on the surface, everything seems prosperous, but internally, it’s already in trouble. Previous lawsuits from smaller suppliers were just precursors; now that even major suppliers are experiencing delays, it’s clear the company’s financial stability is at its limit.
3. The Capital Game’s Excessive Tactics
Typical companies follow a process of developing products, setting launch dates, and then holding press conferences. ZhuiMi did the opposite: they first scheduled the conference, then forced the product development to meet that timeline. The purpose of the conference was not to sell products but to raise funds—using a “ecosystem story” to convince investors to invest, with the money used to fund another conference. This explains why ZhuiMi’s products across over 20 business units seem shoddy: AI rings lack serial numbers, and returned goods are simply resold. The pressure on research and development was so intense that quality was neglected. The ambitious valuation targets (doubling in value from 16 billion yuan to 64 billion yuan within half a year) required negotiating with 20 funds and hiring 100 more investment professionals than R&D staff. This company is no longer a technology firm; it’s merely a “fund-raising machine” disguised as a technology company.
4. Yu Hao: The Capital’s Lever, Bearing All the Risks
Yu Hao’s role is ironic. A Tsinghua-educated genius who helped ZhuiMi become a global leader in floor sweepers, he has essentially become a pawn for capital. Local state-owned investors are willing to invest because of his technical expertise; investors are drawn by his promises of a massive ecosystem; the media covers him because of his ability to generate buzz (posting 75 updates daily, criticizing platforms like REDnote, and addressing industry leaders like Yu Chengdong). However, investors always profit without risk. Zhou Yahui made a 4.8 billion yuan return on a 50 million yuan investment, and Huaxing Group has shifted from being an investor to a key player within the company, with Xiaomi also remaining involved. As the legal controller of ZhuiMi and the actual holder of 25.2 billion yuan in funds, as well as the guarantor for Jiamei Packaging’s shares, Yu Hao is trapped. The advantage of leverage is amplified returns; the downside is amplified risks. Now that the chain has broken, he bears all the consequences, even having his social media accounts taken over by the company.
5. Tightening Regulatory Measures: The End of the Storytelling-Driven Capital Model?
ZhuiMi is not an isolated case (Jia Yueting and Dai Wei are precedents), but this time the regulatory response is different:
- Regulation 54 has specifically addressed the loophole allowing local state-owned assets to invest freely (ZhuiMi’s partners were mostly from regions with weak financial foundations, precisely targeted by the new rule).
- The investigation team intervened before problems escalated.
- Multiple platforms have imposed bans on public statements to prevent further manipulation of public opinion.
These measures indicate progress in regulatory frameworks—instead of waiting for issues to erupt, they are taking proactive steps. The old model of exploiting loopholes and human greed (local governments seeking performance, investors seeking high returns, media seeking traffic) is becoming increasingly unsustainable. Despite ZhuiMi’s facade as a technology company (with a market value of 24.2 billion yuan, compared to RoboVac’s 28.8 billion yuan), capital seeks a valuation of 15 billion yuan—this gap is the price Yu Hao must pay.
Conclusion
ZhuiMi’s story serves as a reminder: products are the foundation of a company. It took seven years for the floor sweeper business to become global leader, but capital sought to quadruple its value in just nine months. When products become a tool for fundraising rather than a core competitive advantage, collapse is inevitable. We hope that future environments will reward those who focus on creating quality products over those who rely on clever marketing. After all, only products that solve real user problems possess true value.