Summary of Key Points
Zhang Xiaolong (the founder of Fenbi) resigned from all his positions at Fenbi to "handle personal affairs," and Sheng Haiyan (an internal professional manager) took over, marking the official transition of Fenbi from a "founder-driven" to a "professional manager-led" era. Zhang Xiaolong was a key figure in the internetization of civil service examination training: he moved from being a renowned teacher at Huatu to creating YuanTiKu, and then developed Fenbi using a model that combined free practice apps for attracting customers with live courses for generating revenue. However, his straightforward and impulsive personality has often sparked public controversy since the company went public. Meanwhile, the industry has shifted from rapid expansion to focusing on profits and AI innovation, and the influence of individual founders has given way to organizational capabilities, leading to this leadership change.
I. Zhang Xiaolong: From "Renowned Teacher" to "Creator of Fenbi"
Zhang Xiaolong is not the typical founder of a training institution; he holds a master's degree in philosophy. In 2006, he joined Huatu to teach the subject of Shenlun (the most challenging part of civil service exams), which requires logical reasoning rather than passion. Students described him as a "philosophy teacher" for his method of breaking down exam questions into logical steps to derive answers, which earned him a loyal following.
In 2013, with the rise of mobile internet, YuanTiKu wanted to enter the civil service examination online training market (at a time when everyone thought it had to be done offline), but Zhang Xiaolong left Huatu to join them because he was convinced that vocational education would become internet-based, and that smartphones would become the future learning platform. He then founded Fenbi, initially offering a free practice app with question banks, mock exams, and a mistake-tracking feature, using these tools to build a user base before selling live courses as a source of revenue—a strategy that was against industry conventions but became Fenbi's core competitive advantage.
Even before going public, Zhang Xiaolong personally revised the course content and reviewed the question analyses, serving as the company's "chief product manager." It can be said that without his innovative product approach, there would be no Fenbi as it is today.
II. The Founder's "Duality": An Advantage During Entrepreneurship, a Risk After Going Public
Zhang Xiaolong's personality is quite contradictory:
- Advantages during entrepreneurship: He was straightforward, obsessive, and hands-on, paying close attention to every detail of the products, from app functionality to course design. This dedication contributed to Fenbi's superior user experience compared to traditional institutions.
- Risks after going public: His impulsive remarks and lack of adherence to the typical CEO behavior caused several issues:
- In 2017, he criticized a competitor, leading to a court order for an apology.
- In 2020, he complained about the editing of a Hunan Satellite TV program and later deleted his post to apologize.
- In 2023, he criticized fund managers in his social media for not paying attention during roadshows and commented on Zhang Lei from Hillhouse Capital.
- This June, during a speech at Renmin University, his views on young people's financial attitudes were criticized as "detached from reality," prompting him to write a 3,000-word apology letter in the early hours of the morning.
These actions might not have been significant during the startup phase, but for a publicly traded company, they can affect the brand and stock price. This duality is a major challenge: Zhang Xiaolong's unique style was once Fenbi's strength but has also become a potential governance issue.
III. Why the Departure Now? The Industry and Company Have Reached a Turning Point
Zhang Xiaolong's resignation is not accidental; it reflects the inevitable changes in both the industry and the company:
1. The industry has changed: Although the number of people registering for civil service exams has increased, the training market is saturated (with companies like Zhonggong, Huatu, and Fenbi competing for a share). The focus is now on profits, cash flow, and efficiency.
2. The company has changed: After going public, Fenbi's focus shifted from expansion to profit generation, with AI being seen as a new growth area (e.g., using AI to grade Shenlun questions). The company needs more stable and management-savvy leadership rather than a founder who enjoys making a splash.
3. The influence of the founder has diminished: In the past, civil service training relied on famous teachers to attract students; now, Fenbi relies on organizational capabilities (such as standardized courses and AI tools), not just on individual talent.
IV. The Future of Fenbi: From the "Teacher Zhang's Era" to the "Professional Manager Era"
Sheng Haiyan, who took over, is a professional manager trained within Fenbi. She joined in 2015 and has managed areas such as book publishing and sales with little public exposure, which contrasts sharply with Zhang Xiaolong's high-profile approach. This indicates that Fenbi needs to move away from being heavily reliant on its founder:
- Less reliance on the individual: The company's brand was once closely associated with Zhang Xiaolong (many referred to it as "Teacher Zhang's Fenbi"), but now it must rely on systems and a team.
- Greater emphasis on stability and efficiency: Sheng Haiyan's expertise in sales and operations will help stabilize profits and cash flow, meeting the needs of a publicly traded company.
For Fenbi, this is a critical test: can the company maintain its competitiveness without its founder? Can it successfully implement AI-based initiatives? The answers to these questions depend on Sheng Haiyan and her team's performance.
Final Conclusion
Zhang Xiaolong used the internet to revolutionize civil service examination training, but for Fenbi to grow, it must transform from a company led by one person into a team-driven organization—a challenge that all startups face after going public. Zhang Xiaolong's departure is not the end; rather, it marks the beginning of Fenbi's transition to maturity as an independent entity.