This article presents an overview of Shanghai KingSi Power Co. Ltd.’s journey, present status, and future plans in the digital power distribution industry.
Eastern Bell Capital became an investor in Shanghai KingSi Power Co. Ltd. in May 2022 and has been a partner of the company for over 230 days.
Manufacturing is undergoing a paradigm shift towards greater intelligence, with the advent of digital transformation enabling significant improvements in supply chain efficiency. Simultaneously, China’s focus on new infrastructure development and renewable energy sources has catalyzed the deployment of a host of novel energy storage technologies in the market. Concurrently, the industry has prioritized ESG concerns, sparking downstream innovation in distribution products, with digital distribution management rapidly emerging as a core industry imperative. The sector aims to leverage intelligent solutions to streamline electricity management, optimize consumption and enhance cost-efficiency.
With demand in the upstream, there are naturally strategies in the downstream. In 2020, Shanghai KingSi Power Co.,Ltd was established, and through the innovative application of power semiconductors and new-generation AI technology in the distribution field, KingSi Power developed a new generation of intelligent solid-state digital switches, which greatly improved the intelligence level of the power grid terminal.
Eastern Bell Capital, the investor behind KingSi Power, has been dedicated to technology-driven supply chain theme investments for several years. The firm has espoused diverse investment fields, such as supply chain innovation, logistics and transportation, retail brands, industrial technology, and enterprise services, consistently accompanying and bearing witness to the growth of several exceptional companies within this sphere.
At a time when the 20th National Congress is focused on promoting new industrialization and creating new opportunities, we invited KingSi Power’s CEO Shi Changyun to discuss how to achieve excellence in a complex environment and how to practice the spirit of entrepreneurship when market uncertainty is increasing.
Shi Changyun
CEO of KingSi Power
• EMBA from China Europe International Business School (CEIBS)
• Master's degree from Tsinghua University
• President of Zhejiang Heqing Flexible Electronic Technology Co., Ltd.
• President of Zhejiang Tianzheng Electric Co., Ltd.
• Executive Vice President of Tianzheng Group
• Chairman of Sanbao Information Technology Industry Group
• Global Executive Vice President of Sanbao Group
• 20 years of experience in strategic operations and corporate management
• 15 years of comprehensive management experience in the power and technology sectors
• International and diversified business perspective
Focus on the Present
Exploring new frontiers in intelligent manufacturing.
01. How would you introduce the main business scope of Shanghai KingSi Power Co. Ltd.?
Shanghai KingSi Power is a company dedicated to digital and intelligent power distribution and energy management software and hardware. We utilize a new technology approach to transform traditional electromechanical methods of manufacturing distribution devices, for example, replacing copper and iron components with semiconductors. In addition, we upgrade the algorithms in software and design all-in-one intelligent hardware through software-defined hardware. Coupled with our new digital platform, we provide customers with innovative digital and intelligent energy management solutions.
Our products have two main advantages. Firstly, in terms of performance, our response speed is over a million times faster than traditional products, with response times in microseconds. Moreover, KingSi Power’s electrical lifespan is 1,000 to 10,000 times greater than traditional mechanical distribution devices, and our products are designed without arcs, which are the main safety concerns in traditional devices. Instead, we use semiconductors for switching, greatly simplifying the product structure and improving safety. Secondly, our software-defined hardware approach can achieve multiple functions in one product, making it truly effective.
02. What industry problems does KingSi Power aim to solve?
KingSi Power primarily caters to B2B clients and focuses on the new energy and new infrastructure sectors. Its current focus is on 5G base stations and photovoltaic energy storage, with plans to expand into areas such as Industry 4.0 automated production line control, intelligent fire protection, and electric vehicles in the future.
03. How would you evaluate KingSi Power’s current achievements and its prospects for development in the face of the uncertainty of the present environment?
KingSi Power is still in a stage of climbing uphill, as the road ahead is long and winding. It has only recently achieved true mass production scale within the last six months. However, during this year's peak season, we have already achieved a monthly revenue of over ten million RMB. Although our current product offerings are mainly focused on the 5G base station sector, with the continuous expansion of commercial scenarios, we are confident in achieving better results in 2023.
Undoubtedly, the macro environment has presented challenges for us, including the pandemic and international trade tensions. However, we place a special emphasis on the DC power distribution industry, which has become a new trend. Currently, photovoltaic and other new energy generation directly correspond to the DC power distribution industry, which is closely related to the national economy and people's livelihoods in the context of dual carbon goals. Despite the macro environment being full of uncertainties, we strive to seek out a future for KingSi Power that is grounded in certainty amid such uncertainties.
Retracing the Past
Put people before matters, use virtuous individuals, do good deeds.
04. What was your initial inspiration for founding KingSi Power, and what were some of the key development milestones the company has experienced in its two-and-a-half year history?
The founding of KingSi Power is closely related to two phases of my past experience. I served as CEO of a traditional power distribution company for ten years, during which time I gained a thorough understanding of the industry and built up significant industry resources. Additionally, I served as director of a national research institute in Hangzhou, which focused on cutting-edge new technologies in the industry. During my time there, my understanding of new technologies was further enhanced, and my background in traditional industries gave me insights into the sector that sparked the idea of using new technology to revitalize old practices.
During the first six months of our entrepreneurial journey, successfully iterating our technological approach was our first major milestone. We were among the first in China to tackle this challenge, conducting extensive research and collaborating with leading downstream companies to test our approach. As we delved deeper into the market, we gradually gained confidence in the commercial viability of our technological approach and began developing our first product, which we then tested and iterated in collaboration with major customers. In April and May of 2022, we achieved a key milestone by delivering our products in volume, marking a major achievement for our company.
05. How is the entrepreneurial journey different from what you imagined? What were the darkest and brightest moments you experienced along the way?
Entrepreneurship is difficult, and it is only after truly embarking on this path that one realizes how challenging it is compared to what was imagined. My first job after graduating from college was at a state-owned enterprise, which was a very large platform. The several private enterprises I have worked for since then were also relatively large platforms. Being a senior executive at established platforms is essentially a process of going from 10 to 100. However, entrepreneurship is a complete process from 0 to 1, with more constraints on resources and higher requirements for seizing opportunities, all of which presented challenges to me. However, my experience with KingSi Power over the past two and a half years has made my life more complete. I have experienced things that I have never experienced before, and I have developed a team of 150 people from zero resources, moving towards a larger goal.
As the founder and CEO, I believe that in the initial stages of an enterprise, "first things first," and 80% of my energy is devoted to attracting and cultivating talent. Entrepreneurship requires suitable talents. Sometimes, when there is a mismatch with senior executives, it is necessary to change the candidates. This is not an easy task, but as the founder, one must make a painful decision in order to ensure the development of the entire organization is healthier and more long-term. This was the most emotionally challenging aspect of my two and a half years of entrepreneurship.
06. What do you consider to be the core corporate culture of KingSi Power?
First and foremost is pragmatism. We are grounded in reality and our actions reflect that. Communication and information exchange are essential to our success, and we strive to create an organization that is informationally symmetrical and barrier-free.
Secondly, we value authenticity. With transparent information, office politics and infighting become things of the past, and relationships between all levels of the organization become simplified. Our focus is on business, and we work together as a team to achieve our goals. Our goal is to create a "simple" organization.
Looking to the Future
Seeking truth and pragmatism.
07. What do you believe is the entrepreneurial spirit that you uphold?
First and foremost, it is the spirit of innovation. The activities of a company are, in essence, an efficient integration of social resources. Without innovation, there can be no entrepreneurship. Although innovation involves significant risks, I believe it is essential for a company to stand out in society. Therefore, in addition to innovation, I believe that an essential ability of an entrepreneur is risk management. Recognizing and managing risks is a prerequisite for entrepreneurs.
Secondly, I believe that good entrepreneurs are not selfish or arrogant in their personal qualities. This is reflected in all aspects of a company, including but not limited to the allocation of equity and corporate governance. Good governance is essential for the success of a company, and poor governance is the primary reason why many start-up companies fail. Sharing wealth with others is not enough; an entrepreneur should also be unselfish in terms of authority and influence. The purpose of establishing a company is not to enhance personal influence but to create value for society and customers.
However, it is not easy for an entrepreneur to truly share "power, wealth, and influence." Therefore, to ensure the long-term and smooth development of KingSi Power, our internal corporate bylaws stipulate that executives can only serve for a maximum of nine years. When their term expires, they must step down, regardless of the circumstances. This ensures the healthy continuity of the company and minimizes the impact of executive arrogance on the company.
08. How do you manage talent in your company?
As an innovative startup, we are constantly exploring new paths and business models, which inevitably involves risks. Therefore, my first priority is to provide our employees with a sense of security and encourage them to explore without fear of punishment for any mistakes made during the process. Our company values practicality and truth-seeking to help employees trust and have the confidence to explore boldly. Of course, we also emphasize the need for reflection and learning from mistakes and setbacks. To this end, we have a "Mistake Book" that every employee is required to fill out monthly, similar to students completing homework, in which they reflect on their past mistakes and lessons learned.
However, given the nature of our startup and the need to stay alert, our human resources department uses a 9-grid assessment system that is completed by superiors and colleagues. Employees who rank lower will be identified and placed under observation for improvement. All evaluations and feedback are transparent and open, and everyone's performance is visible to all. At Jing Silicon Intelligence, every position is a "conversion function," and the task is to add value and increase efficiency to what is received. A company is like a central nervous system, and every employee is like a nerve cell, with the connections between them being crucial to success. Each point must be agile and flexible. Compared to large companies, our startup may not have the same brand recognition or resources, but our agility is a significant advantage.
Eastern Bell Portfolio
Eastern Bell Capital has been focusing on investment in the industrial internet with supply chain innovation as its core, adhering to two major investment themes of "industrial digitization + consumption upgrading," covering investment fields such as logistics and supply chain, consumption, enterprise services, data, and technology.
We are fortunate to have been deeply involved in the growth of excellent companies in these fields, and these companies have presented very rich growth paths due to the differences in their own genes. A valley is formed by the accumulation of grains; A thousand pieces of cloth are woven together by roots. In this column, we will share with you how these companies clarify their goals, position themselves, optimize their strategies, recognize talent, and hope to inspire you."