Employee job-hopping trends were leaked and caused controversy, the annual revenue of monitoring products exceeded 500 million, and the vortex of deep conviction did not respond

Conviction (300454. SZ) was embroiled in a huge legal and ethical controversy after it was revealed that it was developing a system product that could help companies monitor employees' tendencies to leave. However, a few days later, the company did not respond to the official response after removing the official publicity for the product.

Internet people told the "China Times" reporter that being monitored by the company has become a tacit secret in the industry. According to the 2020 annual report of Convinced Service, the revenue of related products exceeded 500 million yuan a year.

The promotional page was deleted

With the news of Zhihu's layoffs, a behavior perception system that can know employees' job-hopping thoughts in advance has attracted attention, and then Zhihu issued a statement saying that the system has never been installed and used. It is understood that the monitoring system page is consistent with the product introduction page of a software "Deeply Convinced Service Behavior Perception System BA" developed by Convinced Service in 2017, which makes Deeply Believed Service fall into the cusp of public opinion.

Previously, the official website and official public account of The Company believed that the "Behavior Perception System BA" can help enterprises monitor employee sabotage and the risk of leaving. Specifically, it can provide details of employees with the tendency to leave, including the employee's name, position, IP and other details; the number of times employees visit job search websites, chat keywords, and resume deliveries can be seen at a glance through the system.

According to the official website of Xinxin Service before the fermentation of the news, the successful cooperation cases of the monitoring system include The Shenzhen Branch of Everbright Bank, Sina and East China Normal University. Currently, the intro page cannot be found through search or has been deleted.

According to the official website of the National Intellectual Property Rights, on March 19, 2018, Xinxinfu submitted a patent application for "a method, device, device and storage medium for analyzing the tendency to leave", which can obtain the data on the online behavior in the employee's terminal, determine whether the employee has behavior data related to the tendency to leave, and analyze the results. In September of that year, the substantive examination of the application came into effect, and the status was not updated since then.

The inventors of the patent are Cai Jiapo and Li Yuanhui. Public information shows that cai, as a core technical business personnel at the end of last year, was one of the objects of the equity incentive plan of Xinxinfu.

The company's 2020 annual report shows that the behavior perception system sub-product appears in the list where the revenue of a single product accounts for more than 10% of the company's revenue for the year. Based on this calculation, the revenue of the product in 2020 will be at least more than 545 million yuan.

After the incident continued to ferment, some convinced service sales staff confirmed that the product can help companies determine employees with a tendency to leave, and many companies are using it.

Some investors asked about the legality of the product on Interactive Easy, but did not get a reply from the company. On February 15, a reporter from the China Times sent an interview letter to the company asking about the legal, moral hazard and revenue of the system's products, but did not receive a reply.

The industry tacitly agrees

I believe that the lack of official response may be related to the relevant cases in the industry. A number of Internet company employees told reporters that although there is no explicit point of monitoring, this is a tacit secret in the industry. The company will use crawler software, purchase information from headhunters, etc. to obtain employee movements, AND HR will list key personnel based on the results of monitoring to take further action.

According to the website of the State Intellectual Property Office, in December 2018, Taikang Insurance Group Co., Ltd. applied for a patent for the invention of "methods, devices, media and electronic devices for analyzing the working status of employees", which requires access to the employee's social data, including the chat records generated by the employee when using the company's internal chat software, through which to understand the employee's work status.

In addition to The Service, other domestic security software companies have developed similar behavior-sensing systems.

Qianxin (688561. SH) official website shows that the online behavior risk perception analysis solution can monitor employees' violations of company management regulations, use of non-work-related applications during working hours, frequent visits to job search websites (non-recruiters), use of illegal applications, and provide evaluation reports.

Venus (002439. SZ) developed a network security situational awareness capability delivery program that enables management capabilities such as overall website operation posture monitoring, exposure or internal asset identification monitoring.

Anheng Information (688023. SH) has developed the Ming Imperial Host Security and Management System (EDR) screen leak traceability module in response to the behavior of enterprises being photographed and leaked by employees, which can manage the shooting traceability of the screen display of terminal devices (PCs, laptops, smart phones, large screens, etc.). The system hides the invisible security identification information in the screen of the terminal device in real time, extracts the screenshot or screen file, and obtains the security identification information and accurately locates the source of the screenshot or screen.

Performance was lower than expected

Tonglian data shows that the main business of Xinxinfu includes enterprise-level network security, cloud computing and IT infrastructure, basic network and Internet of Things products and services. Since its listing in 2018, the performance of convinced services has been on the rise.

However, according to its 2021 annual performance forecast, the net profit fell by 61.82%-70.22% year-on-year, mainly due to the slow growth rate of revenue, increased investment, and a decline in overall gross profit margin. This performance led CICC to say in its research report that it was "below market expectations".

In the past 3 months, a total of more than 20 institutions have given buy and overweight ratings, with a target average price of more than 270 yuan, but since the second half of 2021, the stock price of Xinxin Service has continued to decline. On February 14, Convinced Served hit a 52-week low of 142 yuan per share, and the total market value fell to 60 billion yuan.

At the same time, the number of shares held by the fund is also declining. According to the fund quarterly report, as of the end of last year, 79 funds from 27 fund companies held shares in Xinxin, holding a total of 14.02% of the circulating shares, which was at the lowest level in the four quarters of 2021. The reason is that in the third quarter of last year, the CeIBS Times Pioneer, which newly entered the company's top ten shareholders, as an example, if it has not been sold so far, the cost floating loss of 1.6 billion yuan has exceeded 600 million yuan.

A network security industry insider told the "China Times" reporter that the fist product of the service is network security, mainly government customers. The company has been a leader in the industry for many years, but with the rise of emerging companies, its traditional passive defense technology has also encountered difficulties in transformation.

Editor: Yan Hui Editor-in-chief: Xia Shencha