Lost over 2.2 billion yuan in three years; Simou Technology (思谋科技) paid annual salaries exceeding 100 million yuan to three PhDs

Big losses, bigger paychecks

Simou Technology (思谋科技) reported cumulative losses of more than 2.2 billion yuan over the past three years, and it has been reported that the company paid annual salaries exceeding 100 million yuan to three employees with PhDs. The salary disclosures — reportedly eye‑watering even by Chinese tech-sector standards — have renewed questions about governance at smaller listed technology firms. How does a company burn through billions while funneling outsized compensation to a handful of academics?

What was reported and why it matters

According to a report carried by ifeng, the scale of losses and the size of the payments to the three PhDs were flagged by market watchers and have become a focal point for investors demanding explanations. Reportedly, the payments were structured as annual compensation packages; further details about performance targets or contract terms were not disclosed in the report. The facts as reported raise familiar corporate‑governance issues: pay-for-performance alignment, related‑party arrangements, and board oversight.

Context for Western readers

For outsiders, China’s tech sector over the last several years has been shaped by a rapid boom followed by a bruise‑making regulatory tightening, tighter capital markets and greater public scrutiny of corporate behaviour. After a period of aggressive hiring and generous equity and cash compensation, many smaller firms have been forced to justify spending as revenues and valuations recalibrated. Geopolitical tensions and export controls on advanced chips have only added pressure on hardware and AI developers to demonstrate fiscal discipline and clear R&D outcomes.

What might come next

Investors and regulators will likely demand clearer disclosure and justification. It has been reported that market participants are watching for board statements, potential internal audits and, possibly, exchange inquiries. Will Simou’s management explain that the hires were long‑term bets on breakout technology — or will shareholders demand faster austerity and accountability? The unfolding answers will matter not just for this company, but for perceptions of governance across China’s smaller tech names.