Performance Analysis of Multi-Phase Equity Incentive Tools of Huichuan Technology

As an important tool for promoting long-term development and improving financial performance, equity incentives can effectively alleviate the principal-agent problem, reduce the turnover rate of core employees, and foster corporate innovation. This study takes Huichuan Technology, a high-tech enterprise, as the research subject and conducts a systematic analysis of its seven-phase equity incentive plans implemented between 2014 and 2025. The research findings are as follows: First, the main motivations for Huichuan Technology to implement equity incentives include alleviating R&D talent loss pressure (the turnover rate of core technical personnel decreased by 15 percentage points), addressing the challenge of rapid technological iteration in the industry, and meeting the strategic needs of manufacturing transformation and upgrading. Secondly, from the perspective of financial performance, equity incentives can enhance enterprise value, which is reflected by the increase in the Compound annual growth rate of operating revenue, the growth of the ratio of R&D investment, and the return on equity remains at the leading level of the industry. However, the study also found some problems, such as the plan of equity incentive has insufficient adaptability to the cyclical fluctuations of the industry and the suboptimal Efficiency in Equity Instrument Combinations. This study not only enriches empirical research on equity incentives in high-tech enterprises but also provides a critical reference for manufacturing firms seeking to balance short-term performance and long-term technological advancement through innovative incentive mechanisms during digital transformation.