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… NetEase ended the year with net cash of RMB 163.5 billion (USD 22.9 billion). It declared a quarterly dividend of USD 1.16 per ADS and disclosed that it had repurchased 22.1 million ADS for approximately USD 2 billion under its USD 5 billion buyback program as of December.
The company has not provided quantitative guidance. For investors, the near-term focus is likely to center on whether games revenue regains momentum as event-driven activity normalizes, whether marketing spending translates into durable engagement, and whether the 2026 pipeline converts improved unit economics into stronger topline growth.
NetEase shares listed on Nasdaq fell on the day of the earnings release, closing at approximately USD 118.5 on February 11 after opening near USD 121.55, down about 4%. The stock touched an intraday high of roughly USD 125 earlier in the session. At the closing price, shares were trading about 25% below the 52-week high of approximately USD 158.69, suggesting that margin improvement alone has not restored investor confidence.
Note: RMB figures are converted to USD at a rate of RMB 1 = USD 0.14 for reference, unless otherwise stated. Company disclosures may apply different exchange rates.

NetEase Q4 growth capped by seasonal lull, but margins improve

NetEase

East Asia

China

Gaming

… for example, can consume as much electricity as a midsize office building. Charging peaks often coincide with residential demand peaks, while grid operators prefer balanced loads.
Home charging is grid-friendly but limited. Government data shows that as of November 2025, China had 14.697 million private charging piles. As of June 2025, there were 36.89 million new energy vehicles on the road. Fewer than half of owners have access to home charging.
Battery swapping may bridge those gaps, combining efficiency with safety.
“Imagine 30,000 swap stations,” Qu said. “Conservatively estimating 4,000 kWh per station per day, that’s 120 million kWh of daily electricity consumption.”
Skepticism persists, particularly over capital intensity, operational efficiency, and network density. CATL’s response is standardization.
It introduced standardized Choco-Swap battery pack models, coded #20 and #25, that together cover 95% of pure electric passenger vehicles. For light trucks, it offers model #35, achieving full compatibility within that segment.
“We use standardization to find the greatest common denominator in energy services,” Deng told 36Kr. Even battery management system outputs are unified. Working with automakers, Era Electric offers energy efficiency recommendations, including aerodynamic optimization.
<h3>Making battery swapping mainstream</h3>
Throughout automotive history, refueling has been universal. In the EV era, however, energy replenishment has become a differentiator, especially among premium brands. Fast charging and battery swapping are still concentrated in higher-end vehicles.
Swapping offers refueling-like convenience, restoring a car’s energy in minutes. Through battery-as-a-service financing models, it separates vehicle and battery assets, lowering upfront costs while shielding users from depreciation tied to battery aging or technology upgrades. Real-time diagnostic checks during swaps also enhance safety.
This value proposition helped Nio’s ES8 establish a distinct position in the premium EV segment. In November 2025, the Nio ES8 outcompeted hybrid rivals in China in the over-RMB 400,000 (USD 56,000) category.
The value of swapping has been validated. What remains is scale.
Era Electric positions itself as a standardized public infrastructure provider backed by CATL’s manufacturing, technology, and supply chain capabilities.
In Chongqing, it has tested its model. In 2025 alone, it built more than 70 stations there, opened 52, and served nearly 5,500 vehicles, with user satisfaction above 99.8%. According to Qu, daily usage of 5,500 kWh per station marks the breakeven point. After beginning operations in April, the city reached gross profit positive by September. By December, daily swaps reached 300,000 kWh citywide, peaking at 370,000 kWh on January 1.
With the model validated, the company is expanding from commercial fleets to the personal vehicle market.
The Aion UT Super, developed by <a href="/company/gac">GAC</a> with CATL and <a href="/company/jd">JD.com</a>, supports Choco-Swap. It starts at RMB 49,900 (USD 6,986) with a RMB 399 (USD 55.9) monthly battery rental plan, attracting significant attention.
In 2026, more than ten additional Choco-Swap-compatible models will launch, about half aimed at personal users.
Deng said that while the premium segment will remain a focus, the company’s mission is to make battery swapping accessible to the mass market.
Data from the China Passenger Car Association shows that from January to November 2025, China sold 6.906 million pure electric passenger vehicles, more than 4.5 million of which were priced below RMB 200,000 (USD 28,000). The surge in affordable models has driven overall EV adoption.
Expanding swapping into this segment aligns with both infrastructure logic and market demand.
CATL’s focus has always been leveraging technology and product quality to improve efficiency. Era Electric applies the same principle. Both swap stations and Choco-Swap batteries are designed to serve multiple vehicle generations, easing amortization pressure.
Wu Yuanhe, head of product development, said the cloud platform monitors batteries around the clock. “If there’s any early warning, we can isolate a battery within 60 seconds and transfer it to a fire isolation bay.”
The batteries reportedly comply with China’s latest national safety standards and undergo vibration and road testing equivalent to 1.2 million kilometers, enough for two vehicle generations.
Swap success rates have reached 99.96%, including all potential disruptions from user error to signal issues.
Site selection is equally rigorous, excluding flood-prone areas and ensuring proximity to fire services within a ten-minute response radius.
As the network grows, the company is optimizing electricity procurement by using data and peak-valley pricing to lower costs.
After building 1,000 stations in a year, Era Electric now has teams capable of constructing more than 300 per month, cutting the average cycle from 24 days to 16.
Within CATL’s battery factories, defect rates are measured in parts per billion. Era Electric aims to apply that same precision to swapping infrastructure, transforming a service once seen as slow and difficult to scale into a nationwide system.
Deng summarized the company’s approach in one word: focus. While many tier-one suppliers offer customized full-stack solutions, Era Electric sees itself as a standardized public service platform, not exclusive to any automaker.
With technology, capacity, and partnerships aligning, the milestones of 3,000, 5,000, and ultimately 30,000 stations appear within reach.
After making its name in battery manufacturing, CATL is now pursuing a new frontier in energy services. This time, it does not plan to do it alone.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3673090089329283">article</a> was written by Xiao Xi for 36Kr.

After batteries, CATL targets next growth phase in swap stations with partners

Deep Tech

Batteries

Energy

Battery

… extends to product design. While competitors often emphasize peak suction power, higher suction drains batteries quickly. Ilife instead focuses on airflow efficiency and one-pass dust pickup, metrics it says better reflect real-world performance. The products may lack headline specifications, but they emphasize reliability.
Cost control plays a central role. From R&amp;D and mold development to manufacturing, warehousing, and logistics, Ilife handles most operations in-house, reducing intermediaries and external costs.
According to 36Kr, those savings are reflected in pricing. Comparable Ilife products are typically USD 10–20 cheaper than competing models.
The company’s channel strategy is equally deliberate. On AliExpress, Ilife promotes more vacuum-and-mop combination models with additional features. On Amazon, it lists simpler, value-focused products. AliExpress has lower return rates and built-in messaging tools, allowing direct communication with customers and faster issue resolution for more complex devices.
That direct feedback loop has also helped Ilife anticipate demand. Seven years ago, European and US users were already requesting clean water mopping. Ilife launched a continuous clean water mopping robot six years ago, nearly a year ahead of many competitors. For pet-owning households, ongoing improvements in anti-tangle brushes and haircutting functions have also been driven by user input.
From OEM production lines to living rooms in Polish homes, Ilife’s decade-long shift reflects a broader upgrade in China’s manufacturing sector. With disciplined positioning and direct access to consumers, Chinese manufacturers are increasingly building brands that stand on their own overseas.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3668313691480966">article</a> was written by Ou Xue for 36Kr.

Former OEM Ilife offers a blueprint for China’s next manufacturing phase

E-commerce

Retail

Consumer Economy

Europe

Chinese online fast fashion retailer <a href="/company/shein">Shein</a> is spending RMB 3.5 billion (USD 490 million) to build a logistics hub in Guangdong, seeking to improve operational efficiency as Europe and the US move to reign in the influx of cheap imports by the company.
Work on the distribution center was already underway last month at an industrial park in the city of Zhaoqing. Scheduled to begin operating in the first half this year, the facility will house 14 two-story buildings with a total construction area of 600,000 square meters.
The new hub will sort and package goods from contracted manufacturers to be shipped around the world. In a rare move, Shein decided to develop the facility in-house instead of leasing from a warehouse operator in order to achieve maximum efficiency.
Shein is also moving forward with plans to invest over RMB 10 billion (USD 1.4 billion) elsewhere in the province, provincial government-backed newspaper Nanfang Daily reported late last year.
Guangzhou, the provincial capital, is <a title="" href="https://asia.nikkei.com/business/business-trends/china-s-shein-village-dims-amid-country-s-economic-shift" target="_blank" rel="noopener">home to "Shein village,"</a> which hosts thousands of contract manufacturers that supply the company, making it one of China's leading apparel clusters. Shein is likely aiming to have its distribution centers close to that area.
While Shein is headquartered in Singapore, it operates mostly out of Guangzhou. It was once based in Nanjing, Jiangsu, where the company was founded in 2008 by CEO Xu Yangtian, also known as Chris Xu, as an e-commerce outlet that exported wedding dresses.
Some Chinese media have reported that Shein plans to set up an R&amp;D base in Nanjing.
Looking to go public, Shein has confidentially filed for listing on Hong Kong's exchange. While it had once hoped to go public in the US, the plan seems to have faltered over allegations that its suppliers use forced labor in the Xinjiang Uyghur autonomous region.
There also were plans to list in the UK, but the company has not revealed details.
Companies that have business bases in China need approval from the China Securities Regulatory Commission to list outside the mainland. Being listed in Hong Kong would only add to the online retailer's presence in China.
Shein has grown rapidly as a specialist in cross-border e-commerce. Its business model of working closely with subcontractors to produce a large number of items in small quantities by using <a href="/industry/ai">artificial intelligence</a> trend analysis has been key to its success.
While the minimum lot size for items for major apparel player Zara is 500 pieces, the minimum at Shein is just 100 pieces, according to China's Sealand Securities. Shein also has a seven-day new product cycle, in contrast to Zara's 14 days. Its inventory turnover period is also half that of Zara's operator. Shein has systems in place that minimize inventory risk and allow it to keep prices low.
Shein has also made use of de minimis rules, which exempt small orders of imports from tariffs in some countries, to sell its low-priced, China-made products.
Nearly all the company's sales come from outside China. In 2024, Shein's Singapore-registered operating company Roadget Business saw sales rise 20% on the year to reach USD 37 billion.
Yet Western markets are growing alarmed by the influx of discount products from Chinese sellers.
The US ended its de minimis rule on goods from China in May. The European Unit will also begin charging duties on small parcels in July. Japan is working to revise its tariff rules on purchases from cross-border e-commerce sites.
France called for the <a title="" href="https://asia.nikkei.com/business/retail/shein-faces-suspension-in-france-over-sex-dolls-weapons" target="_blank" rel="noopener">suspension of Shein's site</a> in the country following the discovery of illegal products on the company's website, such as sex dolls.
The end of tariff exemptions will raise the prices of Shein's products, <a title="" href="https://asia.nikkei.com/business/retail/end-of-de-minimis-rule-hits-shein-temu-as-americans-buy-less" target="_blank" rel="noopener">potentially alienating customers</a>. Shein plans to use the new logistics hub to improve efficiency and retain its price-competitiveness.
"With more factories closing lately, the empty lots are starting to be more noticeable," said a person familiar with the Shein village.
This article first appeared on <a href="https://asia.nikkei.com/business/retail/shein-bets-on-500m-china-distribution-hub-to-fight-headwinds-overseas">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

Shein bets on China distribution hub to fight headwinds overseas

Shein

Fashion

Semiconductor Manufacturing International Corporation (SMIC) reported higher revenue in the fourth quarter of 2025, supported by strong wafer shipments and high factory utilization. However, margins declined as depreciation expenses rose following capacity expansion.
Fourth-quarter revenue reached nearly USD 2.49 billion, up 4.5% from USD 2.38 billion in the third quarter and up 12.8% from USD 2.21 billion a year earlier. Full-year revenue totaled USD 9.33 billion, an increase of about 16.2% from 2024.
Despite revenue growth, profitability softened in the quarter. Gross profit fell to USD 478.1 million, compared with USD 522.8 million in the previous quarter and USD 499 million a year earlier. Gross margin declined to 19.2%, down from 22.0% in the third quarter and 22.6% in the fourth quarter of 2024.
Management attributed the margin pressure mainly to higher depreciation. Depreciation and amortization totaled USD 1.07 billion in the quarter, rising both sequentially and year over year as new capacity came online.
Revenue rose 4.5% sequentially in the fourth quarter, while capacity utilization remained high at 95.7%. The figures indicate solid production volumes. However, the additional fixed costs associated with expansion reduced margins, even with factories running near full capacity.
For the full year, the company reported profit attributable to owners of USD 685.1 million, up 39.1% from USD 492.7 million in 2024. It said the increase was driven by higher wafer shipments, improved utilization rates, and changes in product mix.
Total wafer shipments reached approximately 9.7 million eight-inch equivalent wafers in 2025. Annual utilization rose by eight percentage points year-on-year to 93.5%. By year’s end, monthly capacity had increased to about 1.06 million eight-inch equivalent wafers, up roughly 111,000 wafers from the end of 2024.
Capital expenditure for 2025 totaled USD 8.1 billion, reflecting continued investment in new fabrication plants and equipment. The company expects 2026 capital expenditure to be roughly flat, suggesting spending will remain elevated.
The financial results show the tradeoff between expansion and profitability. Although revenue increased, gross margin narrowed from the previous quarter. High utilization has not yet translated into stronger operating leverage, as new capacity continues to add costs.
Revenue mix in the fourth quarter shifted further toward consumer markets. Consumer electronics accounted for 47.3% of wafer revenue, up from 40.2% a year earlier. Smartphone-related revenue represented 21.5%, while industrial and automotive applications contributed 12.2%. Greater exposure to consumer segments may support volumes in the near term but also increases sensitivity to demand cycles.
For the first quarter of 2026, the company expects revenue to remain flat sequentially and gross margin to range between 18–20%. The guidance suggests that margin pressure may persist in the near term.
SMIC’s management said 2026 will present opportunities from the reshoring of parts of the semiconductor supply chain, as well as challenges from the memory cycle. It expects full-year 2026 revenue growth to exceed the industry average in its markets, assuming no significant changes in the external environment.
The outlook highlights the dual forces shaping SMIC’s trajectory. On one side, the localization of semiconductor supply chains continues to support demand for domestic foundries. On the other, the global semiconductor industry remains cyclical, particularly in memory and consumer segments.
Overall, SMIC recorded strong volume momentum in 2025. Higher shipments and sustained utilization drove revenue growth. At the same time, rising depreciation tied to large-scale capital spending compressed margins, and near-term guidance suggests that this pressure may continue into early 2026.
Going forward, SMIC’s performance will depend not only on maintaining high utilization, but also on whether additional revenue and improvements in product mix can absorb its growing cost base from ongoing capacity expansion.

SMIC posts revenue growth in Q4 as expansion weighs on margins

Semiconductors

… 8.4 billion (USD 1.2 billion) in revenue, representing 140% year-on-year growth. These figures are based on brokerage estimates and have not been independently verified.
On the cloud side, Baidu disclosed AI revenue for the first time in its third-quarter earnings: RMB 4.2 billion (USD 588 million), up 33% year on year. Subscription revenue from AI high-performance computing infrastructure rose 128%. Recently, Baidu AI Cloud raised its 2026 AI-related revenue growth target from 100% to 200%, according to company statements.
At the model layer, Baidu reorganized internally. The basic model unit focuses on achieving global state-of-the-art benchmarks. The applied model unit prioritizes smaller models, faster responses, and cost efficiency.
That structure was reflected in the January 22 release of Ernie 5.0. With 2.4 trillion parameters and native multimodal modeling, meaning it can process and generate text, images, audio, and video within a unified system, the model supports multiple input and output formats. Baidu said that across more than 40 benchmarks, its language and multimodal capabilities surpassed Gemini 2.5 Pro and GPT-5 High.
As one of the few Chinese companies with a technology stack spanning chips, cloud services, AI models, and agents, Baidu argues that in-house development improves cost control and supply chain resilience. By aligning chip-level instruction sets with Ernie’s algorithms and coordinating scheduling systems at the cloud level through Famou, it integrates hardware, cloud computing, and inference.
In a geopolitically fragmented environment where computing resources are constrained, that level of control offers operational security. Kunlunxin supports chip supply. Baidu AI Cloud enables low-latency distribution. Ernie 5.0 provides the model capabilities that allow Ernie Bot to serve Baidu’s extensive user base.
Will this approach help Baidu come out on top in the AI race? That remains an open question. For now, however, its full-stack strategy gives it more cards to play and, potentially, the power to define the rules of the game.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3670227452600960">article</a> was written by Xiao Xi for 36Kr.

Baidu integrates AI into search as rivals pursue superapp ambitions

Baidu

Artificial Intelligence

Foundation and Large Models

The Covid-19 pandemic and the Ukraine war showed the strategic importance of 3D printing, with the technology used to make face shields and drone components quickly, yet Europe risks falling behind China if it does not change how it views the sector, analysts tell Nikkei Asia.
Beijing has incorporated 3D printing into its "Made in China 2025" strategy, while European leaders regard the sector as niche and an emerging technology rather than a strategic industrial asset. Support has focused on research funding, with less attention paid to industrial scale-up, market creation or demand-side incentives.
"If Europe is to remain competitive, additive manufacturing (AM) must be treated as a core industrial capability," Vincenzo Belletti, director of European Union public affairs at the European Association of Manufacturing Technologies (CECIMO), told Nikkei in a recent interview.
3D printing is referred to as "additive manufacturing" because construction involves stacking layer upon layer of materials to create 3D models. 3D printing can be used to build and manufacture a wide range of things including weapons, houses, and even food items.
Already, the desktop 3D market is dominated by Chinese state-backed players, said Josef Prusa, founder of Prusa Research in Czechia.
Prusa said his business is one of the few remaining players in the West and that many of his peers went bust or left the industry over the past five years. He blames government subsidies for Chinese competitors.
"The development is very unhealthy," he said. "Instead of competing on a level playing field, we are seeing state-backed players selling subsidized printers for less than the cost of their components."
But even desktop printing companies like his have the capability to build strategic assets quickly. Prusa Research designed prototypes, secured medical approval and began manufacturing face shields within three days.
Similar capabilities have proved valuable in the Ukraine war, where access to spare parts and drone components on the front line can be unpredictable.
"Because it is just a digital file, we were able to start producing designs at scale, anywhere in the world," Prusa said.
Prusa Research now makes AM systems used by hobbyists, engineers, and even businesses like aerospace company SpaceX, defense manufacturer Lockheed Martin and Czech carmaker Skoda Auto.
Data compiled by market intelligence consultancy Context illustrates China's dominance in the desktop space. Prusa Research is the only company outside China among the world's top five desktop 3D printer makers, behind Bambu Lab, Creality, Elegoo, and Anycubic.
"Almost all consumer-centric products in the desktop segment are produced in China," said Chris Connery, global vice president of research at Context. "In the third quarter of 2025, 94% of units shipped worldwide came from Chinese vendors."
Seeing the potential and the need in the industrial segment, CECIMO launched an initiative called AM-Europe last July, bringing together ten national associations representing more than 700 3D printing companies. The initiative urged Brussels to develop a coordinated additive manufacturing strategy.
AM-Europe wants the EU to place greater emphasis on industrial deployment and integrate 3D printing into sectoral policies and demand-side measures including public procurement.
Chris Kremidas-Courtney, a senior visiting fellow at the Brussels-based European Policy Centre, said Europe must take note of China's stance.
"China treats additive manufacturing as foundational to its future industrial power," said Kremidas-Courtney, who also previously served as a NATO official. "It integrates AM into national procurement, links it to long-term industrial policy, funds it at scale, and embeds it across civil-military frameworks."
Fragmented and incompatible national standards across Europe prevent companies from scaling across borders, Kremidas-Courtney said.
"Treating 3D printing as a specialized niche rather than investing in it at scale risks missing the next great leap," Kremidas-Courtney said, adding that the technology reshapes supply chains and will affect military readiness, infrastructure resilience, transport, and health systems.
UK newspaper The Daily Telegraph reported in November 2025 that the British army deployed Chinese-made 3D printers during a military exercise in Kenya, raising alarm in Europe over supply-chain dependence and potential cyber vulnerabilities.
"Resilience considerations arise particularly around data management and software control when additive manufacturing systems are used in sensitive applications," said CECIMO's Belletti.
Kremidas-Courtney warned that dependence on foreign-made AM systems also could mean ceding control in the ability to repair, reconfigure and sustain critical systems.
But Connery at Context suggests it's not too late for European companies in the industrial 3D printing space, where they remain strong performers.
"Western vendors primarily serve demand in the West, while Chinese vendors mainly supply their domestic market," Connery said, citing geopolitics and the highly regulated nature of end markets such as aerospace, defense, and medical devices, which tend to favor domestic suppliers.
3D printing also has advanced so quickly in recent years that desktop manufacturers are encroaching on the capabilities of industrial printers in terms of precision and materials, which gives smaller players like Prusa Research space for growth.
For Prusa now, though, the key to survival is to continue making what he calls "bloody good" 3D printers.
"As a manufacturer, I don't want free money," he said. "I just want a level playing field."
This article first appeared on <a href="https://asia.nikkei.com/business/technology/europe-urged-to-follow-china-s-industrial-3d-printing-strategy">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

Europe urged to follow China's industrial 3D printing strategy

Hardware

<a href="/company/sohu">Sohu</a> reported a return to profit in the fourth quarter of 2025, driven primarily by a one-time tax reversal at its <a href="/industry/gaming">gaming</a> subsidiary, even as operating losses continued and revenue declined sharply from the previous quarter.
The company posted revenue of USD 142.3 million for the quarter, up 6% year-on-year (YoY) but down 21% sequentially. GAAP net income attributable to Sohu totaled USD 223.3 million, compared with a net loss a year earlier. The swing was largely due to the reversal of about USD 285 million in previously accrued withholding tax related to Changyou, its online gaming unit.
Stripping out that benefit, Sohu remained in the red at the operating level. The company moved from a GAAP operating profit in the third quarter to a GAAP operating loss in the fourth, as lower revenue and weaker margins more than offset cost controls. Management also guided for another net loss in the first quarter of 2026.
“Our non-GAAP bottomline performance, excluding the impact of the Changyou withholding income tax reversal, came in at the high end of our prior guidance,” CEO Charles Zhang said on the February 9 earnings call, characterizing the profit as an accounting outcome rather than a step change in underlying operations.
The quarter again highlighted the split between Sohu’s two main businesses: Changyou continued to generate operating profit, while the media platform remained persistently unprofitable.
On a non-GAAP basis, the media business generated about USD 21 million in revenue during the quarter and recorded an operating loss of roughly USD 72 million, largely unchanged from a year earlier. Changyou, by contrast, posted USD 120.4 million in revenue and an operating profit of USD 45 million.
Management said Sohu will continue investing in engagement and monetization on the media side through events, live broadcasts, and customized advertising formats. “We continue to improve our products and algorithms to address user needs and enhance their experiences across different scenarios,” Zhang said.
Even so, profitability in marketing services remained constrained. Gross margin in the segment was 6% for the quarter, flat from a year earlier and lower than the prior quarter, underscoring the difficulty of translating advertising growth into earnings.
The games business delivered mixed results. Online game revenue rose 10% YoY in the fourth quarter but fell 26% sequentially, following a strong third quarter that benefited from the launch of Tian Long Ba Bu (TLBB) Return and more aggressive in-game promotions.
“With fewer launches of the in-game promotional activities for TLBB PC and a net decline of our new PC game TLBB Return, online game revenues decreased on a sequential basis,” Zhang said.
User trends were uneven across the portfolio. PC games saw higher YoY activity, supported by updates to the Tian Long Ba Bu franchise. Mobile games, however, continued to lose users and paying accounts compared with last year, reflecting the gradual decline of older titles.
Looking ahead, visibility remains limited. The company does not plan to launch any new games in the first quarter of 2026, leaving performance dependent on content updates and live operations for existing titles.
“As we will have no new game launching in the first quarter, the level of the revenue depends on the existing games’ performance,” said Yaobin Wang, president of Changyou.
Advertising showed a short-term rebound. Marketing services revenue rose about 25% sequentially in the fourth quarter and exceeded prior guidance, supported by branded events and customized campaigns. Management attributed the improvement to differentiated formats rather than a broad-based recovery in brand spending.
That momentum is not expected to continue. For the first quarter of 2026, Sohu guided marketing services revenue of USD 10–11 million, implying a steep sequential decline.
Zhang attributed the drop primarily to seasonality. “It’s mainly due to the seasonality because this year, [the Lunar New Year] is kind of late,” he said, adding that advertisers typically resume campaigns only after the holiday period.
The guidance highlights how quickly advertising revenue can reverse, particularly in a low-margin segment that remains sensitive to timing and demand conditions.
Sohu ended the year with about USD 1.2 billion in cash, short-term investments, and long-term time deposits. Long-term tax liabilities declined sharply following the withholding tax reversal, strengthening the balance sheet. The company also continued to repurchase shares during the quarter.
At the same time, ongoing operating losses and guidance for another quarterly loss reinforce Sohu’s dependence on its gaming business and balance sheet to offset weakness elsewhere.
Overall, the results followed a familiar pattern. Headline profitability was driven by a one-off accounting adjustment, while underlying performance remained uneven. Games continued to generate profit, though revenue remained closely tied to launch timing and promotional cycles, and the media platform showed little progress toward sustainable profitability.
The quarter did not signal a clear deterioration in the business, but it also did little to resolve the central question facing Sohu: whether it can move beyond episodic gains and accounting effects to deliver more stable, repeatable earnings.

Sohu’s Q4 profit swing masks operating losses and volatile revenue base

Sohu

… chassis integrating energy systems, autonomous driving, and vehicle control technologies. —<a href="https://36kr.com/p/3667627986133638">36Kr</a></li>
<li aria-level="1">Puxing Space, an optical payload and microsatellite solutions provider, has secured RMB 30 million (USD 4.2 million) in an angel round led by TusStar VC. Proceeds will support R&amp;D, the construction of a satellite manufacturing facility in Changchun, and team expansion. —<a href="https://36kr.com/p/3671451112579970">36Kr</a></li>
<li aria-level="1"><a href="https://www.xinshengcmiot.cn/">XinSheng Tech</a>, a semiconductor startup, has raised nearly RMB 100 million (USD 14 million) in an angel round led by Zhongguancun Qihang, with participation from multiple industrial and financial investors. Founded in 2024, the company develops time-sensitive networking communication chips for smart driving. The funding will support product development targeting next-generation centralized automotive electronic architectures. —<a href="https://36kr.com/p/3671183867306882">36Kr</a></li>
<li aria-level="1"><a href="http://www.xunlin-tech.com/">Xunlin</a>, an advanced materials company, has closed a Series A round worth nearly RMB 100 million led by Jolmo Capital, with backing from Binhai Industrial Fund and existing shareholders. The capital will be used to expand production capacity for large glass substrates and develop downstream packaging module lines. —<a href="https://36kr.com/p/3669814793266049">36Kr</a></li>
<li aria-level="1"><a href="https://windrose.tech/">Windrose Technology</a>, an electric truck manufacturer, has launched a Series C round targeting a total raise of more than USD 100 million, with the C1 tranche led by a fund managed by China Mobile. The company also secured credit lines from several state-owned banks. Proceeds will support global mass production and delivery following regulatory certifications in China, the US, and Europe, as well as the buildout of overseas assembly and charging infrastructure. —<a href="https://36kr.com/p/3667438750261890">36Kr</a></li>
<li aria-level="1">Zhenjin New Ceramics, an electronic ceramics supplier, has completed an angel plus round worth an eight-figure RMB sum led by the venture investment arm of Shenzhen Credit Guarantee Group. Founded in 2024, the company develops advanced ceramic materials, including aluminum nitride substrates and silicon carbide components. Funds will be used to scale production capacity and optimize mass production equipment. —<a href="https://36kr.com/p/3665762319327873">36Kr</a></li>
<li aria-level="1"><a href="http://www.chinanoo.com.cn/">Chinanoo Precision Technology</a>, a Kunshan-based industrial automation company, has raised RMB 25 million (USD 3.5 million) in a pre-Series A round backed by multiple undisclosed investors. Founded in 2018, the company focuses on magnetic levitation flexible conveyor systems and has developed capabilities spanning core components and complete production lines. The capital will support R&amp;D, market expansion, and team building. —<a href="https://36kr.com/p/3667222616056709">36Kr</a></li>
</ul>
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<h3>HeyMax, Ekko, Secai Marche, and others made recent headlines:</h3>
<ul>
<li aria-level="1">HeyMax, a Singapore-based operator of the eponymous travel and loyalty rewards platform, raised USD 11 million in a Series A round led by Peak XV Partners, with participation from Betatron Venture Group and existing investors January Capital and Tenity, as well as several individual investors.</li>
<li aria-level="1">Ekko, a Vietnam-based company focused on reducing employee financial stress and turnover, raised USD 4.2 million in a seed round comprising both equity and debt. The round was backed by Impact Square, Fondation Botnar, Sagana, and several Vietnamese high-net-worth individuals.</li>
<li aria-level="1">Secai Marche, a Tokyo-based operator of a fresh food <a href="/industry/e-commerce">e-commerce</a> platform serving Southeast Asia, secured an undisclosed investment from MOL Plus, the venture arm of Mitsui OSK Lines.</li>
</ul>
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Deals in brief: Sleek EV and Polybee raise funding, Sea Limited backs Noematrix, eight other China investments, and more