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… next-generation robots, we can also sort out the corresponding data collection plans and model solutions in advance.
<h3>36Kr: Among data collection, model iteration, and scenario expansion, how do you prioritize these businesses right now?</h3>
WX: Data and scenarios are relatively critical. Because the embodied intelligence industrial chain is very long, you need to quickly occupy an ecosystem position.
So at this moment, we are using our own solutions to form close cooperation with local governments and leading companies in scenarios. This is the strategic foothold.
The model itself is still evolving and may not be as urgent. But building models also helps us secure leading companies in scenarios, because compared with robot hardware bodies, we are closer to data and scenarios. So while iterating the model, we still have to seize scenarios rather than stay confined to the lab.
KrASIA features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3855262364488969">article</a> was written by Zhou Xinyu for 36Kr.

Why world models alone will not solve robotics’ deployment problem

SenseTime

East Asia

China

Robotics

Deep Tech

Embodied Intelligence

China's <a href="/company/geely">Geely Automobile Group</a> plans to begin making <a href="/industry/ev">electric vehicles</a> at Malaysian partner Proton's factory as early as the first half of 2027, aiming to tap higher demand brought on by the oil crisis, as momentum slows at home.
Zeekr, Geely's premium sub-brand, is preparing to use an existing Proton line to produce the fully electric Zeekr 7X midsize SUV, said Mars Chen, Zeekr's vice president. Geely's parent, Zhejiang Geely Holding Group, owns 49.9% of Proton.
"We will take another look at [Malaysia's trade] position … and determine where the cars can enjoy the highest liquidity," said Chen, who oversees overseas operations for Zeekr and its sister brand Lynk &amp; Co, alluding to potential exports to neighboring countries.
Zeekr is among the Chinese carmakers <a title="" href="https://kr-asia.com/chinese-ev-makers-awaken-western-rivals-zombie-production-lines" target="_blank" rel="noopener">reviving underutilized factories</a> abroad to deepen their global reach, a strategy partly driven by rising trade protectionism. Malaysia, Zeekr's first overseas production base, is expected to raise EV import taxes, starting July 1, after an EV subsidy program ended last year.
Chen added that the company has no plans to build new factories abroad, citing excess production capacity in "many places."
Proton has added EV lines at its <a title="" href="https://asia.nikkei.com/business/automobiles/electric-vehicles/malaysia-s-proton-to-open-first-ev-factory-in-september" target="_blank" rel="noopener">Tanjung Malim plant</a>, which is operating at about 60% of its 20,000-vehicle annual capacity. This can be raised to 45,000 vehicles, the company says. It makes the e.MAS EV for domestic and export markets.
High gasoline prices have increased global interest in EVs, and Chen aims to more than double the combined overseas sales of Zeekr and Lynk &amp; Co to more than 100,000 cars in 2026.
Middle East energy supply disruptions have lifted demand for Geely's cars by at least 10%, Chen said, singling out Australia and South Korea. "Any country reliant on imported oil will experience the change in favor of EVs and hybrids."
Zeekr, which is present in more than 50 countries, aims to enter four more markets by the end of the year, including South Korea, New Zealand, South Africa, and the UK.
In April, Geely raised its annual overseas sales target to 750,000 cars, up 17% from its previous goal of 640,000 cars, after first quarter exports jumped 126% from a year earlier.
"What is unquestionable is [that EVs offer] a combination of better technologies, fuel efficiency and lower maintenance costs to win customers," said Chen, adding that oil prices remain "volatile."
The US and Iran have signed an initial deal to reopen the Strait of Hormuz and extend their ceasefire by 60 days.
Geely is not insulated from weakness in China, the world's largest auto market, where sales have plunged for eight consecutive months following the rollback of EV subsidies. In the first five months of the year, Geely's total sales at group level rose only 1%, compared with a 158% gain in exports.
Investment bank Jefferies estimates Geely's export volume will top its previous monthly record, reaching over 100,000 cars from June onwards, with its gross profit margins 10 percentage points higher than that of its domestic business.
"Geely's overseas expansion [is] moving from initial market penetration to brand and network buildout," Jefferies wrote in a research note last week. "Rather than building new overseas capacity, Geely partners with local manufacturers, including Proton and Renault, to achieve localization while limiting capex and navigating regulatory constraints."
Chen said Geely is also weighing whether to convert an existing Renault plant in Brazil to manufacture its models, although no decision has been made.
This article first appeared on <a href="https://asia.nikkei.com/spotlight/electric-cars-in-china/geely-seeks-to-double-zeekr-sales-abroad-eyeing-malaysia-output">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>.

Geely seeks to double Zeekr sales abroad, eyeing Malaysia output

Zeekr

Transportation

Electric Vehicles

Mobility

Malaysia

Southeast Asia

… advantages:
<ul>
<li aria-level="1">First, it has a high level of user trust. As the official railway platform, it does not face the same concerns around false promotion or bundled purchases.</li>
<li aria-level="1">Second, its traffic costs are low. It does not need to spend heavily on marketing to acquire users the way OTAs do. It can rely on existing ticket buying traffic to achieve organic conversion.</li>
</ul>
A similar transformation has already taken shape in civil aviation.
Umetrip, under TravelSky, previously launched a platform function for direct civil aviation sales, integrating direct sales resources from 37 domestic airlines and emphasizing transparent pricing, no bundled sales, and the prevention of algorithmic price discrimination. By directly connecting with official airline channels, it has quickly captured market share through public credibility.
The same could apply to the railway industry.
In recent years, China’s railway system has faced multiple operating pressures. On one hand, profitability has diverged among high-speed rail lines. Only a small number of trunk routes can generate stable profits, while many routes in central and western China rely on profits from trunk routes to subsidize operations. On the other hand, as passenger traffic growth slows, growth in rail ticketing revenue alone is plateauing. The system needs to accelerate market-oriented exploration, tap derivative user demand, and broaden revenue sources.
The Beijing-Shanghai High-Speed Railway (HSR), the country’s busiest line, shows how growth pressure has emerged in recent years. Financial reports show that in 2025, Beijing-Shanghai HSR recorded revenue of RMB 43.1 billion (USD 6.4 billion) and net profit attributable to shareholders of RMB 13.2 billion (USD 1.9 billion), up only 2.15% and 3.16% year-on-year, respectively.
Its gross margin remains strong in absolute terms, but it has been slowly declining since 2024, falling from 47.39% to 45.82% in the first quarter of this year.
Accordingly, Beijing-Shanghai HSR, often considered the most profitable high-speed rail line in China, has started another round of price adjustments, raising the published fares of some electric multiple unit trains by 20%.
Although published fares may not necessarily match the actual fares passengers pay when buying tickets, the move still lifts the ceiling for high-speed rail pricing.
To some extent, this reflects operating pressure in the railway industry.
If 12306 continues to expand into hotel, travel, and tourism businesses, traditional OTAs’ profit margins may come under further pressure.
As the train ticket traffic channel tightens, the difficulty of acquiring external traffic will increase. At the same time, railway travelers who could previously have been converted by OTAs may be intercepted directly by the official platform, putting pressure on their core profit segments.
This change may have a more obvious impact on smaller and midsize OTAs, as well as platforms focused mainly on train ticketing. They usually lack the diversified business layouts of Trip.com and Tongcheng, as well as their brand and funding advantages.
Still, 12306 has clear shortcomings in hotel and travel services at this stage. Traditional OTAs have spent years cultivating the accommodation and tourism markets, building extensive hotel resources and advantages in product breadth, refined services, and offline supply chain integration.
By contrast, 12306 started as a ticketing platform. It is still in the early stages of hotel contracting, homestay operations, travel itinerary design, after-sales service, and other areas. In the short term, it will be difficult for it to replace traditional OTAs.
For OTA platforms, however, the business model that once relied on ambiguous promotion, bundled value-added services, and information asymmetry is now facing adjustment. Ticketing will return to its role as a basic service. Reducing reliance on rail traffic gateways, while improving competitiveness in tourism products, user experience, and supply chain integration, will become the next task that major OTAs need to answer to the market.
KrASIA features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3853918856696834">article</a> was written by Wang Hanyu for 36Kr.
Note: RMB figures are converted to USD at rates of RMB 6.79 = USD 1 based on estimates as of June 23, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

12306 moves beyond tickets as OTA traffic comes under pressure

Travel

Consumer Economy

… strictly control costs, so we can meet young men’s demand for good products with strong value for money.”</blockquote>
Li made clear that even when technology or range is upgraded and price bands move higher, Aima will continue focusing on adding features without raising prices, using value for money to compete for market share.

China’s Aima bets on Black Wing to broaden the appeal of electric two-wheelers

… expansion, its software products went online, and significant revenue growth validated its commercialization potential. Its software matrix included the MWMS integrated warehousing and distribution system, RDS, and Meta visualization software series.
In the Series C round in April 2025, Seer Robotics raised RMB 70 million (USD 10.3 million) from SAIF and Hongtai, giving it a post-money valuation of RMB 3.27 billion (USD 481.8 million) and an adjusted cost per share of RMB 32.70 (USD 4.8), a 63.03% discount. SAIF added RMB 20 million (USD 2.9 million), while Hongtai invested RMB 50 million (USD 7.4 million).
The valuation increase was mainly driven by two factors. First, Seer Robotics launched the SRC-3000FS forklift-specific controller, the SRC-2000-F(S) robot controller adapted for forklifts, and the SRC-880 robot controller designed for lifting robots. It also released a new tote-handling robot, cleaning robot, and 3D robot visualization software Meta-Map Pro. Second, its Series C-stage revenue continued to grow rapidly, further highlighting its commercialization value.
Looking only at entry cost, the biggest winners from this IPO are clearly Series A investors. Their cost was RMB 3.72 per share, while the IPO offer price is HKD 101.6 per share, representing a discount of more than 95%. GLP, through Hidden Hill Capital, will hold 12.9% after the offering. Ecovacs Robotics will hold 5.83%. Institutions such as IDG, which bet on the company in 2020, are sitting on paper gains measured in multiples of more than 20.
Founder Zhao Yue will still control about 47.86% of the company after the IPO, down from 52.89% before the offering.
<h3>4. A high valuation for a Hong Kong-listed robotics newcomer</h3>
Seer Robotics’ offering market capitalization is HKD 11.2 billion, or about RMB 9.7 billion (USD 1.4 billion). Based on 2025 revenue of RMB 442 million, its trailing price-to-sales ratio is about 22 times. Because Seer Robotics is loss-making, a price-to-earnings ratio does not apply. This is a typical case of pricing based on revenue scale and growth.
A horizontal comparison with peers helps. Geek+, the global leader in autonomous mobile robots, trades at about nine times sales. Estun Automation, China’s top industrial robot company, trades at about four to five times sales. Among the three, Seer Robotics is the most expensive by far.
What supports that premium is its gross margin of nearly 48%, the highest among peers, and its leading position in controllers. The risk also lies there: a 22 times price-to-sales ratio depends heavily on whether the company can maintain growth above 30% and preserve high gross margins. If either weakens, the pressure to digest the valuation will be significant.
Its cornerstone lineup includes eight investors subscribing for 43.34% of the offering, subject to a six-month lockup. The investors include Hillhouse Investment and GF Fund Management. That is a mid- to upper-tier lineup, but without an international sovereign fund or top-tier long-only investor, it does not qualify as a top configuration.
In addition, the public offering accounts for only 9.5%, and cornerstone investors have locked up another 4.12%. The actual free float at the beginning of trading will be thin. A thin float is a double-edged sword: it could amplify gains, but it could also magnify volatility.
<h3>5. A technical founding team with Zhejiang University roots</h3>
Seer Robotics founder, chairman, and CEO Zhao Yue is a classic technical founder. He holds a bachelor’s degree in electronic information engineering and a master’s degree in control science and engineering from Zhejiang University. In 2013 and 2014, he led Zhejiang University teams to win the Robot World Cup as part of RoboCup twice. He led the development of the SRC controller series, personally holds 43 invention patents, and has been named one of Zhejiang University’s most influential alumni. Some reports say he initially enrolled in the eight-year medical program at Zhejiang University’s Chu Kochen Honors College before leaving medicine for intelligent control.
This is also Zhao’s second startup. The core team first founded Seer Robotics in 2015, but due to differences among shareholders, the company was liquidated and deregistered in 2020. The same year, the team started anew with Seer Robotics and took over fixed assets, inventory, and some intangible assets from the earlier company for about RMB 6.6 million (USD 972,461.7).
Seer Robotics’ team is also unmistakably tied to Zhejiang University. Co-founder and head of product R&amp;D Ye Yangsheng holds an undergraduate degree in control and a master’s degree in industrial design from Zhejiang University. Head of product Wang Qun holds both undergraduate and master’s degrees in electrical engineering from Zhejiang University. Executive director and vice president Ding Xia, who is Zhao’s spouse, previously served as investment director and accelerator general manager at Ecovacs.
KrASIA features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3857011810112521">article</a> was written by Peng Xiaoqiu for 36Kr.
Note: HKD, RMB figures are converted to USD at rates of HKD 7.84 = USD 1 and RMB 6.79 = USD 1 based on estimates as of June 23, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

5 things to know about Seer Robotics ahead of its Hong Kong IPO

Hong Kong

US companies were a major presence at the China International Supply Chain Expo that kicked off on June 22, the day that the government added more of their compatriots to <a title="" href="https://asia.nikkei.com/economy/trade-war/china-hits-dozens-of-us-companies-with-export-controls-procurement-bans" target="_blank" rel="noopener">China's export control list</a>.
Nvidia CEO Jensen Huang addressed the event in a video message, underscoring the US-based artificial intelligence chip company's Chinese focus. "China is one of the world's great centers of technology and industry," he said. "The engineers are excellent. Developers move fast. Companies build at remarkable scale."
Chinese exporters are banned from exporting dual-use items to companies on the export control list. The measure also bans foreign organizations and individuals from providing dual-use items originating in China to these entities.
This hot-and-cold approach to US businesses reflects China's efforts to maintain and develop supply chains centered on itself, even as Washington calls for decoupling for economic security reasons.
The expo's opening ceremony featured a speech by vice premier Ding Xuexiang, who emphasized the importance of international cooperation in stabilizing global supply chains. Ding is the number six official in China's ruling party.
Such major US technology companies as Apple, Tesla, Micron Technology, and Qualcomm took part in the expo.
AI is becoming increasingly important to competitiveness for both companies and countries. The Chinese government is rapidly developing AI-related supply chains and has set up a dedicated AI exhibition area at the expo. The move also reflects the aim of attracting American companies.
More than 1,200 companies and organizations from 85 countries and regions have joined the event. Foreign companies account for 36.5% of participants, with companies from the US representing the largest share.
The expo is held under the auspices of the government-backed China Council for the Promotion of International Trade. Launched in 2023, the event aims to counter the US's decoupling and to maintain international supply chains that include American companies.
At the US-China summit this May, the two countries agreed to build "a constructive relationship of strategic stability." On the US side, there are hopes for greater exports to China. The US Soybean Export Council and agribusiness giant Cargill hosted exhibits at the supply chain expo. Exxon Mobil joined in anticipation of increased exports of crude oil and natural gas.
But the Chinese government also announced on June 22 that it had added ten US companies to its export control list. Chinese officials said the move came in response to the US Department of Defense having designated certain Chinese entities as "Chinese military companies."
While signaling a position of confrontation, China is maintaining ties with US companies indispensable to its supply chains. The approach reflects the Asian country's diplomatic and trade strategy.
Japanese companies also joined the expo amid the worsened Sino-Japanese ties that followed Japanese Prime Minister Sanae Takaichi's remarks last November about a hypothetical Taiwan crisis. Exhibitors included Panasonic Holdings, Sumitomo Electric Industries, AGC, Daikin Industries, Nippon Express Holdings, and Mizuho Bank.
The Japan External Trade Organization also hosted an exhibit, organizing the participation of 25 Japanese companies. Sumitomo Electric chairman and CEO Masayoshi Matsumoto was among the corporate and industry officials on hand.
"When government relations are difficult, it's traditionally been the business community that has worked to restore bilateral ties," Matsumoto said. "Our efforts will be important moving forward."
The Japan Chamber of Commerce and Industry also sent a delegation to China in conjunction with the expo, the first such mission since 2018.
"China's vast market is ahead in high-tech fields," said an executive at a Chinese subsidiary of a participating Japanese company. "US and European companies are also actively expanding there, and we hope to drive growth by enlarging our operations in China."
This article first appeared on <a href="https://asia.nikkei.com/spotlight/supply-chain/china-expo-draws-nvidia-apple-micron-as-beijing-guards-ai-supply-chain">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>.

China expo draws Nvidia, Apple, Micron as Beijing guards AI supply chain

… https://console.kr-asia.com/wp-content/uploads/2026/06/Ovum-Ariella-Heffernan-Marks-1536x864.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2026/06/Ovum-Ariella-Heffernan-Marks-480x270.jpg 480w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-162770" class="wp-caption-text">Ariella Heffernan-Marks, founder and CEO of Ovum. Photo courtesy of the company.</figcaption></figure>
whereAdBanner.Uptake
<h3>Recent deals completed in China:</h3>
<ul>
<li aria-level="1">Xingantong, an AI data center sensing and efficiency management startup, has raised an eight-figure RMB sum in an angel round co-led by Legend Star and K2VC. It will use the funds for chip iteration, product validation, and market expansion. —<a href="https://36kr.com/p/3863885024973832">36Kr</a></li>
<li aria-level="1">Kunda, an aerospace equipment company, has raised an eight-figure RMB sum in a Series A round from Yongxin Rongyan. It will use the funds to develop next-generation intelligent assembly systems, expand capacity, and replenish working capital. —<a href="https://36kr.com/p/3863883390194692">36Kr</a></li>
<li aria-level="1">Lissome, a kitchen robotics brand, has raised an eight-figure RMB sum in a Series A round co-led by HongShan and Brizan Ventures, with participation from HKX and existing investors. It will use the funds for product upgrades, category expansion, kitchen robotics R&amp;D, global expansion, supply chain development, mass production, and hiring. —<a href="https://36kr.com/p/3863779663320069">36Kr</a></li>
<li aria-level="1"><a href="https://gigaai.cc/">GigaAI</a>, a physical AI company, has raised RMB 1 billion (USD 147.3 million) in a Series B2 round from Lion Partners Capital, the China-Belgium Direct Equity Investment Fund, JIC Investment, Wanxiang Qianchao, Fosun RZ Capital, Huagai Capital, Jin Venture Capital, Dyee Capital, Huacang Capital, Yuanshi Fund, and existing investors. It will use the funds to support its data and algorithm systems, foundation model upgrades, and industrial and home applications. —<a href="https://36kr.com/p/3859841488180487">36Kr</a></li>
<li aria-level="1"><a href="https://www.inspatio.com/">InSpatio</a>, a spatial intelligence company, has raised an eight-figure USD sum in a pre-Series A round from Luminous Ventures, Shunwei Capital, and HongShan. It will use the funds for model R&amp;D, 3D data infrastructure, computing infrastructure, partnerships, and hiring. —<a href="https://36kr.com/p/3858161395733764">36Kr</a></li>
<li aria-level="1"><a href="https://noonwake.com/">Noonwake.ai</a>, an emotional wellness startup, has raised nearly RMB 10 million (USD 1.5 million) in a seed round led by Yunqi Partners, with support from Var Capital. It will use the funds to develop AI-powered software and hardware products for emotional companionship and personal consultation. —<a href="https://36kr.com/p/3848483761493250">36Kr</a></li>
<li aria-level="1">Physis, a world model developer, has raised more than USD 100 million in a second seed extension round. Matrix Partners, 5Y Capital, Luminous Ventures, Ant Group, GL Ventures, and Yanyuan Fund joined the round. It will use the funds to pretrain its general world foundation model and build large-scale training systems. —<a href="https://36kr.com/p/3826129009234824">36Kr</a></li>
</ul>
whereRelatedArticle
<h3>Pints AI, GreatAsic, YouLabs, and others made recent headlines:</h3>
<ul>
<li aria-level="1">Pints AI, a Singapore-based artificial intelligence startup, raised USD 5.6 million in a pre-Series A funding round led by Tin Men Capital and co-led by SBI Ven Capital. Seeds Capital, NTUitive, SUTD Venture Fund, and Tenity also participated.</li>
<li aria-level="1">GreatAsic Technology, a Malaysia-based fabless custom chip design company, raised USD 6.9 million in a pre-Series A round led by Vertex Ventures Southeast Asia and India. Ehsan Kapital and Gobi Partners also participated.</li>
<li aria-level="1">YouLabs, a healthcare platform based in Singapore and Hyderabad, raised USD 2.6 million in a seed round led by Crane Venture Partners, with participation from Dr Reddy’s Laboratories, Matrix Pharma, and designer Jayanti Reddy.</li>
</ul>
If there are any news or updates you'd like us to feature, get in touch with us at: <a href="mailto:hello@kr-asia.com">hello@kr-asia.com</a>.
Note: RMB figures are converted to USD at rates of RMB 6.79 = USD 1 based on estimates as of June 23, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Deals in brief: Singapore-based ChemT, Synvo, and H3 Zoom raise funding; 100x100 launches climate fund; seven China investments; and more

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Singapore

Chinese electronics manufacturer Longcheer Technology is betting on <a href="/industry/ai">artificial intelligence</a>-powered devices in the US to drive growth, underscoring the importance of the country's consumer market despite looming uncertainty over tariffs.
"North America definitely is our focus now because the competition in China is very strong," Shawn Zhang, general manager of Longcheer's US business department, told Nikkei Asia in a recent interview. He expects revenue from overseas markets, including the US, to continue to grow by double-digit percentage points each year.
A key focus for Longcheer is AI-powered smart glasses, which have gained traction in the US in recent years. Smart Analytics Global expects smart glasses shipments to expand 85% this year to 15 million units, driven by Google's entry into the market. Longcheer is already a supplier of AI glasses for the Ray-Ban Meta brand.
"We invested in this category many years ago [so that] when the demand comes, we can catch up very quickly," Zhang said. The company has two factories in China as well as one in Vietnam, which Zhang said serves the US market and was expanded last year. He also confirmed reports that the company is considering building a factory in Malaysia but declined to comment further.
Shanghai-based Longcheer, whose core business is designing and making smartphones for Samsung Electronics, <a href="/company/xiaomi">Xiaomi</a>, Oppo and others, joins a wave of contract manufacturers trying to boost growth by tapping fresh demand for AI-related hardware.
Huaqin Technology, another smartphone supplier, reported a jump in revenue last year thanks to strong demand for servers and other equipment used in AI data centers. Wingtech, another smartphone maker, has diversified into semiconductor manufacturing, although its losses widened last year after losing control of Dutch chip subsidiary Nexperia.
Longcheer's revenue declined 19% year-on-year in the first quarter to RMB 7.56 billion (USD 1.1 billion), due to weak smartphone sales. The surge in the price of memory chips is also weighing on demand for phones, especially in the lower price range, according to another Longcheer executive. With memory prices seven or eight times higher than last year, the company is trying to enhance the performance of a phone without upgrading the memory specifications, the executive added.
Profitability is another challenge for contract manufacturers in China. Zhang said one reason for the intense competition is that thanks to its mature supply chain, it is easy for startups or companies in other industries to enter the smartphone manufacturing business. Consumers are also sensitive to prices and will switch to other brands that offer a steeper discount, he added.
"In the past more than 20 years, we were more focused on the smartphone business. But now AI has opened up great opportunities," Longcheer founder and chairman Du Junhong told reporters during a tour of its headquarters earlier this month.
The appetite to capture US business comes despite looming uncertainty over tariffs. US President Donald Trump has agreed on a trade truce with Chinese counterpart Xi Jinping, suspending additional tariffs and other trade measures until November. But the US Trade Representative recently proposed tariffs on 60 economies, including China and Vietnam, for what it deems unfair trade practices based on forced labor.
Zhang said it is unlikely that major customers would change their supply chain strategies quickly, due to the high cost of doing so. Customers have so far not asked for Longcheer to build products in America. And even with higher tariffs, exporting from China could be more cost competitive if, for example, a customer needs to fly many engineers out to Vietnam.
"Vietnam, China … it works for now," he said. "We will still try to invest more capacity in Asia."
This article first appeared on <a href="https://asia.nikkei.com/spotlight/supply-chain/chinese-electronics-maker-longcheer-bets-on-us-growth">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>.
Note: RMB figures are converted to USD at rates of RMB 6.79 = USD 1 based on estimates as of June 23, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Chinese electronics maker Longcheer bets on US growth

Hardware

Internet of Things

Banu International Holding updated its prospectus on June 17 as it continues to advance its listing process on the Hong Kong Stock Exchange. CICC and CMB International are serving as joint sponsors.
Founded in 2001, Banu has become China’s largest premium hotpot brand by revenue. According to Frost &amp; Sullivan, Banu ranked first in China’s premium hotpot market by revenue in 2025. As of June 12, Banu’s directly operated store network covered 57 cities across China, with 200 stores in total, up 132.6% from the beginning of 2023. Its expansion also accelerated each year from 2023 to 2025, with 25 new stores opened in 2023, 35 in 2024, and 44 in 2025.
The updated prospectus showed that Banu’s full-year 2025 revenue reached RMB 2.85 billion (USD 419.9 million), up 23.4% year over year, while adjusted profit reached RMB 320 million (USD 47.1 million), up 88.7%. In store operations, its same-store sales growth rate was 4.8% for the full year, while its table turnover rate reached 3.6 times per day, up about 0.4 times year-on-year.
Behind those numbers is Banu’s longstanding focus on products. The company centers its menu on signature items such as beef tripe and wild mushroom broth. Its beef tripe is prepared using papain-based tenderization technology, which uses an enzyme derived from papaya. The company has also sourced tripe from New Zealand pastures for Chinese diners. Its wild mushroom broth uses mushrooms selected from the Yunnan-Guizhou Plateau and is freshly simmered in stores every day. Through initiatives such as a monthly vegetable refresh program and year-round fresh bamboo shoot supply, Banu aims to offer a fresher, higher-quality hotpot dining experience.
While China’s restaurant industry faces intensifying competition and many brands are caught in price wars, consumers are not simply chasing lower prices. According to Frost &amp; Sullivan, consumers are paying increasing attention to dish quality and ingredient freshness. Health and freshness are becoming new trends in the hotpot industry, pushing the market toward a better balance between quality and price.
Banu’s focus on quality has also helped expand its customer base. Its membership count grew from about 3.7 million at the beginning of 2022 to nearly 20 million in 2026.
On the supply chain side, Banu has built a set of industrialized capabilities around quality control. The company has developed a third-generation supply chain based on three principles: procuring chilled rather than frozen ingredients where possible, choosing natural options over additive-based alternatives where possible, and completing delivery sorting on the same day rather than overnight where possible.
Through a daily delivery logistics network, products move directly from central kitchens to stores nationwide. Each central kitchen has a coverage radius of up to 600 kilometers, enabling 24-hour fresh delivery and more stable ingredient presentation. As of June 12, Banu operated five integrated central kitchens combining production and logistics, as well as one specialized soup base processing plant. Its business covered 14 provinces and municipalities across China.
Banu has also built an integrated digital system covering the entire business process, including procurement and supplier management, central kitchens, warehousing and logistics, employee management, and store operations. Its store inventory management system can track and analyze inventory levels and shelf life for major in-store ingredients. Supported by this system, stores can place orders daily and receive next-day deliveries from central kitchens through logistics scheduling.
At the operational level, this system has brought efficiency gains. Banu’s average monthly sales per square meter rose from about RMB 2,300 (USD 338.9) in 2023 to more than RMB 2,650 (USD 390.5) in 2025. Its store-level operating profit margin increased from 15.2% in 2022 to 24.9% in 2025. Its same-store sales growth reached 4.8%, while inventory turnover days fell 16.3% from 2023 to 2025. The continued expansion of its store network has also helped dilute fixed supply chain costs while maintaining relatively stable quality control standards.
Another point worth noting is that Banu currently has 54 stores in its home base of Henan, while its store network outside the province has expanded to 146 locations nationwide. Compared with 2023, its number of stores outside Henan has grown by 265%. These stores have achieved competitive table turnover and profitability levels, supporting Banu’s case for nationwide replicability.
At present, Banu’s directly operated stores cover first-, second-, third-, and fourth-tier cities. Stores in non-first-tier cities account for 80% of its total, and the store-level operating profit margin in second-tier and lower-tier cities reaches 25.6%. To some extent, this shows that its product-focused value proposition has broad market adaptability and can run across different tiers of China’s market.
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Looking further ahead, Banu may also have room to grow overseas, supported by the expansion of Chinese restaurant brands abroad and overseas consumers’ interest in natural ingredients and higher-quality dining experiences.
Before the IPO, Tomato Capital was Banu’s only external institutional investor, holding 7.95% of the company.
Banu said in its prospectus that the net proceeds from the IPO will mainly be used to expand its directly operated store network, improve digitalization in business management and store operations, build its brand, optimize its supply chain, and provide working capital and funding for general corporate purposes.
This <a href="https://xueqiu.com/2854806290/395421482">article</a> was adapted based on a feature originally written by Stone Jin and published on IPO Zaozhidao. KrASIA is authorized to translate, adapt, and publish its contents.
Note: RMB figures are converted to USD at rates of RMB 6.79 = USD 1 based on estimates as of June 23, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Hotpot chain Banu posts stronger profit growth in updated IPO prospectus