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Google sister company Waymo plans to test its autonomous taxi service on the streets of Tokyo in 2025, with the goal of resolving a severe cabdriver shortage in Japan.
Waymo will work with Japanese partners Go, the taxi-hailing platform, and taxi operator Nihon Kotsu. The three companies will test the Waymo Driver autonomous driving system with 25 vehicles in early 2025, the Alphabet-owned company announced on December 16.
The test will capture mapping data for a commercial robotaxi service. Such a service would be capable of Level 4 autonomy, which is one tier short of full automation and will require human intervention in a few circumstances.
The tests will take place on public roads in seven wards in central Tokyo: Minato, Shinjuku, Shibuya, Chiyoda, Chuo, Shinagawa, and Koto.
Waymo will use electric vehicles made by Jaguar Land Rover. When the battery runs low, the vehicles are able to drive to charging stations.
EVs are still limited in the distances they can travel on a single charge. Waymo chose Tokyo because of its dense urban environment, which means that it is relative easy to find users in a small area.
Conditions are ripe for an autonomous taxi service in Japan due to the severe labor shortage in the cab industry. The sector is undergoing a period of transformation with the legalization of what is known as the <a href="https://asia.nikkei.com/Spotlight/Sharing-Economy/Japan-s-version-of-ride-hailing-arrives-amid-taxi-shortage" target="_blank" rel="noopener">"Japanese version"</a> of ride-hailing.
In that setup, only licensed taxi companies are allowed to deploy gig drivers. Those services are offered during certain times of the day, in certain areas where there is a lack of fully staffed taxi drivers.
"Japan is several years behind the US and China when it comes to implementing autonomous driving technology in the real world," said Go president Hiroshi Nakajima.
"Waymo possesses technology that is among the best in the world, including in the number of rides," Nakajima added. "We're intent on making driverless taxi dispatch a reality with Go."
Consumer trust, as well as safety improvements, will be needed heading toward commercialization of driverless taxis. This month, General Motors announced that it will exit the robotaxi business after self-driving subsidiary Cruise shut down its driverless taxi service last year following reports of pedestrian injuries involving the company's vehicles.
In February, an empty Waymo vehicle was vandalized and set on fire by a crowd in San Francisco.
Alphabet, the parent of Waymo and Google, is focused on developing artificial intelligence that would contribute to improved safety. AI could generate simulations based on real traffic data to further train robotaxis to avoid accidents.
"We'll have to overcome various challenges before we can bring this to the real world," said Nakajima. "However, we won't launch a service that's still in a precarious state. We will proceed carefully."
Mai Niizoe, a research officer at Sompo Institute Plus who studies autonomous driving, says taxis are likely the only way of achieving "sustainable, profitable operations" using self-driving tech.
"Waymo's track record in autonomous driving is top-level," said Niizoe. "It will be a 'black ship' [foreign disruptor] for companies developing autonomous driving technology in Japan."
In 2020, Waymo launched a driverless ride-hailing service in Phoenix, Arizona. The company later expanded to San Francisco and Los Angeles. Waymo has announced plans to expand to the US cities of Austin, Atlanta, and Miami.
In areas where Waymo's taxis are available to the general public, riders can use an app to summon a vehicle, enter the destination and unlock the doors. Payment is made with a credit card through the app. In the event of an emergency, the vehicle will connect the user to an operator.
Waymo's paid service is used around 100,000 times per week across all cities. The company looks to expand its service area to build up more data on mobility. Japan will be first place outside the US that will host testing by Waymo.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Technology/Google-s-Waymo-to-test-drive-robotaxis-in-Tokyo-early-next-year" rel="noopener noreferrer" data-token-index="1">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing <a tabindex="0" href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/" rel="noopener noreferrer" data-token-index="3">partnership with Nikkei</a>.

Google's Waymo to test-drive robotaxis in Tokyo early next year

Google

Transportation

On-demand Services

Autonomous Vehicles

Ride-hailing

Mobility

… their development stages vary significantly, making it essential to categorize technology tracks clearly.
Take hydrogen energy as an example. While its technical potential is enormous, the market’s maturity and commercialization are far from meeting mainstream investment criteria. Hydrogen energy can be described as a future opportunity rather than an immediate explosion point.
In contrast, renewable energy fields like solar power are experiencing growing pains. Negative electricity pricing in regions such as Europe, China, and the US indicates market saturation to some degree. The focus now is on enhancing the flexibility and efficiency of energy systems rather than merely increasing generation capacity.
<h3>36Kr: Have you noticed any issues within the industry, such as oversaturation or intense competition?</h3>
AC: Certainly. I’ve observed some entrepreneurs blindly chasing trends without assessing their own capabilities or long-term value. This often leads to overcrowding in popular tracks as companies compete for short-term gains.
This concentration of resources is evident in competitions like the TERA-Award. Many projects focus on similar ideas, but only a small fraction will truly succeed. Overinvestment leads to market saturation and heightened competition.
For instance, in the past few years, the lithium battery market saw a boom in startups, but homogeneity in competition caused several large-scale bankruptcies, resulting in losses worth hundreds of billions of dollars.
<h3>36Kr: Amid fierce competition in the renewable energy market, are you optimistic about the future? How do you see the growth potential of this sector?</h3>
AC: Over the next decade, the energy landscape will undoubtedly undergo transformative changes. The potential for renewable energy investments remains immense. However, the industry is dynamic, and short-term overcrowding doesn’t equate to it being entirely “hot.” Success lies in identifying and addressing unmet needs in the market.
For example, in energy storage, there are critical challenges yet to be resolved, such as long-duration storage technologies, safety, and the economic viability of short-cycle recycling. Tackling such challenges represents significant opportunities.
<h3>36Kr: What is your outlook on the future of renewable energy? Do you believe there is still room for growth?</h3>
AC: I believe the renewable energy industry will continue to accelerate and become even more competitive. Technological breakthroughs that once took years now occur in significantly shorter timeframes.
With the industry moving faster, companies must adapt and innovate quickly. Opportunities still exist, but they demand swift action and foresight.
It’s not that good projects are becoming scarcer. Rather, the timelines for success are shrinking. Advances in technology, particularly artificial intelligence, have condensed what used to take years into mere moments, pushing companies to move at a faster pace.
<h3>36Kr: You mentioned AI is a critical factor. How do you view the intersection of AI and energy?</h3>
AC: AI's impact on the energy industry is undoubtedly transformative. Traditionally, the energy sector has been slow to adopt new technologies and heavily reliant on manual processes and experience. AI changes the game by accelerating decision-making and optimization.
The energy sector generates massive amounts of data, from grid load management to energy distribution. Historically, these processes relied on static models and human expertise. AI can leverage vast datasets for dynamic and precise predictions, enabling more efficient operations.
Moreover, the energy sector’s digitalization has lagged behind expectations, leaving room for AI to drive sweeping changes. This digital transformation represents an opportunity to reimagine the sector from the ground up.
<h3>36Kr: What areas within renewable energy are Full Vision Capital focused on?</h3>
AC: Our priorities remain on hydrogen energy; SAF and other biofuels; carbon capture, utilization, and storage (CCUS); green methanol; and innovative energy storage solutions for medium- and long-term applications.
Additionally, we are exploring how digital and information technologies can enhance the energy sector’s efficiency. Many areas are still far behind in terms of digital adoption, which is why we’re actively pursuing solutions in this space.
<h3>36Kr: You’ve been deeply involved in the investment landscape for years and have witnessed the evolution of various industries. How do you view the current climate in the renewable energy venture capital ecosystem?</h3>
AC: The energy sector is fundamentally industrial in nature, so the conventional internet-focused investment mindset doesn’t apply here. Although the potential returns in energy are significant, it requires a different approach compared to tech or internet-based industries. Stable cash flow and long-term profitability are crucial.
Some investors expect energy companies to scale rapidly and may overlook short-term safety or operational losses. This approach is risky and unsustainable. I believe there’s substantial room for improvement in the local renewable energy venture capital ecosystem.
<h3>36Kr: What are Full Vision Capital’s plans for the next decade?</h3>
AC: Over the past decade, we’ve laid a strong foundation in climate tech investments, but there’s so much more to do. My goal is to see Full Vision Capital evolve from being an incubator to becoming a global investment platform that’s synonymous with climate tech innovation.
In the future, I hope any climate-focused startup—whether in Asia or globally—will think of Full Vision Capital as their first choice for support and partnership. We want to be a platform that not only provides funding but also creates an ecosystem of collaboration and innovation.
<h3>36Kr: What motivates you to continue on this journey?</h3>
AC: For me, the greatest reward is solving problems and seeing progress—not just in external metrics, but in the growth of our team and portfolio companies. Every day brings new challenges, and addressing them fuels my passion.
Ultimately, our mission goes beyond financial returns. It’s about leaving a positive legacy for the planet and the next generation. That’s what drives us forward.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3091270825638019">article</a> was written by Xiao Xi for 36Kr.

A decade of impact: Exploring Full Vision Capital’s climate tech investments

Venture Capital

Investment

Sustainability

… poker hands, like a straight flush or five-of-a-kind, made possible through mid-game card modifications, injects novelty and excitement. These gratifying moments keep gameplay fresh and consistently engaging.
<h3>Creating a fun experience</h3>
Balatro keeps players engaged at every stage with meaningful goals. In the early game, discovering new jokers and strategies introduces a sense of novelty. During the midgame, mastering mechanics enables players to exponentially boost their scores. For seasoned veterans, challenges like collecting all gold joker stickers or crafting daring "glass cannon" builds provide lasting incentives and replayability.
By prioritizing inventive mechanics and rewarding gameplay over elaborate storytelling, flashy visuals, or aggressive marketing, Balatro captures the core of what makes gaming irresistible: pure, unadulterated fun.
In an era where the industry leans heavily on cinematic narratives and artistic ambition, Balatro serves as a reminder of a fundamental truth: a game that is genuinely fun is the simplest and most powerful way to win players’ hearts.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3093741914945920">article</a> was written by Liu Shiwu for 36Kr.

How Balatro became 2024’s indie darling

Gaming

Creative

TikTok ban in limbo as Trump seeks Supreme Court intervention

ByteDance

TikTok

Entertainment

Short Video

Live Streaming

Video

Content

Minieye Technology debuted on the Hong Kong Stock Exchange (HKEX) on December 27, becoming the latest Chinese intelligent driving firm to go public. The initial response was strong: shares opened at HKD 18.6 (USD 2.4), up 9.41% from the issue price of HKD 17 (USD 2.2), and closed at HKD 19.4 (USD 2.5), a 14.12% gain. This valued the Shenzhen-based company at HKD 7.744 billion (USD 997.4 million).
Trading resumed on December 30, with shares opening slightly lower at HKD 19.1 (USD 2.46). The offering raised gross proceeds of HKD 666.23 million (USD 85.8 million), with net proceeds of HKD 605.62 million (USD 78 million), which Minieye plans to channel into innovation, expansion, and commercialization.
Founded in 2014, Minieye supplies intelligent driving systems, smart cockpits, and vehicle-road collaboration solutions. Its product lines include “iSafety,” which supports advanced driver-assistance systems, and “iPilot,” which targets higher-level autonomous capabilities like highway navigation and intelligent parking.
The company’s journey began with a pivotal encounter nearly a decade ago. Co-founder and CEO Liu Guoqing secured angel investment from Daniel Zhang, the former chairman and CEO of Alibaba, during a chance meeting at an airport. Zhang, en route to ring the bell for Alibaba’s Nasdaq IPO, was so impressed by Liu’s pitch that he agreed to invest on the spot.
Over the years, Minieye has established itself as a key player in intelligent driving. According to <a href="https://finance.sina.com.cn/roll/2024-12-28/doc-ineayfsz5149418.shtml">Sina</a>, as of mid-2024, its technologies were used by 35 automakers, including 21 export models destined for Europe, Australia, the UK, and Southeast Asia. Minieye is among the first Chinese companies to secure EU General Safety Regulation (GSR) certifications and has contributed to achieving five-star European New Car Assessment Programme (Euro NCAP) safety ratings.
Cornerstone investors in Minieye’s IPO include KCH International Investment, which secured 79.34% of the offer shares, making it the largest stakeholder among the cornerstone investors, and Horizon Together Holding, which received 1.75%. Both are under lockup agreements until mid-2025. Meanwhile, the founding team and their associated shareholder group, collectively the largest overall stakeholders, remain bound by a lockup until December 2025.
Minieye’s founding team includes four members, each bringing unique expertise: Liu, who holds a PhD in computer science from Singapore’s Nanyang Technological University; Yang Guang, an intelligent driving specialist; Zhou Xiang, responsible for vehicle-road collaboration initiatives; and Wang Qicheng, who manages strategic planning and international expansion.
Before its IPO, Minieye completed 17 funding rounds, raising RMB 1.448 billion (USD 202.7 million) from investors such as NavInfo, Zeyi Investment, the China Development Bank’s Manufacturing Transformation and Upgrading Fund, and CICC Capital. Its last valuation in late 2023 stood at RMB 5.3 billion (USD 741 million).
The IPO caps a banner year for intelligent driving firms. Other companies, including RoboSense and Black Sesame Technologies, have also listed on HKEX since October, cementing Hong Kong’s status as an emerging hub for automotive innovation financing.
Minieye’s public offering was oversubscribed 14.04 times, signaling robust demand. International placements were subscribed 1.09 times, with shares allocated to 115 investors. Public hands now control 52.53% of the company’s shares, meeting HKEX’s minimum float requirements.
Despite long payback periods and capital demands, intelligent driving companies continue to attract investors. Minieye reflects this trend, dedicating 26.7% of its revenue to R&amp;D in the first half of 2024 while narrowing its losses. Between 2021 and 2023, the company achieved a compound annual growth rate (CAGR) of 64.9% in revenue.

Minieye, backed by Alibaba’s Daniel Zhang, shines in HKEX debut

Hong Kong

… by launching many mid- to high-end snowboard products.
<h3>36Kr: What are your future predictions for snow sports?</h3>
Decathlon: We foresee a more balanced ratio between snowboarding and skiing. Currently, the main demographic for skiing and snowboarding is individuals aged 25–35. We believe future trends will expand to include other age groups. In terms of gender distribution, we expect it to remain similar to current patterns, with an even split between men and women.
Chinese women are particularly bold when it comes to embracing new challenges. They also have a strong demand for social and aesthetic experiences. For many, skiing in winter is not just a sport but also a lifestyle and social activity.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3080916367570563">article</a> was written by Li Xiaoxia for 36Kr.

Decathlon redefines its game: From budget basics to premium sportswear

Retail

Consumer Services

… The app, equipped with real-time cube state recognition and automated timing, recorded Jiang’s victory in the first round. The second round unfolded in a similar fashion—Jiang completed the cube in another ten seconds, leaving his opponent still twisting, and the match ended decisively after two consecutive wins.
The interactive, internet-connected cube in Jiang’s hand was one of Gancube’s smart cubes, a significant product innovation introduced over the past five years. Jiang believes smart cubes tackle several pain points for Rubik’s Cube enthusiasts, particularly by lowering the learning curve.
Lowering the learning barrier is a critical step. Although the Rubik’s Cube has been promoted worldwide as a puzzle toy, its high entry threshold can be discouraging for beginners. Without deliberate study and practice, most people give up shortly after starting.
When Gancube was first established, Jiang meticulously refined the instruction manual for its products. He once posted an early draft on Weibo, inviting netizens to spot errors, and gave away 100 cubes as rewards. He included the algorithms he had personally compiled and practiced for solving the cube in the manual. “If adults carefully read the manual, they can learn to solve a Rubik’s Cube in three to four hours,” Jiang said.
However, given the countless possible scrambled states of the cube, even with instructional videos or manuals, mastering the solution isn’t easy.
To address this, Gancube’s smart cubes integrate with an app that provides real-time, step-by-step guidance. The app corrects mistakes instantly, allowing users to focus on learning with minimal fuss. According to company data, smart cubes can increase the success rate of solving a Rubik’s Cube from less than 5% to around 30%.
Smart cubes operate using intelligent sensors that digitize the cube’s physical movements, creating a digital twin representation of the object. “We can represent a real object in a digital space. This is a capability of digital twin technology and a core strength of ours,” Jiang explained. This integration of hardware and software allows users to record practice sessions, receive performance feedback, and refine their solving speed.
The smart cube also supports real-time competitions. Its internet connectivity automates timing and eliminates the need for manual start-and-stop mechanisms, streamlining competitive events for greater convenience and accuracy.
The technology developed for smart cubes has been applied to other Gancube products. Features like auto-alignment, powered by over 100 embedded magnets that snap the cube into place with minimal effort, are now standard across Gancube’s lineup.
Despite their premium pricing—some models costing up to RMB 600 (USD 84)—smart cubes currently contribute less than 20% of Gancube’s revenue. To cater to a broad user base, Gancube also offers magnetic cubes, lightweight models, and cube-solving robots, ranging from beginner-friendly designs to advanced competitive tools.
<figure id="attachment_151405" aria-describedby="caption-attachment-151405" style="width: 1024px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-large wp-image-151405" src="https://console.kr-asia.com/wp-content/uploads/2024/12/Gancube-Attempt-1024x683.jpg" alt="Photo capturing a Gancube solve in progress." width="1024" height="683" srcset="https://console.kr-asia.com/wp-content/uploads/2024/12/Gancube-Attempt-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2024/12/Gancube-Attempt-300x200.jpg 300w, https://console.kr-asia.com/wp-content/uploads/2024/12/Gancube-Attempt-768x512.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2024/12/Gancube-Attempt-1536x1024.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2024/12/Gancube-Attempt.jpg 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-151405" class="wp-caption-text">Photo capturing a Gancube solve in progress.</figcaption></figure>
Jiang emphasizes technical refinement as central to Gancube’s product philosophy. Customizable components, including corner block magnets, axle distances, and tension systems, allow players to fine-tune cubes for optimal performance.
Jiang’s perspective is rooted in the growing recognition of the Rubik’s Cube as a competitive sport. “If it were just a toy, it only needs to be visually appealing and safe. The improvements we’ve made wouldn’t matter to consumers. But as a competitive sport, our technology enables professional players to improve, even if only by 0.5 seconds. That’s critical,” he said.
Although the Rubik’s Cube isn’t a major category in the toy industry, it enjoys a dedicated following as a competitive sport. The World Cube Association (WCA), which organizes biennial speedcubing championships, has been instrumental in fostering the cube’s competitive ecosystem. Numerous local and international competitions, including provincial and university-level tournaments in China, further cement its status as a sport.
Rubik’s Cube manufacturers actively sponsor tournaments, form teams, and sign players. As a competitive sport, the Rubik’s Cube gives manufacturers room to improve product performance and price ranges while building brand influence.
According to WCA data, eight of the world’s top ten players (based on average rankings for 3×3 cube-solving) are signed with Gancube. Before launching new products, Gancube collaborates closely with these elite players, providing prototypes for feedback and fine-tuning. Jiang also maintains regular communication with top players to understand their evolving needs.
Jiang attributes Gancube’s rapid growth—from annual revenues of less than RMB 1 million (USD 140,000) at its founding in 2014 to RMB 70–80 million (USD 9.8–11.2 million) by 2019—to the increasing popularity of competitive Rubik’s Cube sports worldwide. The pandemic further accelerated this trend, as home confinement led to a surge in cube enthusiasts.
“The entire market is growing. Even if we did nothing, we’d still see 40% growth. But we put a lot of effort into our products, treating them as competitive gear,” Jiang said.
China’s manufacturing hubs, long known for producing low-cost toys, are now navigating a critical phase of transformation. Gancube’s premium, high-value strategy in the Rubik’s Cube niche serves as a compelling blueprint for other toy manufacturers seeking to break free from price wars and embrace innovation-driven, higher-value product offerings.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3060304686507396">article</a> was written by Leslie Zhang for 36Kr.

Gancube’s premium puzzle: How a champion turned his passion for the Rubik’s Cube into a global business

Advanced robots and artificial intelligence-powered drones will be two of the next key drivers for growth and innovation in the tech industry, according to C C Wei, chairman and CEO of Taiwan Semiconductor Manufacturing Company (TSMC).
Speaking at Taiwan's flagship tech conference on December 16, C C Wei highlighted the increasing need for the integration of hardware and software to power the next generation of AI devices.
"One area I would point out is multifunctional robots, which is the critical direction for the future," Wei said. "I just spoke to the richest man in the world a few days ago, and he told me that multifunctional robots are the most critical area and that he is dedicating great efforts to it, rather than to cars."
The "richest man" comment likely refers to Tesla founder Elon Musk, with whom Wei spoke recently. Tesla is a key TSMC client, as are all the major chip giants, from Nvidia and Apple to Amazon and Qualcomm. Musk and Tesla are developing Optimus, a humanoid robot designed to interact with its surroundings using two arms, hands and legs.
Wei said he and this person had discussed chips and that he told the other man: "If you are willing to pay us, then please don't worry too much. I will make sure you get the chips."
Developing robots that are not only precise but also more flexible like humans requires sophisticated chip designs integrated with software, he said. This is an area where Taiwan has the capability, environment and talent, he added, though further improvements are needed.
Wei said he was sharing his feedback about the industry based on discussions with top TSMC clients over the past two months. One topic that these customers always touched on, he said, was "AI and AI applications."
The TSMC chairman said that Taiwan also has an edge in drones.
"Drones are a sector we have a good advantage in, and we have to focus on how to integrate precision machinery and software in this," Wei said. "It is a very critical area and has a wide range of applications to help people in the future do various measurements, conduct various services and carry products."
The third crucial area he highlighted is the use of AI to develop advanced energy technologies and optimize water and electricity usage. "At TSMC, we've successfully implemented AI to boost production efficiency, saving billions of dollars. This potential is immense, and all industries, including the government, should harness the power of AI," Wei said.
"Taiwan has a lot of good chip design capabilities. We have a good chip manufacturing and packaging sector, and we have lots of companies that have technologies for building AI servers," he noted. "All of these can help Taiwan play a critical role in the next AI era."
The chairman's remarks came at Taiwan's National Science and Technology Conference, which is held every four years and brings together government officials, industry leaders, and academics to discuss the future of technology.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Tech/Semiconductors/TSMC-chief-says-robots-and-AI-drones-to-drive-tech-innovation" rel="noopener noreferrer" data-token-index="1">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing <a tabindex="0" href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/" rel="noopener noreferrer" data-token-index="3">partnership with Nikkei</a>.

TSMC chief says robots and AI drones to drive tech innovation

TSMC

Artificial Intelligence

Robotics

Deep Tech

Drones

… further validated by industry data. According to Frost &amp; Sullivan, MGP was the only Chinese company among the top ten high-end beauty groups in China in 2022, commanding a 1.2% market share. By 2023, its presence expanded to account for 6% of the domestic cosmetics market, ranking it second among Chinese brands.
As the Chinese beauty industry matures, competition in the premium segment has intensified. Rivals such as Yatsen Holding have made significant moves, acquiring the French luxury skincare brand Galenic in October 2020. Other domestic heavyweights, including Proya and Botanee, have also launched premium product lines priced at RMB 400–1,000 (USD 56–140), directly challenging MGP’s dominance.
For MGP, sustaining its premium position requires addressing critical challenges, particularly in research and development (R&amp;D). From 2021 to 2023, the company’s R&amp;D expenditures were RMB 13.703 million (USD 1.9 million), RMB 14.548 million (USD 2 million), and RMB 23.975 million (USD 3.4 million), representing ratios of just 0.87%, 0.8%, and 0.83% of revenue, respectively. By the first half of 2024, R&amp;D investments reached RMB 15.267 million (USD 2.1 million), but the ratio fell further to 0.77%. This lags significantly behind international luxury brands like L’Oreal, which maintain R&amp;D ratios exceeding 3%, and even domestic competitors such as Yatsen (4%), Proya, and Shanghai Jahwa (around 2%).
Another pressing concern is MGP’s reliance on its flagship brand. Between 2021 and the first half of 2024, its main brand accounted for more than 96% of the company’s total revenue, reaching 99.3% in 2024. Meanwhile, the budget-friendly sub-brand, Love For Keeps, has struggled, contributing just 0.7% of total revenue in the same period. This heavy dependence raises questions about long-term stability and growth potential.
Recognizing these vulnerabilities, MGP has initiated measures to diversify its product portfolio and enhance technical capabilities. In April 2023, the company began constructing an R&amp;D factory in Hangzhou, scheduled to be operational within two years. Furthermore, in early 2024, MGP launched a cosmetics technology company in Hangzhou with a registered capital of RMB 500 million (USD 70 million).
These efforts signal a proactive approach to mitigating risk and driving sustainable growth. However, MGP’s journey is far from complete. To solidify its standing in the competitive premium beauty market, the company needs to expand its R&amp;D investments, diversify its revenue streams, and reduce reliance on a single brand.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3095284923431048">article</a> was written by Chen Sizhu for 36Kr.

After its dazzling IPO, Mao Geping Cosmetics must now deliver