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… valuation.
Circle’s experience serves as a cautionary example: despite its initial post-IPO surge, its stock later retreated amid concerns over concentrated revenue, rising costs, and earnings volatility.
Still, HashKey’s regulatory compliance could become an advantage as traditional and digital finance continue to converge. The company has expanded into virtual asset exchange-traded funds (ETFs), partnering with Bosera Funds in April to launch spot Bitcoin and Ethereum ETFs, and in August supporting MicroBit’s crypto ETFs as trading platform and sub-custodian.
As Hong Kong’s largest licensed crypto exchange moves toward a potential IPO, HashKey’s listing could serve as a key indicator of investor sentiment and confidence in the city’s regulated digital asset market.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3528775439670406">article</a> was written by Wang Hanyu for 36Kr.

HashKey plans Hong Kong IPO to strengthen lead among licensed crypto exchanges

Fintech

Blockchain

Cryptocurrencies

Hong Kong

China

<a href="/company/xiaomi">Xiaomi</a> has announced a major organizational restructuring, according to multiple sources familiar with the matter who spoke with 36Kr.
As part of this reshuffle, the company has created a new architecture department responsible for defining the strategic direction of next-generation <a href="/industry/ev">electric vehicle</a> technologies. The unit reports directly to Xiaomi founder and CEO Lei Jun and includes senior R&amp;D leaders and key technical staff.
People familiar with the matter told 36Kr that Cui Qiang, formerly head of vehicle R&amp;D, has joined the new department, while Wang Zhensuo, previously head of electric powertrain technology, will now oversee vehicle R&amp;D. The department will set the technical tone and direction for Xiaomi’s next generation of vehicles.
In the automotive sector, forward-looking technological planning is critical. At most automakers, however, this function sits within a secondary division reporting to a CTO or R&amp;D director. Xiaomi’s decision to elevate it to a top-level department under Lei’s direct leadership hints at its commitment to long-term strategy and the definition of its own tech identity.
A single vehicle platform typically supports at least three models and remains in production for three to five years. This means one generation of technology architecture can determine a company’s competitiveness and sales performance for an extended period—and for automakers under pressure, even their survival. Because product development, validation, and mass production take years, automakers must define their technical direction five to eight years ahead.
“For example, in 2019, when 100-kilowatt fast-charging technology was still the norm, automakers were already debating whether to target 800-kilowatt fast-charging or solid-state batteries with higher energy density by 2025,” an industry insider told 36Kr.
Pre-research teams are expected to identify technology goals that do not yet exist, then conduct feasibility modeling and cost projections with suppliers. This process combines strategic vision, technical foresight, and supply chain collaboration.
Although the EV market appears technologically vibrant, it remains defined by deep uncertainty. On the electrification front, Xiaomi and <a href="/company/byd">BYD</a> are competing to advance high-performance motor technologies while balancing cost and benefit. In batteries, both fast-charging and solid-state solutions are progressing in parallel. Higher charging speeds improve convenience but shorten battery life, while solid-state batteries show promise yet lack a clear commercialization timeline.
In the mechanical domain, automakers are moving toward steer-by-wire, brake-by-wire, and active suspension systems. The <a href="https://kr-asia.com/nio-shakes-up-the-market-with-luxury-et9-sedan-and-firefly-compact-car-debut">Nio ET9</a>, priced from RMB 768,000 (USD 107,520), integrates both steer-by-wire and active suspension systems. These components remain costly, and while steer-by-wire reduces turning radius, it does not yet offer a significantly better driving experience than traditional rear-wheel steering. Suspension comfort still depends heavily on calibration, and a well-tuned air suspension can outperform an active one in real-world driving.
At the same time, adoption of large <a href="/industry/ai">artificial intelligence</a> models and Level 2 driver assistance systems is accelerating. The industry is now shifting toward Level 3 autonomy, though its business model and consumer willingness to pay remain uncertain.
By elevating technology architecture planning to a top-level department, Xiaomi aims to clarify its R&amp;D investment priorities in an era of technological abundance yet strategic ambiguity, and to identify new engines for long-term growth.
Since entering the EV market in 2024, Lei has emphasized Xiaomi’s identity as a technology-driven automaker. From the outset, the company independently developed high-performance electric motors and planned three product generations. This enabled its first model, the SU7, to accelerate from zero to 100 kilometers per hour in 2.78 seconds, while the SU7 Ultra broke the Porsche Taycan’s lap record at Germany’s Nurburgring circuit.
Such forward-looking investment has strengthened Xiaomi’s technological credentials and supported its sales momentum. To date, cumulative SU7 deliveries have exceeded 258,000 units. The YU7, launched three months ago, has surpassed 40,000 deliveries, and the SU7 Ultra, priced from RMB 529,900 (USD 74,186), has received more than 23,000 orders. With volumes rising, Xiaomi’s automotive division is on track to reach quarterly profitability this year.
This restructuring seeks to harness the insight and experience of senior engineers to enhance Xiaomi’s foresight on technology trends and sharpen its strategic decision-making in innovation.
As product cycles shorten, automakers are under pressure to launch affordable, competitive models more quickly. Instead of pursuing full-scale generational platform upgrades that can take five years or more, many now focus on visible improvements—such as larger screens or improved seats—while coordinating with suppliers to reduce costs and boost short-term sales. This has led to widespread product homogeneity.
Such configuration-driven competition is unsustainable. Once certain features become standard, differentiation fades, price competition intensifies, and profitability declines.
Recognizing this, Li Auto has shifted direction. In 2024, CEO Li Xiang announced the company’s transformation into an AI-driven enterprise and introduced its MindGPT and vision-language-action (VLA) model.
With Lei now leading Xiaomi’s pre-research initiative, the company is formulating its own response to rapid technological iteration. Still, this reorganization is in its early stages. Its ultimate outcome will depend not only on Xiaomi’s commitment and strategic clarity but also on whether it can translate frontier research into market-ready products.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3527055274924928">article</a> was written by Xu Caiyu for 36Kr.

Xiaomi restructures, placing EV architecture planning directly under Lei Jun

East Asia

Transportation

Electric Vehicles

Mobility

Animated movies produced in mainland China are hitting Japanese theater screens, with titles primarily aimed at the nearly one million Chinese residents in the country also finding Japanese fans.
Outside a movie theater in Tokyo's Ueno district, a large poster for The Legend of Hei II hangs on the wall. The Chinese animated film is set for release at about 150 theaters nationwide on November 7. The sequel takes place two years after the events in the 2019 hit The Legend of Hei.
The first film gained popularity for its fantasy world and cute characters that appealed even to those unfamiliar with Chinese culture. Its reputation spread quickly on social media. It was distributed by Tokyo-based Facewhite in partnership with another Japanese company.
Facewhite was founded in 2019 by a group of people involved in Chinese comics for smartphones and other content, with a goal of bringing Chinese content to the rest of the world. It has worked to distribute Chinese movies, which generally have few screening opportunities in Japan. The company of just 14 people also handles merchandising and licensing. At least ten companies from both China and Japan, including TV Tokyo and movie hall operator Cinema Sunshine, have invested in the company.
China's film market is enormous, with more than 90,000 screens—at least 20 times as many as in Japan. In 2025, the animated film Ne Zha 2 earned the equivalent of more than JPY 300 billion (USD 2 billion) in box-office revenue, making it the highest-grossing animated film around the world.
But the Japanese subtitled edition earned only about JPY 300 million (USD 2 million). "Chinese films lack the name recognition of Japanese or Hollywood stars and scripts, making them difficult to promote," Facewhite's An Yang said.
Past Chinese movies that succeeded in Japan, such as Hero in 2002 and Red Cliff in 2008, were live-action movies that had already gained acclaim overseas. Films made in mainland China are generally viewed as separate from those made in Hong Kong or Taiwan, even though they are all in Chinese. Moviegoers are familiar with Hong Kong stars such as Jackie Chan and Jet Li, but they are much less aware of stars who are popular in mainland China.
Chinese animated films in particular have struggled to make it to screens in Japan. The style of 3D animation popular in China does not always appeal to Japanese consumers. And while tales like "Investiture of the Gods" and "Journey to the West" are household stories in China, many Japanese are not deeply familiar with the characters that appear.
Facewhite's lineup often includes screenings of Chinese-language films without Japanese subtitles, or with English subtitles. They are shown in limited screenings of one to two weeks, often on smaller screens in theaters that seat about 80–120 people.
Their main target audience is the Chinese community in Japan, numbering more than 900,000 nationwide and with nearly 300,000 in Tokyo alone. To reach Chinese residents eager to see hit films from home, the company negotiates early access with rights holders in China and arranges screenings while the films are still showing there.
The English-subtitled version of Ne Zha 2 premiered in Japan about six weeks after its Chinese release. The high demand crashed theater websites during opening-day ticket sales. Leveraging this success, Facewhite secured cooperation from such major cinema chains as Toho and Shochiku, screening the film at 55 theaters nationwide.
Based on audience turnout, the company has extended screening runs and raised funds for subtitled or dubbed versions of films, building a track record for screenings at a growing number of theaters. More Japanese people on the street are becoming aware of such movies, and the number of fans is slowly increasing. The film White Snake: Origin, released in 2021 in Japan, featured popular idol Daisuke Sakuma as one of the voices in the Japanese dub.
"More than 90% of Chinese films' revenue still comes from within China," An said. "There are many intellectual properties unknown to the rest of the world that could be a major business opportunity."
"We'll start in Japan, then we want to expand to the rest of Asia," he said. The company has begun distribution in Southeast Asia, with branches in Malaysia and Indonesia.
This article first appeared on <a href="https://asia.nikkei.com/business/media-entertainment/chinese-anime-finds-fan-base-among-1m-diaspora-in-japan">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>.

Chinese anime finds fanbase among diaspora in Japan

Entertainment

Video

Creative

Content

Creator Economy

Japan

… on.
<h3>36Kr: Which core capabilities best express iMile’s global advantages?</h3>
RH: Three things. First, global resource coordination. Compliance and digital-operations experience gained in the Middle East directly support expansion in LATAM and Europe. Our legal and customer service teams in Mexico can cover all Spanish-speaking markets, enabling new projects in Colombia and El Salvador to launch quickly.
Second, dynamic organizational design. This year we formed a LATAM regional division, granting greater decision power to country managers while sharing talent, training, and tech resources. That has doubled our expansion speed compared with initial forecasts.
Third, rhythm control. We began researching Europe in 2022 but launched only after meeting GDPR and labor-law requirements. In Italy, it took two years to roll out from preparation. That patience is essential to sustainable globalization.
<h3>36Kr: Operating across the Middle East, LATAM, and Europe must bring cultural friction. How have you navigated that?</h3>
RH: Cultural conflict arises when people refuse to see from others’ perspectives, a loss of respect. We have been through several phases: first hiring entirely local teams, which led to poor execution, then sending mostly expatriates, which caused communication gaps. The best outcome comes from hybrid teams.
Effective information flow is key. Our country heads are ethnically Chinese or have Chinese heritage, while the operations, human resources, and finance leads are locals. As long as those three leaders fully grasp the goals, execution stays strong.
<h3>36Kr: What are the pain points of cross-cultural management?</h3>
RH: Three levels:
<ol>
<li aria-level="1">First, communication. In LATAM and other non-English markets, managers speak Spanish or Portuguese. Translation gaps often mean everyone thinks they understand, but execution shows otherwise.</li>
<li aria-level="1">Second, the sense of belonging. If top management is entirely expatriate, locals feel detached and lack commitment.</li>
<li aria-level="1">Third, iteration gaps. Operational know-how must flow from local teams back to headquarters and return as refined processes. Cultural and distance gaps slow this iteration.</li>
</ol>
<h3>36Kr: How do you assign decision rights?</h3>
RH: By moving decisions forward. Without that, overseas operations stall. Some firms require reports on every minor issue, which kills speed. Our country heads hold more than 90% local authority, and only exceptional items go to headquarters.
A mature country head might not speak to me for a month, yet I can see performance instantly through our system data.
<h3>36Kr: In your view, what defines a truly globalized company?</h3>
RH: First, global mobility of talent: a Polish employee can work in Africa seamlessly because management language and decision processes are standardized.
Second, delegated decision-making: local authority paired with strong oversight through internal and external audits.
Third, real localization: local senior talent must be part of decision-making.
<h3>36Kr: iMile now operates in 30 countries with 4,000 employees, excluding warehouse operators, drivers, and contractors. What is next?</h3>
RH: We will keep doubling down on technology and localization, aiming to cover 100 countries in the next five years.
<h3>36Kr: And the endgame for iMile?</h3>
RH: We have reached a pivotal stage, consolidating regional competitive strengths. Real advantage comes from either unique capabilities or staying half a step ahead in iteration.
We aim to be a truly global logistics technology enterprise, not just a business expansion story. Through technology-driven integration with each local ecosystem, we deliver standardized, high-quality services worldwide. In eight years, we have built our tech and management architecture from zero. Now it is time to let that system scale across more countries, achieving a true global network effect.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3513074986752905">article</a> was written by Ren Qian for 36Kr.

How iMile cracked Mexico’s logistics, and what it means for global e-commerce

On-demand Services

E-commerce

Logistics

Latin America

Middle East

… Mexico, Chile, Colombia, Peru, and Brazil.
<h3>CloudMile raises USD 20 million to expand ops in Southeast Asia</h3>
CloudMile, an AI tech firm, has raised USD 20 million in a round led by Nexus CVC, with participation from TFB Capital, the venture arm of Taipei Fubon Bank. The investment will support the company’s expansion in Southeast Asia and accelerate adoption of its agentic AI solutions.
CloudMile’s technology helps enterprises optimize cloud operations. Its products are deployed across the finance, manufacturing, retail, and education sectors in markets including Singapore, Malaysia, Indonesia, and the Philippines.
With this funding, CloudMile will continue investing in R&amp;D and expanding its regional presence through new centers in Malaysia and Singapore to meet growing demand for AI-driven digital transformation.
<h3>Recent deals completed in China:</h3>
<ul>
<li aria-level="1">Agibot, one of China’s leading <a href="/industry/embodied-intelligence">embodied intelligence</a> companies, has raised a nine-figure RMB sum in a Series B funding round through its medtech subsidiary. The round was led by MX Capital, with participation from Oriza Holdings, Lichen Investment, and Nantong Investment Management. Existing backers Cenova Capital and Oriza Seed also took part. The company said it will use the proceeds to advance global commercialization, iterate its surgical robot product line, and upgrade its core technology platform. —<a href="https://36kr.com/p/3537076934744962">36Kr</a></li>
<li aria-level="1"><a href="http://visianaero.cn/">Vision Aeronautics</a>, a developer of low-altitude air mobility solutions, has completed consecutive angel and seed rounds, raising a combined total of nearly RMB 100 million (USD 14 million). The company plans to use the funding to prepare for flight tests and airworthiness certification of its Vector 5 eVTOL (electric vertical takeoff and landing) aircraft, build a new production line in the Yangtze River Delta region, and develop hybrid and next-generation models. —<a href="https://36kr.com/p/3536726732921728">36Kr</a></li>
<li aria-level="1"><a href="http://www.vast3d.ai/">Vast</a>, a Beijing-based 3D generative model developer, has raised an eight-figure USD sum in a pre-Series A+ round led by the Beijing Artificial Intelligence Industry Investment Fund, with participation from Eminence Ventures. The company said the new funding will support its next stage of product and technology development. Founder Song Yachen said Vast is rethinking the approach to AI-generated 3D content, focusing on tools tailored for professional creator ecosystems rather than user-generated content. —<a href="https://36kr.com/p/3531922624666754">36Kr</a></li>
<li aria-level="1"><a href="https://www.nullht.com/">Null Hypothesis</a>, an AI and medtech startup, has secured nearly RMB 100 million in a Series A round. Investors include Lotus Lake Capital, Growth Investment, and Shanghai Zheyu Technology, with existing shareholder Oriza Seed oversubscribing. The company is developing agentic AI solutions to enhance communication between pharmaceutical companies and physicians. VFast Capital acted as the financial advisor. —<a href="https://36kr.com/p/3529624885517184">36Kr</a></li>
<li aria-level="1">StarryTech, an advanced materials company, has raised an eight-figure RMB sum in a second extension of its angel financing round. The round saw investment from Xiamen Hi-tech VC and Icon Group, with Six Sigma Capital serving as the financial advisor. The company plans to use the proceeds to strengthen R&amp;D, enhance production lines, and expand manufacturing capacity. StarryTech specializes in nanosilicon particle technology below ten nanometers in precision, enabling high-performance silicon-based anode materials for lithium batteries. —<a href="https://36kr.com/p/3529705647479943">36Kr</a></li>
</ul>
whereRelatedArticle
<h3>Augmentus, Sedifly, Grab, and more made recent headlines:</h3>
<ul>
<li aria-level="1"><a href="https://www.augmentus.tech/">Augmentus</a>, a Singapore-based robotics developer, secured an undisclosed investment from Applied Ventures, the venture capital arm of Applied Materials.</li>
<li aria-level="1">Sedifly, a Singapore-based edtech startup, raised a six-figure USD sum in an oversubscribed pre-seed round backed by angel investors and supported by an equity-free grant from Enterprise Singapore.</li>
<li aria-level="1">Grab, operator of the Southeast Asian superapp, invested an undisclosed amount in May Mobility, a US-based autonomous vehicle (AV) company, as part of a multiyear partnership to introduce AV services across Southeast Asia.</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>.
<style>.addcaption{font-size:14px!important;line-height:20px!important;color:inherit;padding-top:8px;border-top:1px solid #e8e8e8}</style>

Deals in brief: Accel invests in Vite+ maker VoidZero, Rolo Robotics and Videotto raise seed funding, Coolmate completes Series C round, and more

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Singapore

Malaysia

Vietnam

Australia

Southeast Asia

Oceania

… experimentation in Hong Kong offers a proving ground for practical deployment at scale.
Setting its pilots aside, Hong Kong serves as a central node in Ant’s international operations where OceanBase, its distributed database provider, operates alongside Ant Digital Technologies and Ant International. From its early role facilitating cross-border Alipay payments for travelers, the city has evolved into what Jing called Ant’s “critical globalization anchor,” linking the company’s financial services with its broader digital technology infrastructure.
The alignment between Hong Kong’s financial regulatory direction and Ant’s global strategy is strategic. By situating major initiatives in the jurisdiction, Ant sees an opportunity to scale cross-border products under clear supervisory frameworks, an advantage as other markets continue to debate rules for digital assets and AI-driven finance.
This article was published in partnership with <a href="https://www.antglobal.com/">Ant International</a>.

In Hong Kong, Ant Group finds an anchor for its global fintech ambitions

Ant Group

Payments

Digital Banks

China continues to expand its offshore wind power capacity, backed by Beijing's renewable energy push and low prices for homegrown turbines, even as some countries scale down installation plans amid inflation.
China already accounts for 50% of existing offshore wind power capacity and is set to claim 54% of new installations through 2030.
Dongfang Electric installed a 26-megawatt wind turbine—billed as the world's largest and most powerful—at a test facility in Shandong this August. Designed and built in China, the turbine stands 300 meters tall, including the blades. The plan is to sell it for offshore use after verifying generation efficiency and durability.
"One turbine can generate 100 million kilowatt-hours of electricity annually, enough to meet the demand of approximately 55,000 households," a Dongfang Electric representative said.
Other Chinese manufacturers such as Goldwind and Shanghai Electric also plan to develop 20 MW turbines as the country starts overtaking Western manufacturers that had held a technological lead.
The robust growth of the nation's offshore wind power market enables Chinese manufacturers to continue investing heavily in R&amp;D.
China is expected to account for a total of 72 gigawatts, or 54%, of the offshore wind power capacity to be installed globally from 2025 through 2030, shows data compiled by Nikkei based on forecasts from US research firm BloombergNEF. This is nearly quintuple the 15 GW of the UK, which is in second place.
China already hosts 50% of the cumulative installed offshore wind power capacity, followed by the UK at 19% and Germany at 11%, according to data compiled by the Global Wind Energy Council.
While the US and Germany are expected to see a decline in market share through 2030 due to inflation and interest rate hikes leading to companies withdrawing from the business, as well as unsuccessful bids, Chinese manufacturers are projected to maintain a majority share.
President Xi Jinping, who in 2020 set a goal of having China's carbon dioxide emissions peak by 2030, is working to foster the renewable energy industry. Renewable energy expanded rapidly in the country thanks to a feed-in tariff system that lasted until 2021, where provincial governments designated offshore wind power development areas and allowed operators to develop them, purchasing the generated electricity at high prices.
The government also introduced a renewable portfolio standard system in 2020, mandating that companies in industries such as steel and cement purchase a certain amount of renewable energy from power generation companies. Although the required ratio of renewable energy for these companies, many of them state-owned, is getting stricter every year, most are meeting the targets.
Suitable Chinese locations for solar and onshore wind power generation are largely in such inland areas as Inner Mongolia, while major electricity-consuming areas are along the coast. For companies in coastal areas, offshore wind farms are a critical source of power.
"Although the cost of offshore wind power generation is still higher compared with other renewable energy sources, power purchase agreements are being signed, mainly in the south, where cloud computing and artificial intelligence industries are concentrated," said Go Nakanishi, CEO of Chinese energy research company Integral.
In line with market growth, China's wind turbine manufacturers have boosted production and scaled up their turbines, reducing costs. Through making each turbine larger, the number of turbines installed at a wind farm can be reduced, and construction and maintenance costs lowered.
But giant wind turbines require building testing equipment for such key components as blades and nacelles from scratch, resulting in significant investment costs.
Prices of Chinese-made wind turbines fell 60% or so in the five years through the first half of 2025, while power generation costs continue to decline, according to BloombergNEF. Meanwhile, the global average has risen 40% or so because of inflation. In China, the impact of rising materials costs is mitigated by the deflationary economy.
Chinese manufacturers dominate the top four spots in global turbine market share and are starting to look toward overseas markets, where competition is less intense. Goldwind, the world leader, has begun operations at a plant in Brazil to expand into South America, while second-ranked Envision has decided to build a third Indian factory.
Western countries are increasingly wary of the influx of Chinese turbines. The European Union has launched an investigation into companies that allegedly received Chinese subsidies, distorting competition. US President Donald Trump's administration announced in August that it had begun an investigation into possibly imposing additional tariffs on wind turbines, with an eye on Chinese companies.
But some European power generation companies said they have no choice but to use inexpensive Chinese-made turbines to ensure profitability.
This article first appeared on <a href="https://asia.nikkei.com/business/energy/china-to-account-for-half-of-new-offshore-wind-capacity-through-2030">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 to account for half of new offshore wind capacity through 2030

Energy

Sustainability

… Although the company claimed that new signings exceeded terminations, insiders said smaller distributors are being systematically phased out.
Distributor Chen Li, who managed an eastern territory in China for more than 30 years with annual sales above RMB 10 million (USD 1.4 million), said her county was told only one distributor could remain. “The regional manager demanded RMB 5 million (USD 700,000) as a renewal deposit. The other distributor quit,” she said.
Even participation in Wahaha’s annual national distributor conference now requires more than RMB 10 million in yearly sales, a stark shift from Zong Qinghou’s inclusive tradition.
Zong also imposed strict key performance indicators on frontline managers, including visit quotas, sales growth targets, and demotions to “merchandiser” status for missed goals.
By comparison, competitors such as Coca-Cola directly manage their top 20% of outlets, while Nongfu Spring splits compensation between distributors (base salary) and the company (commissions), creating tighter oversight and better-trained sales teams.
To regain control, Wahaha has begun investing in direct infrastructure. In December 2023, it announced tenders for 100,000 smart coolers, signaling an effort to reclaim end-channel visibility.
But overhauling a 30-year-old distribution network overnight is a formidable challenge. “It’s a huge test of her execution and endurance,” one former employee said.
<h3>The perils of speed</h3>
“She moves too fast,” a former Wahaha staffer said. “She thinks she can fix everything at once. Zong Qinghou would never have shaken the foundation like this.”
Under her new sales policy, distributors and sales teams were required to post month-on-month growth. That was almost impossible, especially since early 2024 saw an emotional surge in Wahaha sales after Zong Qinghou’s death and a consumer backlash against Nongfu Spring.
“Even state-run cafeterias and government units swapped out Nongfu for Wahaha,” one entrepreneur said. “It was patriotic consumption.”
But the boom faded quickly. When sales failed to surpass last year’s record, distributors faced penalties. “Miss one month, you get a warning. Miss two, your account is closed,” said Chen Li, who ultimately lost her 30-year franchise in July.
Her inventory remains uncollected, and her regional manager was later dismissed for underperformance. Even more puzzling, her territory was reassigned to a small husband-and-wife wholesaler “with no warehouse, no trucks, no team,” she said.
Wahaha’s aggressive distributor purge has since spread nationwide. The company reportedly reduced its 6,000-strong distributor network to about 3,000. Internal data reviewed by 36Kr shows that in September, 58 distributors were terminated, 412 received warnings, and more than 250 saw sales drop by over 50%.
Sales managers have also been hit hard. “Miss one month’s target, and you’re downgraded to merchandiser pay,” said former manager Wu Ming, whose monthly income dropped from nearly RMB 20,000 (USD 2,800) to a few hundred RMB. Under Zong Qinghou, evaluations were annual, not monthly.
By midyear, labor unrest had become widespread. Roughly 6,000 employees whose contracts were moved to Hongsheng Group companies staged repeated protests at Wahaha’s headquarters in Xiaoshan. Videos obtained by 36Kr show senior executives Yan Xuefeng and Zhu Lidan trying to calm the crowds as Zong Fuli sat inside, expressionless.
The turmoil has taken a toll. According to Nielsen data, in the first half of 2025, Wahaha’s “AD” calcium milk sales in East China fell 37% year-on-year, while its bottled water market share declined from 18% to 12%.
<h3>Who built Wahaha?</h3>
Was Wahaha’s rise to a powerhouse the achievement of one person?
Under Zong Qinghou, it was a symphony of shared interests with employees, distributors, and the government all working in alignment.
At the brand’s 20th anniversary celebration in 2007, more than 5,000 employees, 3,000 distributors and suppliers, and 200 government officials attended. The city government presented Zong with a special award recognizing his contributions.
Two years later, during the Wahaha-Danone dispute, local authorities once again sided with Zong, publicly opposing what they called “foreign hostile takeovers of national brands.” Even the Ministry of Commerce intervened to mediate.
November, the time of Wahaha’s annual national distributor conference, has always been crucial. It’s when deposits are collected and new contracts are signed.
Zong Qinghou viewed it as the company’s symbolic “opening bell.” Even two months before his death in late 2023, he personally attended the event.
But this November looks far less certain.
Insiders told 36Kr that Hongsheng began urging distributors to pay deposits as early as September. Yet as of October 17, only one market had met its quota. “With July and August sales falling, a strong November is already impossible,” one source said.
A lack of renewals poses enormous risk. Hongsheng’s market division reportedly issued a notice requiring all deposits to be paid by October 28, with contracts explicitly confirming the use of the Wahaha brand and affirming that the November conference would proceed as planned.
For distributors, the message should be reassuring, but skepticism runs deep. “Too many policy swings, too much money at stake,” one said. “No one dares move first.”
Another insider said Zong had even considered halting all production in November and sending unpaid workers to confront the group, underscoring how tense the situation had become.
Now, negotiations revolve around one pragmatic question: if Hongsheng continues producing Wahaha-branded drinks, how will profits be divided?
For now, the fiery trademark dispute has been set aside. Because before anything else, Wahaha must simply survive. Only then will the rest of the battle matter.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3522581139233669">article</a> was written by Zhong Yixuan for 36Kr.

Who owns Wahaha? Inside the power struggle reshaping China’s biggest beverage empire

… srcset="https://console.kr-asia.com/wp-content/uploads/2025/11/FBOE-SWITCH-2025-TransGuard.jpg 1920w, https://console.kr-asia.com/wp-content/uploads/2025/11/FBOE-SWITCH-2025-TransGuard-720x480.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2025/11/FBOE-SWITCH-2025-TransGuard-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/11/FBOE-SWITCH-2025-TransGuard-768x512.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/11/FBOE-SWITCH-2025-TransGuard-1536x1024.jpg 1536w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-158061" class="wp-caption-text">A snapshot of a TransGuard demo showcased at FBOE’s booth during SWITCH 2025. Photo by KrASIA.</figcaption></figure>
Speaking with KrASIA, An said that FBOE’s inaugural participation in SWITCH through the KISED-led pavilion stemmed from its interest in the Singapore market, citing the country’s robust marine and shipping sectors. Singapore is widely recognized as the world’s leading logistics hub, according to the <a href="https://lpi.worldbank.org/international/global">World Bank’s 2023 Logistics Performance Index (LPI)</a>. The index evaluates factors such as infrastructure quality, logistics competence, and tracking and tracing capabilities. As a global leader, Singapore’s freight and logistics market continues to expand, with <a href="https://www.mordorintelligence.com/industry-reports/singapore-freight-and-logistics-market">Mordor Intelligence</a> projecting a compound annual growth rate of 6.3% between 2025–2030, expanding from about USD 24.5 billion to USD 33.3 billion by the end of the decade.
An added that FBOE received strong interest from SWITCH visitors, which will inform the company’s analysis of Singapore’s market potential as it ponders international expansion. This follows a recent exploration in Japan, where FBOE signed a memorandum of understanding with an undisclosed concrete company.
<figure id="attachment_158060" aria-describedby="caption-attachment-158060" style="width: 1920px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-158060" src="https://console.kr-asia.com/wp-content/uploads/2025/11/FBOE-SWITCH-2025-Sungmoon-An.jpg" alt="Photo of Sungmoon An, CEO of FBOE, during an interview on October 29 at SWITCH 2025." width="1920" height="1280" srcset="https://console.kr-asia.com/wp-content/uploads/2025/11/FBOE-SWITCH-2025-Sungmoon-An.jpg 1920w, https://console.kr-asia.com/wp-content/uploads/2025/11/FBOE-SWITCH-2025-Sungmoon-An-720x480.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2025/11/FBOE-SWITCH-2025-Sungmoon-An-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/11/FBOE-SWITCH-2025-Sungmoon-An-768x512.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/11/FBOE-SWITCH-2025-Sungmoon-An-1536x1024.jpg 1536w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-158060" class="wp-caption-text">Photo of Sungmoon An, CEO of FBOE, during an interview on October 29 at SWITCH 2025. Photo by KrASIA.</figcaption></figure>
<h3>South Korean startups deepen interest in Singapore’s market</h3>
Deeplant and FBOE are just two of 31 South Korean startups that exhibited at this year’s SWITCH as part of a program organized by KISED. The initiative was carried out in collaboration with the K-Startup Center and supporting bodies including the Busan Startup Investment Agency, Daejeon Technopark, the Pohang Technopark Foundation, and Startup KAIST.
In a memo shared with KrASIA, KISED noted that this year’s SWITCH contingent was its largest since 2022, yet it represents only a snapshot of the growing interest among South Korean startups in Singapore. Over the past five years, KISED said, more than 100 South Korean companies have entered the Singapore market. The organization attributed this trend to Singapore’s appeal as a global business hub and the mounting pressure on South Korean startups to expand overseas amid intensifying domestic competition.
The organization also highlighted South Korea’s strong R&amp;D capabilities and its track record of producing startups agile enough to identify and seize international market opportunities.
SWITCH is one of several international events that KISED supports to help startups connect with potential partners and investors.
Deeplant’s Choi spoke positively of KISED’s role: “KISED’s program is very helpful, and they are getting better,” he said. “This time, I was able to meet a lot of [investors] and have one-on-one meetups, so I think they are trying very hard to help us, support us.”
Building on its participation in SWITCH, KISED plans to further expand its activities in Southeast Asia. Ultimately, its goal is to position Singapore as a launchpad for South Korean startups entering the region while fostering mutual growth between Southeast Asia and South Korea’s innovation ecosystems.
This article was published in partnership with the <a href="https://www.kised.or.kr/_eng/">Korea Institute of Startup and Entrepreneurship Development (KISED)</a>.

At SWITCH 2025, Singapore stands out as South Korea’s new startup gateway

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