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… innovation with practical deployment, citing the relevance of its technology to factory operations. The company plans to support Casbot with component supply and assembly resources to help scale production while maintaining cost and quality control. It also intends to integrate Casbot into its smart manufacturing operations.
Tianjin Jiayi expressed similar views, emphasizing Casbot’s technical capabilities in mining and its ability to turn engineering expertise into sustainable business growth. “In a crowded field, we choose to back teams that truly understand both technology and the business fundamentals behind it,” the company said.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3348658418310020">article</a> was written by Huang Nan for 36Kr.

China’s Casbot bags funding to build humanoid bots for tough industrial work

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Taking into account various factors, including market dynamics and operational performance, Damai Entertainment (formerly Alibaba Pictures) has reportedly decided to shut down Koitake, a wholly owned subsidiary. The company stated it would handle post-closure matters appropriately.
According to sources familiar with the situation, one key reason for the closure was underperformance. Koitake’s revenue contribution was characterized as minimal compared to the broader operations of <a href="/company/alibaba">Alibaba’s</a> Hujing Digital Media and Entertainment Group.
As reported by 36Kr, the shutdown and associated layoffs proceeded swiftly. Most of the team was notified on the same day, with only a few staff members retained for transitional tasks. Their long-term status has yet to be determined.
Koitake and Alifish were the two main business lines derived from intellectual property under Damai. Koitake focused on designer toys based on the company’s IP portfolio, utilizing both proprietary and distribution channels. In contrast, Alifish functions as a transactional platform centered on IP operations, licensing, and commercialization.
In the years prior to its closure, Koitake invested heavily in original IP development and merchandise tied to popular media. Over the recent Dragon Boat Festival holiday, the brand even participated in the Toy Heart Expo, a well-known designer toy convention.
Its bestselling product was a blind box series based on Empresses in the Palace, a historical drama. When the line launched in 2022, it consistently ranked among the top ten in Tmall’s blind box sales.
Outside of media collaborations, Koitake developed more than ten original designer toy IPs, based on publicly available information. However, aside from the Empresses in the Palace collection, none achieved meaningful commercial traction.
In 2024, Koitake generated less than RMB 500 million (USD 70 million) in revenue. In comparison, Hujing recorded RMB 22.267 billion (USD 3.1 billion) in Alibaba’s fiscal year 2025 earnings report, with Koitake accounting for just 2% of total revenue.
The closure also reflects broader restructuring within Hujing.
On May 21, Alibaba rebranded its digital media and entertainment arm as Hujing, with Alibaba Pictures renamed Damai. In an internal memo, the company described the move as part of its broader “return-to-roots” strategy and framed it as a way to “start anew.”
This pivot reflects a gradual shift in focus from traditional film ventures toward higher-margin areas, such as live events and IP merchandise.
In fiscal 2025, Alibaba Pictures posted RMB 6.702 billion (USD 938.3 million) in revenue, up 33.1% year-on-year. Of this, Damai contributed RMB 2.057 billion (USD 288 million), a 236% increase, while IP merchandise brought in RMB 1.433 billion (USD 200.6 million), up 73% year-on-year. Together, these two segments accounted for more than half of the company’s total revenue and were key growth drivers.
The boom is no accident. Hujing’s strategy appears calibrated to two industry trends: a stagnant film sector and a burgeoning designer toy market led by players like Pop Mart.
In this context, shuttering Koitake may be viewed as a pragmatic move that reflects the company’s focus on streamlining operations. After all, while many entertainment firms want a piece of the designer toy pie, not every brand can be the next Pop Mart.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3352666937406084">article</a> was written by Lan Jie for 36Kr.

Alibaba dials back designer toy ambitions, shuts Koitake to sharpen focus

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… sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-155036" class="wp-caption-text">Lululemon brought together ten women (pictured) from its global ambassador collective, representing the Asia Pacific and North America, to run a six-day ultramarathon as part of its Further initiative. Photo and header photo courtesy of Lululemon.</figcaption></figure>
<h3>36Kr: Will athlete co-creation continue to play a role in future development?</h3>
CM: Absolutely. It’s part of our brand DNA. Like I said, everything we do starts with listening. And we have deep, longstanding partnerships with elite athlete ambassadors across the world.
Their voices are involved at every stage: identifying unmet needs, setting design goals, testing early versions, giving feedback. With the Go Further bra, we formed a core co-creation team of top-tier women athletes who push boundaries.
This kind of collaboration isn’t a special case, it’s built into our entire process. Testing products in real-world conditions is the only way we can know if an innovation delivers on its promise. It’s how we work on every product.
<h3>36Kr: How do these use cases translate to everyday consumers?</h3>
CM: The lessons apply directly. We take in all the feedback and refine the product with the athlete in mind, but it benefits everyone.
The six-day ultramarathon pushed our team to think through every detail, such as how we could add new tech, materials, and structure.
Because when you're in an extreme event, even a small discomfort can snowball under pressure. That forces us to fix every unmet need, every rough edge. We design under a microscope.
And when something passes that kind of stress test, it raises the bar for everyday wear. If it’s comfortable after six days of nonstop running, it’ll feel great on your daily run, too.
<h3>36Kr: Why sports bras?</h3>
CM: Lululemon has been innovating in this space since day one. Supporting women has always been core to our mission.
Even before I joined the team over a decade ago, the company had already been investing in this category. It’s a longstanding commitment, and we believe it has made us a real leader in the field.
In the past ten years, we’ve deepened our focus on breast biomechanics, looking beyond traditional ideas of support to develop entirely new frameworks using advanced science.
The Go Further bra took over two years of development. We started designing it a year ahead of the Further ultramarathon in March 2024, and launched it commercially soon after the race.
<h3>36Kr: Who is the Go Further bra designed for?</h3>
CM: It’s designed for running, specifically high-impact support. But it works for runners at any level, whether you're just starting out or competing professionally.
<h3>36Kr: Is it already in production?</h3>
CM: Yes, it’s in full production and on the market now. You could say it’s the first “seed” from the Further product line.
During that event, we developed 36 innovation pieces for the athletes. Now, we’re thrilled to bring one of them to the public. Our team is already discussing how to roll it out across more regions, with new colors and expanded designs.
<h3>36Kr: With so many product launches, what lessons have you taken from the hits and misses?</h3>
CM: We’re always asking: how can we improve what we have? What new products would customers love? How can we truly stand out?
For the Further project, we originally planned to design just one outfit per athlete. But after listening closely and forecasting their real needs, we realized that wasn’t nearly enough.
Nobody had ever done a six-day race like this. We had to create a full system of gear, not just individual pieces. That meant going from one item to 36, each one designed to meet a specific, real-world demand.
That pivot from single product to complete solution turned out to be one of the most impactful decisions we made.
<h3>36Kr: Are consumer preferences in Asia different from those in the West?</h3>
CM: In my experience, people everywhere want to feel good in their clothes. That’s universal.
We’re always expanding our product offerings to ensure better fit, style, and comfort. Every product we release is designed with those values in mind.
<h3>36Kr: Has Lululemon’s growth in China created new R&amp;D needs?</h3>
CM: Absolutely. One major area is fit. Proper tailoring is key to comfort and performance.
That’s why we introduced our Asia Fit line, with sizing and cuts specifically designed for local body types. It’s a reflection of our effort to meet regional needs and offer more inclusive sizing options.
When we hear more voices from different markets, we gain more opportunities to innovate.
whereRelatedArticle
<h3>36Kr: From your perspective, what’s the biggest R&amp;D challenge right now?</h3>
CM: The market’s always evolving, and so are customer expectations. Our job is to meet needs before they are articulated. That’s the heart of innovation.
Consumers want products that deliver on function, style, and feel. There’s so much potential left to explore.
<h3>36Kr: How do you keep your creative edge?</h3>
CM: Curiosity. We keep asking ourselves: how can we exceed expectations? How can we deliver experiences that no one’s imagined yet?
That’s what drives us.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3338774321377796">article</a> was written by Li Xiaoxia for 36Kr.

Comfort and performance: Lululemon redesigns sports bras to help women go further

Asian insurers and other businesses have been helping strengthen Asian currencies in recent months by buying more protection against US dollar weakness.
These investors, who have large holdings of US bonds and other securities, had little urgency to hedge when the dollar was strong. But they are now increasing their hedge ratios to protect against a fall in the greenback. This typically involves selling the dollar for local currencies, which appreciates the latter's value.
"The Taiwanese dollar's surprise rally in early May serves as a reminder to those hoarding US dollars to manage their exposure," said Christopher Wong, a forex strategist at OCBC in Singapore.
"We believe Asian currencies can continue to appreciate so long as US dollar softness persists, owing to US-centric risks, and global growth outside the US still holds up," Wong said.
East Asian currencies have notched noticeable gains. Those of Taiwan, Japan, and South Korea have appreciated between 8% and 11% this year.
In May, a Taiwanese media report that the US would demand a stronger Taiwan dollar in a trade deal prompted the island's cash-rich corporations to convert their dollar holdings and life insurance companies to increase hedge ratios. Taiwanese authorities denied such a trade deal.
The Taiwan dollar surged a near record 10% in two business days <a title="" href="https://asia.nikkei.com/Business/Markets/Currencies/Taiwan-dollar-rises-at-fastest-pace-in-decades-threatening-tech-profits" target="_blank" rel="noopener">in early May</a>, underscoring a broader diversification away from the US and highlighting Asia's large dollar assets.
Taiwan's holdings of US stocks and US bonds are equivalent to more than 90% of its gross domestic product, followed by Japan at around 60% and Australia and South Korea, both with holdings exceeding 30%, according to Bank of America Global Research.
The "diversification away from US dollar assets" will be a key theme that will continue to drive most Asian currency markets over the coming months, Gek Teng Khoo, a strategist at Morgan Stanley, said in a report. He said that he expects Asian currencies, excluding the Japanese yen, to appreciate by up to another 3% over the next 12 months.
Currency hedging aims to protect assets from fluctuations in exchange rates. Hedging costs are influenced by short-term interest rate differentials between currencies. The US federal funds rate target range remains 4.25–4.50%. This is higher than South Korea's 2.5% interest rate, Taiwan's 2% and Japan's 0.5%. Rate differentials between the US and Asia mean hedging costs remain high.
"While [Taiwanese] life insurers have some flexibility to maneuver their hedging ratios within their mandates, broader changes don't happen over a week or so," said Chidu Narayanan, head of macro strategy for Asia Pacific at Wells Fargo in Singapore. But "it is another factor that will be very important to watch going forward, especially in Northeast Asia foreign exchange."
While no other country "comes close" to Taiwan's scale of US assets, Japan, Australia, and South Korea also have "meaningful" holdings, said Bank of America Securities strategists in a report. "Portfolio hedge ratio dynamics will be key for these countries, although they are unlikely to lead to the kind of disorderly forex adjustment observed in the Taiwanese dollar."
Japan is the largest overseas holder of US Treasuries, with USD 1.1 trillion as of March. Japanese life insurance companies are major holders of US debt. Currency hedge ratios at large Japanese insurers are at a "historically low level" of around 30%, said Kenta Tadaide, chief FX strategist at Daiwa Securities, in a note.
The yen's appreciation to 140 to the dollar could prompt exporters to hedge their exposure, while causing life insurance companies to buy US assets, the BofA Securities strategists said. The yen traded in the mid-145 level as of June 13.
Hedging costs using currency forwards, which lock in future exchange rates, remain "stubbornly high" for Japanese investors, said an official from an international bank in Japan. This has led investors to prefer currency option-based hedging, which gives investors the alternative to use a set exchange rate in the future, the official said.
Exporters' conversion of their dollar-based export proceeds into local currency would help strengthen Asian currencies, Morgan Stanley's Khoo said.
Onshore foreign currency deposits in Asia's emerging market economies have increased across the board over the past three years, Khoo said. He added that Thailand's foreign currency deposits have doubled over the past three years, followed by Malaysia (34%) and the Philippines (31%).
Most emerging market Asian investors are expected to <a title="" href="https://asia.nikkei.com/Business/Markets/Tariff-swings-prompt-repositioning-in-Asian-assets" target="_blank" rel="noopener">reallocate their dollar investments</a> into "other large, liquid markets like Japan" rather than repatriate to local <a title="" href="https://asia.nikkei.com/Business/Markets" target="_blank" rel="noopener">markets</a>, Khoo said.
While structural diversification away from the US is already in motion, the pace of change is expected to be gradual.
"It's very hard to find an immediate alternative for the entirety of their dollar exposure, so we don't see dramatic reductions happening," Wells Fargo's Narayanan said. "That said, we expect a slow reduction of overweight US dollar investment positions."
This article first appeared on <a href="https://asia.nikkei.com/Business/Markets/Trading-Asia/Asia-s-dollar-hedging-seen-boosting-regional-currencies">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>.

Asia's dollar hedging seen boosting regional currencies

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Wu Dezhou, originally from Ningde, Fujian, embodies the resilience often associated with the province’s entrepreneurial culture. Over the past decade, he has moved from leading <a href="/company/huawei">Huawei’s</a> Honor product line to serving as vice president of hardware R&amp;D at Smartisan, and later as president of Newstone Lab at <a href="/company/bytedance">ByteDance</a>. But through each professional chapter, the idea of launching his own venture never left him.
In 2022, Wu left ByteDance to start <a href="https://www.arknovv.com/">ARknovv</a>, a company developing smart glasses. The move placed him among a growing group of Chinese entrepreneurs, among them longtime collaborator Luo Yonghao, chasing what many believe could be the next frontier in consumer tech.
Wu is perhaps best known for his time at Smartisan, a brand that hasn’t released a phone in nearly five years but still garners nostalgic comments on his Weibo posts. That experience, he said, helped shape his entrepreneurial instincts. At Smartisan, he learned how to build products with limited capital, manage investor expectations, and balance idealism with pragmatism.
When Wu sat down for this interview with 36Kr, he was dressed in a simple blue cycling shirt. He recently picked up cycling to better understand his user base and now rides daily. The habit has not only slimmed his figure, but also inspired a fitness trend among his company’s product team.
<figure id="attachment_154995" aria-describedby="caption-attachment-154995" style="width: 1920px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-154995" src="https://console.kr-asia.com/wp-content/uploads/2025/06/ARknovv-Wu-Dezhou.jpg" alt="Photo of Wu Dezhou, founder and CEO of ARknovv." width="1920" height="1280" srcset="https://console.kr-asia.com/wp-content/uploads/2025/06/ARknovv-Wu-Dezhou.jpg 1920w, https://console.kr-asia.com/wp-content/uploads/2025/06/ARknovv-Wu-Dezhou-720x480.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2025/06/ARknovv-Wu-Dezhou-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/06/ARknovv-Wu-Dezhou-768x512.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/06/ARknovv-Wu-Dezhou-1536x1024.jpg 1536w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-154995" class="wp-caption-text">Photo of Wu Dezhou, founder and CEO of ARknovv. Photo source: ARknovv via 36Kr.</figcaption></figure>
More than a pastime, cycling is the main use case for BleeqUp, ARknovv’s newly launched sub-brand.
Unlike companies like RayNeo, Sharge, or Rokid that are building smart glasses for general use, BleeqUp focuses on vertical integration in sports. Its first product, the BleeqUp Ranger, is an <a href="/industry/ai">artificial intelligence</a>-powered pair of sport glasses designed for outdoor activities like cycling and hiking. It’s set to launch overseas at the end of June.
From afar, the BleeqUp Ranger looks like a typical pair of cycling sunglasses. But several design choices distinguish it:
<ul>
<li aria-level="1">The camera is mounted in the center, allowing for optimal recording angles, unlike side-mounted lenses common in competing products.</li>
<li aria-level="1">It uses physical buttons for capturing photos and videos, avoiding gesture controls that can falter during high-speed movement.</li>
<li aria-level="1">It features double the usual number of speakers to ensure audio clarity, even at speed.</li>
<li aria-level="1">It automatically records video during sudden braking or collisions to help with incident analysis.</li>
</ul>
Meta is reportedly working with Oakley on a similar sports eyewear product for release next year. While both are targeting comparable scenarios, BleeqUp’s product will hit the market first.
Wu is clear about what gives startups a fighting chance. General-purpose AI glasses, he argues, operate too close to smartphone territory—an area dominated by companies with vast resources, years of imaging R&amp;D, and tight control over mobile ecosystems. That’s not a fight startups can win.
In Wu’s view, AI glasses will eventually evolve into personal digital assistants. But without full integration with smartphones—for tasks like booking flights, ordering food, or taking voice notes—the experience will likely fall short.
Phone makers haven’t fully entered the space yet, but Wu is certain that when the time is right, they will dominate. “Whether they enter six months earlier or later doesn’t matter,” he said. “When this market matures, it will be a full-stack competition. And on that front, phone companies have a crushing structural advantage.”
That’s why ARknovv is focusing on vertical markets.
To illustrate, Wu points to Garmin, which has held its ground in the sports watch market despite competing offerings introduced by Apple and Huawei. Garmin’s strength lies in building deeply specialized products for elite athletes, be it divers, trail runners, or climbers. Where mass market players prioritize sleekness and general appeal, Garmin packs in functional details like waterproofing, decompression algorithms, and emergency flashlights. That, Wu said, is the model ARknovv wants to follow: to make BleeqUp the Garmin of AI glasses.
Analysts expect 2025 to be a pivotal year for AI glasses, with nearly 100 brands joining the fray. These include hardware giants like <a href="/company/xiaomi">Xiaomi</a>, Samsung, and <a href="/company/lenovo">Lenovo</a>; tech firms like ByteDance and <a href="/company/baidu">Baidu’s</a> Xiaodu; and startups such as RayNeo and Lawaken.
But Wu believes that first-mover advantage and hardware experience aren’t enough. What matters most, he said, is choosing the right niche, understanding the user deeply, and refining the product with precision.
“All of our product decisions—features, specs, everything—are made with the athlete in mind,” he said. “As we iterate, we’ll learn more and more about users. The better we get at serving them, the more likely it is that we’ll win their loyalty. That will be our moat.”
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3341154651011586">article</a> was written by Wang Fangyu for 36Kr.

The Garmin of AI glasses? ARknovv’s smart specs are built for athletes, not the masses

Artificial Intelligence

Even today, when people think of "new consumption" in China, they often recall the funding stories from the last boom cycle. Among them, the specialty coffee wave stood out. Several boutique coffee brands that combined quality and aesthetics gained attention during that period, and Algebraist Coffee was one of the few that rose with relative ease.
Founded in 2015, Algebraist became known for its distinctive coffee and minimalist store design. Between 2019–2022, it completed four funding rounds: angel investment from Wuyuan Capital in 2019, a Series A round from Genesis Capital in 2020, followed by investments from Tencent and a new round from Oriza Holdings in 2021.
Those peak years were dazzling. “At that moment, everyone ignored the cost structure and mistook brief glory for a sustainable business model,” Algebraist founder Dai Yi said. As market conditions shifted, the experience brought hard lessons. “I no longer envy others who rapidly roll out stores. Keeping our company alive and in the black each month—that’s what really matters.”
Today, as the industry is shaped by rapid expansion and price competition, and major players like <a href="/company/luckin-coffee">Luckin Coffee</a> and <a href="/company/cotti-coffee">Cotti Coffee</a> capture attention, what’s happening to those outside the spotlight?
According to 36Kr, Algebraist Coffee secured a new funding round earlier this year worth an eight-figure RMB sum, led solely by SND Financial Holdings. Its total funding now exceeds RMB 200 million (USD 28 million). Notably, the company turned a monthly profit and achieved positive cash flow starting in the third quarter of 2024, with performance improving each month. The latest funding, the company emphasized, is primarily intended to support brand and product development, rather than sustain day-to-day operations.
Looking back, timely adjustments and steady growth helped Algebraist navigate the downturn.
At the height of its expansion before the pandemic, Algebraist had signed leases and begun renovations for more than 170 directly operated stores. However, 80 of those—still unopened—were canceled due to the pandemic. “If we had gone all-in on expansion back then, we might not be here today,” Dai said. Algebraist was also among the first of the leading coffee brands to publicly announce a contraction plan.
Today, Algebraist sees itself as a “consumption upgrade for the mass market.” While maintaining its identity as a serious coffee brand, it has worked to streamline pricing, control costs, and improve supply chain efficiency. According to 36Kr, customers have praised its regularly updated product lineup. Kiri, its French cheese latte series, sold 117,000 cups in its launch month. The rose breve latte, first introduced in 2019, continues to be one of the brand’s most frequently repurchased drinks, with over 650,000 cups sold in 2024.
<figure id="attachment_154950" aria-describedby="caption-attachment-154950" style="width: 1920px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-154950" src="https://console.kr-asia.com/wp-content/uploads/2025/06/Algebraist-Coffee-Products.jpg" alt="" width="1920" height="1080" srcset="https://console.kr-asia.com/wp-content/uploads/2025/06/Algebraist-Coffee-Products.jpg 1920w, https://console.kr-asia.com/wp-content/uploads/2025/06/Algebraist-Coffee-Products-720x405.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2025/06/Algebraist-Coffee-Products-1024x576.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/06/Algebraist-Coffee-Products-768x432.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/06/Algebraist-Coffee-Products-1536x864.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2025/06/Algebraist-Coffee-Products-480x270.jpg 480w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-154950" class="wp-caption-text">Image and header image source: Algebraist Coffee via 36Kr.</figcaption></figure>
Beyond product development, Dai has focused more on operational details such as store format, staffing, and supply chain costs. “Everyone’s managing in finer detail now,” he said. “But at the core, we have to return to product quality and consumer needs. Even store location choices should start from what’s most convenient for the customer.”
In March 2024, Algebraist launched its partner entrepreneur program, shifting from a purely self-operated model to one that includes franchising. Today, the brand opens around eight to ten stores per month. Its total store count has surpassed 150, with franchise stores now forming the core of its business model. Compared to industry expansion rates, Algebraist’s approach is measured.
“We have internal thresholds and guiding principles,” Dai told 36Kr. “At this stage, we haven’t seen a clear psychological or behavioral shift in consumer sentiment that would justify a major pivot. So we’re focused on operating the brand more steadily.”
For now, the brand remains strongest in Jiangsu, Zhejiang, and Shanghai. It is exploring expansion into other regions but is doing so cautiously.
Not every specialty coffee brand from the previous wave has endured. Some have disappeared, while others are still trying to adapt amid stiff competition. In his conversation with 36Kr, Dai repeatedly returned to basic principles:
<blockquote>“Make great products. Build a solid team. Be the kind of brand more people like and trust.”</blockquote>
One thing is clear: China’s coffee market continues to expand, as demand for quality brews remains strong. For brands like Algebraist, the priority is staying in the game, waiting for the right moment to play their next hand.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3347826777660033">article</a> was written by Ren Cairu for 36Kr.

Profit over pace: Algebraist Coffee finds footing after China’s coffee shakeout

Coffee

When the lights came on, Zhang Liaoyuan, founder of Three Squirrels, appeared center stage in a tuxedo, baton in hand.
This was the scene at the ecosystem conference recently hosted by the company. After weathering years of darkness and dragging the company back from its lowest point, Zhang finally seemed at ease again.
Looking back, 2019 was a peak year: Three Squirrels had gone public on the A-share market and became the first snack brand in China to exceed RMB 10 billion (USD 1.4 billion) in annual revenue. But as Zhang alluded to before, this was also the beginning of a reversal. What followed was a four-year decline, marked by sliding revenues and shrinking profits.
As the company’s figurehead, Zhang spiraled into deep anxiety and insomnia. “Whatever I did, it felt like the wrong move,” he said.
Everything began to shift at a senior management meeting at the end of 2022. Gone were the postures of strength. After three days and nights of intense discussion, the team came to a consensus: the problem wasn’t the product, but the price. Three Squirrels was selling snacks that were simply too expensive.
This insight marked a turning point. The company pivoted to a new focus on being value-for-money, and expanded its sales footprint beyond <a href="/company/jd">JD.com</a> and Taobao to platforms like <a href="/company/douyin">Douyin</a> and <a href="/company/pinduoduo">Pinduoduo</a>. By 2024, Three Squirrels had returned to RMB 10 billion in annual revenue.
Among all the channels, Douyin played a critical role. In 2023, sales from Douyin hit RMB 1.2 billion (USD 168 million), and in the following year surged to RMB 2.2 billion (USD 308 million), surpassing the brand’s Tmall performance for the first time.
For Zhang, making Douyin work came to symbolize the company’s rebound. Yet, he insisted, it wasn’t Douyin itself that mattered most, but the methods rediscovered by the firm and the organizational discipline to execute them.
Armed with those insights, Three Squirrels is now venturing into new territory. The company has launched 33 proprietary brands spanning pet food, supplements, convenience meals, coffee, and feminine care. It’s also planning to open convenience stores and lifestyle shops.
In Zhang’s long-term vision, Three Squirrels will evolve into an integrated powerhouse of manufacturing, branding, and retail: a super supply chain company.
And if the plan fails?
“Then it fails. We’ll adjust.”
The following transcript has been edited and consolidated for brevity and clarity.
<h3>36Kr: Did Douyin play a crucial role in pulling Three Squirrels out of the downturn?</h3>
Zhang Liaoyuan (ZL): Douyin was important, but not for the reasons people think. What really mattered was that we discovered the right way to operate.
<h3>36Kr: What kind of decision-making went into that shift?</h3>
ZL: We had succeeded on Tmall and JD.com and thought of ourselves as winners. That mindset made us resistant to change. Before 2022, every attempt we made on Douyin or Pinduoduo failed. We didn’t want to adapt.
It wasn’t until we hit rock bottom that we realized we had no choice. We had to shed the old strongman mentality. The “Tao Te Ching” says the way of strength is to act from weakness. True strength lies in yielding, in aligning with the natural order.
We changed nearly everything: pricing, profit structures, organizational systems. We simplified our product development process drastically.
<h3>36Kr: What exactly were you reluctant to adapt to on Douyin and Pinduoduo?</h3>
ZL: They are dominated by white-label products with low prices. We assumed we couldn’t compete. But instead of rejecting it outright, we should’ve asked: why can others succeed where we can’t?
For example, others ship directly from factories while we had shipped everything to a warehouse first, which added costs. Their boxes cost RMB 0.8 (USD 0.11), and ours cost RMB 1 (USD 0.14). We were too proud to notice.
And for a decade-old company with thousands of employees, change is hard. Initially, we hired a consulting firm, ran constant workshops and transformation sessions, but things only got worse. Eventually, we abandoned big slogans and focused on small changes, small units, small wins. That’s when we realized we had to govern like underdogs.
<h3>36Kr: Without that downturn, would these changes have happened?</h3>
ZL: Definitely not. That’s human nature. In 2017 and 2018, we were flying high. We thought everything we did was right, but in truth, we just happened to be riding a wave.
Rock bottom brings two outcomes: death or rebirth. Maturity only comes after you survive the fire.
<h3>36Kr: When did you realize Three Squirrels’ prices were too high?</h3>
ZL: We had a three-day executive meeting. After dissecting every layer of the business from raw materials to logistics, we reached a consensus: we were overpriced. Fixing that meant decentralizing authority and sending top executives into the trenches. That’s what ultimately led us to Douyin.
<h3>36Kr: Didn’t you already know the prices were high?</h3>
ZL: We knew. But after spending more than a decade to build our brand, it takes real courage to suddenly go mass market.
At the time, we ignored the white-label and challenger brands. Then our mindset shifted: forget whether they seem legitimate and just try the products. If someone’s selling mixed nuts for RMB 19.9 (USD 2.8) and ours are only 20% better but priced at RMB 59.9 (USD 8.4), that’s still overpriced. Why not go for RMB 39.9 (USD 5.6) with better quality?
It’s a simple logic, but we had been too rigid.
<h3>36Kr: How do you ensure price competitiveness now?</h3>
ZL: Through innovation in our model. We’re building centralized supply chain hubs in Wuhu, Tianjin, Chengdu, and Foshan. Wuhu is nearly complete, with seven factories and 17 production lines covering 65% of our snack products.
We manufacture nuts in-house. For everything else, we co-invest with top-tier suppliers. Products go straight to nearby consumers, which shortens transport distances and cuts costs. We control the full production cycle and get cost savings at every step, whether that’s on materials, operations, or even R&amp;D feedback.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3330822185822722">article</a> was written by Li Xiaoxia for 36Kr.

From slump to RMB 10 billion comeback: How a Chinese snack brand found new life in social commerce

<ul>
<li aria-level="1">FinVolution marks the tenth edition of its global artificial intelligence competition with a focus on deepfake image detection.</li>
<li aria-level="1">In partnership with the Conference on Information and Knowledge Management (CIKM), the contest aims to expand global participation and academic collaboration on AI capacity building.</li>
<li aria-level="1">The top winners will be invited to CIKM 2025 to gain exposure to leading voices in AI research and industry.</li>
</ul>
FinVolution Group, a leading fintech company, today announced the launch of the tenth FinVolution Global Data Science Competition, spotlighting the critical issue of deepfake image detection in the age of generative AI.
As synthetic media becomes more widespread and sophisticated, the ability to accurately detect manipulated visual content is increasingly vital, especially in areas such as finance, cybersecurity, and digital platforms. This year’s challenge invites data scientists and AI practitioners around the world to contribute cutting-edge solutions that advance the state of deepfake detection technology.
To mark the competition’s tenth anniversary, FinVolution is partnering with CIKM, one of the top global conferences in the field of information and knowledge management. This collaboration expands the contest’s global reach and reinforces FinVolution’s longstanding commitment to academic and industry exchange.
As part of the partnership, the champion and two runners-up will be invited to attend CIKM 2025, offering finalists the opportunity to engage directly with global experts and thought leaders in AI and knowledge management.
“Since its inception nine years ago, the FinVolution Global Data Science Competition has become a key platform for global collaboration and technical innovation,” said Tiezheng Li, CEO of FinVolution Group. “This year’s focus on deepfake detection reflects our commitment to developing responsible and secure AI technologies that can be applied across industries.”
Lei Chen, vice president of FinVolution and head of its AI division, added: “Deepfake threats are particularly relevant to the financial industry, where trust and security are paramount. We have continuously invested in data security, and this competition enables us to bring together top minds to advance deepfake detection capabilities through open collaboration.”
The 2025 competition will feature a total prize pool of RMB 308,000 (approximately USD 42,900) and will be structured in three stages:
<ul>
<li aria-level="1">Preliminary round (June 24 to July 31): Participants are required to submit their prediction results for real-time scoring by the end of July 23. The list of teams advancing to the semifinals will be announced on July 31.</li>
<li aria-level="1">Semifinals (August 1 to August 30): Semifinalists must submit their solutions by the end of August 10. Finalists will be announced on August 29.</li>
<li aria-level="1">Final round (September 1 to mid-September): Finalists will compete in the final challenge and participate in a series of global engagement events.</li>
</ul>
The competition will officially open on June 24, with full details and registration available on the official competition website, integrated with CIKM and the International Joint Conference on Artificial Intelligence (IJCAI) for maximum international visibility.
FinVolution has consistently supported global AI research, sponsoring premier academic conferences such as the International World Wide Web Conference (WWW), IJCAI, and CIKM over the past five years. In 2024, the competition challenge was selected as an official track at IJCAI, and this year it is featured at CIKM, highlighting the platform’s growing reputation and influence in the AI community.
Over the past decade, the FinVolution Global Data Science Competition has explored topics including credit risk modeling, fraud detection, user behavior analysis, and generative media forensics. With close to 10,000 participants worldwide, it continues to serve as a launchpad for AI innovation in digital finance and beyond.
For more information, please visit the <a href="https://ai.ppdai.com/mirror/show">official competition website</a>.
<h3>About FinVolution Group</h3>
FinVolution Group is a fintech company that connects millions of consumers as well as small and medium enterprises with financial institutions.
Founded in 2007 and listed on the New York Stock Exchange in 2017, we have been at the forefront of the pan-Asian credit technology industry, pioneering innovative technologies in credit risk assessment, fraud detection, big data, and AI. With a proven track record of robust growth in pan-Asian countries, we have established leading fintech platforms in China, Indonesia, and the Philippines.
This press release was published in partnership with <a href="https://en.finvgroup.com/">FinVolution Group</a>.

FinVolution launches tenth global data science competition with a focus on deepfake image detection

KKR, the US private equity firm known for its long history of acquisitions, is in talks to acquire an 85% stake in a Chinese beverage company. That company, reportedly, is Dayao, a growing soda brand.
“This deal has been a year in the making,” a source close to the transaction told 36Kr.
When approached for comment, Dayao declined to respond.
According to 36Kr’s sources, Dayao’s revenue in 2024 is expected to be in the nine-figure RMB range.
The company had previously been rumored to be preparing for an IPO in Hong Kong as early as the second half of this year. But this development indicates a notable shift: while many consumer brands are moving to go public amid favorable market sentiment, Dayao’s founding team appears to be taking a different route.
KKR is known for a disciplined and pragmatic investment approach. It is also one of the most established private equity firms globally.
Dayao, meanwhile, has become one of China’s fastest-growing beverage companies. In 2014, it made an unusual move by targeting the foodservice channel, a segment long overlooked by major cola brands. That decision opened a new path in China’s competitive beverage market.
The foodservice channel is notoriously difficult to enter. It’s fragmented and localized, often requiring distributors to win accounts one door at a time. Beverage shelf space in restaurants is also limited, typically dominated by staples like Coca-Cola and Sprite. That leaves little space for new entrants.
In this context, Dayao’s traction is significant. In a 2023 interview with 36Kr, the company said more than 70% of its sales came from this channel.
According to its official website, Dayao now partners with more than 1,000 distributors and has a presence in over one million retail outlets across 31 provinces, autonomous regions, and municipalities in China. A beverage brand founder told 36Kr that by 2022, Dayao’s omnichannel sales in one city in Northwest China had already surpassed Coca-Cola’s, briefly displacing the soda giant’s dominance there. “What’s more, breaking into the Fifth Ring [Road] in Beijing was a major milestone. Dayao shattered the longstanding myth of Arctic Ocean’s unshakable grip on the city,” the founder added.
The deal with KKR also highlights a striking divergence from current market sentiment. While many investors are hedging amid uncertainty, KKR is doubling down. In the first quarter of 2025, the firm raised USD 30.54 billion in new capital, pushing its total assets under management to USD 664 billion, a 15% increase from the previous year.
“We were founded on this day in 1976. And I have been here nearly 29 of those 49 years,” KKR co-CEO Scott Nuttall said during the Q1 2025 earnings call. “Over this period, the firm has seen a number of cycles and dislocations. In our experience, times like this yield some very attractive investment opportunities.”
A KKR investor previously described the firm’s approach to investing in China as aligning capital with the country’s industrial development. That strategy has historically included deals in sectors ranging from agriculture player COFCO Meat to urbanization-focused firms like NVC Lighting and Haier, as well as ByteDance during the mobile internet boom.
“Since the pandemic, dollar-denominated funds have done virtually no major buyouts in China. This deal may signal a shift in the wind, a change in how global capital views Chinese consumer businesses,” an investor told 36Kr.
In 2023, Dayao announced a goal to go national within five years. Yet no legacy Chinese soda brand has built a truly nationwide footprint. With KKR’s operational support and management expertise, however, Dayao may have a shot at expanding into larger retail chains and evolving from a regional player into a national brand.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3346262211402376">article</a> was written by Zhong Yixuan for 36Kr.

KKR eyes 85% stake in Chinese soda brand Dayao

Private Equity