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… mind when you think of smart driving tech. They are built for grit and rugged trails, not for the polished appeal of self-driving capabilities. So, is there room for tech-forward features in an offroad SUV? Fangchengbao thinks so, and the numbers back it up.
Not all offroad buyers are wilderness diehards. In fact, Great Wall Motor found that women made up nearly 30% of preorders for its Tank 300. The appeal of today’s offroaders spans diverse groups looking for both strength and convenience, and even the most adventurous SUVs spend over 90% of their mileage on urban and highway roads. This is where smart driving can shine: intelligent navigation and automated driving assistance conserve a driver’s energy, so they are fresh for the real offroad work when it begins.
The Bao 8 integrates Huawei’s Qiankun system—a feature that has already proven itself on models like the Luxeed and Aito series, the Stelato S9, and Voyah Dream. And according to Huawei vice president Chi Linchun, the system made its way from drawing board to production with BYD in under a year.
With Qiankun onboard, the Bao 8 offers point-to-point navigation, smart handling of toll gates and roundabouts, and automated parking, even when the driver’s out of the car. This is no gimmick. While the Bao 8 was built for the rough road, it’s clear that Fangchengbao knows it will log most of its hours on city streets, where features like these keep drivers coming back.
In China’s evolving offroad market, where BYD’s competitors are sticking to conventional designs, the Bao 8 signals a different approach. Combining electric power and smart tech, it’s built as much for the daily drive as it is for the trail.
Fangchengbao’s bet on a high-tech offroader seems to be working: its first model, the Bao 5, achieved over 42,000 cumulative sales since November and over 6,000 in October alone. It’s a strong foothold, and with 300 stores in 133 Chinese cities—surpassing brands like Jiyue—Fangchengbao is showing momentum.
Starting at RMB 379,800, the Bao 8 supports Fangchengbao’s growing lineup and brings a new vitality to China’s offroad market. The brand’s tech-meets-tough strategy is not only working—it’s setting Fangchengbao up to reshape expectations of what offroad SUVs can offer.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3034396809785352">article</a> was written by Han Yongchang for 36Kr.

Fangchengbao’s latest EV is more than just an offroad SUV

Fangchengbao

Electric Vehicles

Mobility

Lynk &amp; Co, a Geely-owned electric vehicle maker, recently showcased its complete lineup at Auto Guangzhou on November 15, introducing its all-electric SUV, the Z20 (marketed globally under the name Lynk &amp; Co 02). Preorders for the Z20—offered in three variants—are now open, starting at RMB 146,000 (USD 20,440).
This unveiling follows the Z20’s international debut in Milan last month, where it launched with a European price tag of EUR 35,495 (USD 37,400).
The Z20’s design catches the eye with a fastback coupe silhouette honed for aerodynamic efficiency. Equipped with 13 aerodynamic improvements, it boasts a class-leading drag coefficient of 0.25—a feat that adds 52.5 kilometers to its range. The SUV balances sleek aesthetics with functional interior space and energy efficiency.
A key feature is its integrated Gurney flap spoiler, doubling as a taillight and a stabilizing fin. The 1,463-millimeter light bar, comprising 504 LED beads, offers three lighting modes and six dynamic effects, underscoring Lynk &amp; Co’s flair for balancing form and function.
<figure id="attachment_150799" aria-describedby="caption-attachment-150799" style="width: 1024px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-large wp-image-150799" src="https://console.kr-asia.com/wp-content/uploads/2024/11/Lynk-Co-02-Z20-Exterior-1024x683.jpg" alt="Image of the Z20, Lynk &amp; Co’s newest electric SUV." width="1024" height="683" srcset="https://console.kr-asia.com/wp-content/uploads/2024/11/Lynk-Co-02-Z20-Exterior-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2024/11/Lynk-Co-02-Z20-Exterior-300x200.jpg 300w, https://console.kr-asia.com/wp-content/uploads/2024/11/Lynk-Co-02-Z20-Exterior-768x512.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2024/11/Lynk-Co-02-Z20-Exterior-1536x1024.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2024/11/Lynk-Co-02-Z20-Exterior.jpg 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-150799" class="wp-caption-text">Image of the Z20, Lynk &amp; Co’s newest electric SUV. Image and header image source: Lynk &amp; Co.</figcaption></figure>
The Z20 owes its performance pedigree to Lynk &amp; Co’s track record in the TCR racing circuit, where it claimed six championships in five years. At its core, the SUV employs an oil-cooled electric motor delivering 250 kilowatts of power and 373 newton-meters of peak torque. The result? A sprint from 0 to 100 km/h in just 5.3 seconds and seamless mid-range acceleration from 80 to 120 km/h in three seconds.
The platform underpins this precision. Built on the “Sustainable Experience Architecture” (SEA) platform, the Z20 features a MacPherson front suspension, a five-link rear suspension, and full-frame subframes. The rear-mounted motor ensures agility and stability, hallmarking Lynk &amp; Co’s reputation for sharp handling.
Powered by a 61.47 kWh battery, the Z20 promises a range of 530 kilometers on a single charge. Charging innovations include a 4.5C flash-charging system, taking the battery from 10% to 80% in just 15 minutes—enough to add 370 kilometers. An 8-minute charge covers the distance between Guangzhou and Shenzhen.
Inside, Lynk &amp; Co integrates its Lynk Flyme Auto system, operated by the Ecarx Antora 1000 Plus platform and the 7-nanometer Longying 1 Plus chip. A 15.4-inch 2.5K touchscreen anchors the intelligent cockpit, redefining in-car entertainment and navigation.
Safety engineering is said to be a core focus for the Z20. Lynk &amp; Co claims it meets the China Insurance Automotive Safety Index (C-IASI) MGGG standards and European five-star benchmarks. The vehicle’s structure incorporates ultra-high-strength hot-formed steel, with a yield strength of 1,800 megapascals—on par with military-grade materials. High-strength materials make up 81.62% of the body, contributing to a torsional rigidity of 37,878 Nm per degree.
The SUV is equipped with seven airbags, including innovative far side airbags and two-meter-long side curtain airbags, designed to sustain 85% pressure for six seconds post-deployment—exceeding industry norms.
The Z20 represents Lynk &amp; Co’s push to establish itself as a global EV brand. With availability in 364 stores across 201 cities in China, it is set to hit domestic markets later this year, delivering a premium EV experience to users.

With the Z20, Lynk & Co delivers an EV that balances form and function

Geely

Lynk &amp; Co

China Tech

Dingdong Maicai is venturing beyond China’s borders, and its first stop is Saudi Arabia, according to reports by <a href="https://finance.sina.com.cn/tech/shenji/2024-11-13/doc-incvxhxi1225067.shtml">Sina</a>. The grocery delivery platform is said to have launched its overseas expansion with a model designed to cater to the Middle Eastern market. The focus? Prepackaged dishes tailored to local tastes, alongside fresh produce, refrigerated goods, and general merchandise. This move follows a high-level management meeting held in Saudi Arabia earlier this year.
Efforts to build a local presence are already underway. Job listings on recruitment platforms reveal Dingdong is hiring for roles in product management, operations, customer service, procurement, and government relations—many based in Riyadh. Candidates fluent in both English and Arabic are prioritized. In addition, the company has expanded its 2025 campus recruitment program to include international business management positions, underscoring its intent to groom leaders for its global operations.
However, a November 14 report by <a href="https://m.bbtnews.com.cn/article/406014">Beijing Business Today</a> cited a Dingdong representative clarifying that these efforts remain in the exploratory stage, with no further details disclosed.
Dingdong’s supply chain is already global, with direct sourcing from Chile, Australia, New Zealand, Thailand, and Malaysia, ensuring access to a broad range of quality products.
For businesses aiming to penetrate the Middle Eastern market, Saudi Arabia stands out as an attractive entry point. Meituan, another Chinese heavyweight, <a href="https://kr-asia.com/meituans-keeta-launches-in-saudi-arabia-igniting-competition-and-price-hikes">chose Saudi Arabia</a> as the first overseas market for its food delivery service Keeta. Meanwhile, coffee brands such as Cotti Coffee and Nowwa Coffee have also <a href="https://kr-asia.com/chinese-coffee-brands-set-sights-on-middle-east-as-next-big-market">set up operations</a> in the country.
whereRelatedArticle
The allure is clear: Saudi Arabia is the largest economy in the region, with a young, tech-savvy population, high per capita GDP, and a strong appetite for imported food. Internet penetration is high, and consumer spending power is robust—conditions that create fertile ground for new market entrants.
Dingdong’s recent financials add credibility to its expansion plan. The company has achieved non-GAAP profitability for eight straight quarters and GAAP profitability for the last three. In Q3 2024, it reported revenue of RMB 6.54 billion (USD 915.6 million), up 27.2% year-on-year. Non-GAAP net profit surged 942% to RMB 162 million (USD 22.7 million), with a net margin increase to 2.5%. Gross merchandise volume (GMV) for the quarter stood at RMB 7.27 billion (USD 1 billion).
Saudi Arabia’s food delivery market, however, is fiercely competitive amid rapid growth. According to <a href="https://www.statista.com/outlook/emo/online-food-delivery/saudi-arabia">Statista</a>, the market is projected to generate USD 11.7 billion in revenue this year, with a penetration rate of 43.4% and around 16.3 million users. By 2029, the market is expected to add 2.9 million users, with revenue projected to grow at a compound annual growth rate (CAGR) of 5.2%, reaching USD 15.1 billion.
The market is expected to add another 2.9 million users by 2029, at a projected compound annual growth rate (CAGR) of 5.2% for revenue between 2024–2029.

Grocery giant Dingdong Maicai tests Saudi waters with tailored delivery model

Dingdong Maicai

On-demand Services

E-commerce

Food Delivery

Grocery Delivery

Saudi Arabia

… Daemon Robotics develops optical tactile sensors and multimodal haptic perception technologies for robotics applications. The capital will be utilized to accelerate R&amp;D and product commercialization. —<a href="https://36kr.com/p/2990834468563720">36Kr</a></li>
<li aria-level="1"><a href="https://jancsitech.net/#/">JancsiTech</a>, a nuclear medicine startup founded in 2021, has secured tens of millions of RMB in a pre-Series A funding round led by Safe &amp; Rich Venture Capital. Proceeds from the round will be directed toward product market approvals, new product development, and expansion into veterinary radiotherapy. —<a href="https://36kr.com/p/3040266844827648">36Kr</a></li>
<li aria-level="1"><a href="https://www.mybiotec.cn/">Moyang Biotechnology</a>, a developer of modified hydroxyapatite nanomaterials, has completed a nearly USD 13.6 million Series B+ funding round co-led by Boyuan Capital, Hengxu Capital, and Yanbei Capital. The capital will support Moyang’s product R&amp;D and expansion of its sales and marketing infrastructure. —<a href="https://36kr.com/p/3037166295609349">36Kr</a></li>
</ul>
whereRelatedArticle
<h3>SmartBank, DF Auto, Turing Space, and more made recent headlines:</h3>
<ul>
<li aria-level="1">SmartBank, a Tokyo-based firm behind the expense management app B/43, raised JPY 4.08 billion (USD 26.1 million) in its Series B funding round’s initial close. It brought in JPY 2.93 billion (USD 18.7 million) in an equity raise led by SMBC-GB Growth No.1 Fund while securing the remainder in debt financing from various Japanese banks.</li>
<li aria-level="1"><a href="https://www.dfautomation.com/">DF Automation and Robotics</a> (DF Auto), a Malaysia-based company focused on autonomous mobile robots, announced a USD 1.85 million raise in a funding round led by Vynn Capital. The round saw participation from the Malaysian Technology Development Corporation (MTDC), Japan’s Leave a Nest Capital, and equity crowdfunding investors.</li>
<li aria-level="1">Turing Space, a firm dedicated to trust tech, closed a funding round of more than USD 3 million led by ProFederal.</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>.
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Deals in brief: Portcast raises USD 6.5 million, Secai Marche nets additional Series A funding, Boman Group charts new fund for Australian startups, and more

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Singapore

India

It’s no secret that automakers love robots. From investing in robotics startups to building their own, car manufacturers have been exploring robots in various forms. That enthusiasm seems contagious, for Contemporary Amperex Technology (CATL), a major player in the electric vehicle battery supply chain, is now diving into humanoid robotics.
CATL’s Future Energy Research Institute, a wholly owned subsidiary, is collaborating with Shanghai Jiao Tong University to develop multiple types of robots for deployment in industrial settings. Established in January 2022, the institute focuses on advancing energy technologies and is poised to become a global hub for energy innovation.
In 2023, the institute launched five joint robotics projects with Shanghai Jiao Tong University. These include legged robots, biped robots, heavy-duty quadruped robots, humanoid robots, and vision-guided servo robots. The goal is to meet CATL’s growth needs while aligning with international standards in advanced technology.
Meanwhile, CATL is ramping up in-house robotics development. Sources told 36Kr that the company’s 21C Lab has assigned a 20-person team to focus on robotic arm development as part of its frontier research.
CATL did not respond to 36Kr’s request for comment.
CATL has cemented its position as a global leader in EV battery manufacturing. Data from South Korea’s SNE Research shows that the company retained its top position in 2024, producing 137.7 gigawatt-hours of installed battery capacity—a 29.5% year-on-year increase.
This success stems largely from CATL’s ability to scale production while minimizing costs. Technologies such as end-to-end virtual simulation and imaging algorithms are already helping CATL enhance production efficiency and reduce defects. On average, CATL factories produce one battery cell every second, with production line output nearly three times that of competitors in Japan and South Korea.
CATL isn’t stopping there. Its chief scientist, Wu Kai, has openly stated the company’s ambition to achieve fully automated production. Robotics is a key part of this plan, with the Future Energy Research Institute hiring experts in joint motor drives, robot motion control, and harness and sensor engineering to push the agenda forward.
CATL’s initial focus on robot design and development has already resulted in ten robotics-related patents, spanning areas such as mobile robots, material handling robots, and robotic components. However, progress has been slower than expected, according to a source familiar with the company’s operations. To address these challenges, CATL has partnered with humanoid robotics firms, including Agibot (also known as Zhiyuan Robotics), to test humanoid robots in its battery factories.
The company is also exploring strategic investments to fast-track its robotics ambitions. One notable move was a <a href="https://kr-asia.com/inside-spirit-ais-quest-to-deploy-humanoid-robots-in-automotive-factories">recent investment in Spirit AI</a> by Bai Rui Capital, a fund co-founded by CATL vice chairman Li Ping.
With its robotics projects gaining momentum and fresh investments underway, CATL is carving out a spot in the robotics world. It’s a big leap for the battery giant, signaling a shift from focusing solely on powering EVs to embracing a future in smart automation.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3036347580379141">article</a> was written by Tian Zhe for 36Kr.

CATL bets big on robotics as it looks beyond batteries

CATL

Artificial Intelligence

Robotics

Deep Tech

Geely has unveiled a roadmap to sharpen brand identities, streamline equity structures, and enhance operational efficiency through mergers and restructuring. The latest development in this transformation is the integration of Lynk &amp; Co into Zeekr, now led by Zeekr CEO Andy An Conghui. Although Lynk &amp; Co will retain its brand identity, its operations and strategy will now align closely with Zeekr's framework.
The consolidation begins with merging financial and procurement teams, with R&amp;D and product teams set to follow in early 2025. Together, Lynk &amp; Co and Zeekr contributed nearly 30% of Geely’s passenger vehicle sales in the first three quarters of 2024. Lynk &amp; Co delivered 169,800 units, while Zeekr reached 150,000—a testament to their importance in Geely’s electrification push. However, overlapping product lines and intensified market competition made integration a strategic necessity.
Sources cited by 36Kr indicate that Lynk &amp; Co’s joint venture with Volvo, in which the Swedish company holds a 30% stake, created decision-making bottlenecks. Geely’s acquisition of Volvo came with commitments to operational independence, necessitating protracted negotiations to regain full control over Lynk &amp; Co. With these hurdles cleared, the stage is set for Geely’s realignment.
Zeekr, initially launched as Lynk &amp; Co’s electric vehicle division before becoming a standalone brand in 2021, has eclipsed Lynk &amp; Co in sales and market appeal. Consistently delivering over 20,000 vehicles monthly, Zeekr has emerged as the cornerstone of Geely’s high-end EV strategy. Lynk &amp; Co, founded in 2017, found success with hybrid and fuel-based vehicles like the EM-P series, which drove a 38% year-on-year sales increase to 220,000 units by October 2024. Yet, its EV offerings lagged.
The Z10 sedan, priced between RMB 180,800–313,800 (USD 25,312–43,932), delivered fewer than 5,000 units in its initial two months. By contrast, Zeekr’s 001 and 007 models, equipped with superior technology and branding, delivered over 14,000 and 10,000 units, respectively, during the same period.
The Z10’s underperformance wasn’t purely market-driven. Insiders attribute its struggles to outdated components derived from earlier Zeekr models. Simultaneously, competitors such as Xiaomi’s SU7 and Xpeng’s Mona 03 gained traction, offering advanced features in the same price segment. Zeekr’s announcement in July 2024 to explore hybrid models blurred brand lines further, intensifying internal competition.
This merger aims to streamline operations, reduce redundancies, and enhance Geely’s competitiveness in a rapidly evolving EV landscape. Geely’s multibrand approach, which fueled its growth for over a decade, is now being rethought to address changing market dynamics.
China’s automotive market is experiencing a seismic shift, with over 100 new energy vehicle models expected to launch in 2024. This intensifies competition in pricing and technology, making Geely’s fragmented R&amp;D and supply chains increasingly untenable. The August 2024 reorganization, which began with merging Geometry into Galaxy, laid the groundwork for this transformation. The Lynk &amp; Co and Zeekr merger represents the next phase of this evolution.
Geely’s multichannel strategy helped it surpass RMB 100 billion (USD 14 billion) in half-year revenue with a 15% gross profit margin in 2024. However, the path ahead demands agility and precision. As Geely dives deeper into restructuring, its ability to consolidate and innovate will determine whether it can sustain its position as a leader in the global automotive industry.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3034230633984003">article</a> was written by Xu Caiyu for 36Kr.

Geely integrates Lynk & Co into Zeekr to streamline EV strategy

Zeekr

… does Mexico play in BAI’s strategy?</h3>
AL: Mexico is a “model training ground” for BAI’s investment strategy. We aim to refine our approach systematically, gaining not just financial returns but strategic insights.
In a complex, evolving era, global beta outside of sectors like artificial intelligence is relatively limited, so precision is essential. In Mexico, we work hard to increase certainty in our investments, creating returns we can control rather than relying on market trends.
Today, Mexico has many “tourists,” but few can systematically establish a lasting presence. We’re prepared to leverage Chinese expertise and bring in Chinese companies, whether through incubation, partnerships, spinoffs, or team-building. We’re committed to investing the effort needed to turn these plans into reality.
<h3>36Kr: You’re about to announce a new project, right?</h3>
AL: Yes. We’ve partnered with Asia’s largest automotive fintech platform to launch Mstar, a new automotive finance company in Mexico. In January, we took Mstar’s management team to Mexico for nearly a month, and everyone agreed to proceed immediately.
We brought over Mstar’s advanced domestic risk control systems and organizational structure, which already serve China’s leading automakers, and helped assemble a local team. Mstar’s leadership, like Stori’s founders, comes from Capital One and was inspired by Mexico’s entrepreneurial spirit to join.
During this trip, we also held Mstar’s signing ceremony, with representatives from Chinese car manufacturers present to support the project. Combined, they account for 200,000–300,000 vehicles annually, creating a sense of shared commitment. On day one, Mstar had 50% local Mexican employees, recruited from top banks and senior management.
Chinese car brands now hold a 20% market share in Mexico, up from 10%, and this will continue to grow. Chinese cars are popular because they are high-quality and affordable. Our goal is to provide financing solutions for car buyers, addressing an immediate need. The auto finance market in Mexico is worth USD 130 billion, and the country’s largest unicorn is an automotive fintech company—this structural opportunity aligns closely with China.
<h3>36Kr: Some say Mexico resembles China in 2015, but such comparisons seem simplistic and potentially misleading.</h3>
AL: That’s an oversimplified view, lacking respect for local complexities. While big trends may align, the key is to identify nuanced differences in local demand and sentiment. Not all beta factors are relevant, but within every beta lies an alpha.
Alpha is often cultivated, not pursued directly—it depends on one’s innate strengths. Matching resources to your strengths is critical to nurturing sustainable alpha.
In March, we brought on two influential venture partners in Mexico. They help us with recruitment, strategy, and acceleration. We have the direction, resources, and strategies—and a unique approach no one else can replicate.
Our goal is for our companies to surpass Nubank’s loan balance within three years, establishing them as Mexico’s next unicorns. BAI currently backs one of Mexico’s nine unicorns, and with the potential for 20–30 new unicorns in the next decade, we aim to capture 3–5 of them.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3031340993275400">article</a> was written by Ren Qian for 36Kr.

China’s BAI Capital bets big on Mexico as US tensions reshape global investment

LATAM

Top Chinese chipmaker Semiconductor Manufacturing International Corporation (SMIC) said it expects consumer electronics demand to recover next year, after demand for locally made chips helped push its quarterly revenue above USD 2 billion for the first time.
Co-CEO Zhao Haijun told investors on November 8 that SMIC started to see a recovery in consumer electronics in the July-September period. Increased demand for locally made chips amid US-China tensions has pushed the company's 12-inch wafer production utilization to "almost full for the past several quarters."
SMIC is now on track to achieve record annual revenue of USD 8 billion, which would translate to an increase of 27% and outpace the broader industry's growth, according to Zhao.
Looking forward, Zhao said he expects a continuous recovery in 2025 but warned some price pressure could emerge as more chip plants go online next year.
"In most of the segments from mobile, tablets, computer, connectivity, to [internet of things] devices, we are all seeing a recovery. Currently, only in automotive and industrial applications are we not sure whether there is a rebound," he said, adding that overall the company expects growth of 4–9% next year for all chips except the most cutting-edge artificial intelligence and high-performance computing ones.
The co-CEO said all chipmakers will benefit from the massive adoption of AI, despite China having limited access to cutting-edge chip technology. "It's not only in servers but also opportunities in a lot of edge devices. Another aspect is that some chip customers cannot find enough capacity from leading chipmakers, so they come to SMIC."
Zhao said the overall pace of chip capacity expansion in China will slow next year, as there have been fewer announcements of expansions lately. "The capacity increase this year will be at its peak. There will be a capacity increase next year, but the growth won't be higher than this year."
SMIC's revenue in the July-September quarter increased 34% on the year to USD 2.171 billion. Its profit increased 58.3% to USD 148.8 million, while gross margin for the period improved to 20.5% from 19.8% the same time a year ago.
Revenue contribution from the home market increased to a record 86.4% in the July-September quarter from 80.3% the previous quarter, with the US market falling to 10.6% from 16%.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Tech/Semiconductors/China-chipmaker-SMIC-says-consumer-electronics-to-recover-in-2025" 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>.

China chipmaker SMIC says consumer electronics to recover in 2025

SMIC

Semiconductors

Alibaba’s financial performance in Q3 2024 paints a nuanced picture: strong user engagement and transaction volume growth were tempered by declining profitability and market skepticism.
The 88VIP membership program expanded significantly, reaching 46 million members with double-digit year-on-year (YoY) growth in a single quarter. Gross merchandise volume (GMV) also climbed at a double-digit rate, boosted by higher transaction volumes. Notably, Singles’ Day sales surpassed expectations, delivering what executives described as robust growth.
Overall, group revenue grew by 5% YoY to RMB 234.2 billion (USD 32.8 billion). International commerce led the way with a 29% increase, followed by local services at 14%. However, adjusted EBITA declined by 5% YoY to RMB 32.5 billion (USD 4.6 billion), as investments in core businesses weighed on margins.
While Alibaba’s US shares initially rose by nearly 4% in premarket trading, concerns about profit declines reversed those gains, underscoring persistent market skepticism.
Alibaba’s 88VIP program emerged as a standout in Q3, solidifying its position as China’s largest paid e-commerce membership program. The membership base grew to 46 million users, far outpacing Sam’s Club China, which had only 5 million members as of late 2022. By May 2023, 88VIP counted 36.27 million members, each contributing over RMB 60,000 (USD 8,400) annually in GMV. Alibaba attributed growing retention and repurchase rates to targeted investments in Taotian’s loyalty initiatives.
To broaden access, Taotian eliminated the prerequisite of a 1,000-point Taobao rating and introduced an RMB 8.8 (USD 1.2) monthly pass. During Singles’ Day, 88VIP members accounted for over half of total GMV, underscoring their high engagement. Looking forward, the group plans to further segment users into six tiers and has integrated WeChat Pay, potentially unlocking millions of new daily active users (DAUs).
Despite strong GMV performance, its contribution to customer management revenue (CMR) was muted. Taotian’s revenue grew just 1% YoY to RMB 98.99 billion (USD 13.9 billion), while CMR edged up 2%. Analysts cited declining average transaction values as a challenge, one that Alibaba aims to address through policy updates and enhanced user experiences.
While 88VIP has been a bright spot for Alibaba, competition for high-net-worth consumers has intensified. JD.com introduced steep discounts for JD Plus members during Singles’ Day, while Pinduoduo and Douyin ramped up subsidy campaigns. These moves highlight a fiercely contested market.
Profitability remains a key concern. Adjusted EBITA’s 5% decline in Q3 followed a 1% dip in Q2. Net profit fell 9%, missing expectations, while free cash flow plunged 70% YoY to RMB 13.7 billion (USD 1.9 billion). Escalating marketing expenses—up nearly 30% YoY to RMB 32.5 billion (USD 4.6 billion)—were a significant drag. Subsidies, free returns, and promotions contributed to this surge.
International commerce reported an operating loss of RMB 2.9 billion (USD 406 million), though the loss margin narrowed. Growth in the segment slowed to 29%, down from 58% in Q1. Meanwhile, domestic subsidiaries in local services and entertainment edged closer to breakeven.
Alibaba has been candid about its ongoing efforts to balance growth initiatives with profitability, an equation that remains complex in the face of market pressures. One promising sign is the narrowing gap between GMV and customer management revenue (CMR) growth, which suggests that targeted investments in programs like 88VIP are beginning to yield tangible benefits. This momentum, if sustained, could drive stronger financial returns in the coming quarters.
To amplify revenue streams, Taotian launched a new technical service fee and innovative advertising tools in September. These tools aim to attract higher ad spend from merchants by improving targeting capabilities, potentially contributing more significantly to top-line growth in the near future.
Alibaba’s overseas operations are also undergoing strategic shifts. Platforms such as Lazada have pivoted from aggressive market expansion to prioritizing profitability, a move designed to mitigate risks tied to geopolitical tensions and regulatory uncertainties. This recalibration reflects a growing focus on sustainable growth, as the group works to streamline costs and enhance operational efficiency in international markets.
Domestically, Alibaba’s subsidiaries in local services and cultural entertainment have shown encouraging signs of progress. Losses in these segments have narrowed substantially, putting them on track to achieve breakeven—a critical milestone that underscores the potential of these businesses to complement Alibaba’s broader ecosystem.
In a competitive environment that shows no signs of abating, Alibaba is doubling down on core verticals such as e-commerce and artificial intelligence. Resources are being reallocated from non-essential areas to fuel these high-priority sectors. This strategy, paired with stringent cost-cutting measures, is integral to strengthening the company’s position as rivals escalate their efforts to court high-value consumers.
Looking ahead, Alibaba’s ability to balance growth with profitability will be closely monitored. With high-value users increasingly courted by rivals, and profit pressures mounting, the company faces an uphill battle to maintain its leadership in the evolving e-commerce landscape.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3037594256552196">article</a> was written by Peng Qian for 36Kr.

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