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… requests.
It’s the kind of headache most founders would envy. But Deng isn’t easing up.
“We’re going to produce as much as possible—and lower prices again,” he said. “Wherever the competitors are, we’ll follow. We want to make this market a little more intense.”
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3285477321352072">article</a> was written by Hu Yiting for 36Kr.

At USD 90 per unit, Seauto is quietly sweeping the pool robot market

Deep Tech

China

<a href="/company/sohu">Sohu’s</a> first-quarter results offered a clear verdict on the state of its two core businesses: while the company’s online game division continues to deliver steady revenue and high margins, its media platform and marketing services are falling further behind.
The Beijing-based firm reported total revenues of USD 136 million for Q1 2025, down 3% year-on-year (YoY) but up 1% sequentially. That topline figure masks a widening gap between its performance in online gaming versus online media. Marketing services revenue, previously categorized as brand advertising, fell 15% YoY to just USD 14 million, its weakest level in years. Meanwhile, online game revenue held steady at USD 117 million, bolstered by fresh content updates and sustained traction from PC-based titles.
The disparity highlights an increasingly familiar challenge for legacy internet platforms: how to maintain relevance in an ecosystem now dominated by content-commerce hybrids like <a href="/company/bytedance">ByteDance’s</a> Douyin, <a href="/company/xiaohongshu">Xiaohongshu</a>, and <a href="/company/tencent">Tencent’s</a> WeChat ad network. According to <a href="https://www.grandviewresearch.com/horizon/outlook/social-commerce-market/china">Grand View Research</a>, China’s social commerce market is projected to grow at a 33.3% compound annual growth rate (CAGR) from 2023, reaching USD 4.5 billion by 2030. Sohu’s media arm, however, appears increasingly sidelined, unable to tap into the blend of community, video, and monetization that drives engagement on competing platforms.
CEO Charles Zhang pointed to improvements in social features and content distribution on Sohu’s platform, suggesting that the company remains focused on increasing user activity and monetization. “Through various unique events, we were able to engage with more users, while promoting vigorous social interactions and distributions on our platform and generating massive premium content at the same time,” Zhang said. “Leveraging our competitive advantage as a mainstream media platform and our unique IPs, we proactively explored greater monetization opportunities.”
But the numbers paint a starker picture. While the gross margin of marketing services improved to 10%, up from 1% a year ago, it still reflects limited operational efficiency. With the segment contributing just over 10% of overall revenue, its commercial importance continues to shrink.
In contrast, Sohu’s online game business, operated through its Changyou subsidiary, remains a profit engine. The unit posted a gross margin of 85%, backed by stable user metrics for its flagship PC titles. Average monthly active users (MAU) for PC games rose 3% YoY to 2.3 million. While mobile MAU declined 22%, paying accounts for mobile games climbed 6%, driven by newer titles like New Westward Journey (not to be confused with <a href="/company/netease">NetEase’s</a> similarly titled franchise) and its international version, Journey Renewed: Fate Fantasy.
That performance mirrors broader momentum in China’s gaming sector. NetEase recently exceeded earnings expectations on the strength of both new and established games. Tencent, likewise, reported 24% growth in domestic gaming and double-digit gains in ad services powered by algorithmic optimization. Supporting this trend, gaming monitor sales in China surged in late 2024, <a href="https://kr-asia.com/black-myth-wukong-stirs-chinas-gaming-industry-as-a-fierce-arms-race-looms">propelled</a> in part by the highly anticipated release of Black Myth: Wukong, according to <a href="https://www.trendforce.com/presscenter/news/20250219-12475.html">TrendForce</a>.
Despite these tailwinds, Sohu remains a niche player. Its gaming revenues, though stable, are modest compared to its peers. And signs of attrition in its mobile game audience, following peak engagement in 2024, suggest challenges in sustaining momentum.
On the earnings front, Sohu reported a GAAP net income of USD 182 million—a rare profit, driven entirely by a one-time USD 199 million tax reversal related to a prior US tax provision. Excluding that, the company posted a non-GAAP net loss of USD 16 million, consistent with a business in strategic transition.
The company has managed to rein in costs. GAAP operating expenses declined 9% YoY, narrowing the operating loss to USD 19 million. As of March 31, Sohu held approximately USD 1.2 billion in cash, short-term investments, and long-term deposits. Under its share repurchase program, it has spent USD 67 million to buy back depository shares, reflecting management’s confidence in long-term value.
Still, the outlook is tepid. For the next quarter, Sohu projects game revenue of USD 96–106 million, potentially down as much as 35% YoY. Marketing services revenue is expected to inch up to USD 16–17 million, though it remains well below historical levels. The company anticipates a net loss on both a GAAP and non-GAAP basis of between USD 20–30 million.
The broader market has taken note. While shares of NetEase and Tencent rallied on the back of strong quarterly performance, Sohu’s stock showed little movement following its earnings release, suggesting muted investor response.
If there’s a lesson in this quarter’s numbers, it’s that gaming remains Sohu’s lifeline, but not its launchpad. Without a sharper strategy to reinvigorate its media platform or tap into emerging ad formats, Sohu risks becoming a two-speed operation: profitable in niche gaming, stagnant everywhere else.

Sohu’s ad revenue fades as it clings to gaming for stability

East Asia

Sohu

Gaming

Creative

Content

Consumer Economy

Lalamove, the on-demand logistics platform operated by Hong Kong–based Lalatech, has launched operations in the UAE, marking its first entry into the Middle East. The company now offers full service coverage in Dubai, with delivery drop-offs available in Sharjah and Abu Dhabi.
The expansion aligns with Lalamove’s longstanding strategy of serving small and medium enterprises—<a href="https://kr-asia.com/from-pro-poker-player-to-portage-the-story-behind-shing-chow-and-his-freight-unicorn-lalamove">a focus that dates back several years</a>. SMEs account for a significant portion of the UAE’s GDP. “The UAE has long been a pivotal global trading and logistics hub, connecting Asia, Europe, and Africa,” said Paul Loo, chief operating officer of Lalamove. “By leveraging our advanced technology, we aim to empower SMEs and create earning opportunities for driver partners.”
Lalamove’s logistics model is built around instant matching, multi-stop delivery planning, and real-time tracking, offering businesses a streamlined approach to last-mile delivery. Its diverse vehicle types, ranging from cars to one- and three-ton pickup trucks, allows it to handle a variety of delivery needs while helping reduce logistics costs.
The launch is also part of a broader push to expand in high-growth markets. Before entering the UAE, Lalamove operated in 13 markets, including Hong Kong, mainland China, Singapore, Thailand, the Philippines, Indonesia, Vietnam, Malaysia, Mexico, Brazil, Bangladesh, the US, and, most recently, Japan.
Lalamove <a href="https://kr-asia.com/uber-for-logistics-lalamove-enters-driver-starved-japan-market">entered the Japanese market in early 2024</a>, where a tightening labor supply and revised laws capping overtime for drivers created demand for more efficient delivery services. Lalamove responded by recruiting freelance drivers and applying its dynamic pricing model to offer flexible work opportunities while addressing the sector’s manpower shortfall.
whereRelatedArticle
Globally, Lalatech fulfilled 779 million orders in 2024, generating a gross transaction value (GTV) of USD 10.3 billion. The company reported 16.7 million average MAUs (monthly average users) among merchants and 1.7 million among carriers. It also held a 53.4% share of the closed-loop freight GTV market, a key segment of real-time, end-to-end delivery services.
In the UAE, Lalamove aims to position itself as a platform that supports flexible income streams for driver partners, echoing its approach in Japan. Features such as bonus incentives for completed missions, vehicle sticker promotions, and unlimited referral rewards are designed to attract and retain drivers. The platform enables them to arrange their schedules independently, offering greater transparency and control over earnings.
With this launch, Lalamove enters a market where demand for quick, reliable logistics solutions is growing alongside e-commerce. It joins other Chinese logistics players such as SF Express and Cainiao Network in tapping into the UAE’s role as a regional delivery hub. While the competitive landscape includes legacy providers like Aramex and newer gig-based entrants such as Fetchr, Lalamove’s history of adapting its model to local conditions could give it an edge in serving businesses across the region.

With UAE launch, Lalamove bets its SME-first model can scale in the Gulf

On-demand Services

E-commerce

Logistics

Hong Kong

Middle East

<blockquote>China Recap is a weekly roundup tracking Chinese companies expanding abroad, covering market entries, funding rounds, product launches, and global partnerships.</blockquote>
China’s corporate globalization strategy is evolving fast. Industry giants are rewriting the global playbook, while a new generation of companies charts fresh paths overseas.
China Recap tracks both—focusing on strategic expansion, brand building, and localized operations—to help readers make sense of shifting trends and understand how Chinese firms are reshaping their global approach.
Here is this week’s roundup:
China deepens cooperation with Brazil across sectors
<ul>
<li aria-level="1">Sinovac and Brazil’s Eurofarma signed an agreement on May 12 to co-develop a vaccine production platform, expanding supply to Brazil and other Global South nations.</li>
<li aria-level="1">Chinese medtech firm Wandong Medical and Brazil’s VMI Group have signed a JV agreement to build a joint R&amp;D and manufacturing center for advanced diagnostic equipment. Officials say the move will boost Brazil’s medtech capacity and deepen bilateral healthcare cooperation. —<a href="https://finance.sina.com.cn/tech/shenji/2025-05-13/doc-inewkvzx4465007.shtml?cre=tianyi&amp;mod=pchp&amp;loc=12&amp;r=0&amp;rfunc=40&amp;tj=cxvertical_pc_hp&amp;tr=12">Sina</a></li>
<li aria-level="1">GAC confirmed plans to localize EV production in Brazil and launch a R&amp;D center in Sao Paulo. New models including the Aion V and GS4 will debut at a May 23 event as GAC advances full-chain operations in Latin America.</li>
<li aria-level="1">On May 12, Meituan signed an investment agreement to launch its food delivery unit Keeta in Brazil. The company plans to invest USD 1 billion over five years. —<a href="https://36kr.com/newsflashes/3290334039028102?f=rss">36Kr</a></li>
<li aria-level="1">BYD’s new factory in Bahia, Brazil will begin phased operations in 2025 with vehicle assembly from imported kits, reaching full production by December 2026. Originally set to open this year, the project was delayed by labor probes and bad weather. BYD estimates it could generate up to 20,000 jobs over time. —<a href="https://www.reuters.com/sustainability/sustainable-finance-reporting/byd-factory-delayed-brazil-be-fully-functional-by-end-2026-says-official-2025-05-12/">Reuters</a></li>
</ul>
<h3>WeRide expands robotaxi service in UAE</h3>
WeRide has begun trial operations of fully driverless robotaxis in Abu Dhabi. The pilot expands coverage to Al Maryah and Al Reem Islands, building on existing routes serving Yas Island and Zayed International Airport. It also follows WeRide’s receipt of a UAE self-driving vehicle license in 2023 and its partnership with Uber since 2024.
<h3>Shein leases massive warehouse in Vietnam</h3>
Fast fashion giant Shein has leased nearly 15 hectares of warehouse space near Ho Chi Minh City, its first such facility in Vietnam, sources said. The move aims to position goods closer to global shipping routes and reduce exposure to US-China trade tensions. Shein remains heavily reliant on China-based suppliers and vulnerable to shifts in tariff policy. —<a href="https://www.reuters.com/world/china/shein-set-up-huge-vietnam-warehouse-us-tariff-hedge-sources-say-2025-05-15/">Reuters</a>
<h3>Asia reached 646 unicorns in 2024</h3>
Asia had 646 unicorns by end-2024, with a combined valuation of USD 2.4 trillion, according to a recent report by the Asia Unicorn Forum. China led with 454 firms, followed by India. Most unicorns are in software, transport, and deep tech, and 96% are valued under USD 10 billion. The average time to reach unicorn status is five years. ByteDance topped the list with a USD 300 billion valuation.
<h3>Beijing warns JD, Meituan, Ele.me over food delivery war</h3>
Chinese regulators have summoned JD.com, Meituan, and Ele.me over concerns of unfair competition and labor practices in the food delivery industry, citing aggressive subsidy tactics and alleged restrictions on riders. The move follows JD's recent entry into the market with fee waivers and social insurance pledges. —<a href="https://finance.sina.com.cn/jjxw/2025-05-14/doc-inewnyzh0638032.shtml">Dazhong News</a>
whereRelatedArticle
<h3>Meitu’s Wink surpasses 30 million global users, tops charts in Southeast Asia</h3>
Wink, a video editing app developed by Chinese tech firm Meitu, now has over 30 million monthly active users worldwide. It currently ranks first in app stores across several Southeast Asian markets, including Thailand, Vietnam, and Cambodia, making it Meitu’s third largest product after MeituPic and BeautyCam.
<h3>Naixue rebrands ahead of expansion</h3>
Naixue, which operates stores in Singapore, Malaysia, and Thailand, appears to be testing a new name and logo ahead of its planned entry into Western markets. Photos shared on Chinese social media show the brand rebranded as “Naìsnow,” blending Chinese phonetics with English styling.
<h3>Huawei and Keppel partner on clean energy</h3>
Huawei and Keppel have signed a non-binding MOU to co-develop renewable energy solutions focused on photovoltaic systems and battery storage. Projects will cover ASEAN power grids, low-carbon data centers, and hybrid energy platforms, with real-time optimization managed through Keppel’s ONC hub in Singapore. The partnership supports Singapore’s broader push for sustainable energy adoption.
<h3>China opens direct truck routes to Hanoi</h3>
China launched two direct international road freight routes to Hanoi on May 14, with convoys departing Nanning and Kunming under CBTA permits. The move marks the first time Chinese freight trucks enter Vietnam’s interior directly, cutting costs and transit time. —<a href="https://baijiahao.baidu.com/s?id=1832061528505991829&amp;wfr=spider&amp;for=pc">People’s Daily</a>
<h3>Chery, NTU launch joint EV research hub</h3>
Chery and Nanyang Technological University have partnered to launch a co-innovation center under Chery’s global open-source initiative. Located in Wuhu and led by Chery’s Kaiyang Lab, the collaboration will focus on technologies for intelligent, low-carbon vehicles and cross-border talent development. —<a href="https://www.ithome.com/0/852/501.htm">IT Zhijia</a>
That wraps up this edition of China Recap. If your company is expanding internationally, we’d love to hear about your latest milestones. <a href="mailto:changweiqian@global.36kr.com">Get in touch</a> to share your story.

China Recap | Chinese firms deepen expansion in Brazil and other markets

… trust’s not really there anymore.” Even without the tariff shock, he added, “those golden years of easy exports were over anyway. It’s just not going back to how it was.”
In the early 1990s, with the fall of the Soviet Union, the world entered what’s now seen as the first era of globalization, which was built around a US-centric trade and financial system. Today’s ballooning US trade deficits are the logical end of that order.
Since Trump’s first election in 2017, the world has shifted toward “deglobalization” or, more precisely, a new kind of globalization built on more regional, multipolar relationships.
“It’s the worst of times and the best of times,” Chen mused. His initial fear and frustration have mellowed into a cautious optimism. Going global no longer means simply finding a new export market. For modern Chinese companies, it means being “born global,” designing supply chains and market strategies that can span continents and flex with disruption.
But old habits die hard. For companies used to the comfort of the US market, pivoting isn’t easy.
For Chen, moving into new markets feels like another gamble. “Sometimes the safer move is to stay put, even if it means making less. I can always adapt slowly when the time’s right.”
More capable firms, though, are already making moves, especially into Europe. Li Luwei, who runs a standalone site selling outdoor furniture in France, said she has noticed an influx of former US-focused sellers. “The a’re undercutting everyone. I’m trying to figure out how to respond.”
E-commerce platforms have caught on, too. Since last year, many have been funneling more traffic to merchants using local warehouses or hybrid fulfillment models. According to Sensor Tower, in April 2025, Shein’s ad spending in France and the UK jumped 35% month-on-month, while Temu’s rose by 40% and 20%, respectively.
Su Jian, one of Temu’s early top sellers, revealed that North America now accounts for just 20% of Temu’s overall sales. Shein is also reducing its US dependency. “The smart move is to follow the platform. Sell wherever there’s demand.”
Even overlooked markets are being rediscovered. Over the past month, Zha Jiulan, founder of B2B platform Egatee, has fielded a growing number of inquiries. “Lots of sellers who aren’t competitive in mature markets are now asking how to get started in Africa.”
Whether firms stay loyal to the US market or leap toward new frontiers, one thing is clear: the path ahead remains foggy and fraught. “For us in foreign trade,” said Chen, “if we’re not going global, what else is there?”
Grassroots entrepreneurship is in the DNA of China’s exporters. These founders may come from every corner of the country, but they share a common spirit: bold, resilient, and adaptive. As industry after industry goes through its own transformation, this generation of entrepreneurs continues to chart new paths, whether through tech, branding, or simply sheer persistence.
China’s economic resilience will be tested again and again. But if history is any guide, its exporters will weather the storm and emerge not just intact, but global.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3292159752108167">article</a> was written by Yang Yuexin for 36Kr.

Tariff truce offers reprieve, not resolution, for China’s battered exporters

Retail

<a href="/company/temu">Temu</a> and other Chinese cross-border retailers are overhauling their business models as exemptions to US import duties are set to end on Friday, with the changes leaving individual sellers on these platforms bearing more of the risks of doing business in America.
Temu, the bargain-based platform of PDD Holdings, previously shipped most of its products for overseas markets from China. But on Friday, it said it has recently transitioned its US operations to a local fulfillment model, meaning that all sales to US customers are now handled by sellers based in the country and orders fulfilled from within its borders.
"Temu has been actively recruiting US sellers to join the platform. The move is designed to help local merchants reach more customers and grow their businesses," the company said in a statement to Nikkei Asia.
The change comes in response to the end of the de minimis exemption, a trade provision that exempts packages valued under USD 800 from import duties. This exemption has been a pillar of the ultra-low-cost business model used by many Chinese platforms to ship directly to US consumers under so-called full consignment and half consignment models.
Under the full consignment model, Chinese sellers only need to ship the products to domestic warehouses of the online platform, which then takes care of the rest, from price-setting and customs clearance to customer service. Under the half-consignment model, sellers are responsible for product listings and logistics, which may include shipping products from China to overseas warehouses for faster fulfillment, while the platform handles promotion and other operational support. Some platforms like AliExpress allow sellers to set their own price, while others like Temu set the prices themselves.
One executive from a leading Chinese e-commerce platform told Nikkei Asia that the trend in the industry is to gradually phase out the full-consignment model and have sellers take responsibility for their own shipments. Otherwise, the executive said, the burden on the platforms will be too high.
Eventually, the person added, local third-party sellers and Chinese sellers who take care of the shipment themselves will become mainstream on the platforms.
Temu, <a href="/company/shein">Shein</a>, AliExpress and <a href="/company/tiktok-shop">TikTok Shop</a> have all begun raising prices for US customers. For products stored in warehouses outside of the US, which are no longer available, Temu had a tariff surcharge as high as 150% of the product's price tag, according to Nikkei's observations.
As of May 2, Shein continued to list such items, adding tariffs charges to the total cost at time of checkout, but without providing a detailed breakdown. According to people familiar with the matter, the fast fashion giant is attempting to absorb a portion of the tariffs itself in an effort to remain price-competitive, following a significant decline in profit last year. Shein adds a tariff charge of around 50% to the price of some of the products, Nikkei found.
Shein and AliExpress did not immediately respond to a request for comment.
US President Donald Trump ended the de minimis exemption without warning in early February, only to pause the order for three months after it caused chaos for customs inspectors. But starting May 2, small parcels shipped from mainland China and Hong Kong will face tariffs as high as 120% or a flat fee of USD 100–200 per package. The tariffs will be further increased on June 1. The industry is also bracing for more disruptions at ports, as shippers will have to report each package to US customs, which could require further processing to apply the tariffs.
One Chinese freight forwarder told Nikkei they expect the inspection rate at US ports to be at around 75% after May 2, and now they require payment of the product price plus an additional 150% before accepting and shipping goods. In the past, freight forwarders would also handle customs clearance, but now they do not dare to.
Chinese e-commerce platforms were not caught off guard by this latest trade disruption. Discussions about canceling or reforming the de minimis exemption in the US began gaining traction in the early 2020s, with significant attention emerging around 2024. As a result, Shein, Temu, and AliExpress had already started to recruit local sellers as early as 2023 to counter potential risks, but progress has been slow.
This article first appeared on <a href="https://asia.nikkei.com/Economy/Trade-war/US-tariffs-force-China-s-e-retailers-to-revamp-overseas-sales-model">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>.

US tariffs force China's e-retailers to revamp overseas sales model

Pinduoduo

TikTok

Shein

Temu

TikTok Shop

Huya was once synonymous with <a href="/industry/gaming">gaming</a> live streams in China, a company whose fate rose and fell with virtual gifting, celebrity streamers, and esports events. Today, it is aiming to become something different.
Its latest earnings report reveals more than just financial outcomes. It signals a gradual but deliberate redefinition of the company’s identity: a shift toward becoming a broader digital gaming platform with diversified revenue, international reach, and <a href="/industry/ai">artificial intelligence</a>–enhanced engagement. That evolution is already reshaping both its business mix and strategic direction.
For years, Huya’s bread and butter was live streaming. That core still makes up the lion’s share of its income at RMB 1.14 billion (USD 159.6 million) in the first quarter of 2025, but it’s shrinking. Year-on-year, Huya’s live streaming revenue dropped by nearly 10%.
Growth, meanwhile, came from other areas. Game-related services, advertising, and other segments surged 52% to RMB 370.4 million (USD 51.9 million), now accounting for nearly a quarter of Huya’s total top line. That’s a notable change from just a year ago, when the same categories made up only 16%.
This wasn’t an accident. In recent quarters, Huya has leaned into deeper collaboration with <a href="/company/tencent">Tencent</a>, its largest shareholder and China’s leading game publisher. That includes greater integration with Tencent titles and expanded roles in game promotion and distribution.
The company’s ambitions are not limited to China. Its management highlighted growing traction in international markets, especially in mobile game-related services through its overseas app platform. While no specific figures were disclosed, Huya reported “multi-fold sequential revenue growth” in these segments.
If taken at face value, that matters. As domestic saturation and tighter regulation constrain growth at home, Chinese digital firms are increasingly turning abroad. Huya’s calculated expansion suggests it views global markets as a central pillar of its future strategy.
AI is another component of Huya’s transformation. While often treated as a buzzword in tech, here it has tangible implications. During the third season of the Legend Cup, an in-house League of Legends tournament, Huya deployed “Hu Xiao Ai,” an AI-powered companion for viewers.
According to the company, the tool delivers real-time commentary, interprets gameplay, and provides play-by-play insights. It represents a small but telling shift toward turning passive spectators into active participants, potentially changing how audiences experience esports content.
Huya’s pivot isn’t without cost. Gross margins slipped to 12.5%, down from 14.7% a year ago. Revenue sharing fees and content costs climbed, particularly for broadcaster payments. Huya’s operating loss widened to RMB 59.6 million (USD 8.3 million), though it posted a modest net income of around RMB 927,000 (USD 129,780), buoyed by interest earnings.
User numbers stayed relatively flat. Paying users held at 4.4 million, while mobile MAUs (monthly active users) edged up slightly to 83.4 million, suggesting stable engagement but slow gains in monetization.
Huya is clearly moving beyond its origins as a game live streaming portal. It is gradually building a more diversified platform that integrates content, community, and commerce across geographies. The AI initiatives and international expansion are still in early stages, but they point to a broader ambition: to reimagine what a game streaming company can become.
Whether that ambition translates into lasting profitability or deeper user engagement is still unclear. But Huya’s latest results show one thing clearly: it’s no longer just playing the same old game.

Huya’s streaming revenue dips as it shifts toward AI and gaming services

Artificial Intelligence

Entertainment

Live Streaming

Video

Creator Economy

<a href="/company/alibaba">Alibaba’s</a> March 2025 quarter results suggest a company determined to prove its transformation is more than just rhetoric. Revenue rose 7% year-on-year (YoY) to RMB 236.5 billion (USD 33.1 billion), while adjusted EBITA surged 36% to RMB 32.6 billion (USD 4.6 billion). These gains stemmed from both top-line growth and tighter cost control, including a steep decline in share-based compensation expenses that lifted operating margins.
But market reception was tepid. Alibaba’s US-listed shares slid 7.6% on the day of the announcement, weighed down in part by a miss on EPS (earnings per share). Non-GAAP diluted earnings per ADS came in at RMB 12.52 (USD 1.8), shy of  consensus expectations. For Alibaba, which is trying to reset investor expectations around long-term value creation, the shortfall served as a reminder that the path to regaining Wall Street’s confidence is still under construction.
Alibaba’s clearest growth story came from its cloud unit. Revenue here rose 18% to RMB 30.1 billion (USD 4.2 billion), with artificial intelligence-related products posting triple-digit growth for the seventh consecutive quarter. The launch of Qwen3, a suite of open-source and hybrid reasoning AI models, highlights a bid to win both technical credibility and broad developer adoption amid intensifying competition from the likes of Amazon, Microsoft, and Tencent.
Closer to home, the Taobao and Tmall businesses continued to provide ballast. Customer management revenue climbed 12% YoY to RMB 71.1 billion (USD 10 billion), helped by improved take rates and tools like Quanzhantui that use AI to help merchants target users more effectively. Alibaba’s 88VIP program grew at a double-digit rate, surpassing 50 million members.
This core commerce unit also delivered an 8% EBITA increase, despite heavier investment in customer service and AI-powered product upgrades. It's a sign that Alibaba still has pricing power and user stickiness in China’s competitive retail market.
Globally, the picture is more mixed. Alibaba’s international e-commerce arm grew 22%, driven by stronger cross-border sales through AliExpress and Trendyol. Segment losses narrowed, helped by improved monetization and better operating efficiency at Lazada, but the unit remains unprofitable. In logistics, revenue at Cainiao fell 12%, largely due to increased internal integration of services. Meanwhile, digital media turned a corner: Youku, Alibaba’s streaming platform, swung to profitability on the back of better ad sales and film earnings.
Alibaba also leaned on financial levers to reinforce its narrative. The company bought back USD 11.9 billion worth of shares during fiscal year 2025, achieving a 5.1% net reduction in outstanding shares. It’s also paying out USD 4.6 billion in dividends, including a one-time distribution from recent asset sales. These moves signal discipline and a willingness to return capital to investors amid ongoing uncertainty.
Overall, Alibaba’s March quarter offers signs of stabilization and ambition. Core earnings are up, its cloud and AI business is gathering traction, and losses in international commerce appear to be narrowing. But the EPS miss, coupled with uneven performance in segments like logistics, suggests Alibaba still has ground to cover.
The company’s next phase will depend on execution. Turning AI-fueled cloud growth into dependable profits, and clarifying the path ahead for its overseas operations, will be critical. For now, Alibaba has made its case. It’s what comes next that counts.

Cloud and AI gains boost Alibaba’s profit, but EPS misses

Taobao

Tmall

Lazada

Alibaba Cloud

Cainiao

Enterprise Services

Cloud Solutions

Hardly a household name, 4Paradigm doesn’t come across as a company chasing hype. Yet its numbers are clean, its strategy focused, and its software is already quietly running inside banks, airports, power grids, and telecom control centers across China.
Don’t let the low profile fool you: 4Paradigm is a company aiming for the long arc of artificial general intelligence (AGI). Its plan? Build it from the ground up, starting with enterprise deployments that actually work.
In the first quarter of 2025, the Beijing-based company reported revenue of RMB 1.08 billion (USD 151.2 million), up 30.1% from the previous year. Most of that came from its core product, the 4ParadigmSage platform, which brought in RMB 805 million (USD 112.7 million), nearly three-quarters of total revenue and 60.5% higher year-on-year (YoY). That kind of growth is rare for <a href="/industry/ai">artificial intelligence</a> infrastructure firms, especially those pushing a heavy tech stack.
At the heart of 4Paradigm’s strategy is a framework that pairs AI agents with what it calls “vertical world models.” The idea is to move beyond monolithic AI models and one-off use cases. Instead, the company is developing intelligent agents—software entities designed to interpret goals, plan actions, and adapt to real-time conditions—that can interface with domain-specific models trained on enterprise operational data.
Each “world model” can be thought of as a dynamic simulation layer for a business vertical, such as manufacturing, retail, energy, or aviation. These models reflect the physical and logical constraints of their respective environments, continuously updated through streams of multimodal data. Layered on top are AI agents that navigate, interpret, and act within those simulated spaces.
That stack has started to yield real deployments. In Q1, Fourth Paradigm cited enterprise use cases like:
<ul>
<li aria-level="1">Retail store agents that manage floor operations and inventory logistics.</li>
<li aria-level="1">Bank account manager agents that automate financial advisory and client engagement.</li>
<li aria-level="1">3D aircraft design agents that interface with engineering tools to accelerate modeling and iteration.</li>
<li aria-level="1">Port supply chain agents that orchestrate dock scheduling and cargo handling.</li>
</ul>
These aren’t prototypes, the company says, but workflows that are already embedded into enterprise systems.
To support these applications, the 4ParadigmSage platform is evolving into a robust middleware layer. According to the company, it now offers integration with more than 150 large language models (LLMs) via a centralized hub, alongside agent frameworks, development pipelines, and vertical-specific toolkits.
What stands out underneath all this is infrastructure. This quarter, 4Paradigm launched SageOne IA, an all-in-one compute platform built around software-defined GPU pooling. By decoupling compute allocation from physical hardware, the system reportedly lifts GPU utilization above 30%, with major improvements in multitasking throughput and inference speed.
These efficiencies matter. AI agent systems are notoriously compute-hungry, especially when handling real-time data. To address that, the company introduced a “model autoscaling” feature that switches between full and distilled versions of a model based on load, eliminating the need for additional computing nodes. That cuts resource use without compromising performance.
Still, not every part of the business is scaling. Revenue from its “SHIFT” intelligent solutions unit, which delivers end-to-end applications, fell nearly 15% YoY. The “AIGS services” division, which focuses on developer tools, declined 22%. But management has reframed both as strategic extensions of the platform business, designed to accelerate client onboarding and feed product development instead of acting as standalone revenue drivers.
The most sweeping move came at the organizational level. 4Paradigm has restructured under a new parent, Paradigm Group, signaling a broader AGI ambition. Alongside its legacy enterprise arm, Paradigm now includes Phancy, a consumer-facing unit focused on edge AI hardware. Its aim: enable OEMs (original equipment manufacturers) to embed AI agent modules into devices like phones, appliances, and wearables, delivering context-aware, task-driven interactions directly at the edge.
That puts Paradigm in rare territory. Few Chinese AI firms are developing both deep vertical enterprise AI and AGI-aligned consumer hardware simultaneously. While Baidu, Alibaba, and Huawei are rolling out LLM services, Paradigm is threading those models into operational, agentic workflows.
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But questions remain. Can the company’s unique model stack scale fast enough across sectors? Will enterprise clients allow such deep integration into their core systems? And as it steps into edge computing, can it maintain the infrastructure advantage it claims?
The upside, if it works, could be significant. A system that replicates human decision-making could form the scaffolding of AGI. At that point, 4Paradigm may not just be offering “solutions,” but rather a piece of foundational architecture for intelligent enterprise systems of the future.
And unlike peers who may still be chasing benchmarks or user engagement, this company is doing it one customer, one vertical, and one agent at a time.

4Paradigm eyes AGI with 30% revenue growth, new compute stack