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… months prior, after which suppliers begin production—a process that can take four to five months. Finished goods then undergo sorting and distribution, requiring another month.
In contrast, Shein’s initial orders per SKU are typically just 100–200 items, significantly improving both efficiency and product variety. Wang said that his factory, initially accustomed to large, lengthy traditional orders, had to adapt quickly to Shein’s high turnover model. Early on, he almost lost Shein as a client.
To support suppliers in adapting to its operational model, Shein is said to provide training across areas like management, planning, production scheduling, stock operations, and quality assurance. Shein has even designed a three-stage supplier development program tailored to each supplier’s growth stage, offering targeted technical and resource support.
For trial-phase suppliers, Shein assigns mentors to provide one-on-one guidance, sharing professional advice and tips on avoiding pitfalls. For growth-phase suppliers, Shein offers training in supply chain integration, system support, and management practices. For core suppliers, Shein uses project-based training, allowing them to access additional cooperative benefits.
After five years, Wang has become one of Shein’s leading suppliers. His factory adapted to Shein’s flexible model and saw a near 150% sales increase during last year’s Black Friday sale. Many other Shantou-based businesses in lingerie and loungewear have undergone similar transformations.
Shantou, once known as “China’s underwear and loungewear capital,” supplies roughly 45% of the nation’s loungewear and 75% of related branded products. Wang’s factory, launched in 2010, grew into one of Shantou’s major apparel exporters, mirroring the boom and digitalization challenges of the local industry. With Shein’s steady demand, Shantou’s lingerie exports have flourished, leading to an industry-wide transformation.
This partnership exemplifies Shein’s decade-long role in upgrading the global fashion industry. Shein’s ongoing platform strategy extension helps a wider array of suppliers enter international markets.
<h3>Empowering more small businesses to go global</h3>
Since 2012, Shein has transformed itself from a single brand into a global platform, with site visits surpassing all other fashion websites as of September and third-quarter 2024. By the year-end, Shein is expected to be France’s top-selling fashion brand, outranking global icons Nike, H&amp;M, and Zara—companies founded 52, 77, and 49 years ago, respectively.
While Shein’s swift rise marks a significant achievement for a fashion brand, its platform strategy offers an even faster track for many vendors eyeing global markets.
During the early stages of this strategy, Shein invested substantial resources in vendor development, as well as warehouse and logistics center construction, securing long-term competitive advantages. In 2023, Shein announced plans to extend its outreach to the industrial belts in 500 cities in China, which would enable businesses across over 20 provinces in China to access global markets through cross-border e-commerce.
Beyond operating its brand, Shein began incorporating third-party products and brands years ago. In 2023, it further refined its platform strategy, developing a two-pronged approach with both its brand and platform businesses. The platform offers options for fully managed operations, semi-managed support, or self-management.
Under the fully managed model, Shein handles logistics, warehousing, marketing, and after-sales services, allowing merchants to focus on product development and supply. This option suits traders and manufacturers with existing supply strengths.
The self-managed model, meanwhile, is for businesses with cross-border e-commerce expertise, requiring them to independently handle selection, pricing, operations, logistics, and after-sales.
In contrast, the semi-managed model, introduced this year, allows vendors to manage inventory and pricing while Shein supports the rest. Launched in markets like the US, UK, Germany, and France, this model offers greater autonomy and lower entry barriers.
Compared to Shein’s direct support for its brand’s supply chain, the platform model allows for a broader industry impact, reaching more sectors. Although on-demand production in small batches has been attempted previously, Shein’s established platform, methods, resources, and traffic help empower a wider range of businesses to grow.
In 2023, Shein also launched an initiative aimed at supporting 10,000 global vendors, including those in China, achieve annual sales of USD 1 million, and to assist 100,000 small businesses in reaching USD 100,000.
At the recent 2024 China Cross-border E-commerce Trade Fair, Guangdong’s department of commerce named Shein’s initiatives as model cases in cross-border e-commerce.
As the cross-border e-commerce industry shifts from rapid expansion to a focus on quality and sustainability, Shein’s initiatives support industrial belts and boost vendors’ global competitiveness. By nurturing quality vendors and promoting premium products, Shein helps drive sustainable global expansion for more small businesses.
Currently, Shein’s 500-city initiative includes more than 20 product categories, such as apparel, footwear, accessories, home goods, beauty, personal care, electronics, and outdoor sports products. Entrepreneurs across these sectors, like Wu and Wang, are experiencing similar growth stories.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3006249826574850">article</a> was written by Wang Hanbo for 36Kr.

How Shein’s strategy pushed it past H&M, Zara, and the rest

China

Fashion

Creative

Retail

Consumer Services

… "rectification" process over its monopolistic practices is over. The crackdown on Alibaba, which followed founder Jack Ma's critical remarks about financial regulators in 2020, led to the scrapping of a blockbuster listing of fintech affiliate Ant Group and a record RMB 18.2 billion (USD 2.6 billion) fine against the e-commerce giant.
But when it comes to venture capital, the Chinese government is doubling down on the state-led approach. Premier Li Qiang chaired a State Council meeting on September 18 that studied initiatives to advance the development of venture capital. The meeting pointed out that "state capital needs to become more responsible, long-term, and patient capital."
The policy was reflected in the lobby of a "venture capital building" managed by the Shenzhen government. "Follow our party, start your business" read a slogan posted on the wall, along with the emblem of the ruling party.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Technology/Tech-Asia/China-s-entrepreneurship-for-everyone-era-ends-as-state-sets-agenda" 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's "entrepreneurship for everyone" era ends as state sets agenda

China Tech

Venture Capital

Investment

Jess Ling, a 35-year-old in Malaysia, manages a day job in administration but finds a creative outlet as a content creator on Lemon8. For her, the app offers an easy entry point for new creators, largely thanks to its high engagement rates.
Jess is far from obsessive about her posts, usually sharing just once a month. Despite a modest following of under 1,000, her posts typically get around 100 views. Yet, between September 28 and October 4, after a month-long hiatus, one of her posts rocketed past 1,700 views.
Jess, who also shares content across similar platforms, told 36Kr that achieving such high engagement without regular updates is rare. Lemon8, she said, feels like a promising channel for creators—a sentiment that seems to be catching on as Lemon8 expands from Southeast Asia to the US and Europe.
A ByteDance platform, Lemon8 focuses on sharing lifestyle photos and videos in a dual-column feed. Its bright yellow palette and Xiaohongshu-inspired design have earned it the nickname “Xiaohuangshu,” or “little yellow book.”
In the US, Lemon8 has led the lifestyle category for iPhone apps over the past month and regularly ranks within the top 30 overall, according to Diandian. Though not yet a viral sensation, Lemon8’s steady growth has caught attention.
Bunny (pseudonym), a US-based marketer, believes that Lemon8’s affordable content creation and Xiaohongshu’s proven model in China have given the platform an edge in the US. “We’re already getting on board,” he said.
<h3>What is behind Lemon8’s appeal?</h3>
Locally tailored content plays a major role.
For instance, Nini (pseudonym), a Malaysian user who speaks with a strong Southeast Asian accent, uses popular Xiaohongshu and Douyin phrases like “sisters” and “scoring deals.” On Lemon8 and TikTok, she often incorporates Malaysian slang, such as “gou li,” which she described as similar to “amazing.” Nini values Lemon8 for its international flavor, with content primarily in English and Malay. “Thais, Indonesians, and Malaysians are all on it,” she said, adding that she frequently browses for posts on budget finds, gossip, food, and travel tips.
Meanwhile, Endia, a US-based Lemon8 creator with over 10,000 followers, shared with a fellow creator that beauty and skincare content performs exceptionally well.
Ling and Nini both appreciate Lemon8’s sleek, user-friendly templates, which they describe as “very Instagram.” Last November, Lemon8 added an artificial intelligence-driven photo studio with features like facial analysis, skin assessment, body evaluation, and an idea notebook, aiming to draw more female users.
Yet, these features alone don’t fully explain why Lemon8 has thrived in a crowded social media landscape.
Ling credits TikTok as a key source of Lemon8’s traffic, noting that creators can post their Lemon8 content directly to TikTok. Both platforms offer one-click sharing, and TikTok even allows users to link their Lemon8 profiles for easy cross-promotion. On TikTok’s “For You” page, content tagged “#Lemon8” has surpassed 4 billion views, with many TikTok influencers receiving invitations to join Lemon8.
In many ways, TikTok is Lemon8’s growth engine.
The app’s recent surge in downloads also ties to its increased advertising. According to App Growing, Lemon8’s daily ad volume in October tripled from the same time last year. Users who spoke to 36Kr reported seeing frequent Lemon8 ads on Instagram and Facebook.
Data.ai indicates that Lemon8 has reached over 56.1 million global downloads. As of September, Thailand was its largest market, with active users comprising 36.18% of the total, followed by the US at 22.13%. Southeast Asian users drive engagement, while US users represent the app’s next growth wave.
<h3>An app inspired by Xiaohongshu, but not from Xiaohongshu</h3>
So why does a Xiaohongshu-like platform come from ByteDance?
Xiaohongshu has, in fact, launched several international products, including Uniik in Japan (February 2021), Spark in Southeast Asia (April 2022), and Catalog, a lifestyle-sharing app in Europe and the US (November 2022). Each echoes Xiaohongshu’s design and user experience.
Jae (pseudonym), who led Xiaohongshu’s overseas product Spark from 2022–2023, witnessed its launch and eventual decline. She told 36Kr that Xiaohongshu recently outsourced its latest overseas app, S'more, a review platform, to a third-party team in March.
Looking back on Lemon8, Jae, who left Xiaohongshu nearly two years ago, is still frustrated, noting that she and former colleagues refer to it as a “copycat.”
Three years ago, Jae initially felt uneasy about Lemon8, but over time, she and her team focused on replicating Xiaohongshu’s domestic success abroad. In retrospect, Xiaohongshu’s overseas apps and Lemon8 never even had a direct faceoff.
Xiaohongshu, however, did have a model to learn from: TikTok.
Jae recalled that one of her four product managers and many engineers had previously worked at ByteDance. In Xiaohongshu’s overseas strategy, the company sought to incorporate some of TikTok’s features, including live commerce.
whereRelatedArticle
For TikTok, Lemon8 is more of a complement than a competitor, reaching new audiences and engagement that TikTok itself may not fully capture.
In contrast, while Lemon8 capitalizes on TikTok’s reach, aggressive ads, and Xiaohongshu’s model, Xiaohongshu’s subdued approach has led some users to doubt Spark is even its product, mistaking it for a knockoff. Jae cited several reasons for Xiaohongshu’s international struggles, such as limited local expertise and unclear objectives.
In the end, Xiaohongshu’s apps like Uniik and Spark faded, while Lemon8 established itself in Southeast Asia and the US, leveraging Xiaohongshu’s playbook.
Yet, Xiaohongshu still resonates among overseas Chinese users, with over 1.5 million in Malaysia alone in 2022. Jae shared a story of one former student who, after graduating, went full-time on Xiaohongshu and now earns over RMB 1 million (USD 140,000) annually through brand sponsorships.
Whether Lemon8 will reach TikTok-level success remains uncertain, especially with Instagram’s billion-strong user base.
For now, Lemon8 rides a wave of traffic but needs time to show it’s more than a passing trend.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2997661048630920">article</a> was written by Lan Jie for 36Kr.

ByteDance’s Lemon8 borrows from Xiaohongshu, but can it keep users hooked?

East Asia

Lemon8

Entertainment

Content

Creator Economy

Porsche’s Chinese R&amp;D team is expanding, aiming to fortify its capabilities in intelligent cockpits and advanced driver assistance systems (ADAS), sources told 36Kr. A Porsche spokesperson said that the R&amp;D team is a strategic priority for Porsche China, tasked with adapting smart applications specifically for this market.
Porsche’s R&amp;D operation in China began in 2022, initially focusing on preparing imported models for local sales. In two years, it grew to a modest team of under 50 people, with this hiring round marking the second major expansion.
In Porsche’s cockpit division, the mission is clear: sharpen voice recognition and optimize control features, while ADAS development remains at an early stage and is focused mainly on researching China’s smart driving landscape.
Tesla, another international competitor, spent three years building a 400-person China team to deliver a localized cockpit experience. Porsche’s first hiring push may be smaller, but the company’s roadmap shows a readiness to scale.
An insider told 36Kr that Porsche’s China R&amp;D team is relocating from Shanghai’s Pudong district to Jiading, a city where automotive research gathers pace. There, Porsche will establish its own R&amp;D lab.
In August, Porsche launched its second all-electric model, the Macan SUV, starting at RMB 598,000 (USD 83,720). However, the Macan has yet to recreate the success of the Taycan sports sedan, with buyers in China increasingly prioritizing cost-effective and tech-forward vehicles.
Can this latest tech-driven pivot help Porsche shake off its China sales slump?
<h3>Porsche’s path to intelligent driving</h3>
Known for its driver-centered brand identity, Porsche is no stranger to smart driving technology, though its rollout has been measured.
In late 2023, Porsche appointed Sajjad Khan, former CTO at Mercedes-Benz, to oversee its smart driving efforts. Khan’s arrival sparked a flurry of investment in tech firms, including US-based Applied Intuition, which specializes in autonomous driving.
On the practical front, Porsche is adopting a diversified strategy.
Initially, the company relied on Cariad, the software subsidiary of its parent company Volkswagen. However, after repeated delays, Porsche announced a partnership with Mobileye in May last year, working together to produce scalable ADAS solutions.
The collaboration centers around Mobileye’s “SuperVision” system, designed for hands-free driving on various terrains. Porsche retains control over integration and feature adjustments to bridge human and automated driving.
With the new Chinese R&amp;D team, Porsche will conduct market research for intelligent driving and later expand the team to tailor these technologies for local drivers.
Porsche is also urgently prioritizing cockpit technology.
The automaker has relied heavily on Apple CarPlay as its primary interface and remains one of the few companies supporting CarPlay 2.0. Starting this year, Porsche updated all models to CarPlay 2.0, enabling users to stream music and control air conditioning and ambient lighting.
Yet, current Porsche models only support basic voice commands. For instance, the Taycan’s voice control includes functions like air conditioning and seat heating, but its recognition speed is limited. Against Chinese brands actively integrating artificial intelligence, Porsche’s voice control experience lacks richness.
However, Porsche’s R&amp;D expansion in China signals a shift in focus.
<h3>Can Porsche win back the Chinese market?</h3>
Porsche faces steep challenges as its China sales continue to slide.
In 2022, Porsche sales in China approached 100,000 units, maintaining its position as Porsche’s largest market for the eighth year running. But in 2023, annual sales fell to 79,000 units, and this year’s tally from Q1 to Q3 is only 43,000. China’s declining market performance has impacted Porsche’s profits and returns.
Porsche’s electric transition also faced hurdles. The automaker previously announced an ambitious target for 80% of its lineup to be electric by 2030. While Porsche did introduce the electric Macan this year, it hasn’t matched the Taycan’s popularity. Following its debut at RMB 598,000, reception from local markets was muted, according to one Porsche dealer who spoke with 36Kr.
Domestic brands have raised the bar, delivering spacious interiors, luxurious features, and advanced smart driving technology at a lower price point. Porsche’s steep premiums, without the draw of competitive features, are becoming a barrier to sales.
For 2025, Porsche’s Panamera, Cayenne, and Taycan models will feature the latest in-car systems, including popular Chinese apps like iQiyi and native navigation apps. However, voice activation—a top priority for Chinese drivers—remains limited.
Several Porsche owners told 36Kr that simple commands like adjusting temperature or controlling volume often go unrecognized, and advanced navigation functions, such as setting or changing destinations, are not supported. “It feels like Porsche doesn’t understand Chinese,” one owner said. “I need these features. The built-in navigation rarely finds my destination, so I don’t even bother using it.”
Through this R&amp;D expansion, Porsche aims to deliver a more intuitive experience, making its cars “understand Chinese” with broader command capability.
This step could raise the bar for Porsche’s in-car experience, but it may not be enough to close the gap entirely.
Tesla, another international competitor, faced similar localization issues in China. Since 2019, Tesla has assembled a 400-person team to build local features, partnering with Baidu Maps for reliable navigation, and refining voice controls to enhance climate and navigation features with a recent update.
Meanwhile, Chinese brands are advancing with AI-driven voice technology, making Tesla’s standard command-based interface feel outdated. Porsche, facing similar challenges, risks falling further behind.
Porsche’s data shows that the average age of its Chinese customers is 37, with half of them women. Many of these drivers are now favoring brands like Li Auto, Nio, and Xiaomi, where smart cockpit technology is essential. To reverse its sales decline, Porsche could need more aggressive investments in intelligent features to meet this demand.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3003270930489350">article</a> was written by Xu Caiyu for 36Kr.

Porsche ramps up R&D in China to reclaim its edge amid slowing sales

Electric Vehicles

Mobility

… together investors, universities, industry leaders, and government representatives from across the region. Given Singapore’s market characteristics, we may also invite experts in areas like food security and agritech. Our goal is to foster new dialogues and collaborations that create unique partnerships.
We chose Singapore and Southeast Asia as the host region because of its strategic location. Just as Dubai serves as a global hub, Singapore’s geography makes it convenient for businesses from China, Japan, South Korea, and India. While Southeast Asia is our focus, we’re committed to fostering regional and global connections, making GITEX Asia a pan-Asian platform.
<h3>Q: Can we expect GITEX Asia to have the same depth and breadth as GITEX Global?</h3>
TL: This is GITEX’s mission and our promise in all our events. We have built the world’s largest network of tech startups, investors, and corporations, making GITEX a trusted platform for clients exploring new markets. As we expand into new regions, we stay dedicated to helping our community build unprecedented connections in these markets—a unique offering that other expos don’t provide.
We look forward to everyone’s support in our Asia expansion. We are committed to delivering a remarkable event and look forward to welcoming all attendees.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3016290954241539">article</a> was written by 36Kr Chuhai.

What sets GITEX apart from CES, IFA, and other tech expos?

Singapore

Southeast Asia

Middle East

<h3>81Ravens raises USD 4.5 million for esports game development</h3>
<a href="https://81ravens.com/">81Ravens</a>, a Singapore-based game development company known for its arena shooter game <a href="https://paravox.games/">Paravox</a>, has raised USD 4.5 million in a seed funding round co-led by Digital Hearts Holdings and Gree Ventures. The funding will propel the ongoing development and marketing of Paravox, which is set to debut on the Solana blockchain.
Founded in 2020, 81Ravens has gained traction in Japan and Southeast Asia, with Paravox reportedly surpassing 100,000 downloads on the Epic Games Store. Designed to elevate the esports ecosystem, the game is said to integrate blockchain technology to streamline player experiences on Solana’s infrastructure.
In a statement, CEO Shimpei Yoshimura said 81Ravens also aims to redefine esports by creating a fair platform for contributors. The company hosted a Paravox tournament this year and is planning a second major esports event in December.
<figure id="attachment_150593" aria-describedby="caption-attachment-150593" style="width: 640px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="wp-image-150593" src="https://console.kr-asia.com/wp-content/uploads/2024/11/81Ravens-Paravox-Gameplay-1024x576.jpg" alt="Screenshot of Paravox gameplay." width="640" height="360" srcset="https://console.kr-asia.com/wp-content/uploads/2024/11/81Ravens-Paravox-Gameplay-1024x576.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2024/11/81Ravens-Paravox-Gameplay-300x169.jpg 300w, https://console.kr-asia.com/wp-content/uploads/2024/11/81Ravens-Paravox-Gameplay-768x432.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2024/11/81Ravens-Paravox-Gameplay-1536x864.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2024/11/81Ravens-Paravox-Gameplay-480x270.jpg 480w, https://console.kr-asia.com/wp-content/uploads/2024/11/81Ravens-Paravox-Gameplay.jpg 1920w" sizes="(max-width: 640px) 100vw, 640px" /><figcaption id="caption-attachment-150593" class="wp-caption-text">Screenshot of Paravox gameplay. Image and header image courtesy of 81Ravens.</figcaption></figure>
<h3>Honor secures investment ahead of planned IPO</h3>
Chinese smartphone maker Honor, once a subsidiary of Huawei Technologies, has attracted new investors, including China Telecom, CICC Capital, and Cornerstone, according to <a href="https://www.reuters.com/technology/smartphone-maker-honor-announces-investment-china-telecom-cicc-capital-corp-2024-10-31/">Reuters</a>. The Shenzhen-based company, currently China’s third largest smartphone maker, has not disclosed the amount raised.
Honor announced IPO plans last year but has yet to confirm a timeline or location for its listing. The company, which also received backing from China Mobile in August, has benefited from government support, receiving R&amp;D funding and tax incentives from the Shenzhen city government.
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<h3>Other deals recently completed in China:</h3>
<ul>
<li aria-level="1"><a href="https://www.eikto-battery.com/">Eikto Battery</a>, a developer of industrial lithium-ion batteries from Anhui, has secured RMB 400 million (USD 56 million) in a funding round led by state capital investors including Hefei Industry Investment and Kaisheng Group. A RMB 3 billion (USD 420 million) industry fund backed by China Galaxy Investment (CGI) also participated. Eikto plans to use the capital to strengthen its electric forklift and new energy ship offerings. —<a href="https://36kr.com/p/3016039372743943">36Kr</a></li>
<li aria-level="1"><a href="https://lightwheel.net/">Lightwheel AI</a>, an artificial intelligence technology firm, has completed a pre-Series A+ funding round, securing tens of millions in RMB. The investment was led by Beijing Artificial Intelligence Industry Investment Fund, with existing investor Matrix Partners participating. The funds will support R&amp;D on end-to-end autonomous driving and embodied intelligence, along with global business expansion. —<a href="https://36kr.com/p/3014453094966792">36Kr</a></li>
<li aria-level="1"><a href="https://www.sniper-tech.com/index.html">Sniper</a>, a precision medicine provider, has raised RMB 128 million (USD 17.9 million) in its Series B+ funding round. Led by Huimei Capital, with participation from Cowin Venture Capital and Nanwan Baiao Fund, the funds will be allocated toward developing digital polymerase chain reaction (PCR) products and expanding internationally. —<a href="https://36kr.com/p/3016385857676553">36Kr</a></li>
<li aria-level="1">Linke Zhihua, a data intelligence firm focused on AI-driven solutions, has completed a seed funding round of RMB 23 million (USD 3.2 million) led by Change Capital. The investment will bolster team expansion and AI technology R&amp;D. —<a href="https://36kr.com/p/3013441972348416">36Kr</a></li>
<li aria-level="1">Zhulian Technology, a construction robotics company, has raised an eight-figure USD sum in pre-Series A funding. The investment was led by Shunwei Capital. Returning investors BlueRun Ventures and Beijing Hanjian Group also participated. Zhulian will channel the funds into team expansion, product diversification, and establishing manufacturing and sales networks. —<a href="https://36kr.com/p/3011988940416512">36Kr</a></li>
</ul>
whereRelatedArticle
<h3>Coolmate, PangoCDP, Chickin, and more made recent headlines:</h3>
<ul>
<li aria-level="1"><a href="https://www.coolmate.me/">Coolmate</a>, a Vietnamese D2C menswear brand, closed its USD 6 million Series B funding round, led by Vertex Ventures Southeast Asia &amp; India.</li>
<li aria-level="1"><a href="https://pangocdp.com/en/">PangoCDP</a>, a Vietnamese B2B startup, has secured USD 1.5 million in seed funding from Kairous Capital.</li>
<li aria-level="1"><a href="https://chickin.id/">Chickin</a>, an Indonesian agritech startup, confirmed it raised USD 20 million in Series A+ funding, combining USD 15 million in equity and USD 5 million in debt. The investors include Granite Asia, East Ventures, Integra Partners, and the Asian Development Bank (ADB).</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: 81Ravens raises funding, Honor secures investment ahead of IPO, five other China deals, and more

Private Equity

Merger &amp; Acquisition

… said.
After closing the Uganda branch, Gracer shifted focus to refining domestic sourcing. “If the people issue can’t be resolved, we’ll focus on refining the product,” Guo explained.
Guo acknowledged that the market had matured, with the biggest challenge now being volume rather than finding buyers.
This shift requires refining the supply chain, enhancing processing standards, and moving away from traditional practices.
Through years of development, Gracer has built a recycling process. Its network includes frontend collectors like Oouyan, midstream processors such as Puyi International, exporter Dodo, domestic supplier Geryon, and recycling firm Pulian, with collection points in 245 cities. Processing over 200 varieties, Gracer can complete orders in 10–20 days from collection to export.
Despite past setbacks, Guo hasn’t ruled out re-establishing a physical presence in Africa. “Once our digital infrastructure is fully developed at home, we may consider another overseas venture.”
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2949665811423365">article</a> was written by Lin Qingqing for 36Kr.

From Guangzhou to Nairobi: Chinese secondhand apparel finds booming demand in Africa

In late October, Hengrui Pharmaceuticals captured the attention of China’s pharmaceutical sector with rumors of an upcoming secondary listing in Hong Kong. Reports surfaced on the same day as the release of Hengrui’s third-quarter results, speculating that the company plans to raise at least USD 2 billion via the Hong Kong Stock Exchange.
On the A-share market, Hengrui holds a premium valuation as a leading Chinese pharmaceutical company with few comparable domestic rivals. However, a Hong Kong listing may not afford it the same advantage. Historically, dual-listed companies on both A-shares and H-shares show higher valuations in the A-share market, with few exceptions where Hong Kong stocks exceed their mainland counterparts. The Hong Kong listing could potentially impact Hengrui’s A-share price negatively.
Following the financing news, Hengrui’s A-shares saw a drop of up to 5.7% that day, erasing nearly RMB 13 billion (USD 1.8 billion) in market value.
Amid market volatility, Hengrui clarified its position, stating that, while it has conducted preliminary research on overseas financing, no final decision has been made. The company emphasized that any potential capital raising would primarily serve to deepen its innovation and expansion strategy.
Hengrui’s push into international markets is emblematic of a broader shift for Chinese pharmaceutical giants. Initially, Hengrui was confident in building an independent international presence, establishing overseas subsidiaries and acquiring Chinese companies with innovative drugs nearing global approvals. However, these early efforts often came at high costs with limited returns.
Recently, Hengrui’s efforts to expand internationally have gained traction, changing its perception from an underdog in overseas markets to a more strategically savvy player. Notably, Hengrui licensed its GLP-1 product line via NewCo, sparking interest in Chinese pharmaceutical exports. Additionally, the company brought on Jens Bitsch-Norhave, a former senior Johnson &amp; Johnson executive, as its new head of global development, signaling Hengrui’s seriousness about engaging in the global pharmaceutical arena.
While its overseas financing plans remain tentative, Hengrui is clearly adopting a collaborative approach, inviting new partnerships and resources, from talent to capital, to propel its global journey.
In a recent industry conference, Zhang Lianshan, Hengrui’s vice president and board director, spoke publicly about the company’s evolving international strategy. Reflecting on previous strategies, Zhang said, “Approaches like our camrelizumab and apatinib combination wouldn’t be feasible now—the costs are simply too high.” He explained that Hengrui’s strategy has shifted, stating, “Now, for any product at any clinical stage, we’re looking to collaborate internationally.”
Camrelizumab, Hengrui’s self-developed PD-1 inhibitor, has performed well domestically, helping the company establish itself as one of China’s top PD-1 providers. However, in overseas markets, camrelizumab has lagged behind similar drugs. Its combination with apatinib only reached Phase 3 trials before Hengrui began seeking international partnerships, and in early 2023, the US Food and Drug Administration (FDA) postponed approval due to issues at the production site.
Hengrui’s openness to collaboration grants it greater flexibility in its international strategy. Known for its efficient R&amp;D and extensive pipeline, the company is advancing over 90 innovative products in clinical stages this year alone. According to 36Kr, multinational companies often view established Chinese pharmaceutical firms as reliable partners, given their experience in manufacturing and data integrity—key attributes in global business development.
In May, Hengrui’s GLP-1 product line entered a NewCo arrangement with a valuation of USD 6 billion, marking a shift from traditional licensing to a more collaborative business development model. NewCo allows companies to spin off product lines into new entities co-owned with US funds, receiving both cash and equity stakes.
While this model may present exit challenges for smaller biotech startups, Hengrui’s extensive pipeline allows it more leeway to test international strategies with minimal risk. It’s a more viable approach than venturing solo into unfamiliar markets.
Hengrui’s recent hiring of Bitsch-Norhave as global development head underscores its commitment to breaking into the mainstream US pharmaceutical sector. Based in Boston, Bitsch-Norhave brings over two decades of experience in BD, marking Hengrui’s first appointment of an international executive to manage BD operations—a move widely seen as a step toward greater US market integration.
With these foundational changes, Hengrui’s consideration of overseas capital markets seems a natural next step.
For Q3 2024, Hengrui reported RMB 6.589 billion (USD 922.5 million) in revenue, up 12.72% year-on-year, with a modest 1.91% increase in net profit. While quarterly growth has steadied, Hengrui doesn’t seem in urgent need of an immediate capital influx.
Moreover, for a company focused on financing R&amp;D, there are faster funding routes. For instance, in the first half of this year, Hengrui recognized EUR 160 million (USD 173 million) in revenue from its licensing deal with Merck, substantially boosting its profit. The GLP-1 product line is also expected to generate over RMB 1 billion (USD 140 million), although revenue from these products remains recorded as contract liabilities, likely to be recognized by Q4 based on previous reporting practices.
Considering the lengthy IPO process, these alternative financing methods seem more efficient.
A pharmaceutical investor told 36Kr that, if Hengrui is open to domestic funding, backing from state-owned enterprises (SOEs) might be more cost-effective. “For SOEs, Hengrui is a valuable asset—for Hengrui, this represents a partnership that dilutes equity without compromising control.”
In light of this, the potential Hong Kong listing may serve more as a gateway for attracting international partners than as an urgent financial maneuver.
After two decades without external share issuance, Hengrui now faces a pivotal question: Is it prepared to reshape its ownership and governance structure to access the global stage?
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3010820909983233">article</a> was written by Hu Xiangyun for 36Kr.

Hengrui weighs Hong Kong IPO to drive the next phase of global expansion

Deep Tech

Biotech

BYD, the Chinese electric vehicle giant, is in full sprint mode to close the gap in autonomous driving technology, consolidating internal teams and recalibrating its approach.
Insiders told 36Kr that BYD recently merged its two core autonomous driving R&amp;D teams—the Tianxuan and Tianlang departments. The unified team is now working toward a mid-2024 launch for BYD’s intelligent driving systems, which will include highway and urban navigation features. The first models featuring this technology will debut under BYD’s high-end Yangwang brand, with models priced around RMB 1 million (USD 140,000).
The reorganization follows a push earlier this year to strengthen BYD’s in-house technology development. In June, BYD established the Tianxuan department, led by Xu Lingyun, a former executive from HiPhi’s smart driving division, to focus on high-level autonomous driving solutions. Meanwhile, BYD veteran Li Feng led the formation of the Tianlang department to handle entry-level autonomous features and oversee select supplier projects, including the Seagull project.
<h3>BYD’s culture of competition</h3>
BYD has long fostered internal competition, applying this approach across its divisions, from chip development to intelligent driving. This model encourages innovation but can also strain resources and delay product timelines. In autonomous driving, focus and precision are crucial, and a streamlined, unified team is better positioned to deliver results. BYD’s recent restructuring underscores its determination to bring self-developed intelligent driving technology to market quickly.
Industry competition is also intensifying, with new advances in highway and urban navigation from leaders like Huawei. BYD’s restructuring signals its intent to keep pace in this fast-evolving space.
The Tianxuan team was originally part of BYD’s intelligent driving research center within its new technology institute, while the Tianlang team came from the intelligent driving unit of BYD’s electronics division. Earlier this year, as BYD began streamlining its intelligent driving resources, the electronics division’s 100-strong intelligent driving team was folded into the new technology institute, led by Li.
Since then, these groups have shifted from parallel operations to a full merger. Insiders reported that the Tianlang team absorbed experienced talent from other automotive companies, giving it an edge in development speed.
The recent consolidation means that Xu, who previously reported to new technology institute head Yang Dongsheng, now reports to Li. This shift marks another change in BYD’s autonomous driving leadership, following a year in which the role passed from veteran Han Bing to rising star Xu, and now to Li.
This restructuring reflects BYD’s intense focus on self-developed intelligent driving systems. Yang told 36Kr that intelligent technology is now BYD’s top priority, adding that he frequently discusses the topic with Chairman Wang Chuanfu.
“It’s common for big initiatives at BYD to involve competition, especially at the company level. But if a team isn’t delivering, changes are made,” a seasoned BYD insider shared with 36Kr.
<h3>Autonomous driving: BYD’s new growth lever?</h3>
In September, BYD reached a milestone, selling over 400,000 vehicles in a single month, with total sales reaching 419,400. The Dynasty and Ocean series accounted for 401,500 of these, representing 95.7% of total sales, while high-end brands Denza, Fangchengbao, and Yangwang made up just 3.8%.
While the Dynasty and Ocean series dominate the low- to mid-end segments, allowing BYD to control pricing in the RMB 100,000–200,000 (USD 14,000–28,000) range, BYD has set its sights on higher-end market share. Capturing this segment is no small feat. Rivals like Nio, Aito, and Li Auto, which have long benchmarked themselves against BMW, Mercedes-Benz, and Audi, have strong brand recognition and consumer loyalty.
To break into this market, BYD is focusing on advanced intelligent driving technology. Recent releases, such as the Denza Z9 GT, have drawn significant interest, with 5,000 orders placed within 36 hours of its launch. If equipped with enhanced navigation features, these models could perform even better in the market.
If BYD’s proprietary algorithms and signature technologies, like Yisifang and DiSus (known locally as Yunnian), are rolled out, the brand may offer a differentiated driving experience that accelerates its entry into the mid- and high-end market.
Self-developed intelligent driving requires substantial financial support, an area where BYD has a distinct advantage. Chairman Wang previously stated that the company plans to invest RMB 100 billion (USD 14 billion) in intelligent driving R&amp;D, focusing on advanced technology including generative AI and end-to-end large models.
These plans are not just on paper. Known for its “engineer culture,” BYD invested RMB 20.2 billion (USD 2.8 billion) in R&amp;D in the first half of 2024 alone.
While Yang has described BYD’s end-to-end approach as “mechanical” in scope—integrating every element from sensors to actuators—BYD is quietly advancing in software. In June, the company briefly brought in Zhou Peng, a former Baidu smart driving executive, to lead end-to-end algorithm development for large models. With the Tianxuan and Tianlang teams now combined, BYD is channeling its resources toward breakthroughs in software algorithms.
BYD’s reliance on multiple teams previously energized its intelligent driving efforts but also created redundancies. Now, by pooling resources, BYD is positioned to address its weaknesses more effectively.
As mid-level autonomous driving features become standard in RMB 150,000 (USD 21,000) vehicles, BYD’s future in the mid- to high-end market depends on its autonomous driving capabilities. Without a strong showing in this area, BYD risks losing traction not only in the premium segment but also in its core RMB 100,000–200,000 range. With its recent restructuring, BYD is clearly ramping up to accelerate its development.
BYD’s sustained commitment to electric technology has given it a head start in the industry, with new energy vehicle sales now surpassing 9 million and revenue reaching over RMB 300 billion (USD 42 billion) in the first half of the year. But as BYD steers this giant ship forward, its intelligent driving technology will be critical to unlocking new market potential.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3003097702506241">article</a> was written by Han Yongchang for 36Kr.

BYD unifies autonomous driving teams to compete in high-end market

Autonomous Vehicles