Alibaba

ByteDance

CATL

Huawei

Meituan

Tencent

Xiaomi

Most Followed

KrASIA Connection

100 AI Creators

China's Auto Sector

Inside China's Startups

Venture Roundup

Our Events

View All

Collections

News

Features

Insights

Ecosystem

Press Releases

DeepSeek

Li Auto

Luckin Coffee

Mixue Bingcheng

Pop Mart

Xpeng

On the Radar

Events

Latest

About

Consumer

Robotics

Fintech

Collaborate

As a debate rages in the automotive sector about whether LiDAR (light detection and ranging) is necessary for autonomous driving, one Chinese company is aiming to use its USD 200 model to put the issue to rest.
Founded in 2014, Hesai Technology specializes in LiDAR that has a wide field of view and high resolution, with its products in use by 24 companies, mainly Chinese automakers. The company ranks first in the global automotive LiDAR market with a 33% share, according to French market research firm Yole Group.
LiDAR's critics, among them <a href="/company/tesla">Tesla</a> CEO Elon Musk, say the technology is too expensive to be commercially viable.
Data from Chinese automaker <a href="/company/li-auto">Li Auto</a>, a Hesai client, shows that vehicles equipped with LiDAR can avoid 90% of fatal accidents on highways and prevent up to 20% of collisions on ordinary roads.
"LiDAR has been proven to be an excellent technology for stopping vehicles before collisions," Li Yifan, Hesai's co-founding CEO, told Nikkei in an interview at the IAA Mobility industry expo in Munich in September.
But its adoption has not yet become widespread due to its price, which is typically over USD 10,000 per unit. "Unless we significantly reduce the price, it will be difficult to install it in all vehicles, and safety will not improve," said Li, who has aimed to cut costs by 99.5%.
In collaboration with major automakers, US chip giant <a href="/company/nvidia">Nvidia</a> and German automotive parts giant Bosch, Hesai began developing a LiDAR unit in 2022 with a price of USD 500. Finding it difficult to reduce the price further, it later switched to in-house production of core components like lasers, receivers and drivers, and has sold over one million units in total.
While significant investments in production facilities increased the overall cost of the process, the company has successfully lowered the price of its new ATX model to USD 200. The product went into mass production this year.
"In-house production offers the advantage of not only reducing costs but also enabling rapid feedback into the design process," Li said. "This allows for the use of superior, lower-cost components."
Musk has criticized LiDAR for its high costs, saying in 2019 that "anyone relying on LiDAR is doomed." He has argued instead that autonomous driving can be achieved solely through advanced cameras. Some Chinese companies like <a href="/industry/ev">electric vehicle</a> startup <a href="/company/xpeng">Xpeng</a> and internet giant <a href="/company/baidu">Baidu</a>, which is developing robotaxis, have also moved away from LiDAR.
Li remains confident. "Nearly 100 automakers and parts suppliers recognize LiDAR as essential technology for protecting lives and are using it," he said. "Some are now saying Musk's view was mistaken. The industry has already reached its conclusion."
For the next generation of LiDAR and beyond, Hesai believes that its price of USD 200 will become the standard for balancing safety and widespread adoption.
The next step is further market penetration. Hesai's LiDAR technology has been adopted by Toyota Motor's joint venture in China, but the majority of customers are still Chinese automakers.
"European automakers consider LiDAR essential for Level 3 autonomous driving," Li said, expressing confidence that adoption will become more widespread. "In recent years, they have begun doing business with Chinese manufacturers possessing advanced technology."
Hesai is also bolstering its production setup, aiming to double output at its two plants in China this year from the 2024 figure to over one million LiDAR units. It also plans to establish its first overseas factory in Southeast Asia, aiming to start production in late 2026 to early 2027.
The company listed on the Hong Kong stock exchange in September to help raise funds for the expansion, raising HKD 4.16 billion (USD 535 million).
"Airbags, once prohibitively expensive, are now standard equipment in all vehicles," Li said. "We want to achieve the same situation with LiDAR."
This article first appeared on <a href="https://asia.nikkei.com/business/automobiles/china-lidar-maker-hesai-looks-to-prove-musk-wrong-with-200-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>.

China LiDAR maker Hesai looks to prove Musk wrong with USD 200 model

Internet of Things

China

… has been a strong proponent of collaboration, actively engaging the <a href="/industry/fintech">fintech</a> community through initiatives that promote transparency and responsible AI adoption. The company organizes an annual data science competition, with <a href="https://kr-asia.com/a-decade-in-the-making-finvolutions-competition-spotlights-visual-deepfake-detection">this year’s edition</a> focusing on visual deepfake detection. It also partners with conference organizers such as the <a href="https://kr-asia.com/ijcai-2025-insight-how-finvolution-is-fighting-ai-driven-fraud-at-scale">International Joint Conference on Artificial Intelligence</a> and the Conference on Information and Knowledge Management to jointly advance the ethical use of AI in finance.
Ultimately, Chen envisions machines becoming extensions of human capability, and that reality may already be near. He noted that agentic AI applications are already emerging in areas such as customer service, where AI agents can now act as “digital twins” to support human staff. However, he does not foresee a future where humans are replaced entirely. Instead, Chen believes human expertise will remain essential in determining how AI models are applied meaningfully.
One facet of this, he said, involves aligning model type and size with the tasks they are best suited for. According to Chen, smaller AI models can deliver significant impact through stable and efficient performance in domain-specific use cases, while larger models, which excel in general understanding and reasoning, are better suited for exploratory or frontier applications.
To advance work in these areas, FinVolution operates two dedicated platforms: E-LADF, which focuses on large model development, and Zeta, which supports the building and testing of agentic AI applications. Both are designed to drive human-led innovation in financial technology.
Listed on the New York Stock Exchange, FinVolution has reportedly worked with more than 130 financial institutions and served over 36 million borrowers, facilitating more than USD 157 billion in cumulative loans. Founded in 2007, the company is headquartered in China and maintains operations in Indonesia, the Philippines, and Pakistan.
This article was published in partnership with <a href="https://en.finvgroup.com/">FinVolution Group</a>.

Can AI make credit access more equitable? FinVolution’s Lei Chen thinks so

Lending

As Mihoyo enters a steadier phase of long-term operations for Genshin Impact, one of the project’s most visible figures, Xie Qiliang, is stepping away. Xie recently announced internally that he is leaving the company for personal reasons and future career plans.
When contacted by 36Kr, Mihoyo confirmed the development, saying Xie had resigned due to personal considerations and career planning. The company expressed appreciation for his six years of contribution and wished him well in his next chapter.
Xie previously worked at <a href="/company/netease">NetEase</a>, where he led marketing for Identity V. He joined Mihoyo in early 2020 to oversee domestic marketing, just as Genshin Impact was approaching its open beta and the company was rapidly expanding its team.
Since its 2020 launch, Genshin Impact has produced a series of notable marketing campaigns, including its collaboration with KFC at stores across China and Japan. The in-game opera sequence “The Divine Damsel of Devastation” also went viral and created an opportunity for Mihoyo to collaborate with the Sanxingdui Museum on content that highlighted Chinese cultural heritage. Genshin FES drew attention last year as well with coverage from People’s Daily. The franchise has since appeared across nearly every lifestyle-related category.
<figure id="attachment_158302" aria-describedby="caption-attachment-158302" style="width: 1920px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-158302" src="https://console.kr-asia.com/wp-content/uploads/2025/11/Mihoyo-Genshin-Impact-KFC.jpg" alt="Image of in-game characters Lyney and Lynette from a collaboration between Genshin Impact and KFC." width="1920" height="1080" srcset="https://console.kr-asia.com/wp-content/uploads/2025/11/Mihoyo-Genshin-Impact-KFC.jpg 1920w, https://console.kr-asia.com/wp-content/uploads/2025/11/Mihoyo-Genshin-Impact-KFC-720x405.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2025/11/Mihoyo-Genshin-Impact-KFC-1024x576.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/11/Mihoyo-Genshin-Impact-KFC-768x432.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/11/Mihoyo-Genshin-Impact-KFC-1536x864.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2025/11/Mihoyo-Genshin-Impact-KFC-480x270.jpg 480w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-158302" class="wp-caption-text">Image of in-game characters Lyney and Lynette from a collaboration between Genshin Impact and KFC. During the event period, players could receive a promo code for in-game rewards by ordering a limited-time combo meal at participating KFC locations in China and Japan. Image source: Mihoyo.</figcaption></figure>
Xie also served as a producer for Genshin Impact’s animation projects.
His exit may signal that Genshin Impact is entering a new phase of long-term operation. Over the past two years, the title has generated less buzz than in its earlier peak, and the project team has kept a lower profile. Its long-term marketing strategy has also shifted. Still, with the departures of veteran figures like Chen Zhiyi and now Xie, the game may feel the ripple effects to some degree in the period ahead.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3549713641123971">article</a> was written by Guo Fu for 36Kr.

Mihoyo loses key Genshin Impact figure as Xie Qiliang steps down

Gaming

Creative

Chinese family entertainment brand Meland has announced its first overseas location will open in Thailand at the end of this year at Siam Paragon, one of Bangkok’s leading commercial complexes. Through its partnership with Siam Piwat, Meland will debut a 5,000-square-meter indoor theme park featuring six themed zones and more than 500 play experiences that together form a large fairytale-inspired environment.
China’s family-oriented theme park industry has expanded rapidly in recent years. Citing a report from Zero Power Intelligence, 36Kr estimates that the market for children’s theme parks will surpass RMB 200 billion (USD 28 billion) by 2028, with compound annual growth remaining above 20%. Growth has been driven by rising household spending, the continued effects of the two-child policy, and increasing demand among parents for educational and entertainment experiences.
Chinese family entertainment brands have also begun to enter overseas markets. Southeast Asia has become a preferred destination due to cultural proximity, lower operating costs relative to Europe and the US, favorable regulatory conditions, and consumer demand that aligns well with Chinese operators’ offerings.
A Meland spokesperson said the Bangkok park will maintain the brand’s focus on inventive experiences and modern aesthetics while incorporating local cultural elements. The location will offer smart wristbands, professional childcare support, and a structured age-based play system designed to blend visual appeal, functionality, and social interaction.
Family theme parks have evolved beyond basic playground equipment and now serve as multifunctional spaces that combine entertainment, education, and leisure. Meland said it places strong emphasis on visual design, immersive storytelling, and child-centered play value and exploration. Its fairytale-inspired environments have received multiple international design awards.
According to Meland, the Bangkok location will highlight three major features:
<ul>
<li aria-level="1">First, it will showcase original large-scale mechanical installations developed through the company’s in-house R&amp;D capabilities, including the Lantern Fish Express, which takes families on a journey from an imagined undersea world to colorful cloud-scapes.</li>
<li aria-level="1">Second, it will integrate immersive art experiences through a collaboration with global digital media design firm D’strict, bringing light-and-interactive installations from the Arte Kids Park in Jeju Island.</li>
<li aria-level="1">Third, it will feature an integrated play-and-learn environment that combines play, sports, roleplay, social interaction, and developmental learning to serve families with children across varied age groups.</li>
</ul>
<figure id="attachment_158299" aria-describedby="caption-attachment-158299" style="width: 1920px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-158299" src="https://console.kr-asia.com/wp-content/uploads/2025/11/Meland-Bangkok-Siam-Paragon.jpg" alt="" width="1920" height="1280" srcset="https://console.kr-asia.com/wp-content/uploads/2025/11/Meland-Bangkok-Siam-Paragon.jpg 1920w, https://console.kr-asia.com/wp-content/uploads/2025/11/Meland-Bangkok-Siam-Paragon-720x480.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2025/11/Meland-Bangkok-Siam-Paragon-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/11/Meland-Bangkok-Siam-Paragon-768x512.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/11/Meland-Bangkok-Siam-Paragon-1536x1024.jpg 1536w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-158299" class="wp-caption-text">Photo source: Meland.</figcaption></figure>
Meland, one of China’s new-generation family entertainment brands, has expanded to more than 60 cities nationwide. Its trajectory mirrors changes across the broader industry, shifting from early traditional indoor playgrounds to a phase marked by imported equipment and midsize venues, and now to a model centered on aesthetic spaces, multisensory experiences, and learning-focused play.
Looking ahead to the launch of its first overseas location, the Meland spokesperson said the company hopes to see Chinese consumer brands shift from exporting products to exporting experience and culture. Just as Chinese designer toys have gained global traction, the spokesperson said Chinese brands are capable not only of producing goods but also of creating experiences that resonate with audiences.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3548457870208897">article</a> was written by Zhong Yixuan for 36Kr.

China’s Meland to make global debut with Bangkok family park

Entertainment

Thailand

Southeast Asia

… system architectures, or handled global marketing. It’s a team that really fits the AI-plus-hardware model.
We also share a mindset. We all love creating technologies and products that users can feel and experience.
<h3>36Kr: But 2023 wasn’t exactly a great year to launch a startup. What pushed you to do it anyway?</h3>
NG: Right, 2023 was the toughest year for investment. Everyone said it wasn’t the time to start a company. But when OpenAI fired the starting gun, it signaled the beginning of a new era. Everyone, big or small, was at the same starting line. No one had prior experience. That kind of uncertainty is the best environment for new species of companies.
We eventually summarized our approach into two principles: short-term viability with long-term exponential potential, and strong technical barriers where we have an advantage.
When you apply those filters, there aren’t many options left. We explored other categories but dropped them. Either competition was too intense, or the growth logic didn’t hold.
<h3>36Kr: So NAS became the final choice?</h3>
NG: Yes. NAS is relatively easy to reason through. Data will only become more valuable as all devices eventually need to connect to a central data hub. NAS already has the computing power, bandwidth, and storage to make it the ideal platform for on-device AI.
<h3>36Kr: How did you first identify NAS as a promising direction?</h3>
NG: I talked to many peers, and several recommended NAS. I’ve been a NAS user myself for over a decade, using products from brands like ZSpace, QNAP, and Synology. Another key insight was that many DJI users are also NAS users, which helped us recruit early testers and understand their pain points.
What surprised me was how counterintuitive the feedback was. When you ask NAS users if they need AI, almost everyone says no.
<h3>36Kr: I have to admit, I was surprised too when I first heard of an AI-powered NAS.</h3>
NG: I saw the same reaction on Reddit. Most people were adamant that NAS doesn’t need AI. Some long-time users even dismissed it as marketing hype.
But think about it: if your data keeps piling up and you can’t make use of it, it’s basically wasted. AI can help you organize, manage, and even create new value from that data. From a behavioral standpoint, that logic is sound. The early negativity was just noise.
<h3>36Kr: It seems video creators would be among the first to feel the pain of storage management. Could you give an example?</h3>
NG: Sure. Video creators rarely shoot footage in sequence, so their clips are scattered and disorganized. AI can automatically recognize, categorize, and align these materials—videos, images, even scripts—saving huge amounts of time in post-production.
Another common pain point is retrieving past footage. Previously, creators had to search through hard drives manually. Now, with natural language search, they can find clips instantly. The improvement in efficiency is enormous.
<h3>36Kr: So Zettlab enables video search through AI? Traditional NAS devices can’t do that?</h3>
NG: Exactly. Let’s say you’re a sports photographer covering a game. You shoot two hours of footage and need to produce a highlight reel fast. Normally, you’d have to watch all two hours. With natural language search, it takes less than a minute to locate and clip the highlights. That’s a major leap in productivity.
<figure id="attachment_158289" aria-describedby="caption-attachment-158289" style="width: 480px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="size-full wp-image-158289" src="https://console.kr-asia.com/wp-content/uploads/2025/11/Zettlab-Video-Production-Suite.webp" alt="A preview sequence by Zettlab, featuring its video production suite." width="480" height="270" /><figcaption id="caption-attachment-158289" class="wp-caption-text">Designed with creators in mind, Zettlab’s NAS includes a video production suite that helps streamline workflows. Graphic source: Zettlab.</figcaption></figure>
<h3>36Kr: Privacy is a major concern, especially for overseas users. How do you balance capability with data protection?</h3>
NG: That’s why we chose an edge AI architecture. All core functions run locally, without relying on the cloud. Internet connectivity is there only for convenience, say, when users want remote access while traveling.
All searching, recognition, and processing happen directly on the device. Even synchronization between devices is peer-to-peer, without passing through third-party servers. This ensures performance and privacy can coexist.
For most users, their data remains entirely on their own devices—secure, controlled, and trustworthy.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3535998221032321">article</a> was written by Leslie Zhang for 36Kr.

Can AI make NAS cool? Former DJI engineer Noah Guo built Zettlab to find out

Artificial Intelligence

Hardware

Deep Tech

… Bingqiang and Peak Patience Capital, with Zhuiguang Capital serving as the financial advisor. The funds will accelerate product development, team growth, and market expansion. Incubated at Xbotpark, Lissome develops robotics-driven kitchen technology that integrates smart sensing and motion control. The company holds more than 30 patents, and its latest product—a capsule-style dishwasher—combines automation with compact design for modern kitchens. —<a href="https://36kr.com/p/3543206977597316">36Kr</a></li>
</ul>
whereRelatedArticle
<h3>VoidZero, Rolo Robotics, Uluu, and more made recent headlines:</h3>
<ul>
<li aria-level="1"><a href="https://voidzero.dev/">VoidZero</a>, a Singapore-based company developing next-generation open-source JavaScript tooling, raised USD 12.5 million in a Series A round led by Accel, with participation from Peak XV Partners, Sunflower Capital, and angel investors including Koen Bok (Framer) and Eric Simons (StackBlitz).</li>
<li aria-level="1"><a href="https://www.rolorobotics.com/">Rolo Robotics</a>, a Singapore-founded robotics startup developing autonomous hot food kiosks, raised USD 3.45 million in an oversubscribed seed round backed by A2D Ventures, Beenext, Seedstars, TIS Japan, Antler, Lotus One Investment, and Blueprint Ventures.</li>
<li aria-level="1"><a href="https://www.uluu.com.au/">Uluu</a>, a Perth-based biomaterials startup, raised SGD 13.6 million (USD 10.4 million) in a Series A round led by Burda Principal Investments, with participation from Main Sequence, Novel Investments, Startmate, Fairground, and Trinity Ventures.</li>
</ul>
If there are any news or updates you'd like us to feature, get in touch with us at: <a href="mailto:hello@kr-asia.com">hello@kr-asia.com</a>.
<style>.addcaption{font-size:14px!important;line-height:20px!important;color:inherit;padding-top:8px;border-top:1px solid #e8e8e8}</style>

Deals in brief: Grab invests USD 60 million in Vay, Transcelestial secures new funding, Bioactivx closes seed round, and more

Grab

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Singapore

… OpenAI for its Stargate project this month, underscoring its continuing importance in the field.
Samsung's revived fortunes in the HBM segment come as the company performs strongly in another key area, smartphones, buoyed by the success of its new foldable Z series.
"We're expecting Samsung to see tailwinds on the mobile side with uplift from the strengthening mix coming from strong foldables performance, in particular, with the new Galaxy Z Fold7," Counterpoint Research vice president Neil Shah said in a note last month.
But success in HBM would be particularly sweet for Samsung as it looks to reassert its chip dominance.
Chairman Lee has attributed the company's HBM progress to two factors. One, encouraging its executives to speed up the process, and two, strengthening his personal relationship with Nvidia CEO Jensen Huang. That closeness could be seen when the two executives hugged each other at a business roundtable meeting in Washington in August. How close their companies remain could come down to Samsung continuing to keep pace in the AI memory race.
This article first appeared on <a href="https://asia.nikkei.com/business/technology/tech-asia/samsung-shakes-off-ai-memory-woes-but-race-to-innovate-is-far-from-over">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>.

Samsung shakes off AI memory woes but race to innovate is far from over

Samsung

East Asia

South Korea

Semiconductors

Xeonova, a nuclear fusion technology company, has raised a nine-figure RMB sum in a pre-Series A funding round, according to 36Kr, citing sources familiar with the matter. The round was led by <a href="/company/ant-group">Ant Group</a>, with participation from Hidden Hill Capital, Zijin Mining, Bian Era Technology Holdings, Soul Capital, Hua Capital, Luen Mei Quantum, and Pagoda Innovation. Existing investors CMBC International and Renfa New Energy also increased their stakes.
The funds will be used to enhance the performance of Xeonova’s ongoing reactor project, advance key technologies, and expand its team as the company continues to develop its proprietary field-reversed configuration (FRC) fusion system with the goal of commercialization.
Founded in March 2024 under the auspices of the University of Science and Technology of China, Xeonova builds on a fusion concept first proposed more than a decade ago by professor Sun Xuan. Sun developed the advanced field-reversed mirror (FRM) pathway, and since 2013, his research group has continued refining and validating the approach, with findings published in multiple peer-reviewed journals.
Backed by over a decade of R&amp;D and an established research base, Xeonova has built advantages in technological maturity, team capability, and execution. Sun, who has spent more than 20 years in fusion science, has worked across fusion laboratories, universities, and private companies in both China and the US. The team includes researchers from institutions such as the University of Science and Technology of China and Princeton University, bringing expertise across experimental physics and applied engineering.
According to Sun, the FRM configuration benefits from a linear reactor design that requires lower investment, offers structural simplicity, and allows easier maintenance and flexible control. These traits, he said, make it a potentially efficient, stable, and cost-effective route to commercial fusion energy.
As the global energy transition accelerates, controlled nuclear fusion is increasingly viewed as a cornerstone of the clean energy future, given its high energy density, abundant fuel supply, and intrinsic safety. A report by Keytone Ventures projects that the global fusion market will grow from USD 296.4 billion in 2022 to USD 395.1 billion by 2027.
Surging computing demands from <a href="/industry/ai">artificial intelligence</a> have also intensified attention on energy consumption, especially at data centers, positioning fusion power as a strategic priority for major tech firms. Microsoft has invested in Helion Energy and signed a 50-megawatt power purchase agreement, while Google has partnered with Commonwealth Fusion Systems on a 200-megawatt project. Policy momentum is also building: China’s 15th five-year plan designates nuclear fusion as a national priority, while the US and Germany have both launched dedicated programs and funding initiatives.
Multiple fusion approaches are now advancing in parallel. While tokamak-based systems remain dominant, they face persistent engineering challenges, including high construction costs, complex designs, and density limitations. The FRM configuration offers an alternative that’s simpler, cheaper, faster to iterate, and more adaptable. Progress across the field has also been rapid: Helion Energy has built seven generations of its reactor and aims to achieve net energy gain this year, with plans to deliver 50 MW of power by 2028. Meanwhile, TAE Technologies targets commissioning a hydrogen-boron fusion plant around 2030.
Xeonova expects its reactor facility to be completed and achieve first plasma discharge by year’s end, marking a key proof of engineering feasibility for its advanced FRM technology. The company said the milestone will lay the foundation for higher-performance reactors and advance China’s linear fusion pathway.
In parallel, Xeonova is exploring early commercial applications, including supplying diagnostic and heating components to universities and research institutes, as well as pursuing use cases such as neutron sources and isotope production. The company said these initiatives will help establish a foundation for near-term commercial opportunities in the fusion energy ecosystem.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3547106637754243">article</a> was written by Yuan Silai for 36Kr.

Meet Xeonova, an Ant-backed startup powering China’s nuclear fusion ambitions

Energy

… company is investing in proprietary IPs. In the first half of 2025, it acquired a 51% stake in HiToy for RMB 5.1 million (USD 714,000), gaining access to IPs such as Nommi, Honey, and MayMei. Ahead of its filing, Top Toy also acquired IPs including Ninimo.
Miniso founder Ye Guofu recently emphasized IP ownership as a strategic priority, saying Miniso will expand its IP development efforts and evolve from a retail company into a cultural and creative enterprise.
“Top Toy needs to convince Hong Kong investors that its IPs can generate value beyond its retail network,” said Gao Chengyuan, CEO of marketing firm Tiaoyuan. “At this stage, the company’s valuation can only lean toward high-turnover retail, with a price-to-earnings ratio of 25–30 times.” Developing strong proprietary IPs, he added, will be essential to securing a higher valuation.
whereRelatedArticle
<h3>The hard road to independence</h3>
If IP strength defines Top Toy’s competitiveness, its channel independence from Miniso may determine its market valuation.
As of the latest reporting period, Top Toy operated 38 directly owned stores, 250 franchise stores, five agency stores, and worked with 53 distributors. Revenue from distributors accounts for more than half of total sales.
Under the franchise model, partners operate stores and pay consulting fees to Top Toy while sharing revenue. In the first half of 2025, franchisees contributed 25% of total revenue. Distributors, meanwhile, purchase inventory from Top Toy and resell it to consumers. Miniso remains its largest distributor, accounting for RMB 923 million (USD 129.2 million) in 2024 and RMB 619 million (USD 86.7 million) in the first half of 2025, or 48.3% and 45.5% of total revenue, respectively.
Leveraging Miniso’s retail network has accelerated market penetration but also constrained Top Toy’s ability to establish an independent brand identity. Immersive flagship stores are key for designer toy brands to create emotional engagement, while Miniso’s variety store format dilutes that experience.
Heavy reliance on distributors also delays market feedback because consumer trends may take longer to reach the company. Directly operated stores, by contrast, offer real-time insights into Gen Z preferences and enable quicker product iterations.
To strengthen its brand, Top Toy plans to reduce dependence on distributors. Management expects its domestic store count to reach 380 to 400 by year’s end and aims to expand overseas to 100 countries with 1,000 stores within five years.
That strategy could influence valuation. “Excessive dependence on Miniso’s channels and franchise model may cap Top Toy’s long-term growth potential,” said Wang Peng, associate researcher at the Beijing Academy of Social Sciences. “Unless it proves its channels can operate independently, the Hong Kong market is likely to apply a valuation discount.”
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3547065866186887">article</a> was written by Chen Sizhu for 36Kr.

Search result for "undefined"