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After years of producing office chairs, desks and other home furnishings as a contract manufacturer, China's Sunon is ready compete in the US under its own brand.
Counting Ikea and Uline among its customers, the plan follows tens of millions of USD in investment aimed at serving the world's largest consumption market and is being touted as a strategic upgrade despite rising geopolitical risks.
Sunon plans to double production at its Monterrey, Mexico, factory this year for the North American market, while adding two new showrooms in the US to complement its current ones in Chicago and Dallas, Kelly Guan, vice president of Sunon USA, told Nikkei Asia in an interview.
The company's investment is paying off as it was selected to provide furniture for semiconductor firm Monolithic Power Systems' global offices.
Looking ahead, we are very confident to compete with local American brands," Guan said, pledging four-week delivery for large-scale projects from Monterrey, which will also add a steel factory to increase the range of products it manufactures.
Sunon's strategy reflects a broader shift in Chinese manufacturing. After years of supplying US brands as contract producers, Chinese companies are increasingly moving up the value chain by establishing their own presence in the US market. The transition allows them to capture higher margins amid slowing growth and intense price competition at home.
The company said it generated USD 60 million in revenue from the US market last year, accounting for roughly a third of its international business, and aims to grow American revenue by 50% this year. Overall, it recorded sales of RMB 3.7 billion (USD 536.3 million) in 2025.
Chris Pereira, founder of iMpact, a consulting group for Chinese businesses expanding internationally, said the pivot toward brand-building is driven by shrinking profit margins and rising labor costs in China. While Chinese brands have leveraged <a href="/industry/e-commerce">e-commerce</a> platforms like Amazon and TikTok Shop to reach American consumers, many are opting to establish a physical presence in the US to build brand awareness and trust.
"I think it's clear that the 'brand moat' of most Western brands is currently eroding in the face of Chinese competition around the globe," he said.
Sunon traces its origins to 1991, when founder Ni Liangzheng and three partners rented a village house in Hangzhou, near Shanghai, to begin manufacturing. The company later expanded to produce furniture for interior designers and office fit-outs for clients including WeWork, <a href="/company/tencent">Tencent</a>, <a href="/company/tiktok">TikTok</a>, and <a href="/company/alibaba">Alibaba</a>.
About a decade ago, it began designing its own products and selling to consumers, initially targeting Southeast Asian markets before gradually expanding to the Middle East.
Just before the Covid-19 pandemic, coworking space company WeWork ordered more than 400,000 desks, chairs, and pedestals, becoming one of Sunon's first major US clients.
"It isn't sustainable to remain a manufacturer for other brands," Guan said.
The US market size has its appeal. Guan noted that more companies are encouraging employees to return to the office, alongside rising office leasing activity.
But Sunon faces a harsh reality: The lucrative market also exposes the company to commercial and political risks amid <a title="" href="https://asia.nikkei.com/politics/international-relations/us-china-tensions/china-says-us-has-no-right-to-define-overcapacity" target="_blank" rel="noopener">US-China geopolitical tensions.</a> Companies from the world's second largest economy have faced hostility in the past, as anti-Chinese sentiment spiked in 2019. iMpact's Pereira said many Chinese brands fail in the US because they underinvest in localization, cultural adaption, and regulatory understanding.
Competition is also intense, with the US home to established household brands including Herman Miller and Steelcase. Guan acknowledged such headwinds, adding that goods produced by Chinese firms are often perceived in the US as lower quality or cheap imitations, and that establishing a brand in the US has presented challenges.
"Besides market prejudices against us, there are also some cultural differences between [Chinese and Americans]," she said.
To overcome this, the company has set up a research and development center in the US and continues to invest heavily in understanding US customers' tastes. Guan said Sunon is working with local designers to create products better suited for the market.
"Americans just don't like other designs, even European designs," she said.
Adding to the company's challenges, tariffs have increased import costs. Under the current US tariff regime, a 10% levy applies to all imports. Furniture made in China faces rates of up to 70%, while products from Mexico are subject to 25% tariffs, including additional levies on office furniture made with steel.
To reduce future exposure to US policy swings, setting up a factory in the country is "an imperative," Guan said, though no formal plan has been finalized. She added that any US facility would not include a wide range of processes or production lines due to higher overheads, more than double those in Mexico due to labor and material costs.
"US manufacturing remains a key chapter in our long-term playbook," said Jessica Rembert, Sunon USA's brand marketing manager. "We're not just looking for a building; we're looking for the right strategic moment to pull the trigger."
This article first appeared on <a href="https://asia.nikkei.com/spotlight/supply-chain/chinese-furniture-maker-takes-on-us-incumbents-in-bid-to-expand-foothold">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>.
Note: RMB figures are converted to USD at rates of RMB 6.90 = USD 1 based on estimates as of March 25, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Chinese furniture maker takes on US incumbents in bid to expand foothold

Retail

Consumer Economy

China

… accounted for 10% of all new car sales in the UK in June 2025, up sharply from previous years after tapping into rising Chinese EV sales. In Norway, Chinese EV brands reportedly captured about 10% of market share on a combined basis. That traction has come despite continued sensitivity in European markets toward EVs from China, with critics arguing that state support has given Chinese EV players an unfair advantage over international rivals.

The bull case for Chinese automakers, beyond EV margins

East Asia

Great Wall Motor

SAIC Motor

Chery

Transportation

Electric Vehicles

Mobility

… strategy reflects Xiaomi’s current position. With competition tightening and buyers becoming more selective, the new SU7 has to compete on product substance rather than novelty alone.
<h3>Lower early heat, steadier showroom traffic</h3>
Over the first weekend after the new SU7 went on sale, 36Kr visited six stores in Beijing.
Several salespeople told 36Kr that the new SU7 has not drawn the same level of attention as the first model. One sign is that many visitors are mainly browsing, and a notable share already own an SU7 or a YU7.
“When the old SU7 launched two years ago, people passing by would stop and look. There were even elderly people and children lining up to come in and see the car,” one salesperson who has worked in Xiaomi’s car business for two years told 36Kr. “Now the exterior hasn’t changed, so passersby take one glance and assume the new version is no different from the old one. That makes them less interested in getting in and taking a closer look.”
On orders and conversions, sales staff said customers are taking longer to decide and comparing more options before committing. “The first batch of 16,000 in-stock vehicles nationwide was basically down to only a little over a dozen by Friday (March 20) night. Most of the weekend orders therefore went to made-to-order vehicles for delivery between May and July.”
One salesperson showed 36Kr a detailed breakdown of the new SU7’s on-road price. Based on that figure, Xiaomi is offering two financing packages: a standard installment plan with an annualized interest rate of 2.5%, and a seven-year low-interest plan with an annualized rate of 1.9%.
In conversations with multiple prospective buyers, 36Kr found that pricing and financing terms remain important factors. “When you add it all up, total interest on Xiaomi’s installment plans still comes to RMB 10,000–20,000, (USD 1,449.5–2,898.9) while Tesla’s five-year zero-interest offer is very attractive to us,” one potential customer said.
Sales staff therefore advised some customers to place made-to-order purchases, because payment terms for those cars are based on the policy in effect when the vehicle is delivered. The current delivery lead time for custom orders is around May to June. “The salesperson said there may be a zero-interest policy by then, but I still want to wait and see.”
<figure id="attachment_160810" aria-describedby="caption-attachment-160810" style="width: 1280px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-160810" src="https://console.kr-asia.com/wp-content/uploads/2026/03/Xiaomi-SU7-Beijing-Shopping-Mall.jpg" alt="" width="1280" height="720" srcset="https://console.kr-asia.com/wp-content/uploads/2026/03/Xiaomi-SU7-Beijing-Shopping-Mall.jpg 1280w, https://console.kr-asia.com/wp-content/uploads/2026/03/Xiaomi-SU7-Beijing-Shopping-Mall-720x405.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2026/03/Xiaomi-SU7-Beijing-Shopping-Mall-1024x576.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2026/03/Xiaomi-SU7-Beijing-Shopping-Mall-768x432.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2026/03/Xiaomi-SU7-Beijing-Shopping-Mall-480x270.jpg 480w" sizes="(max-width: 1280px) 100vw, 1280px" /><figcaption id="caption-attachment-160810" class="wp-caption-text">Photo source: 36Kr.</figcaption></figure>
The SU7 customer base is also changing. It is extending beyond Xiaomi fans drawn by the brand and toward more pragmatic buyers who care about specifications, ownership costs, and overall value. That is closer to the mainstream of the automotive market.
Externally, the car faces competition from established models such as the Tesla Model 3 and newer challengers such as the SAIC Z7. Within Xiaomi’s own lineup, the more practical YU7 and the upcoming extended-range models are also competing for the same budgets.
The automotive business is capital-intensive and long-cycle. Design and smart features can draw attention, but long-term results depend on supply chain management, quality control, cost discipline, sales and service capabilities, and even used-car residual values.
The response to the new SU7 reflects that shift. With store traffic returning to more normal levels and customer decision cycles getting longer, the basis for comparison has moved toward configuration, cost, and value. For Xiaomi, the next phase of its automotive business will depend less on launch-day excitement and more on product quality, operational execution, and owner word of mouth.
KrASIA features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3730744534253570">article</a> was written by Xu Caiyu for 36Kr.
Note: RMB figures are converted to USD at rates of RMB 6.90 = USD 1 based on estimates as of March 25, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Xiaomi’s new SU7 faces a tougher test as showroom traffic normalizes

<a href="/company/pinduoduo">PDD Holdings</a> ended 2025 with revenue still growing, but profitability under pressure as it increased spending on merchants and supply chains.
Fourth-quarter revenue rose 12% from a year earlier to RMB 123.9 billion (USD 17.9 billion), while net income fell 11% to RMB 24.5 billion (USD 3.5 billion). Revenue also came in below analysts’ average estimate of RMB 124.4 billion (USD 18 billion), according to LSEG.
Management reinforced that message on the earnings call. It said supply chain investment remains its top priority and argued that PDD should be judged more on ecosystem development rather than quarterly margins. It also said spending on merchant support, logistics, and operational upgrades would increase further in 2026.
The full-year figures pointed in the same direction. Revenue rose 10% to RMB 431.8 billion (USD 62.5 billion) in 2025, but operating profit fell 13% to RMB 94.6 billion (USD 13.7 billion), net income declined 12% to RMB 99.4 billion (USD 14.4 billion), and operating cash flow dropped to RMB 106.9 billion (USD 15.5 billion) from RMB 121.9 billion (USD 17.7 billion) in 2024. That marked a sharp slowdown from the previous year, when revenue grew 59%, operating profit rose 85%, and net income increased 87%.
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The fourth quarter also showed where growth is coming from. Transaction services revenue rose 19% to RMB 63.9 billion (USD 9.3 billion), outpacing the 5% increase in online marketing services and others, which reached RMB 60 billion (USD 8.7 billion). But costs continued to rise faster than revenue. Cost of revenues increased 15%, sales and marketing expense climbed to RMB 34.4 billion (USD 5 billion), and R&amp;D expense rose 32% to RMB 5 billion (USD 724.1 million).
Margin pressure had been building throughout the year:
<ul>
<li aria-level="1">In the first quarter, operating profit fell 38% and net income dropped 47% as sales and marketing expenses rose 43%.</li>
<li aria-level="1">The second quarter brought 7% revenue growth and another decline in net income.</li>
<li aria-level="1">The third quarter was stronger, but management was already warning that revenue growth was slowing and that results could remain uneven as ecosystem investment increased.</li>
</ul>
The company is also positioning itself as more than a transaction platform. On the call, executives described a larger role in merchant operations, village delivery infrastructure, product development, and supply chain upgrades. The strategy may help PDD retain merchants and defend market share in a slower Chinese e-commerce market, but it also suggests that lower margins may persist.
Temu adds another layer of uncertainty. Management said the business continued to grow, but it also pointed to changing trade, tax, data, and product compliance rules across markets. PDD ended 2025 with RMB 422.3 billion (USD 61.2 billion) in cash, cash equivalents, and short-term investments, up from RMB 331.6 billion (USD 48 billion) a year earlier.
Note: RMB figures are converted to USD at rates of RMB 6.91 = USD 1 based on estimates as of March 26, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Temu owner PDD misses estimates as margins come under pressure

Pinduoduo

Temu

E-commerce

Logistics

<a href="/company/pop-mart">Pop Mart</a> posted strong growth in 2025, but the results failed to lift its stock. Shares of the Hong Kong-listed toymaker closed at HKD 168.3 (USD 21.5) on March 25, down 22.5%, after the company reported a sharp rise in revenue and profit alongside a growing reliance on “The Monsters,” the Labubu-led franchise that now anchors the business.
whereRelatedArticle
The company reported revenue of RMB 37.1 billion (USD 5.4 billion), up 184.7% year-on-year (YoY), while profit attributable to owners of the company rose 308.8% to RMB 12.8 billion (USD 1.9 billion). Gross profit climbed to RMB 26.8 billion (USD 3.9 billion), and gross margin widened to 72.1% from 66.8% a year earlier, helped by a larger contribution from overseas sales and lower procurement costs. Operating profit reached RMB 16.9 billion (USD 2.4 billion), up more than fourfold from a year earlier.
The shift was geographic as well as financial. China still accounted for 56.2% of revenue, but overseas markets drove much of the expansion. Revenue from the Americas jumped 748.4% to RMB 6.8 billion (USD 984.8 million), revenue from the Asia Pacific grew 157.6% to RMB 8 billion (USD 1.2 billion), and revenue from Europe and other regions rose 506.3% to RMB 1.5 billion (USD 217.2 million). Pop Mart ended 2025 with 630 stores globally, a net increase of 109, alongside 2,637 roboshops, as it expanded further in the US, Europe, and Southeast Asia.
The results also showed how much the company now depends on a single franchise. “The Monsters” generated RMB 14.2 billion (USD 2.1 billion) of 2025 revenue, or 38.1% of the total, up from 23.3% a year earlier. Artist IPs accounted for 90% of revenue overall, while plush became Pop Mart’s largest product category at RMB 18.7 billion (USD 2.7 billion), up 560.6% YoY.
The cost of the overseas push is also becoming clearer. Inventories rose to RMB 5.5 billion (USD 796.5 million) from RMB 1.5 billion (USD 217.2 million) a year earlier, while inventory turnover days stretched to 123 from 102. Pop Mart said that reflected longer transport lead times and the need to stock a larger global store base. Distribution and selling expenses more than doubled to RMB 8.1 billion (USD 1.2 billion), with transportation and logistics costs up 280.3%. Despite this, the company still expanded its margin.
Pop Mart’s balance sheet gives it room to keep investing. Cash and cash equivalents nearly doubled to RMB 13.8 billion (USD 2 billion), the company ended 2025 with no bank borrowings, and it proposed a final dividend of RMB 2.3817 (USD 0.3) per share, equivalent to an aggregate RMB 3.2 billion (USD 463.4 million). The 2025 results show a company that is expanding quickly overseas while becoming more dependent on a small number of IPs.
Note: HKD, RMB figures are converted to USD at rates of HKD 7.82 = USD 1 and RMB 6.91 = USD 1 based on estimates as of March 26, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Pop Mart shares fall on concerns over limited IP diversification

<a href="/company/zhihu">Zhihu’s</a> first full-year non-GAAP profit in 2025 was overshadowed by a weak fourth quarter, highlighting how much of its improvement still rests on cost cuts rather than renewed growth.
Fourth-quarter revenue fell to RMB 643.5 million (USD 93.2 million) from RMB 859.2 million (USD 124.4 million) a year earlier, while gross margin narrowed to 53.6% from 62.9%. Adjusted net income swung to a loss of RMB 39.4 million (USD 5.7 million) from a profit of RMB 97.1 million (USD 14.1 million).
For the full year, revenue declined to RMB 2.7 billion (USD 391 million) from RMB 3.6 billion (USD 521.3 million) in 2024. Even so, adjusted net income turned positive at RMB 37.9 million (USD 5.5 million), compared with an adjusted loss of RMB 96.3 million (USD 13.9 million) a year earlier. On a GAAP basis, net loss widened to RMB 195.2 million (USD 28.3 million) from RMB 169 million (USD 24.5 million), suggesting Zhihu has improved efficiency without restoring sustained growth.
The full-year improvement was driven mainly by lower costs. Cost of revenue fell to RMB 1.1 billion (USD 159.3 million) from RMB 1.4 billion (USD 202.7 million) in 2024, while selling and marketing, R&amp;D, and general and administrative expenses also declined. Adjusted operating loss narrowed to RMB 269.2 million (USD 39 million) from RMB 405.4 million (USD 58.7 million).
The fourth quarter showed the limits of that progress. Total operating expenses rose to RMB 608.7 million (USD 88.1 million) from RMB 528.8 million (USD 76.6 million), largely because of a RMB 126.3 million (USD 18.3 million) goodwill impairment tied to earlier acquisitions. Even excluding that charge, the quarter was weaker than the full-year figures suggest. Gross profit fell to RMB 344.8 million (USD 49.9 million) from RMB 540.7 million (USD 78.3 million), and adjusted operating loss widened to RMB 89.3 million (USD 12.9 million) from adjusted operating income of RMB 23.1 million (USD 3.3 million) a year earlier.
Zhihu’s main revenue streams continued to contract:
<ul>
<li aria-level="1">Marketing services revenue fell to RMB 234.8 million (USD 34 million) from RMB 315.9 million (USD 45.7 million) a year earlier.</li>
<li aria-level="1">Paid membership revenue declined to RMB 333.5 million (USD 48.3 million) from RMB 420.2 million (USD 60.9 million).</li>
<li aria-level="1">Other revenue dropped to RMB 75.2 million (USD 10.9 million) from RMB 123.1 million (USD 17.8 million) as the company continued to adjust its vocational training business.</li>
<li aria-level="1">Average monthly subscribing members fell to 12.2 million in the fourth quarter from 14.1 million a year earlier and 14.3 million in the third quarter. That decline is significant because membership remains Zhihu’s largest source of revenue.</li>
</ul>
Company management identified <a href="/industry/ai">artificial intelligence</a> as a potential growth area. On the call, the company cited average daily time spent of more than 41 minutes in the fourth quarter, a double-digit increase in clickthrough rates for AI-generated answer cards after a December search upgrade, and plans to build expert data services and AI-driven productivity tools linked to IP monetization.
Zhihu has time to test that strategy. It ended 2025 with RMB 4.4 billion (USD 637.2 million) in cash, cash equivalents, term deposits, restricted cash, and short-term investments, down from nearly RMB 4.9 billion (USD 709.6 million) a year earlier. It also said it had repurchased 31.1 million Class A ordinary shares for a total of USD 66.5 million under its existing buyback programs.
The company is not under immediate financing pressure. But until it can stabilize membership and rebuild revenue, its first full-year non-GAAP profit looks more like evidence of tighter cost control than a completed turnaround.
Note: RMB figures are converted to USD at rates of RMB 6.91 = USD 1 based on estimates as of March 26, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Zhihu achieves profit milestone in 2025 despite declining revenue

Zhihu

<a href="/company/sensetime">SenseTime’s</a> 2025 results showed that generative <a href="/industry/ai">artificial intelligence</a> remained the company’s main growth driver, while profitability improved in the second half, even as full-year earnings and operating cash flow stayed negative.
The company announced on March 25 that revenue rose 32.9% year-on-year to RMB 5 billion (USD 724.1 million). EBITDA turned positive in the second half, reaching RMB 376.4 million (USD 54.5 million), its first positive half since listing.
Still, the improvement was incomplete. For the full year, EBITDA was negative RMB 471.3 million (USD 68.3 million), adjusted EBITDA was negative RMB 645.4 million (USD 93.5 million), and net cash used in operating activities totaled RMB 301.1 million (USD 43.6 million). Gross margin also fell to 41% from 42.9%, reflecting higher costs associated with SenseTime’s infrastructure-heavy generative AI business.
Generative AI remained the main source of growth. Revenue from that segment rose 51% to RMB 3.6 billion (USD 521.3 million) and accounted for 72.4% of group revenue, up from 63.7% a year earlier. Computer vision revenue increased 3.4% to RMB 1.1 billion (USD 159.3 million). Revenue from its “X” businesses, including smart automotive and healthcare, fell 5.9% to RMB 302 million (USD 43.7 million). The company said the decline mainly reflected the deconsolidation of its autonomous driving business in August 2025.
The second half was stronger than the full-year figures alone indicate. Based on SenseTime’s interim and annual filings, H2 revenue was about RMB 2.7 billion (USD 391 million), up about 30.7% from a year earlier. Gross margin improved to about 43.2% from 38.5% in H1, while operating cash flow shifted to an implied inflow of about RMB 338.4 million (USD 49 million).
The improvement also extended beyond revenue. R&amp;D expenses fell 8.6% in 2025, selling expenses declined 13.1%, administrative expenses dropped 16.2%, and impairment losses on financial and contract assets more than halved as collections improved. Together with stronger revenue, those changes helped narrow the net loss to RMB 1.8 billion (USD 260.7 million) from RMB 4.3 billion (USD 622.7 million).
Even so, the earnings picture came with caveats. Other gains rose to RMB 1.9 billion (USD 275.2 million) from RMB 538.8 million (USD 78 million) in 2024, and SenseTime’s H1 filing showed that period included RMB 937.6 million (USD 135.8 million) in gains on the disposal of subsidiaries. That suggests the reduction in losses was not driven by operating improvement alone.
Liquidity looked less strained at year’s end, with cash and cash equivalents at RMB 10.9 billion (USD 1.6 billion) and borrowings slightly lower at RMB 5.7 billion (USD 825.5 million). But the increase in cash was driven largely by RMB 5.6 billion (USD 811 million) in financing inflows, mainly from share placings and capital injections, while full-year operating cash flow remained negative.
SenseTime is now directing investor attention to a new foundation model based on its second-generation Neo multimodal architecture, which is expected in the second quarter, and to broader deployment of agentic AI applications. The next test will be whether the company can sustain its recent improvement without continued reliance on external capital, and whether generative AI can keep scaling without further pressure on gross margin.
Note: RMB figures are converted to USD at rates of RMB 6.91 = USD 1 based on estimates as of March 26, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

SenseTime narrows losses in 2025 as generative AI drives growth

SenseTime

Artificial Intelligence

Deep Tech

<a href="/company/anta">Anta Sports’</a> 2025 results showed that most of its growth came from Fila (China) and smaller brands rather than from the core Anta label, underscoring the company’s increasing reliance on its broader portfolio.
Group revenue rose 13.3% year-on-year to RMB 80.22 billion (USD 11.6 billion). Operating profit increased 15% to RMB 19.09 billion (USD 2.8 billion), and operating margin widened 0.4 percentage points to 23.8%. But revenue at the Anta brand grew just 3.7% to RMB 34.75 billion (USD 5 billion), compared with a 6.9% increase at Fila to RMB 28.47 billion (USD 4.1 billion) and a 59.2% rise at all other brands to RMB 17 billion (USD 2.5 billion).
The results were broadly consistent with Anta’s January warning that fourth-quarter retail conditions had softened. At the time, the company cited weaker consumer sentiment, unusually warm weather, heavy Singles’ Day promotions, and steeper discounting across the sector. It also said the mass market segment was more exposed, while the premium segment was relatively more resilient.
That divide was reflected in the segment figures. Fila’s operating profit rose 10.1% to RMB 7.42 billion (USD 1.1 billion), while operating profit from all other brands climbed 55.3% to RMB 4.74 billion (USD 686.4 million). Descente, one of the smaller labels in that group, exceeded RMB 10 billion (USD 1.4 billion) in retail sales for the first time. Based on company figures, all other brands accounted for about 21% of group revenue in 2025, up from roughly 15% in 2024.
The full-year figures also point to weaker momentum later in the year. Anta’s operating margin was 26.3% in the first half of 2025, compared with 23.8% for the full year, suggesting a softer second half as retail conditions cooled. The core Anta label also underperformed the group average. Its operating profit rose 2.5% to RMB 7.21 billion (USD 1 billion), slower than its revenue growth and well behind the gains posted by higher-end and newer brands.
whereRelatedArticle
Anta’s balance sheet remains a source of flexibility. Free cash flow rose to RMB 16.11 billion (USD 2.3 billion) from RMB 13.25 billion (USD 1.9 billion) a year earlier, and the company ended 2025 with a net cash position of about RMB 31.72 billion (USD 4.6 billion).
In February, Anta agreed to buy a 29.06% stake in Puma for EUR 1.5 billion (USD 1.7 billion), a transaction that would make it the German sportswear group’s largest shareholder.
The 2025 results suggest Anta’s multi-brand model is doing more than adding scale. It is helping offset slower growth at the core brand, while giving the company more room to keep investing in newer labels and overseas expansion.
Note: EUR, RMB figures are converted to USD at rates of EUR 0.86 = USD 1 and RMB 6.91 = USD 1 based on estimates as of March 26, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Anta’s core label slows in 2025 as Fila and other labels pick up the pace

<a href="/company/mixue-bingcheng">Mixue Bingcheng’s</a> 2025 results showed that it was still expanding quickly, but the more telling figure was a decline in gross margin in the goods and equipment business that underpins its franchise model and generates almost all of its revenue.
Revenue rose 35.2% year-on-year to RMB 33.56 billion (USD 4.9 billion), while annual profit increased 33.1% to RMB 5.93 billion (USD 858.8 million). Its store network reached 59,823 locations, up from 46,479 a year earlier, extending its lead in China’s mass-market drinks segment.
That scale matters because Mixue operates primarily through franchisees rather than company-run stores. As a result, it earns far more from supplying ingredients, packaging, and equipment than from collecting franchise fees.
The 2025 results reinforced that structure. Sales of goods and equipment rose 35.3% to RMB 32.77 billion (USD 4.7 billion), while franchise and related services revenue increased 28% to RMB 793.9 million (USD 115 million). Fees and related services therefore accounted for just 2.4% of total revenue, leaving Mixue much closer to a supply chain operator serving franchisees than to a conventional franchisor.
That is why the margin trend stood out. Gross margin in goods and equipment fell to 29.9% from 31.2%, which the company attributed to changes in revenue mix and higher procurement costs for some raw materials. Franchise and related services became more profitable, with gross margin rising to 82.6% from 80.4%, but that business remained too small to offset pressure in the supply chain operation.
The expansion story was also driven mainly by China rather than overseas markets. Stores in mainland China rose to 55,356 from 41,584, and 58% of that network was in third-tier cities and below. By contrast, stores outside mainland China fell to 4,467 from 4,895. Mixue said it was optimizing existing stores in Indonesia and Vietnam even as it entered Kazakhstan and the US, suggesting that overseas growth remained uneven.
Part of the increase in store count also came through acquisition. Mixue added 1,354 franchised stores through its purchase of the Fulujia beer brand, while franchised store closures rose to 2,527 from 1,609 a year earlier. That does not undermine the company’s overall expansion, but it does make the underlying store picture less straightforward than the headline number suggests.
Its balance sheet remained a point of strength. Cash, time deposits, restricted cash, and financial assets measured at fair value through profit or loss rose to RMB 19.99 billion (USD 2.9 billion) from RMB 11.11 billion (USD 1.6 billion), supported by operating cash flow and IPO proceeds, while interest-bearing bank borrowings stood at just RMB 28.2 million (USD 4.1 million). Mixue also said its smart dispensing machines had been rolled out to more than 13,000 stores by the end of 2025 as part of a broader effort to improve store efficiency.
Note: RMB figures are converted to USD at rates of RMB 6.91 = USD 1 based on estimates as of March 26, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Mixue’s growth continues in 2025 despite margin pressure