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Kweichow Moutai, the leading manufacturer of Chinese hard liquor baijiu, has reported the first simultaneous decline in both revenue and net profit since it listed its shares in 2001, likely reflecting a squeeze on official banquets under Chinese President Xi Jinping's campaigns against corruption and extravagance.
In a disclosure to the Shanghai Stock Exchange, the company said its annual revenue for 2025 came to RMB 168.83 billion (USD 24.7 billion), down 1.2% year-on-year, while its net profit was RMB 82.32 billion (USD 12.1 billion), a 4.5% fall.
The brand, known as the liquor of choice across China's political scene, had not suffered such a double whammy since going public in July 2001. Its prospectus suggests the streak of gains dates back to at least 1997. The closest to such a dual setback came in 2015, when Kweichow Moutai eked out only 3.4% revenue growth and a 1% profit uptick.
The company's share price opened at RMB 1,400 (USD 205.1) on April 17, down by over 4% from the previous day. The shares closed 3.8% lower at RMB 1,407.24 (USD 206.1).
Kweichow Moutai, established as its name indicates in the less wealthy southwestern inland province of Guizhou, is one of China's most profitable companies overall. Its sorghum-based transparent liquor consistently delivers gross profit margins of 90%, accompanied by high volume growth. It is the crown jewel enterprise for the provincial government, which ultimately controls the company, in terms of tax revenue, employment and other benefits.
As the favored tipple for official banquets, Kweichow Moutai has been served at numerous historic events, including for a toast by then premier Zhou Enlai and US President Richard Nixon during the American leader's ice-breaking visit to China in 1972.
China's rapid economic growth lifted the company's top and bottom lines ever higher, while its brand developed a certain mystique, leading to sometimes exorbitant retail prices and making the bottles popular gifts, or allegedly, bribes.
Last year, however, Chinese authorities called for "practicing thrift and opposing waste," <a title="" href="https://asia.nikkei.com/business/food-beverage/china-baijiu-boom-town-goes-bust-after-beijing-s-austerity-order" target="_blank" rel="noopener">clamping down on luxuries</a> like high-end food and alcohol during parties. The company itself has faced heavy scrutiny under Xi's relentless anti-corruption campaign, which has shown <a title="" href="https://asia.nikkei.com/politics/xi-jinping-s-historic-purge-of-china-s-military-5-things-to-know" target="_blank" rel="noopener">renewed vigor</a> of late with purges of military and other officials.
Kweichow Moutai's growth slowed in the mid-2010s in the early days of Xi's clampdown. And multiple top officials have been arrested and charged since.
Yuan Renguo, who served as the company's chairman between 1994–2018, was sentenced to life in prison in September 2021 for accepting over RMB 112.9 million (USD 16.5 million) in bribes, allegedly to help distributors secure contracts.
Most recently, Jiang Yan, the company's vice president, CFO, and the secretary to the board, was investigated for suspected "serious violations of discipline and law," according to an announcement by the Guizhou branch of the disciplinary committee of the Chinese Communist Party and the provincial government on March 13.
The company confirmed the detention of Jiang while stressing that all production and management activities are "normal and orderly," with the case having "no significant influence" on operations. Chairman Chen Hua is to fill in for the time being.
The detention of Jiang was initiated by a team dispatched to the company by the Guizhou province disciplinary committee last July, acting on Xi's call to step up anti-corruption efforts when he visited the province in March 2025.
The team stayed for more than two months to reform the company's internal governance, establishing procedures to accept whistleblowing and to correct violations of discipline related to politics, organizational matters and clean governance. The announcement by the disciplinary committee described the dispatch of its personnel to Kweichow Moutai as a "return," as it was not the first time.
Shares in Kweichow Moutai, once among the most valuable out of all mainland listings, have lost their sheen since peaking in mid-2020. The company's ranking in the Shanghai market in terms of market capitalization was down to fourth as of April 16, trailing two state banks (Agricultural Bank of China and Industrial and Commercial Bank of China) and state oil conglomerate PetroChina.
Kweichow Moutai's disclosure barely addressed the reasons for the dual fall in revenue and profit. It blamed the drop in revenue on "the impact of the structural adjustments" in its lineup of jiang-flavored liquor, a specific type of baijiu.
Wei Xiaopo, Hong Kong-based analyst at Citi, wrote in a note on April 17 that the latest annual results were "well below market and our expectations." Still, he characterized 2025 as a "reset year for Moutai's operating model," foreseeing a rebound this year.
He maintained a "buy" rating for the stock, highlighting its high dividend payout ratio, which was raised by four points to 79% for 2025, coupled with continued share buybacks.
This article first appeared on <a href="https://asia.nikkei.com/business/food-beverage/kweichow-moutai-sees-1st-fall-in-revenue-profit-amid-corruption-crusade">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 6.83 = USD 1 based on estimates as of April 20, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Kweichow Moutai sees first fall in revenue, profit amid corruption crusade

Retail

Consumer Economy

China

Hengyi Petrochemical, a major Chinese non-state manufacturer of oil products, reported a nearly 40-fold jump in profit for the first quarter, citing the sharp rise in prices triggered by the Iran war and effective closure of the Strait of Hormuz.
In a disclosure to the Shenzhen Stock Exchange on April 14, the Hangzhou-headquartered company said its revenue for the first three months of the year climbed by 10.2% on the year to RMB 29.94 billion (USD 4.4 billion), while its net profit reached RMB 1.99 billion (USD 291.5 million), soaring by 3,773%.
While its disclosure for the quarterly results was light on detail, the company's annual report explained that higher oil prices since March were responsible for the dramatic turn in its fortunes during the first quarter.
The company noted that for one of its main products, purified terephthalic acid (PTA), a shortage of raw materials has continued and operation rates of global PTA facilities "fell significantly" since March "due to geopolitical reasons." As a leading player in the market, Hengyi expects to benefit from the new reality where supply continues to drop.
The company reported a similar effect in the market for polyethylene terephthalate, or PET, which is manufactured from PTA and used to make retail products ranging from clothing to plastic bottles and packaging materials. A global supply shortage of PET since March has pushed up prices, improving the profitability of Hengyi's PTA and PET businesses.
The sudden elevation of oil and other petrochemical products had also increased the value of Hengyi's inventory by over 40% year-on-year to RMB 18.7 billion (USD 2.7 billion) as of the end of March, according to the quarterly results.
Until the war broke out, China's petrochemical sector was a typical story of overcapacity and overproduction, keeping margins razor thin. Hengyi was not immune.
Its annual revenue for the full year of 2025 came to RMB 113.52 billion (USD 16.6 billion), 9.5% lower than the year before. Its net profit did rise 10.4% to RMB 258.33 million (USD 37.8 million), but this was mainly thanks to an increase in various government subsidies.
The company's annual revenue has been on a continuous decline since peaking at RMB 152.05 billion (USD 22.3 billion) in 2022. In the years since, Hengyi avoided red ink, but its accumulated net profit over the last three years until 2025 is less than half of what it recorded in the first quarter of this year alone.
One edge Hengyi enjoys over its peers is a petrochemical complex it owns in Brunei, with an annual crude oil refining capacity of eight million metric tons. The company mainly feeds its domestic downstream facilities from its own Southeast Asian production.
On top of its sourcing advantage, the oil price rise has lifted the diesel crack spread—the difference between the cost of crude and products made from it—above USD 150 per ton in the Singapore market, from USD 15–25 last year. The company expects various spreads to remain at high levels throughout the year. "This has become a core factor" expected to enhance financial performance "currently and in the future," it said.
This article first appeared on <a href="https://asia.nikkei.com/business/markets/commodities/chinese-chemical-producer-hengyi-s-profit-jumps-40-fold-on-iran-war">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 6.83 = USD 1 based on estimates as of April 20, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Chinese chemical producer Hengyi's profit jumps 40-fold on Iran war

… Hendrik said such developments may be an unavoidable trade-off in improving market quality.
"In the long run, this will improve our market quality," said I Gede Nyoman Yetna, the IDX's director of assessment. "The market is forward-looking, and investors will respond positively."
However, the reforms are unfolding against a backdrop of broader economic and geopolitical pressures. Despite a temporary ceasefire in the Middle East, global uncertainty continues to weigh on investor sentiment.
Domestically, fiscal risks and policy credibility remain under scrutiny. The fiscal deficit reached 2.92% of GDP last year, close to the legal ceiling of 3%, a level closely watched by investors for its implications on sovereign risk, currency stability and borrowing costs.
Credit rating agencies have also flagged concerns. Moody's and Fitch have revised Indonesia's outlook to negative, citing governance challenges and policy unpredictability.
Market activity has yet to fully recover. Yetna said 13 companies are currently preparing to go public this year, which is half of last year's total of 26 IPOs. The IDX recorded its first new listing for 2026 on April 10, with BSA Logistics Indonesia raising IDR 302 billion (USD 17.7 million).
Yetna reiterated the exchange's focus on improving market quality, including efforts to increase free float and reduce shareholder concentration among listed firms.
"We hope this transparency will build investor trust," Yetna told reporters on April 10, "and this cannot be achieved in the short term."
Despite these early signs of recovery, analysts continue to warn of mounting challenges stemming from the military strikes in the Middle East and from pressure on domestic economic growth.
"Given persistent global uncertainty and slower economic momentum," said Marolop Alfred Nainggolan, head of research at Praus Capital, "the demands of the reform agenda are becoming increasingly challenging, especially for issuers and prospective companies."
This article first appeared on <a href="https://asia.nikkei.com/business/markets/trading-asia/indonesia-s-underperforming-stock-market-faces-credibility-test">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: IDR figures are converted to USD at rates of IDR 17092.69 = USD 1 based on estimates as of April 13, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Indonesia's underperforming stock market faces credibility test

Investment

Indonesia

Southeast Asia

… quickly.
<h3>36Kr: What is the fundamental difference between a vertical sidebar and a top tab bar?</h3>
LJ: If you have many tabs open, a top tab bar turns into a row of small dots and icons, making it difficult to identify each page. The main advantage of a vertical sidebar is that it shows both the icon and the title. At a glance, you can see which page is which. This has a meaningful impact on user experience, and many users prefer it.
<h3>36Kr: From a technical standpoint, is moving the bar from the top to the side really that hard?</h3>
LJ: Very. In fact, very few browsers have built a native vertical sidebar in C++.
Broadly speaking, there are three main approaches to developing a browser. The simplest is to build the product as a web app, effectively a webpage within a webpage. Development is fast, a small team could complete it in a matter of months. However, embedding a webpage inside another webpage can cause performance issues. The system may freeze when opened, and some AI-powered browsers can drain a laptop battery within an hour. Lag and overall performance are the main constraints.
The second route is represented by Dia, Arc, and Atlas. Their approach is based on CEF, or Chromium Embedded Framework, which is also an embedded layer extracted from Chromium. But unlike Electron, CEF can use native system interfaces, so performance is better and the experience is smoother. On macOS, they use the SwiftUI framework to deliver a strong interactive experience. But that comes at a cost: because that native UI is deeply tied to the operating system, it cannot be directly ported to Windows.
In the end, we chose the hardest route: building an entire stack in C++ on top of Chromium’s overall architecture. It is slower at the start, but the payoff is better. When we were researching early on, we looked at these routes and the future problems each one could create. Many features may not look difficult from the outside, but the technical strategy and interaction design behind them require a great deal of thought.
<h3>36Kr: Is Tabbit now well adapted to Windows?</h3>
LJ: From day one, we decided to support Windows, because in every country there are far more Windows users than Mac users. User feedback has reinforced that decision. Since Tabbit entered public beta, the number of Windows users has already exceeded the number of Mac users by a wide margin.
<h3>36Kr: At this point, do you believe the product’s overall direction is the right one?</h3>
LJ: My view is that, for an AI application team, the essential task is to understand user context and use cases, then build close to those scenarios. Whether the final product is a browser or not, I am open.
We call it a browser because it is easy for users to understand and represents a clear use case. White-collar workers spend five to eight hours a day in browsers. Of course, I am aware there are critics.
<h3>36Kr: What kind of feedback or criticism have you heard?</h3>
LJ: Some people think the browser is the wrong path. Some peers have tried it before and then abandoned it. There’s plenty of such feedback.
If we compare the ambition of using AI to reshape the world to China’s college entrance exam, then the industry remains at an early stage. The field has developed only over the past two to three years. Many of these judgments are premature, and I do not place much weight on them.
<h3>36Kr: Are there any more fundamental criticisms?</h3>
LJ: At a deeper level, the narrative is simply not as compelling as OpenClaw’s. But why should I care about that? I am not fundraising. I do not like arguing with people. What I care about is reading user feedback and speaking with people who have direct experience with the product.
<h3>36Kr: People have suggested that agents will browse the web on users’ behalf in the future. What do you think?</h3>
LJ: I believe agents may take over many tasks. But as a person, I am curious and want to explore. I will still open Dribbble to look at designers’ work, watch videos on Bilibili, and read articles on WeChat official accounts. I take in information, think independently, and write. People have needs both to consume and to create content. I do not think browsers will disappear, but AI can improve how we browse and execute tasks.
Likewise, our goal with Tabbit is simple: understand users’ pain points and build close to real-world scenarios. If it can save users even half an hour a day on repetitive work, helping them leave earlier or giving them more energy to pursue their interests, then the browser has demonstrated its value.
KrASIA features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3759372854706953">article</a> was written by Ren Cairu for 36Kr.

Meituan’s GN06 unit builds Tabbit, an AI browser aimed at saving users time

East Asia

Artificial Intelligence

Deep Tech

<a href="/company/tencent">Tencent</a> has released and open-sourced HY-World 2.0, its multimodal <a href="/industry/ai">artificial intelligence</a> system that can generate, reconstruct, and simulate 3D environments from text, images, and video, as the company pushes its Hunyuan model lineup beyond visual content into production-ready assets.
The latest version stands out for its focus on usability. Unlike earlier systems that produced short video clips or static outputs, HY-World 2.0 generates editable 3D assets, supporting formats such as meshes, 3D Gaussian splatting, and point clouds. Those outputs can be exported into game engines including Unity and Unreal Engine, as well as other graphics pipelines, for further development.
Tencent said the model is geared toward real-world workflows, particularly in game development, where teams can use generated environments for map building, level prototyping, and asset pre-production.
<figure id="attachment_161246" aria-describedby="caption-attachment-161246" style="width: 640px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="size-full wp-image-161246" src="https://console.kr-asia.com/wp-content/uploads/2026/04/Tencent-HY-World-2.0-Sample-1.webp" alt="3D world assets generated using Tencent’s HY-World 2.0 system." width="640" height="342" /><figcaption id="caption-attachment-161246" class="wp-caption-text">A sample of 3D world assets generated using Tencent’s HY-World 2.0 system. Graphic source: Tencent.</figcaption></figure>
<figure id="attachment_161243" aria-describedby="caption-attachment-161243" style="width: 640px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="size-full wp-image-161243" src="https://console.kr-asia.com/wp-content/uploads/2026/04/Tencent-HY-World-2.0-Sample-2.webp" alt="Sample of 3D world assets generated using HY-World 2.0." width="640" height="342" /><figcaption id="caption-attachment-161243" class="wp-caption-text">Another sample of 3D world assets generated using HY-World 2.0. Graphic source: Tencent.</figcaption></figure>
The release marks the latest step in a fast-moving iteration cycle for the HY-World series:
<ul>
<li aria-level="1">HY-World 1.0, announced in July last year, focused primarily on early-stage 3D scene generation.</li>
<li aria-level="1">It was followed by HY-World 1.5 last December, which added real-time interaction, allowing users to explore generated environments online.</li>
<li aria-level="1">With version 2.0, Tencent is shifting toward outputs that can be reused, modified, and integrated into production pipelines.</li>
</ul>
That progression reflects a nascent trend in generative AI, moving from image and video generation toward structured environments that can function as building blocks for software systems.
Within Tencent’s broader AI strategy, HY-World sits at the top of the Hunyuan ecosystem. While the underlying Hunyuan models handle language understanding and multimodal reasoning, HY-World combines those capabilities with 3D generation and reconstruction into a unified pipeline designed to turn prompts and visual inputs into spatially coherent environments.
The latest system is structured as a four-stage pipeline:
<ol>
<li aria-level="1">HY-Pano-2.0, a panorama model, first generates a 360-degree scene representation from standard images without requiring camera metadata, using a mix of real and synthetic training data.</li>
<li aria-level="1">A trajectory planning module, WorldNav, then determines how to move through the environment, using spatial reasoning and game-style pathfinding to generate coherent exploration paths while avoiding errors such as clipping.</li>
<li aria-level="1">Next, WorldStereo 2.0 expands the environment along those paths, maintaining visual detail and spatial consistency as new areas are generated.</li>
<li aria-level="1">Finally, WorldMirror 2.0 integrates the outputs into a unified 3D environment, producing exportable assets such as 3D Gaussian splatting and meshes.</li>
</ol>
<figure id="attachment_161245" aria-describedby="caption-attachment-161245" style="width: 1920px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-161245" src="https://console.kr-asia.com/wp-content/uploads/2026/04/Tencent-HY-World-2.0-Overview.jpg" alt="" width="1920" height="1080" srcset="https://console.kr-asia.com/wp-content/uploads/2026/04/Tencent-HY-World-2.0-Overview.jpg 1920w, https://console.kr-asia.com/wp-content/uploads/2026/04/Tencent-HY-World-2.0-Overview-720x405.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2026/04/Tencent-HY-World-2.0-Overview-1024x576.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2026/04/Tencent-HY-World-2.0-Overview-768x432.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2026/04/Tencent-HY-World-2.0-Overview-1536x864.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2026/04/Tencent-HY-World-2.0-Overview-480x270.jpg 480w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-161245" class="wp-caption-text">Image source: Tencent.</figcaption></figure>
whereRelatedArticle
With this release, Tencent said its current focus is on continuing to improve asset quality, reusability, and the reconstruction of real-world environments into digital twins, suggesting future updates will build along the same trajectory.
The company’s emphasis on game development is notable given its scale in the sector. Through Tencent Games and studios including TiMi Studio Group and LightSpeed Studios, Tencent operates one of the largest game production networks globally, comprising titles such as Honor of Kings, PUBG Mobile, and others.
Tencent did not disclose whether HY-World is already being used in specific titles, though the most immediate applications are likely to emerge within development workflows. These include environment and map prototyping, where designers can generate early-stage layouts before refining them, as well as asset pre-production and faster iteration of level designs.
Over time, the technology could extend into live systems, such as environments generated in near real time within games, or tools that allow players to create their own maps using simple prompts. For now, however, HY-World 2.0 appears primarily aimed at reducing the cost and time required to build 3D worlds.

Tencent’s HY-World 2.0 moves AI beyond video into editable 3D worlds

On April 14, a delegation from the UAE Ministry of Investment visited China Merchants Capital (CMC). The two parties engaged in in-depth discussions on bolstering strategic investment cooperation between China and the UAE.
Wan Yiqing, CEO of China Merchants Capital, extended a warm welcome to the delegation led by the ministry’s undersecretary, H.E. Mohammed Al-Hawi, and provided an overview of CMC’s development.
As a premier alternative investment and asset management platform under China Merchants Group, CMC remains committed to its identity as “industrial capital,” focusing on pivotal sectors such as intelligent and digital technology, green technology, life sciences, modern logistics, and infrastructure.
Mr. Wan emphasized that the Middle East serves as a critical strategic pillar for CMC’s global expansion. Currently, CMC is actively executing China Merchants Group’s strategy of “deepening the commitment in Hong Kong, cultivation in Southeast Asia, penetration in Europe, exploration in the Middle East and Latin America, and expansion in Africa.”
CMC has already executed several landmark projects in the region, including the Saudi Aramco natural gas pipeline, one of the world’s largest energy infrastructure transactions. Mr. Wan expressed his commitment to establishing an efficient, synergistic working mechanism to expedite the transformation of mutual consensus into tangible business outcomes, thereby fostering deeper integration of capital and industry between the two nations.
H.E. Al-Hawi expressed his appreciation for the warm reception and shared insights into the UAE’s economic landscape. He noted that the UAE economy’s resilience and stability make it a reliable partner for global investors. Given CMC’s robust comprehensive strength and its vast industrial ecosystem, its investment focus aligns perfectly with the UAE’s thriving sectors, including financial services, fintech, logistics, green energy, and high technology. He underscored that the Ministry of Investment will provide full-spectrum support and facilitation for CMC’s local development, ensuring the efficient implementation of projects and maintaining a transparent and high-efficiency business environment for Chinese enterprises.
Moving forward, CMC and the UAE Ministry of Investment will deepen their synergy by establishing a regular communication mechanism. The partnership will focus on joint investments and industrial fund cooperation in areas such as infrastructure, finance, green energy, and logistics technology, contributing to the high-quality development of the Belt and Road Initiative.
The meeting was also attended by Daniel Sellers, head of Asia Pacific at the UAE Ministry of Investment; Chen Wencheng, consultant and chief representative for China; and relevant team members from CMC’s cross-border investment department.
This press release was published in partnership with <a href="https://www.cmcapital.com.cn/">China Merchants Capital</a>.

UAE Ministry of Investment visits China Merchants Capital to deepen strategic investment cooperation

… most if Chinese brands want to enter the US, truly build brands, and establish channels there? And where can AI help?</h3>
SF: To be honest, the US and China require very different playbooks. I have seen many Chinese brands still trying to use the domestic approach, and some detours could absolutely be avoided. To me, it comes down to three things: how to build a durable brand, how to open up channels, and how to put down organizational roots:
<ul>
<li aria-level="1">First, your brand DNA must take clear shape. Building a brand in the US is not just a matter of registering a trademark and launching an English-language website. Middle-class consumers in the US care deeply about what you stand for, your values, and your mission. That directly affects whether they will buy from you again. Shein talks about making the beauty of fashion accessible to everyone. Skims uses intimate apparel to communicate diversity and inclusion. These brands have established themselves in the US not because they are cheap, but because consumers feel understood.</li>
<li aria-level="1">Second, the emotional value sought by Gen Z cannot be ignored. This generation has a different consumption logic. Good functionality alone is not enough. They want a feeling: companionship, identification, and self-expression. Chinese brands have strengths in technology and supply chains, but what they often lack is that emotional hook. The brands that can tell stories in the language of young people are the ones that can command a premium.</li>
<li aria-level="1">Third, brand visibility in the age of AI must be planned in advance. The GEO point we discussed earlier is just as critical for overseas brands. More and more US consumers are going directly to ChatGPT and asking, “Recommend a good sunscreen.” If your brand is missing from the AI’s answer, it becomes invisible on the digital shelf. Brands have to turn their product information and consumer reviews into high-quality structured content so large models can understand them and recommend them.</li>
</ul>
In terms of channels, omnichannel integration is essential, and brands must go after offline retail:
<ul>
<li aria-level="1">First, omnichannel integration is a basic capability. US consumers have highly fragmented shopping paths. They may discover a product online and buy it offline, examine it offline and order it online, or move between channels in countless combinations. If your Amazon storefront, independent site, <a href="/company/tiktok-shop">TikTok Shop</a>, and offline data are all disconnected, the consumer experience will break down. You need a data hub that fully connects inventory, customer profiles, and orders.</li>
<li aria-level="1">Second, you absolutely have to attack offline retail. Many people may not realize that offline sales still account for as much as 87% in the US, which is very different from China. And major retailers have enormous bargaining power. Right now, there is a rare window for replacement. Changes in tariffs are pushing some legacy brands out, while buying teams are getting younger and becoming more sensitive to innovation. Chinese brands that have already built an online reputation are finding it easier than before to win entry tickets to offline retail.</li>
<li aria-level="1">Third, when moving from online to offline, pricing and supply chains are decisive. Online and offline prices must be carefully separated so they do not cannibalize each other. US retailers are extremely strict about sales per square foot, and their supply chain requirements are exacting. Regional warehouse stocking and replenishment within three days are basic expectations. Stockouts or packaging noncompliance can bring heavy penalties, and even after entering Walmart, a brand can still be delisted.</li>
</ul>
Finally, there is the organization, which must be deeply localized. “Real globalization is extreme localization.” That is one of the most important lessons I have learned over the past few years. In the US, companies need a fully local team. This goes beyond language. It requires understanding how sensitive American consumers are to privacy, how high their expectations are for after-sales service, and which cultural taboos to avoid. At the same time, companies should know how to leverage local professional service providers. Their buyer networks and channel experience can save significant time and cost.
As for AI’s role, it is not a standalone tool for going overseas. It is an accelerator that runs through every part of the process. On the brand side, it supports consumer insight, content production, and GEO optimization. On the channel side, it helps connect omnichannel data, forecast demand, and enable intelligent replenishment. On the organizational side, it supports cross-cultural communication and localized content adaptation. The key is not to treat AI as a cure-all, but to identify the single business pain point that matters most and solve it precisely.
To sum it up in one sentence: online is the proving ground, while offline is where the competition concentrates.
Use emotional connection and AI-based content infrastructure to secure mindshare, and use supply chains and integrated channels to deliver value. That is the path for Chinese brands to move from selling globally to competing globally with intelligence.
KrASIA features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3759285853159940">article</a> was written by Xiao Xi for 36Kr.

How Edgewell executive Sylvia Fu sees AI reshaping operations

With automotives entering an age where competition is defined by software, companies like Chinese <a href="/industry/ev">electric vehicle</a> giant <a href="/company/byd">BYD</a> are developing an edge with wireless updates, hoping to expand the lifespans of their vehicles and ultimately open new revenue streams.
In mid-February, BYD announced a wireless update to the functionality of its Han L sedan, which was released in April 2025 as part of the Dynasty series. It was the fourth update in less than a year since the vehicle's launch.
The highlight of the new update is BYD's latest driver assistance system, unveiled in late January. The system improves the accuracy of end-to-end technology, where artificial intelligence handles perception and decision-making, enabling it to be used in more complex road environments.
The wireless update requires about two hours, but users can enjoy a vehicle with the latest technology by simply waiting.
Software-defined vehicles, whose performance can be enhanced even after purchase, are beginning to determine automaker competitiveness. While <a href="/company/tesla">Tesla</a> pioneered the over-the-air (OTA) updates used by such vehicles, Chinese automakers are implementing them more actively.
BYD released 200 software updates for vehicles under its Ocean and Dynasty brands in 2025, the most of any automaker, according to Chinese research firm Ways.
Aito, an EV brand developed by <a href="/company/huawei">Huawei Technologies</a> and Seres Group, as well as outfits like <a href="/company/leapmotor">Leapmotor</a> have also released relatively large numbers of updates.
Comparatively fewer software updates in the Chinese market were announced by Tesla with 16, Toyota Motor with eight, and Volkswagen with five. The majority of OTA updates in China focus on vehicle design and control, driver assistance, and system-related technologies.
BYD's ability to update software so frequently stems from its in-house development of all of the semiconductors and operating systems required for OTA updates, as well as the hardware that actually performs the functions. "If we design everything ourselves, we can implement updates quickly and accurately," said a company representative.
As domestic sales decline due to intensifying price competition, BYD hopes to boost sales by enhancing its appeal through OTA updates.
OTA is fundamentally altering the concept of a car's lifecycle. Traditionally, after launching a new vehicle, minor improvements are made about two years later based on market reaction. After six to seven years, a completely redesigned model is usually introduced.
But software-defined vehicles can be updated to allow for continuous functionality enhancements, like smartphones. Failure to maintain freshness with the latest features quickly leads to consumer attrition.
"Consumers recognize that new energy vehicles evolve through OTA," said Isao Sekiguchi, managing director of Dongfeng Nissan, Nissan Motor's Chinese joint venture. "OTA updates must be developed even before product launch as part of the car's lifecycle, in order to keep up."
To compete with Chinese players, Nissan implemented its first OTA update for the N7 EV just two months after the vehicle was launched in April 2025. The update included enabling the use of new apps and expanding voice recognition capabilities. Nissan looks to enhance customer experience by implementing OTA updates every two to three months.
OTA has the potential to extend vehicles' lifespans. Toyota, as part of its global strategy, will leverage OTA to extend the new vehicle sales cycle for its flagship models. Believing that vehicle performance can be improved without installing new equipment, it looks to extend the cycle of complete vehicle redesigns to nine years from the conventional average of seven years.
Toyota is being flooded with orders for popular models, resulting in long delivery times. A longer sales period would reduce the likelihood of customers immediately trading in popular models after purchase. This means that vehicle values would depreciate less, and the higher resale prices would reduce the burden on drivers when trading in vehicles.
At the same time, an extended new vehicle sales cycle also reduces opportunities for automakers to recoup their investments. In China, almost all updates are offered for free. Making OTA offerings a new source of revenue is not easy.
He Xiaopeng, CEO of <a href="/company/xpeng">Xpeng</a>, said that if his company can offer Level 4 or higher autonomous driving, that may present an opportunity to shift from the traditional one-time payment for new cars to a subscription-based model.
Level 4 represents fully autonomous driving under specific conditions, which Xpeng aims to achieve through end-to-end technology. The company plans to charge a fee only to those who want to use the technology.
Tesla, a pioneer in OTA technology, has also begun changing its business model. Since mid-February, in the US and Canada, it is offering its Full Self-Driving (FSD) driver assistance system to customers who want it for USD 99 per month. It was previously installed by default and unlocked through a one-time purchase.
With prospects for substantially expanding sales of EVs slim due to a slowdown in demand, the company hopes to generate stable revenue through subscriptions.
This article first appeared on <a href="https://asia.nikkei.com/business/automobiles/electric-vehicles/freshness-is-king-byd-reigns-with-200-vehicle-software-updates-a-year">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>.

Freshness is king: BYD reigns with 200 vehicle software updates a year

Transportation

Electric Vehicles

Mobility

Lightelligence has passed a listing hearing at the Hong Kong Stock Exchange and disclosed its prospectus on April 12. China International Capital Corporation and Guotai Haitong are acting as joint sponsors.
The listing would position Lightelligence as the first publicly traded company focused on optical computing for <a href="/industry/ai">artificial intelligence</a>.
In 2017, the year the company was founded, its founder, Yichen Shen, published a cover paper in Nature Photonics as both first and corresponding author. The paper proposed and validated the feasibility of using light in deep learning computation, an advance widely regarded as a milestone in optoelectronic hybrid computing.
Lightelligence has since developed a portfolio of products and solutions centered on optical interconnect and optical computing, built on its proprietary optoelectronic hybrid chip technology. The company said these offerings are designed to address constraints in power consumption and memory while improving scalability and cost efficiency.
According to Frost &amp; Sullivan, Lightelligence is the first company to achieve commercial-scale deployment of optoelectronic hybrid computing. It also holds one of the largest patent portfolios in the field. As of March 23, the company had accumulated 410 patents, including pending and granted filings. More than half of these patents can be applied across both optical interconnect and optical computing, forming a shared technical foundation for its product development.
Lightelligence’s business is organized into two main segments: optical interconnect and optical computing.
Optical interconnect refers to integrated solutions that use optical signals to connect computing devices. These solutions can enhance computing performance within a single server or node, known as scale-up, or link multiple servers into clusters, known as scale-out. Compared with traditional electrical interconnects, optical approaches offer lower latency, higher bandwidth, and improved energy efficiency.
Frost &amp; Sullivan said Lightelligence launched LightSphere X, an optical circuit switching product, in 2025. The company describes it as the first distributed optical circuit switching solution for GPU supernode interconnects, reporting that it can increase model flops utilization by more than 50%, thereby reducing the total cost of ownership for computing workloads.
Optical computing involves processing data using photons rather than electrons. Lightelligence’s optical processors incorporate photonic linear computing units to accelerate computation. The company said these units are less constrained by semiconductor process limitations and can deliver low latency and high throughput.
Frost &amp; Sullivan said Lightelligence has introduced several products in this category, including OptiHummingbird, described as the first optoelectronic hybrid computing accelerator card based on an on-chip optical network, and Pace 2, described as the first such accelerator card using 3D through-silicon via packaging.
<figure id="attachment_161215" aria-describedby="caption-attachment-161215" style="width: 1920px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-161215" src="https://console.kr-asia.com/wp-content/uploads/2026/04/Lightelligence-Pace-2.jpg" alt="Image shows Lightelligence’s Pace 2 accelerator card." width="1920" height="1080" srcset="https://console.kr-asia.com/wp-content/uploads/2026/04/Lightelligence-Pace-2.jpg 1920w, https://console.kr-asia.com/wp-content/uploads/2026/04/Lightelligence-Pace-2-720x405.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2026/04/Lightelligence-Pace-2-1024x576.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2026/04/Lightelligence-Pace-2-768x432.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2026/04/Lightelligence-Pace-2-1536x864.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2026/04/Lightelligence-Pace-2-480x270.jpg 480w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-161215" class="wp-caption-text">Lightelligence’s Pace 2 accelerator card. Image source: Lightelligence.</figcaption></figure>
As of December 31, 2025, Lightelligence reported 44 commercial customers, supporting GPU clusters with several thousand cards and delivering an average increase of more than 50% in model flops utilization. Frost &amp; Sullivan said that by 2025 revenue, the company ranked second in China’s scale-up optical interconnect market, while its cumulative optical computing chip shipments ranked first globally.
Financially, Lightelligence reported revenue of RMB 38 million (USD 5.6 million) in 2023, RMB 60 million (USD 8.8 million) in 2024, and RMB 106 million (USD 15.5 million) in 2025, representing a compound annual growth rate of 66.9%.
Optical interconnect solutions account for the majority of its revenue, with scale-up products driving growth. Revenue from these products reached RMB 47 million (USD 6.9 million) in 2024 and RMB 75.6 million (USD 11.1 million) in 2025. Frost &amp; Sullivan said Lightelligence ranked first among China’s independent scale-up optical interconnect solution providers by revenue in 2025, with a market share of 88.3%.
Since its founding, Lightelligence has completed multiple funding rounds backed by investors including Matrix Partners China, Tencent, China Mobile Capital, and CRHC Fund, among others.
As of its final pre-IPO funding round in April 2025, the company was valued at RMB 7.8 billion (USD 1.1 billion).
In its prospectus, Lightelligence said it plans to use the IPO proceeds primarily for R&amp;D, including further development of its optical interconnect and optical computing technologies, as well as for commercialization and general corporate purposes.
This <a href="https://xueqiu.com/2854806290/383619010">article</a> was adapted based on a feature originally written by Stone Jin and published on IPO Zaozhidao. KrASIA is authorized to translate, adapt, and publish its contents.
Note: RMB figures are converted to USD at rates of RMB 6.83 = USD 1 based on estimates as of April 15, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Lightelligence nears Hong Kong IPO with optical AI infrastructure push

AI Infrastructure

Hong Kong