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Longcheer Technology made its Hong Kong market debut on January 22, adding to a growing roster of mainland technology companies turning to the city’s capital markets.
The smart device manufacturer sold about 52.3 million shares in the offering, which was heavily oversubscribed, according to market filings. The share sale launched on January 14 at HKD 31 (USD 4) per share, with the stock rising beyond HKD 35 (USD 4.5) on its debut before retreating to close at HKD 32.1 (USD 4.1) on the first day of trading. Longcheer’s Hong Kong shares were trading at around HKD 31.2 (USD 4) at the time of publication, slightly above the initial offer price.
Media reports said Longcheer plans to use the IPO proceeds to expand production capacity, increase investment in R&amp;D, and pursue potential strategic acquisitions.
The listing marks Longcheer’s second public market debut, following its Shanghai Stock Exchange IPO in March 2024. In that offering, the company issued about 60 million shares at RMB 26 (USD 3.6) per share, raising roughly RMB 1.6 billion (USD 224 million). The Shanghai listing followed a prolonged effort to access China’s A-share market, after earlier attempts in 2015 and 2017 were halted.
Longcheer’s Hong Kong debut adds to a steady stream of mainland technology IPOs in the city, including listings by Biren Technology, <a href="/company/minimax">MiniMax</a>, and Z.ai, also known as Zhipu AI. The trend reflects Hong Kong’s <a href="https://kr-asia.com/hong-kongs-ipo-market-roars-back-to-life-leading-the-world-in-2025-listings">growing role as an alternative venue for public fundraising</a> amid ongoing geopolitical uncertainty. Mainland inflows have been a key factor in pushing the Hong Kong Stock Exchange back to the top of global IPO rankings last year, ahead of Nasdaq and the New York Stock Exchange, which were long considered benchmark destinations for Asian companies seeking public capital.
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The company has prior experience with offshore markets. It was listed on the Singapore Exchange in 2005 under the ticker BJL, before being taken private and delisted in late 2020.
Founded as a provider of smart technology products and solutions, Longcheer focuses on the design, R&amp;D, manufacturing, and servicing of terminal devices, including smartphones, tablets, wearables, home appliances, and mixed reality hardware. It operates as an ODM, or original design manufacturer, for major Chinese brands such as <a href="/company/huawei">Huawei</a>, <a href="/company/xiaomi">Xiaomi</a>, and <a href="/company/honor">Honor</a>.
According to a Frost &amp; Sullivan study on the smart device manufacturing industry, Longcheer ranked as the world’s largest smartphone ODM by shipments, delivering 172.9 million units and accounting for a 32.6% global market share. It ranked second in consumer electronics ODM shipments, with 219.1 million units and an estimated 22.4% share. In smart glasses manufacturing, Longcheer placed second globally, shipping 2.1 million units for a 21.7% share, and counts Ray-Ban Meta among its customers.
Chinese media outlet <a href="https://finance.sina.com.cn/stock/t/2026-01-22/doc-inhiecca2839053.shtml">Sina</a> reported that Longcheer operates four main manufacturing bases: two in Huizhou and Nanchang, along with overseas facilities in Vietnam and India. The company also maintains regional offices in the US, South Korea, and Japan.
Financially, Longcheer reported revenue of RMB 29.3 billion (USD 4.1 billion) in 2022, RMB 27.2 billion (USD 3.8 billion) in 2023, and RMB 46.4 billion (USD 6.5 billion) in 2024. Gross profit rose from RMB 2.4 billion (USD 336 million) in 2022 to RMB 2.7 billion (USD 378 million) in 2024, although gross margin declined to 5.8% in 2024 following the revenue surge.
Net profit totaled RMB 561.5 million (USD 78.6 million) in 2022, RMB 602.7 million (USD 84.4 million) in 2023, and RMB 493.4 million (USD 69.1 million) in 2024.
For the first nine months of 2025, Longcheer reported revenue of RMB 31.3 billion (USD 4.4 billion), down 10.3% year-on-year, while net profit rose 17.7% to RMB 507 million (USD 71 million). Net profit excluding non-recurring items fell 18.4% to RMB 271 million (USD 37.9 million) over the same period.
In the third quarter of 2025, revenue declined 9.6% year on year to RMB 11.4 billion (USD 1.6 billion). Net profit increased 64.5% to RMB 152 million (USD 21.3 million), while net profit excluding non-recurring items rose 56.0% to RMB 92.4 million (USD 12.9 million).

Chinese smart device maker Longcheer joins wave of Hong Kong listings

Hardware

Internet of Things

Hong Kong

China

Since <a href="/company/pop-mart">Pop Mart’s</a> stock hit a record high of HKD 339.8 (USD 43.6) per share on August 26 last year, it has fallen more than 40% over the past five months. Industry analysts largely attribute the decline to the fading premium surrounding its once-dominant IP, Labubu.
Data from the Dewu app shows that the Labubu “Big into Energy” blind box now trades at an average price of RMB 100.25 (USD 14), down 23% from its 90-day peak. Compared with its record high of RMB 639.32 (USD 89.5) last June, shortly after Pop Mart launched the “Wacky Mart” series, the decline exceeds 84%.
In some cases, prices have fallen even further. On Tmall’s subsidy-driven channel, unopened blind boxes are selling for as little as RMB 86 (USD 12), below Pop Mart’s official retail price.
Anxiety in the consumer market has spilled into capital markets. According to data from Wind, the number of Pop Mart shares sold short has risen sharply since August 2025, at one point nearing 10,000 shares.
On January 19, Pop Mart announced plans to repurchase 1.4 million shares at prices ranging from HKD 177.7–181.2 per share (USD 22.8–23.2), for a total outlay of HKD 251 million (USD 32.2 million). The buyback, its first since 2024, was widely interpreted as a signal of confidence from management.
Fueled by celebrity exposure, Pop Mart has become one of China’s most successful global consumer exports, with Labubu emerging as its standout asset. According to the company’s earnings report, The Monsters series, which includes Labubu, generated RMB 4.81 billion (USD 673.4 million) in revenue in the first half of 2025, accounting for nearly one-third of total revenue.
Around the same period, however, Pop Mart began tightening control over the secondary market by cracking down on scalpers and increasing supply. In a media interview, founder Wang Ning said that after September 2024, Labubu’s monthly sales could reach ten million units worldwide. “We’re trying in every possible way to keep it from being maliciously speculated on,” he said.
Dewu data supports that assessment. After “Wacky Mart” launched, Pop Mart restocked Labubu vinyl and plush toys six times. The expanded production quickly pushed down prices of the mini Labubu edition, undermining scalpers’ hoarding strategies.
At the same time, Pop Mart has dialed back online hype by deploying robotic vending machines to steer traffic toward physical stores. In retrospect, the company appears to have largely regained control over pricing.
As a result, consumers can now buy standard editions at or near retail prices, while hidden or limited-edition versions command modest, more rational premiums. From a business perspective, the strategy helps Pop Mart protect margins while maintaining the credibility of its premium IP portfolio.
In a research note, Deutsche Bank said Labubu’s production capacity expanded from 10 million units in the first half of 2025 to a monthly average of 50 million by year’s end. The firm estimated the expansion could lift Pop Mart’s adjusted net profit to RMB 14.5 billion (USD 2 billion) in 2025.
Still, Labubu’s rapid rise and correction have reignited debate over Pop Mart’s reliance on blockbuster IPs and the sustainability of such product cycles.
Notably, even as resale premiums have declined, scarcity has increased in select collaborations. In October last year, Labubu partnered with LVMH’s heritage brand Moynat. Shortly afterward, Twinkle Twinkle collaborated with bubble tea chain Heytea. Around the same time, Pop Mart hired Wu Yue, former president of Louis Vuitton China, a move widely seen as signaling deeper diversification and a push upmarket.
On the same day it announced the buyback, Pop Mart also unveiled a Molly-themed smartphone developed with <a href="/company/honor">Honor</a>. Based on the Honor 500 specifications, the device features Molly artwork on the back, along with a customized interface, boot animation, and photo watermark built around the IP.
By most measures, Pop Mart remains among the industry’s most efficient creators of blockbuster IP. In the first half of last year, The Monsters, Molly, Skullpanda, Crybaby, and Dimoo each generated more than RMB 1 billion (USD 140 million) in revenue. Thirteen additional artist IPs, including Hirono, Twinkle Twinkle, and Hacipupu, surpassed RMB 100 million (USD 14 million) in sales. Even so, Pop Mart’s ambition to become a global, IP-centric platform will hinge on its ability to balance scale with perceived scarcity.
Pop Mart is not alone in using buybacks to steady investor sentiment. Other Chinese consumer companies, including Kweichow Moutai and Midea Group, have also announced repurchase plans, reflecting expectations of a gradual recovery in consumption.
A telling comparison has emerged. As Labubu’s market price has converged toward retail, Feitian Moutai has, for the first time, traded at its official retail price of RMB 1,499 (USD 209.9). While the products serve very different consumers, both shifts suggest a correction of speculative excesses as supply and demand rebalance.
Pop Mart’s repurchase plan has received broad investor approval. Morgan Stanley said the company’s long-term growth story remains intact and projected net profit of RMB 12.6 billion (USD 1.8 billion) for 2025. Other analysts noted that the buyback could help establish a price floor, supported by expected strength in 2025 earnings and momentum into the first quarter of 2026.
As of publication, Pop Mart shares were trading at HKD 197.6 (USD 25.3) at the market open on January 22, up more than 9% since the January 19 buyback announcement.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3648979523706501">article</a> was written by Xie Yunzi for 36Kr.

Pop Mart launches share buyback as Labubu craze fades

East Asia

Retail

Consumer Economy

<a href="/company/lark">Lark</a>, also known as Feishu, is preparing to launch its first hardware product, a compact, bean-shaped recording device that uses <a href="/industry/ai">artificial intelligence</a>. Developed jointly with <a href="/company/anker">Anker Innovations</a>, the project marks an experimental move for a company that has, until now, focused exclusively on software.
According to product materials reviewed by 36Kr, the device weighs about ten grams and features a dual MEMS (microelectromechanical system) microphone array. With its charging case, the total weight reaches roughly 48 grams. It supports both Bluetooth and Wi-Fi transmission and is designed for hands-free, always-on voice capture.
AI-powered recording devices began gaining traction in 2025, when Plaud introduced its <a href="https://kr-asia.com/can-plauds-overseas-first-strategy-give-it-an-edge-in-chinas-crowded-voice-recorder-market">AI notetakers</a>, triggering a wave of similar products from Chinese manufacturers. Despite the surge, few major technology companies have entered the category with dedicated hardware.
Founded in 2017, Lark has never released a hardware product. Several people close to the company told 36Kr that the recorder is viewed internally as a trial project, with the product team continuing to prioritize software development.
From 2024 onward, consumer AI hardware began diversifying rapidly, with recorders, cameras, and smart glasses emerging as alternative entry points for interacting with AI beyond smartphones. Each form factor reflects an effort to make AI more ambient and continuously accessible.
Instead of adopting the card-style design favored by many competitors, Lark and Anker chose a smaller, bean-like form. Card-shaped recorders can attach magnetically to the back of a phone, but their size can limit comfort and portability. The bean-shaped design is intended to be lighter and suitable for extended, all-day use.
Users can clip the device to a collar or pocket, or attach it magnetically to a phone. The goal is to lower the friction of recording, allowing conversations to be captured during meetings, client visits, or commutes without opening an app or handling a phone.
Despite its small size, the device supports live meeting notes. It can generate real-time captions and AI-produced summaries, accompanied by simple visual elements such as bar charts.
Portability combined with contextual awareness is positioned as a core differentiator. According to 36Kr, the device and its charging case offer more than 32 hours of battery life on a full charge. The recorder can store up to eight gigabytes or roughly 250 hours of audio, and supports fast charging, delivering about two hours of recording from a ten-minute charge.
<h3>Competing for the next context gateway</h3>
Since 2025, advances in foundational AI models, particularly multimodal systems, have renewed momentum in voice-based interaction. In China, established players such as <a href="/company/iflytek">iFlytek</a> and Sogou have upgraded voice input tools. Meanwhile, <a href="/company/bytedance">ByteDance's</a> Doubao has introduced its own input method, embedding large model capabilities into everyday typing. Other startups, including Remio, are developing products aimed at managing users' daily context across work and personal life.
Across both input methods and wearables, the competition centers on becoming the memory gateway for AI assistants. Systems that capture richer context can deliver more personalized responses and are harder for rivals to replicate.
Per 36Kr, Lark’s device supports an end-to-end workflow from live meetings through post-meeting follow-up. During meetings, users can view AI-generated highlights in real time. Afterward, the system produces full transcripts with speaker identification, action items, and key decisions.
All recordings are stored directly in Lark’s Knowledge Base, where speech is converted into structured text. Users can then query past content conversationally through Lark’s AI assistant, for example, asking what concerns a client raised in a recent meeting. The system retrieves relevant context and returns a concise answer, reducing post-meeting administrative work.
Lark was built within ByteDance and, since its launch in 2017, has focused on high-tech industries. It has refined tools for document collaboration, transcription, and meeting support to build an early reputation for productivity.
That positioning has carried into the current AI cycle. Lark is widely used by AI-focused companies including <a href="/company/deepseek">DeepSeek</a>, <a href="/company/minimax">MiniMax</a>, Moonshot AI, and Z.ai (Zhipu AI), all of which rely on the platform for internal collaboration.
Such organizations, typically with heavy procedural and documentation demands, are also the most likely to benefit from an AI recording device.
The design logic behind Lark’s hardware reflects longstanding enterprise requests, including speaker-labeled summaries, automatic extraction of to-do items, and searchable historical records.
Industry observers generally agree that while AI recording hardware can be replicated quickly, durable differentiation depends on continued engineering refinement. Improvements in meeting templates, transcription accuracy, and post-processing workflows are likely to matter more than form factor alone.
Here, Lark holds an inherent advantage. The device runs on ByteDance's Doubao large model, whose multimodal capabilities are widely regarded as competitive within the field. Its ability to parse complex dialogue and generate accurate transcripts directly affects the quality of meeting summaries, creating a technical edge that may be difficult for competitors to match in the near term.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3645215315267202">article</a> was written by Deng Yongyi for 36Kr.

Lark steps into hardware, developing an AI-powered recorder with Anker

Lark

Anker

Artificial Intelligence

Deep Tech

<a href="/industry/ai">Artificial intelligence</a> semiconductor development is progressing rapidly in China, with the capabilities of companies like Moore Threads advancing to the point that the country could meet 80% of its demand with local supply, by one estimate.
At a <a href="https://asia.nikkei.com/business/tech/semiconductors/china-s-moore-threads-unveils-new-chip-in-homegrown-ai-race" target="_blank" rel="noopener">developer conference</a> in Beijing last month, Moore Threads showed off its new Huagang architecture for graphics processing units, along with new GPUs including Huashan for AI and Lushan for graphics. Huashan offers performance close to <a href="/company/nvidia">Nvidia's</a> mainstay products, while Lushan is best-in-class globally, according to the company, which plans to begin mass production of both this year.
"The new products meet the needs of domestic developers," CEO Zhang Jianzhong said. "There will be no more need to wait for advanced products from overseas."
Zhang, a former vice president at Nvidia, established Moore Threads in 2020. The company debuted on the Shanghai Stock Exchange's tech-focused STAR Market in early December and has shot into the spotlight, with a market capitalization that has exceeded RMB 300 billion (USD 42 billion).
Zhang's goal is to help end dependence on Nvidia, which accounted for 66% of the Chinese AI semiconductor market in 2024, according to US research firm Bernstein. The figure represents a high share in a field that is key to competitiveness for both companies and countries.
Export restrictions by the US government have made it harder to access Nvidia's top-of-the-line products. President Donald Trump has said that Washington will <a href="https://asia.nikkei.com/business/tech/semiconductors/us-gives-green-light-to-nvidia-h200-chip-exports-to-china" target="_blank" rel="noopener">allow the sale</a> of some advanced Nvidia chips to China with an added 25% fee paid to the government, but China is <a href="https://asia.nikkei.com/business/technology/artificial-intelligence/china-drafting-purchase-rules-for-nvidia-h200-chips" target="_blank" rel="noopener">considering rules</a> to limit imports.
Under the proposed five-year plan drafted by the Chinese government in October 2025, Beijing aims to achieve semiconductor self-sufficiency under a "new national system," bringing together the public and private sectors along with financial institutions.
At the core of this plan are China's "four little dragons" of GPUs: Moore Threads, MetaX, Biren Technology, and Suiyuan Technology, also known as Enflame.
MetaX, like Moore Threads, held an IPO on the STAR Market late last year, while Biren <a href="https://asia.nikkei.com/business/markets/ipo/chinese-ai-chipmaker-biren-soars-on-trading-debut" target="_blank" rel="noopener">debuted in Hong Kong</a> this month, and Enflame is reportedly considering a listing. All are putting they money they raise toward chip R&amp;D.
Big established tech companies are also ramping up efforts. <a href="/company/baidu">Baidu</a> unit Kunlunxin plans to launch five AI chips by 2030. HiSilicon, a subsidiary of <a href="/company/huawei">Huawei</a>, is working on semiconductor development, and Cambricon Technologies, founded by former professors at the Chinese Academy of Sciences, is focusing on AI chips as well.
On the production side are companies like Semiconductor Manufacturing International Corporation (SMIC), which reportedly is now able to provide a stable supply of seven-nanometer semiconductors for AI applications. SMIC is said to be manufacturing chips for other Chinese companies, and it has been expanding production capacity.
Nvidia's share of China's AI semiconductor market is forecast to plunge to 8% this year, according to Chinese media citing a recent Bernstein report. Chinese players like Huawei and Cambricon are expected to fill the gap, reaching an aggregate market share of around 80%.
AI chips are a part of the battle for tech dominance between the US and China, and could be discussed at an expected meeting in April between Trump and Chinese President Xi Jinping.
Chinese AI chips "have evolved from 'usable' to 'easy to use,'" said Zheng Weimin, a professor in the computer science department at Tsinghua University.
The country's supply chain remains a work in progress, however. The challenge will be transitioning a development structure that had been led by Nvidia to domestic production, according to Zheng.
This article first appeared on <a href="https://asia.nikkei.com/business/tech/semiconductors/moore-threads-and-peers-bring-china-ai-chip-independence-closer">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>.

Moore Threads and peers bring China AI chip independence closer

Semiconductors

AI Infrastructure

The Hong Kong Stock Exchange has seen a sharp rise in listing activity over the past year, buoyed by a growing pipeline of applicants and renewed investor interest. The exchange said the city emerged as the world’s top IPO venue in 2025, overtaking Nasdaq and the New York Stock Exchange, long viewed across Asia as benchmark destinations for public listings.
The rebound is reflected across multiple measures. For the cash market, Hong Kong Exchanges and Clearing (HKEX), the exchange’s operator, said average daily turnover in the first 11 months of 2025 reached USD 249.8 billion, up 89.5% year-on-year, according to a <a href="https://www.hkexgroup.com/Media-Centre/Insight/Insight/2026/HKEX-Insight/What-Drove-Hong-Kong-Markets-in-2025">statement</a> released January 16.
IPO activity has been a major driver. Hong Kong hosted 119 new listings in 2025, a 67.6% increase from 71 a year earlier. Those deals raised USD 285.8 billion in total, more than triple the roughly USD 88 billion recorded in 2024. Four of the year’s listings ranked among the world’s top ten IPOs, including the USD 5.3 billion debut of Chinese battery maker Contemporary Amperex Technology (CATL), the largest in Hong Kong last year.
Companies already listed on HKEX also returned to the market in force. Follow-on offerings totaled USD 66 billion, up 136.6% from USD 27.9 billion in 2024, the exchange said, citing Dealogic data.
Describing the process of supporting the influx of deals as “gratifying,” HKEX CEO Bonnie Chan said momentum was likely to continue. Speaking to <a href="https://www.cnbc.com/video/2026/01/20/hkex-ceo-topped-ipo-rankings-in-2025-and-bullish-on-year-ahead.html">CNBC</a> on the sidelines of the World Economic Forum’s annual meeting in Davos, Chan pointed to the pace of activity early in the year: just three weeks in, the exchange had already listed 11 companies.
Among them were Biren Technology, MiniMax, and Z.ai (Zhipu AI), highlighting a growing push among mainland companies to tap public markets as investor interest increasingly aligns with Beijing’s longer-term support for advanced technologies, particularly <a href="/industry/ai">artificial intelligence</a>, under the country’s latest five-year plan.
<blockquote>China’s 15th five-year plan, covering the 2026–2030 period, places emphasis on innovation-led growth, industrial upgrading, and greater tech self-reliance. These priorities typically have an impact on corporate strategy and investor focus.</blockquote>
Chan told CNBC the new listings had already raised close to USD 4 billion, with more capital expected to follow, adding that HKEX has received nearly 50 new listing applications, with hundreds more in the queue. Prospective issuers include Wancheng Group, operator of Haoxianglai, and <a href="https://kr-asia.com/tencent-fidelity-and-temasek-set-to-anchor-busy-mings-hong-kong-ipo">Busy Ming</a>, both leaders in mainland China’s discount retail segment that are expected to complete their Hong Kong listings this year.
“There’s a lot of very positive things to look forward to,” Chan said.
The surge in activity coincides with a broader shift in global investor sentiment amid rising geopolitical uncertainty. Since US President Donald Trump began his second term in January 2025, Washington has taken a more confrontational stance on trade, including a “reciprocal tariff” policy that unsettled public markets last year.
More recently, Trump introduced new tariffs on eight European countries as part of efforts to press for US control over Greenland, an autonomous territory administered by Denmark and rich in largely untapped natural resources, including rare earth elements. China dominates rare earth mining and is a major exporter of the materials, and briefly imposed export controls last October before suspending them for at least a year following an agreement.
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The timing has reinforced a broader recalibration in global markets, particularly around where companies choose to raise capital. Chan said Hong Kong could stand to benefit: for global businesses wary of geopolitical risk in both the US and mainland China, the city offers an alternative market with a stable currency, a well-capitalized banking system, and openness to innovation in areas such as fintech.
Policy measures have also helped revive the IPO pipeline, including streamlined pathways for mainland A-share companies and simplified requirements for secondary listings. <a href="https://www.deloitte.com/cn/en/about/press-room/mainland-and-hk-ipo-markets-2025-review-2026-outlook.html">Deloitte China</a> estimates that 19 Hong Kong IPOs in 2025 were dual listings by A-listed companies, contributing meaningfully to funds raised.
“Hong Kong’s IPO market will continue to face the influence of broader macroeconomic and geopolitical developments,” wrote Edward Au, managing partner at Deloitte China, citing factors including US monetary policy, global capital flows, and measures supporting Chinese companies’ overseas expansion and domestic demand growth.
Beyond mainland issuers, the rally is also drawing interest from international companies. Singapore-headquartered biotech firm MiRXES <a href="https://www.mirxes.com/media-releases/mirxes-soars-as-southeast-asias-first-biotech-unicorn-following-blistering-hkex-debut/">debuted on HKEX last May</a>, while the exchange has broadened the range of overseas bourses it recognizes for secondary listings. In March, HKEX <a href="https://www.hkex.com.hk/News/Regulatory-Announcements/2025/2503102news">added the Stock Exchange of Thailand</a> to its <a href="https://www.hkex.com.hk/Listing/Rules-and-Resources/Guidance/IPO/Listing-of-Overseas-Companies/List-of-Recognised-Stock-Exchange?sc_lang=en">approved list</a>, expanding access for companies across Southeast Asia and beyond.

Hong Kong’s IPO market roars back to life, leading the world in 2025 listings

Chinese new automotive sales, including exports, grew 9.4% on the year to a record 34.4 million in 2025 to mark a fifth consecutive increase in figures out January 14.
The numbers from the China Association of Automobile Manufacturers (CAAM) show strong performances by emerging automakers <a href="/company/leapmotor">Leapmotor</a> and <a href="/company/xiaomi">Xiaomi</a> as market leader <a href="/company/byd">BYD</a> and other major players struggled. Competition continued to intensify throughout the sector.
"Growth in sales of <a href="/industry/ev">electric vehicles</a> and other new energy vehicles (NEV) led China's automotive market," CAAM deputy secretary-general Chen Shihua said during a news conference.
With NEV sales increasing 28.2% to 16.49 million units, the category's share of the total grew seven percentage points to 47.9%. Within the NEV category, EVs rose 37.6% to 10.62 million units, while plug-in hybrids increased 14% to 5.86 million.
Sales have been propped up by official support. Government trade-in subsidies are more generous for new NEVs than for new gasoline-powered models, accelerating the shift toward NEVs.
Overall, domestic sales rose 6.7% to 27.3 million vehicles, while exports increased 21.1% to 7.09 million. Exports of NEVs roughly doubled.
Chinese brands' share of passenger car sales rose 4.3 percentage points on the year to 69.5% in step with higher NEV sales. Foreign brands, meanwhile, were slow to adopt electrification, leading German brands' share to shrink 2.5 percentage points to 12.1%, while Japanese brands lost 1.5 percentage points to 9.7%. Honda Motor's struggles stood out, with its annual sales plunging roughly 20%.
Results were also mixed among Chinese brands. Consumers sought affordable EVs and driver assistance features, and automakers responding quickly to that demand logged sales growth. Leapmotor performed particularly well among emerging brands, expanding its low-priced lineup with the B01, an EV sedan starting under RMB 100,000 (USD 14,000). Leapmotor's sales roughly doubled on the year to 590,000 vehicles.
Companies from other industries were also notable for their sales growth. Xiaomi, a major smartphone maker that entered the EV market in March 2024, sold around 410,000 vehicles. Major telecommunications hardware maker <a href="/company/huawei">Huawei</a> also saw higher sales for vehicles through its Harmony Intelligent Mobility Alliance (HIMA) network, which includes five different brands, thanks largely to its driver assistance functions. Huawei provides technology for smart vehicles but is not itself an automaker.
BYD, which had recorded annual sales growth of 40% or more since 2021, logged only an 8% rise in 2025. Major state-owned automaker Guangzhou Automobile Group (GAC) saw its Aion brand hit a slump as well, with sales falling for a second straight consecutive year.
Competition is likely to continue to intensify in 2026. CAAM forecasts that new car sales, including exports, will increase just 1% on the year to 34.75 million vehicles.
Exports are seen climbing 4.3% to 7.4 million units. Even as expectations rise for further growth in Europe and elsewhere abroad, the projections for China are conservative.
Domestic sales taken alone are expected to grow just 0.2% to 27.35 million vehicles. The halving of an NEV tax credit in 2026 will make it harder to encourage consumers to buy.
An ecosystem characterized by excessive competition, colloquially known in English as “involution,” is becoming the norm in the Chinese market. Steep discounts and price cuts weigh down automaker profits and also negatively impact payment terms between automakers and parts makers, prolonging the already harsh environment for the industry as a whole.
Leapmotor, which saw strong sales in 2025, aims to sell one million units for 2026, up 70% or so. <a href="/company/geely">Geely Group</a> also hopes to catch up with BYD, setting a target of 5 million vehicles for 2027. Large state-owned automakers and some emerging players, meanwhile, are likely to continue to struggle for sales—a trend some fear could lead to a restructuring and thinning out of the industry.
"Only companies that are able to keep up with changing technologies will survive," Chen said of NEV makers in the Chinese market.
This article first appeared on <a href="https://asia.nikkei.com/business/automobiles/china-new-auto-sales-data-shows-competition-stiffening-at-the-top">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 new car sales shows competition stiffening at the top

Leapmotor

Transportation

Electric Vehicles

Mobility

Moonshot AI is close to finalizing a new funding round that could value the company at about USD 4.8 billion, according to <a href="https://www.cnbc.com/2026/01/19/alibaba-backed-startup-moonshot-ai-alibabi-backed-startup-chinese-ai-ipo.html">CNBC</a>, which cited anonymous sources familiar with the matter. If completed on the current terms, the round would represent an increase of roughly USD 500 million from the company’s valuation just weeks earlier.
The Beijing-based startup, best known for its Kimi chatbot and large language model (LLM) series, was valued at about USD 4.3 billion in a Series C funding round reported on December 31. <a href="/company/alibaba">Alibaba</a>, <a href="/company/tencent">Tencent</a>, and IDG Capital were among the participants, according to Chinese media outlet LatePost.
CNBC added that the latest round is nearing completion amid strong investor demand, although discussions are ongoing and terms could still change.
Moonshot’s rising valuation comes as investor interest in Chinese <a href="/industry/ai">artificial intelligence</a> companies has picked up, partly driven by recent public listings of peers such as <a href="/company/minimax">MiniMax</a> and Z.ai (Zhipu AI) in Hong Kong. Those debuts have helped establish fresh valuation benchmarks for AI startups and bolstered expectations around potential IPO candidates.
Beyond broader sector momentum, Moonshot has drawn attention for its emphasis on LLMs and advanced reasoning capabilities. Its latest flagship model, Kimi K2 Thinking, has performed well on independent benchmarks including <a href="https://artificialanalysis.ai/evaluations/artificial-analysis-intelligence-index">Artificial Analysis’ Intelligence Index</a> and <a href="https://livebench.ai/#/">LiveBench</a>, showing gains in reasoning, coding, and long-context tasks.
<figure id="attachment_159418" aria-describedby="caption-attachment-159418" style="width: 2560px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-159418" src="https://console.kr-asia.com/wp-content/uploads/2026/01/Artificial-Analysis-Intelligence-Index-scaled.jpg" alt="Diagram shows the rankings of flagship AI models from leading companies on the Artificial Analysis Intelligence Index." width="2560" height="847" srcset="https://console.kr-asia.com/wp-content/uploads/2026/01/Artificial-Analysis-Intelligence-Index-scaled.jpg 2560w, https://console.kr-asia.com/wp-content/uploads/2026/01/Artificial-Analysis-Intelligence-Index-720x238.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2026/01/Artificial-Analysis-Intelligence-Index-1024x339.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2026/01/Artificial-Analysis-Intelligence-Index-768x254.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2026/01/Artificial-Analysis-Intelligence-Index-1536x508.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2026/01/Artificial-Analysis-Intelligence-Index-2048x677.jpg 2048w" sizes="(max-width: 2560px) 100vw, 2560px" /><figcaption id="caption-attachment-159418" class="wp-caption-text">Moonshot AI’s Kimi K2 Thinking ranks highly on the Artificial Analysis Intelligence Index, which aggregates ten evaluations to provide a holistic measure of AI capabilities across mathematics, science, coding, and reasoning. As of January 19, it is the second-highest-ranking Chinese-made model on the benchmark, trailing only DeepSeek’s V3.2 by a single point. Graphic source: Artificial Analysis.</figcaption></figure>
The company’s focus on foundational models, rather than narrowly scoped applications, has helped set it apart in China’s crowded AI landscape. Kimi gained widespread adoption months ahead of several domestic rivals last year, giving Moonshot an early advantage in building brand recognition.
Chinese AI startups have also benefited from restricted access to US-based AI services, including <a href="/company/openai">OpenAI’s</a> ChatGPT, which is not officially available in mainland China. At the same time, regulatory and geopolitical tensions have encouraged investors to back domestic alternatives positioned as long-term technology champions.
Moonshot has not commented on the funding round or any potential IPO plans as of publication.

Moonshot AI lines up new funding at USD 4.8 billion valuation

<a href="/company/tencent">Tencent</a>, Fidelity International, and Temasek are planning to invest in the Hong Kong <a href="/industry/ipo">IPO</a> of Chinese snack retailer Busy Ming Group, according to <a href="https://www.bloomberg.com/news/articles/2026-01-19/tencent-fidelity-are-said-to-plan-investing-in-busy-ming-s-ipo">Bloomberg</a>, which cited anonymous sources familiar with the matter. The deal could raise up to USD 500 million, adding to a recent wave of listings by China-based companies seeking to tap investor demand ahead of the Lunar New Year.
The three firms are expected to act as cornerstone investors in the offering, and Busy Ming could begin taking investor orders as soon as today, although discussions are ongoing and details may still change.
The planned listing comes as Hong Kong heads toward a record January for first-time share sales, driven by companies rushing to go public before the Lunar New Year holiday in February. About USD 4.3 billion has been raised through new listings in the city so far this month, according to data compiled by Bloomberg, signaling a pickup in dealmaking after a prolonged slump.
Busy Ming, also known as Mingming Henmang, has emerged as one of China’s largest discount snack retailers, operating more than 19,000 outlets nationwide focused on low-priced snacks and beverages. Based in Hunan, <a href="https://kr-asia.com/mingming-henmang-files-for-ipo-as-chinas-snack-wars-enter-next-phase">the company filed confidentially for a Hong Kong listing on April 28 last year</a>, following months of market speculation that began in 2023, when it hired a new CFO in a move often seen as a prelude to an IPO.
The business traces its origins to two regional snack chains: Lingshi Henmang, founded in Changsha in 2017, and Zhao Yiming Snacks, launched in Jiangxi in 2019. Busy Ming was formed through the merger of the two in 2023. Since then, the group has expanded rapidly across all 28 provinces and every county-level city in China, with its yellow-and-red storefronts becoming a familiar sight in lower-tier markets.
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That expansion has been accompanied by strong sales growth. Busy Ming operated 14,394 stores at the end of 2024, expanded to an estimated 16,783 outlets by mid-2025, and reached 19,517 stores in the nine months ended September 30, 2025, according to its latest disclosures. Over the same period, retail sales rose from about RMB 55.5 billion (USD 7.8 billion) in 2024 to roughly RMB 66.1 billion (USD 9.3 billion) in the first nine months of 2025, exceeding the previous full-year total.
For the nine months ended September 30, 2025, Busy Ming reported revenue of RMB 46.4 billion (USD 6.5 billion) and net profit of about RMB 1.8 billion (USD 252 million), reflecting the slim margins typical of discount retail amid continued store rollout.
Meanwhile, competition is intensifying as rivals also line up for the public markets. Wancheng Group, the parent of snack chain operator Haoxianglai, <a href="https://kr-asia.com/for-wancheng-and-busy-ming-mixues-success-is-both-a-blueprint-and-a-cautionary-tale">submitted its own Hong Kong listing application in September last year</a>, setting up a race to become the first bulk snack retailer to list in the city.
Goldman Sachs and Huatai International are reported to be joint sponsors of Busy Ming’s IPO.

Tencent, Fidelity, and Temasek set to anchor Busy Ming’s Hong Kong IPO

… the proceeds to strengthen R&amp;D and expand its engineering team, with a focus on low-earth-orbit satellite communications, advanced wireless cellular solutions, and phased-array terminal technologies. —<a href="https://36kr.com/p/3635969762657287">36Kr</a></li>
<li aria-level="1">Xinhangwei, a vacuum components manufacturer, has raised an eight-figure RMB sum in an angel round from Yushan Partners and DHLT Investment, following an earlier seed round backed by K2VC. The funding will support expanded turbo molecular pump production, further development of magnetic levitation products, and commercialization efforts. —<a href="https://36kr.com/p/3633518419428361">36Kr</a></li>
<li aria-level="1"><a href="https://www.photonpay.com/">PhotonPay</a>, a financial infrastructure platform, has completed a Series B round worth an eight-figure USD sum. The round was led by IDG Capital, with participation from GL Ventures, Enlight Capital, Lightspeed Faction, and Shoplazza. The company plans to use the capital to expand its product offering and scale cross-border digital financial services. —<a href="https://36kr.com/p/3631598319682823">36Kr</a></li>
<li aria-level="1"><a href="https://www.muxma.cn/">Muxma</a>, a home fitness brand, has raised nearly RMB 10 million in a pre-Series A round from Qingdao Jukang Enterprise Management. The funding will be used to develop core components such as motors, expand its product lineup, and strengthen marketing and distribution. —<a href="https://36kr.com/p/3628007524533248">36Kr</a></li>
<li aria-level="1">Oboo, a smart display company, has secured RMB 18 million (USD 2.5 million) in a pre-Series A round. Investor details were not disclosed. The funds will be allocated toward R&amp;D, capacity upgrades, and market expansion. —<a href="https://36kr.com/p/3627435482153984">36Kr</a></li>
<li aria-level="1">Ninetech, an AI-driven enterprise automation platform provider, has raised more than RMB 100 million in a Series B2 round led exclusively by a Shenzhen state-owned capital fund. The capital will support product development, domestic market expansion, and overseas business initiatives. —<a href="https://36kr.com/p/3625896773240067">36Kr</a></li>
<li aria-level="1"><a href="https://www.microcyto.cn/en/">MicroCyto</a>, a synthetic biology company, has raised nearly RMB 300 million (USD 42 million) in a new equity financing round. Investors include the Beijing New Materials Industry Investment Fund, the Beijing Pharmaceutical and Health Industry Investment Fund, CCB Investment, and Zhongguancun Development Group. The company plans to use the funding to accelerate R&amp;D and deployment of large-scale bio-based products through methanol-based biomanufacturing. —<a href="https://36kr.com/p/3624332622119944">36Kr</a></li>
</ul>
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<h3>Pyxis, Quantified Energy, and Olea were among those who capped off 2025 with new deals:</h3>
<ul>
<li aria-level="1"><a href="https://www.thepyxis.co/">Pyxis</a>, a Singapore-based maritime electrification startup, raised SGD 13 million (USD 10 million) in the first close of its growth funding round, co-led by Shift4Good, Motion Ventures, Mitsui OSK Lines’ venture arm MOL Plus, and Seeds Capital, with green financing support from OCBC.</li>
<li aria-level="1">Quantified Energy, a deep tech company specializing in drone and solar inspection technologies, closed its Series A round at USD 6 million following new investments from ADB Ventures and Beacon Venture Capital, the corporate venture arm of Kasikornbank (KBank).</li>
<li aria-level="1">Olea Global, a Singapore-headquartered digital trade finance platform, raised USD 30 million in a Series A round led by BBVA, with participation from XDC Network, theDOCK, and existing investor SC Ventures, the venture arm of Standard Chartered Bank.</li>
</ul>
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