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It has been more than a year since <a href="/company/bytedance">ByteDance</a> rebooted its gaming division. Now, the company appears to be heading toward a new turning point.
Industry chatter suggests ByteDance is moving to merge its two key gaming units—Nuverse and Moonton. The rumored plan? Fold the two under one banner, then spin the gaming arm off as an independent company in preparation for an IPO.
ByteDance has publicly denied any current plans for a public listing. But according to 36Kr, insiders at Moonton say the merger is imminent. What remains unclear is which entity will absorb the other.
Hints of this union date back to 2023, shortly after Zhang Yunfan was appointed to lead ByteDance’s gaming operations. At an internal meeting, Zhang—whose remit spans Nuverse, Moonton, and the user-generated content (GC) division—suggested the two studios would become increasingly intertwined. When asked point-blank about a merger, he played it coy, neither confirming nor denying the idea.
Since then, the walls between the two units have started to come down. Moonton, once the more autonomous of the two, has begun collaborating more closely with Nuverse. The companies previously operated on separate internal systems; now, that’s changing. “I think by the end of this year or early next year, the systems will be fully integrated,” a source told 36Kr.
<h3>What’s happened since the gaming reboot?</h3>
In late 2023, ByteDance initiated a major restructuring of Nuverse. The company said it would offload titles that had already launched and shown promise, while shelving most unlaunched projects, except for a few tied to innovation or cutting-edge tech.
Sources said that individual Nuverse teams were responsible for finding buyers for their games. But it wasn’t easy. LatePost reported that the combined valuation of Nuverse’s unsold projects stood at RMB 40–50 billion (USD 5.6–7 billion). Sellers wanted full upfront payments, which is a tough ask in a gaming market struggling with inertia.
Moonton’s failed sale illustrated the broader problem.
ByteDance acquired Moonton in 2021 for USD 4 billion, betting on its dominance in the MOBA (multiplayer online battle arena) genre overseas. In 2023, ByteDance tried to sell the studio for no less than USD 5 billion, but found no takers. The deal fell through.
That left ByteDance with a stalled gaming portfolio. But rather than walk away, the company chose to regroup. ByteDance rarely scraps initiatives outright, especially in big markets like gaming. The stakes are high: China’s domestic mobile gaming market is worth RMB 238.3 billion (USD 33.4 billion), while the global market stands at RMB 635.6 billion (USD 89 billion), per CNG.
In March 2024, ByteDance circulated an internal memo signaling a fresh incubation drive. A month later, it confirmed that Zhang, formerly president of Perfect World’s gaming arm, would oversee all gaming operations, reporting directly to ByteDance veteran Hua Wei.
Since then, the pace of new project approvals has picked up again.
As of now, industry outlets like Youxituoluo have reported that ByteDance greenlit over a dozen new projects spanning role-playing, strategy, and shooter genres. Some are based on big-name IPs, including The Three-Body Problem and Star Wars.
In mid-2024, ByteDance also formed a new gaming studio, Zero36, by consolidating the teams behind One Piece: Blood Routes, Flower, and Hatsune Miku: Colorful Stage! in Shanghai. The latter launched in March and quickly climbed to second place on China’s iOS free download chart, signaling that ByteDance’s gaming muscle still has some flex left.
Still, this version of ByteDance isn’t swinging for the fences like it used to.
<h3>A different tempo</h3>
Gone is the strategy of chasing “miracles through brute force.” Under Zhang, the gaming unit is focused on doing fewer things better.
Nuverse now has just over 1,000 staff (including contractors), less than half its peak headcount. Hiring has slowed to a crawl. And the cadence of new project launches is more measured than it once was. Within China’s gaming industry, ByteDance no longer registers as a top-tier threat.
The reason? Gaming isn’t paying off like it used to, especially with ByteDance’s artificial intelligence investments—such as its Doubao large language model—eating into margins and pushing down overall profitability.
Meanwhile, games haven’t delivered the returns ByteDance hoped for.
Take Crystal of Atlan, one of Nuverse’s most high-profile titles. The game launched in July 2023 and rode a wave of Douyin-fueled promotion to break into the iOS revenue top ten. But within two months, it had slipped out of sight.
Despite ByteDance’s deep well of resources, sustaining that kind of success—and scaling it to impact the company’s massive balance sheet—is a different beast.
As of January 2025, Diandian data showed Crystal of Atlan had earned RMB 1.02 billion (USD 142.8 million) from iOS installs. It’s a solid figure for most studios, but likely a footnote for ByteDance. By contrast, Tencent’s marquee titles routinely rake in over RMB 4 billion (USD 560 million) annually.
Zhang’s leadership style reflects the new mood. Industry peers describe him as steady, strategic, and risk-averse. That temperament now defines ByteDance’s gaming roadmap.
Despite its modest growth post-acquisition, Moonton remains one of ByteDance’s most valuable gaming assets. Its flagship title, Mobile Legends: Bang Bang, continues to dominate the MOBA scene in Southeast Asia.
Constraints from the original acquisition deal, such as performance guarantees and profit benchmarks, have hampered broader expansion. But Mobile Legends: Bang Bang is still delivering. In March, it ranked fifth among Chinese mobile games by overseas revenue, per Sensor Tower, beating out heavyweights like Genshin Impact and logging its highest monthly earnings yet.
With Moonton’s stable product pipeline and defined team structure, many insiders believe that if a merger does happen, Nuverse will be absorbed into Moonton—not the other way around.
ByteDance may no longer be the disruptor-in-chief of global gaming. But it’s far from out of the game. The fire’s still there, just burning in a lower gear.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3259711800570114">article</a> was written by Lan Jie for 36Kr.

ByteDance plots new game plan with rumored Nuverse-Moonton merger

East Asia

China

Gaming

Creative

… million (USD 14 million).
Still, compared to other players that have raised much larger rounds, ZeroG kept a low profile. That restraint is intentional.
A ZeroG executive told 36Kr that while chasing a high valuation was an option, the company opted for a more grounded strategy. Rather than burn through capital, it committed to a three-tier model: bring one product to market quickly, generate revenue, and reinvest in the next.
The sector may be heating up, but it’s also frothy. Valuations are being driven more by anticipation than by tangible results. In industries like autonomous driving and electric vehicles—where development cycles stretch over years—what matters most is a stable market, proven technology, and a robust ecosystem.
ZeroG’s first-generation model, the Ruixiang, has now reached full commercialization. By March 2024, the aircraft had secured over 1,000 intent orders, including 60 confirmed purchases, mostly from general aviation operators.
Although China’s base of licensed pilots remains relatively small, analysts foresee a significant uptick in flight training over the coming decades. That could position Ruixiang well: its operating costs are roughly one-fifth, and its total ownership costs about half, those of conventional fuel-powered aircraft.
The Quefei, ZeroG’s eVTOL model, has also drawn strong interest, with over 1,000 intent orders. Once it enters the market in 2026, the team expects it to surpass Ruixiang in revenue.
<figure id="attachment_152586" aria-describedby="caption-attachment-152586" style="width: 720px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="wp-image-152586" src="https://console.kr-asia.com/wp-content/uploads/2025/04/ZeroG-Aircraft-Industry-Quefei.jpg" alt="Photo of the ZG-ONE “Quefei,” on display during a recent showcase." width="720" height="480" srcset="https://console.kr-asia.com/wp-content/uploads/2025/04/ZeroG-Aircraft-Industry-Quefei.jpg 1080w, https://console.kr-asia.com/wp-content/uploads/2025/04/ZeroG-Aircraft-Industry-Quefei-720x480.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2025/04/ZeroG-Aircraft-Industry-Quefei-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/04/ZeroG-Aircraft-Industry-Quefei-768x512.jpg 768w" sizes="(max-width: 720px) 100vw, 720px" /><figcaption id="caption-attachment-152586" class="wp-caption-text">Photo of the ZG-ONE “Quefei,” on display during a recent showcase. Photo source: 36Kr.</figcaption></figure>
According to Shi, profits from both aircraft will be funneled into the ZG-T6—the company’s most technically ambitious and potentially highest-reward platform.
ZeroG is forecasting 2028 as the industry’s first major inflection point. Meanwhile, the year ahead will likely be dominated by certification milestones and expanded product roadmaps, with most manufacturers targeting commercialization within a three-to-five-year window.
<h3>Flying, one mile at a time</h3>
In 2004, autonomous driving sparked imaginations. Two decades later, mass adoption remains elusive.
In 2024, electric aviation may be entering a similar cycle. It could take another decade—or longer—before air taxis become mainstream.
Three key hurdles remain:
<ol>
<li aria-level="1">Infrastructure: Suitable runways and landing sites remain limited, while key elements of airspace management—communications, navigation, and dispatch—are still under development.</li>
<li aria-level="1">Consumer mindset: There’s little historical precedent for using aircraft in daily life, and current cost structures keep the technology out of reach for most consumers.</li>
<li aria-level="1">Regulatory framework: A well-defined legal and regulatory environment is critical for enabling the safe and scalable rollout of commercial operations.</li>
</ol>
Until those pieces fall into place, companies like ZeroG will have to stay patient. Execution counts, but so does timing.
If this is a marathon, then the players are barely past mile one. “Once type certifications start coming through and policy barriers ease, it won’t be about who tells the best story. It’ll be about whose product delivers real value.”
Self-reliance is often held up as a goal, but China still trails in key components like engines and flight control chips. Closing that gap is essential to compete globally with firms such as Joby and Archer.
In this international race, Chinese companies must play more than one role: technology pioneers, use case developers, and ecosystem architects. For ZeroG, that means advancing tiltrotor aircraft, proving out applications in tourism and training, and contributing to the standards that will shape the industry.
The <a href="https://www.gartner.com/en/research/methodologies/gartner-hype-cycle">“Gartner Hype Cycle”</a> reminds us that every new technology passes through phases—emergence, hype, disillusionment, recovery, and finally, maturity. In electric aviation, both Chinese and global players are still at the starting line.
ZeroG’s leadership sees this as an inflection point. Electric aircraft could loosen the grip that Western companies have long held over China’s general aviation sector. As the industry matures, China could emerge not just as a buyer—but as a builder and exporter of aircraft, operating models, and aviation talent to Southeast Asia, the Middle East, and Africa.
The dream of flight has always inspired boldness. So has building a company from scratch.
Shi and Li, both born in the 1990s, have turned their shared passion for aviation into something larger: a mission. They’re leading a team of young engineers and dreamers not just to manufacture aircraft, but to shape the future of how we move.
And one day—when urban skies evolve into smart, three-dimensional transit corridors—the whir of ZeroG’s Quefei might be heard overhead. A sign that China’s aerial ambitions have, quite literally, taken flight.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3239482041745417">article</a> was written by Liu Jingqiong for 36Kr.

One startup, three aircraft, and China’s plan to fill the skies

Transportation

Electric Vehicles

Mobility

eVTOLs

… comeback?</h3>
JR: There’s room for both. The market is still evolving. But demand for truly effective products will keep rising—not just in skincare, but increasingly in makeup too. Consumers today are incredibly informed. I often meet users who know ingredients better than we do.
That pushes us to improve our product education—explaining how ingredients work, why we price the way we do, even why we chose a certain packaging. What’s clear is that the science-driven trend is still growing fast. It’s nowhere near its peak.
<h3>36Kr: What are your expectations for the China market?</h3>
JR: Our goal is to become the top skincare brand in Sephora China. Globally, we’re already one of the top three skincare brands at Sephora.
<h3>36Kr: One last number—how close is The Ordinary to hitting USD 1 billion in revenue?</h3>
JR: Very close.
<h3>36Kr: 70% there?</h3>
JR: Closer than that.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3226929474583942">article</a> was written by He Zhexin for 36Kr.

The Ordinary bets on China’s growing appetite for functional skincare

Retail

Consumer Services

Hermes kicked off 2025 with steady gains on the books, but the sheen dulls when you zoom in—especially in Asia. The French luxury house logged a 9% year-on-year increase in first-quarter revenue, totaling EUR 4.13 billion (USD 4.4 billion). Yet beneath those topline numbers, its largest market by potential—Greater China—continues to sputter.
Revenue in Asia excluding Japan grew just 1.2% to EUR 1.97 billion (USD 2.1 billion), marking a sharp slowdown in a region that once buoyed the brand’s global expansion. Hermes cited a "downturn in traffic in Greater China" as a key factor. This tepid performance stood in contrast to double-digit gains in other regions: Japan rose 17%, France climbed over 14%, and both the Americas and Europe posted robust growth.
"In a complex geopolitical and economic context, the house is strengthening its fundamentals more than ever," said executive chairman Axel Dumas in a statement, nodding to the company's vertically integrated, craftsmanship-driven model. But those fundamentals are now being tested not only by quieter storefronts, but also by louder whispers online.
Lately, viral TikTok clips—many featuring self-proclaimed Chinese factory owners—claim that bags for Hermes, Louis Vuitton, and Dior are being mass produced in China, then shipped to Europe for minor finishing touches. These tweaks, the creators say, allow luxury labels to slap on “Made in France” or “Made in Italy” tags, even when most of the work happened elsewhere. One <a href="https://x.com/thecreativexx/status/1911497461388186058">oft-repeated claim</a> suggests a USD 38,000 bag costs around USD 1,400 to produce.
whereRelatedArticle
Though many of the claims remain unverified, they arrive at a precarious time for Hermes, which has already faced waves of copycat culture. In February, Walmart was found selling an USD 80 lookalike of the brand's iconic Birkin bag, prompting Dumas to decry the trend as "stealing someone else’s work." Yet, he also admitted to feeling conflicted. "People know the difference in quality… in a way it's a compliment," he told <a href="https://www.businessoffashion.com/news/luxury/hermes-responds-to-walmart-birkin-dupe-culture/">The Business of Fashion</a>.
Quality has long been Hermes’ calling card. Its signature bags are crafted in France, often requiring 15–40 hours of artisan labor. Artisans must undergo up to five years of training before they are allowed to touch a Birkin or Kelly. The brand owns its tanneries and operates workshops in Pantin, Ardennes, Normandy, and beyond. Each piece is hot-stamped with a unique code that traces it back to a specific maker and workshop.
These practices not only meet but exceed labeling requirements set by US and European regulators, which stipulate that a product's final substantial transformation must take place domestically for it to carry a "Made in" label. Hermes also adheres to France's stricter OFG (Origine France Garantie) certification, which requires that at least half of a product's unit cost be generated within the country.
Despite the growing buzz online, there is no verified evidence that Hermes' production deviates from these standards. Still, the brand finds itself in a bind: facing digital-age scrutiny, social media rumors, and viral misinformation, all while trying to maintain the aura of exclusivity and craftsmanship that underpins its high margins.
Meanwhile, performance varied across other product lines. Leather goods—the company’s bread and butter—grew 10% year-on-year. Ready-to-wear items climbed 7.2%, and categories like jewelry and home goods inched upward. But watches fell by 10%, and perfumes dipped 0.5%, signaling uneven appetite among consumers.
Hermes said it remains confident in its long-term play. New workshops are on the way in Charente, Gironde, and Ardennes, with openings scheduled through 2027. But even as it doubles down on heritage and handcraft, the brand must steer through a digital landscape where authenticity is swiped into question, and a short video clip can recast a reputation overnight.

Growth stalls for Hermes in China while supply chain rumors spread

Fashion

Consumer Economy

Europe

… "a large number of people who want to engage in foreign trade," the export industry is far from dead.
It is the "large companies that are unlucky in the trade war, such as Apple and Nike. They can't escape at all, and they really have to pay a 104% tariff," the person wrote, referring to Trump's previous rate on China, before he raised it to 145%. "The goods of small companies can be increased at a very small cost through gray customs clearance, re-export trade, etcetra, and reach the US."
For Chinese merchants, going through the logistics companies not only minimizes costs but also provides extra layers of opacity against both Chinese and US authorities. When providers use their go-to import and export entities to handle paperwork, "it is nearly impossible for authorities to cross check the exporters' trade records with the importers' bank account transactions," said a person who has run a logistics business for the past six years in the northeastern Chinese city of Dalian, who declined to be named due to the sensitivity of the topic.
He added that the 34% "reciprocal" tariff Trump announced on China last week did prompt him to raise the prices he charges Chinese sellers, but by a "far smaller" amount.
Logistics companies' methods could also help explain the widening gap in trade data reported by the US and Chinese authorities in recent years.
Before 2018, China had reported lower export values to the US than the comparable American data on imports. This was partly because a sizable portion of goods were shipped through Hong Kong, according to Zhou from ANZ.
The gap narrowed and flipped since 2020, when China began to report higher totals of goods exported than the US registered on the way in, which experts say partly reflects rampant undervaluation.
Hunter Clark, an economic policy adviser at the Federal Reserve Bank of New York, estimated in a February report that underreporting coupled with surging de minimis shipments resulted in at least USD 100 billion in "missing imports" in US data in 2024, "virtually all of which can be attributed to China."
As the US is set to <a title="" href="https://kr-asia.com/us-revokes-duty-free-status-for-cheap-china-goods-used-by-shein-temu" target="_blank" rel="noopener">end de minimis treatment</a> for shipments from mainland China and Hong Kong in May, while slapping big tariffs on all such imports, trade fraud lawyers expect more efforts to underpay duties with or without the assistance of third-party logistics companies.
Olga Torres, founder of Torres Trade Law, a US law firm specialized in trade and national security, has been fielding a flood of inquiries from jittery US importers since February, asking how to deal with additional tariffs on China.
"We are getting an unprecedented number of calls," she said. While she recommends that companies retain experts to assess tariff impacts in a legal manner, she predicts many will fall back on fraud.
"They will devalue imports or say it comes from a different country," she said.
This article first appeared on <a href="https://asia.nikkei.com/Spotlight/Policy-Asia/China-s-formidable-logistics-sector-challenges-Trump-tariff-enforcers">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's formidable logistics sector challenges Trump tariff enforcers

On-demand Services

Logistics

… countries to hit RMB 2–3 million (USD 280,000–420,000). Within six months, we reached RMB 8–9 million (USD 1.1–1.3 million), and now we’re doing about RMB 23 million (USD 3.2 million) a month,” Su said. In some markets, Botare now ranks in the top three for its category—and occasionally takes the top spot.
TikTok has also helped seed long-term brand awareness. “Now we’re seeing 50–60% of our sales coming from repeat customers,” Su said. “Plus, the traffic spillover from TikTok is boosting our performance on other platforms, too. In just a few months, those platforms went from RMB 50,000 in monthly sales to between RMB 500,000 (USD 70,000) and RMB 1 million (USD 140,000).”
“TikTok’s biggest strength is turning passive viewers into motivated buyers,” Su added. “People are just casually scrolling, but thanks to the product-focused videos, they can quickly grasp the value. With millions of videos published daily, once something catches on, it scales fast.”
Botare plans to keep TikTok as its central channel for brand building across Southeast Asia. “Then we’ll push further into the region’s lower-tier markets, expand local e-commerce presence, and partner with regional distributors to build offline reach and boost brand visibility,” Lin said.
<h3>Bridging operations at home and abroad</h3>
“Going global is far more complicated than it looks,” Lin said. While cross-border e-commerce lowers the entry barrier, building a sustainable presence requires deep, long-term work. Each Southeast Asian country has distinct policies, cultures, and consumer behaviors—there’s no universal playbook.
To go deeper, Botare has registered local entities across multiple countries. Many of its team members have been with the company for years. In 2023, it issued an internal call for volunteers to help build the overseas business—some employees from China answered that call and joined the expansion effort.
Lin visited Thailand in September 2023 for field research and noticed something different:
<blockquote> “In the past, airport billboards overseas were all dominated by Western brands. But this time in Thailand, they were filled with Chinese names.”</blockquote>
That visibility gave Lin confidence. “It showed that Chinese brands still have a lot of headroom to grow in Southeast Asia.”
For Botare, syncing China operations with global expansion isn’t just about exporting success, but also building a two-way bridge. “We’re not just exporting good products and experiences from China,” Lin said. “We also need to learn from how overseas markets innovate.”
He pointed to Thailand’s creative advertising culture. “The Thai’s storytelling and character design resonate more with young people. Bringing that creative spark back to China can level up our own operations. There’s a lot of opportunity there.”
Botare chose to expand globally only after ten years of refining its domestic playbook. “What matters most in going global is strength and resolve,” Lin said. “Before you go, it might feel like a curious adventure. Once you're out there, it feels like a gold mine. But when you really try to make it work, you realize success is never guaranteed. Only companies that are truly prepared—on product, operations, supply chain, and management—have a shot at turning that ‘gold mine’ into something real.”
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3234215913258632">article</a> was written by Chang Weiqian for 36Kr.

How a hanging tissue pack helped China’s Botare go global

… angel funding round led by FreesFund. Gewu Capital acted as the financial advisor. The company was established in 2023 and is registered in Kunshan. —<a href="https://36kr.com/p/3248726935544070">36Kr</a></li>
<li aria-level="1"><a href="http://www.forvision-tech.com/index/index.html">ForVision Intelligent Technology</a>, a developer of autonomous driving systems, has raised an eight-figure RMB in a Series A funding round co-led by Addor Capital and Zero2IPO Industry Investment. The proceeds will be used for R&amp;D and ramping up production. —<a href="https://36kr.com/p/3252456829527556">36Kr</a></li>
</ul>
whereRelatedArticle
<h3>Populix, viAct, Dutycast, and more made recent headlines:</h3>
<ul>
<li aria-level="1"><a href="https://info.populix.co/">Populix</a>, an Indonesia-based market research tech startup, netted USD 4.3 million in the first close of its Series B round. The raise was led by MSW V Asia Fund X, with returning backers Intudo Ventures, Altos Ventures, and Acrew Capital also participating.</li>
<li aria-level="1"><a href="https://www.viact.ai/">viAct</a>, a Hong Kong-headquartered safety technology startup, raised USD 7.3 million in a Series A round led by VentureWave Capital, with participation from Singtel Innov8, Korea Investment Partners, and the PolyU Entrepreneurship Investment Fund.</li>
<li aria-level="1"><a href="https://tariff.dutycast.com/">Dutycast</a>, a Singapore-based trade compliance platform, raised an undisclosed sum from GTR Ventures and a group of logistics-focused angel investors.</li>
</ul>
If there are any news or updates you'd like us to feature, get in touch with us at: <a href="mailto:hello@kr-asia.com">hello@kr-asia.com</a>.
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Deals in brief: Eratani raises Series A funding, Tin Men Capital leads investment in Groundup.ai, seven China deals, and more

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Singapore

Indonesia

Japan

Southeast Asia

On April 19, <a href="/company/nio">Nio’s</a> new sub-brand, Firefly, rolled out its first model—and it’s borrowing the brand’s name. The compact electric vehicle, available in two trims dubbed Zizai and Faguang, is priced at RMB 119,800 (USD 16,772) and RMB 125,800 (USD 17,612), respectively. Deliveries start April 29.
That price tag is a significant drop from the model’s initial presale of RMB 148,800 (USD 20,832), which had it competing with upmarket compacts like the Mini and Smart. Now, it’s elbowing its way into the value-meets-premium segment at a moment of recalibration for Nio.
Firefly is part of a broader shift at Nio, which is making adjustments to its branding, infrastructure, and pricing strategy. Case in point: the battery-as-a-service (BaaS) program for Firefly won’t launch until August 1. When it does, the vehicle’s upfront cost could dip below RMB 100,000 (USD 14,000), putting it squarely in the crosshairs of budget-conscious compact EV buyers.
That delay has a technical side. Firefly’s swappable battery packs are incompatible with Nio’s existing first- through fourth-generation swap stations. Instead, they’ll plug into fifth-gen stations, which the company has said it will only build where demand is strong.
Until then, charging will stick to the basics. Firefly drivers will rely on Nio’s network of more than 26,000 proprietary charging piles, along with access to 1.23 million third-party stations across China.
But there’s also a branding play at work. Nio is reportedly weighing a plan to fold Firefly’s operations into its main label. Doing so could protect its broader portfolio from price shock while streamlining sales and distribution.
whereRelatedArticle
Despite its smaller frame, Firefly is built with premium intent and global reach. Jin Ge, the executive helming the project, summed up the model’s philosophy with three words: trust, agility, and ingenuity—code for safety, handling, and design.
On safety, Firefly is built to hit dual five-star standards under the China-Euro New Car Assessment (CNCAP) Program. The body is composed of 83.4% high-strength steel and aluminum. It also comes standard with nine airbags and 13 active safety functions—a standout count for its size class. The subtext from Nio? Small doesn’t mean soft.
Performance-wise, it’s no slouch. A rear-mounted motor, five-link rear suspension, and a chassis tuned by automotive engineering firm Multimatic help deliver a sporty ride. The 4.7-meter turning radius means it can whip around tight corners and alleyways with ease.
Design-wise, Firefly doesn’t shy away from flair. Think triple-element headlamps, a glowing rear light ring, and candy-colored capsule details. Inside, there’s a 92-liter front trunk, a 335-liter rear trunk, and up to 1,253 liters of flat cargo space when the rear seats fold down. Nio counted 27 storage compartments in total.
The tech stack is equally dense. With 128 TOPS (tera operations per second) of computing power and 24 sensors, Firefly supports Nio’s navigate-on-pilot (NOP) system, which handles assisted driving on expressways and major roads.
Power comes from a 42.1 kilowatt-hour battery delivering a CLTC-rated 420 kilometers of range, with energy use clocking in at just 10.9 kWh per 100 kilometers.
Nio sees Firefly as a smart fit for new buyers and multi-vehicle households. The pitch: if you already drive a larger EV, here’s a chic, compact second car for city life.
But the ambitions stretch far beyond China’s megacities. Nio estimates the global market for premium compact EVs to be around 15 million units a year, about 17% of the total car market. Over the past two and a half years, Firefly’s development team has been busy studying more than 40 cities across the Netherlands, Italy, the UAE, Thailand, and other key markets.
Firefly will hit Chinese streets first, but the brand has its eyes on Europe and the Middle East next.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3257976681837064">article</a> was written by Li Anqi for 36Kr.

Nio unveils the Firefly compact EV, signaling plans for global push

<a href="/company/freshippo">Freshippo</a>, the Alibaba-backed grocery chain better known in China as Hema, has clawed its way to profitability—its first full-year profit since launch. The milestone, marked at the close of its fiscal year ending March 2025, comes after a bruising period of leadership turnover, store closures, and shifting strategies.
The comeback is largely credited to Yan Xiaolei, who stepped into the CEO role in March 2024. Known internally by her alias, Bai He, Yan had previously served as Freshippo’s CFO. In her first year at the helm, she pushed through sweeping reforms, slashed underperforming units, and doubled down on formats that could scale fast or root deep into local neighborhoods.
Under her direction, Freshippo streamlined its operations into four core pillars: local store operations, online channels, procurement, and logistics. Each head now reports directly to her. The central aim? Speed, clarity, and better execution.
Yan’s clearest stamp has been on the company’s retail mix. Two store formats are now front and center. The first, Hema Fresh, is a large-format model that the company wants to replicate across cities like clockwork. The second, Hema NB, leans hyperlocal, designed to embed into neighborhoods and build a daily shopping habit. On the flip side, one former growth engine, the Freshippo X member club, has quietly shrunk into obscurity. In late March, three more Freshippo X stores were shuttered in Shanghai, leaving only five across the country.
But under Yan’s leadership, Freshippo has returned to expansion mode. In 2024 alone, the company opened 72 new stores, bringing its Hema Fresh total to 430—a footprint that now surpasses Walmart’s in China. Internal planning documents seen by 36Kr show the company is gearing up to open nearly 100 more stores this fiscal year and push into dozens of new cities.
This expansion is playing out on two fronts. First, Freshippo is digging deeper into lower-tier markets. About one-third of its new store openings are in tier-two and tier-three cities, or even counties. Just within the Yangtze River Delta, it planted fresh flags in Changshu, Tongxiang, Yiwu, Zhuji, Deqing, and Zhangjiagang.
Second, it’s pushing north. Although most of Freshippo’s footprint still hugs the Yangtze and Pearl River Deltas—with more than 60 locations in Shanghai alone—the company is finally setting its sights on northern China. A new store is expected to open in Tianjin this May, potentially laying groundwork for broader moves into Beijing and beyond.
Inside the stores, change is visible. Freshippo has reconfigured nearly half of its Hema Fresh locations and revamped its delivery algorithms. It’s also breathing new life into an old idea: the “1+N” layout, where small frontend warehouses are paired with flagship stores to boost delivery density. The target is 30-minute fulfillment within a three-kilometer radius, a strategy that mirrors the logistical finesse behind Sam’s Club’s recent gains in China.
On the supply side, the company is drawing sharper lines between its formats. Hema Fresh and Hema NB now operate with distinct merchandise ecosystems. Private label products are taking up more shelf space too, especially under Freshippo’s health-conscious brand, Hebubu. As of now, in-house brands make up about 35% of the company’s SKUs.
In her year-end memo, Yan set an ambitious north star: drive Freshippo’s revenue past RMB 100 billion (USD 14 billion) and make it China’s top retail brand.
Once hailed as a trailblazer of quick commerce, Freshippo is attempting a reboot. Co-founder Zhao Jiayu, one of the company’s early architects, quietly stepped away from the company earlier this year.
Still, the market remains an unforgiving one. Global players like Aldi and Sam’s Club continue to draw Chinese consumers with no-frills value and member perks, while local operators such as Yonghui Superstores, Dingdong Maicai, Pangdonglai, and Xiaoxiang Supermarket are steadily carving out their own niches.
For Alibaba, Freshippo’s first profitable year will be viewed largely as a financial milestone. But it’s also a proof of concept—and perhaps the beginning of a second act.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3255469402779392">article</a> was written by Peng Qian for 36Kr.

Alibaba’s Freshippo turns its first annual profit, sets sights on 100 new stores

Freshippo

E-commerce

Grocery Delivery