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… franchised stores will be very, very small," Zhou emphasized in the interview.
The tea beverage business, however, operates differently. Once a single-store model is proven successful, it can be rapidly scaled up through franchising.
Whether or not Zhang joins is unlikely to change Haidilao’s decision to delve into tea beverages, but his presence could very well influence how quickly Haidilao can establish itself in this market.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2925177180101256">article</a> was written by Yang Yafei for 36Kr.

Chagee’s founder joins Haidilao’s board, signaling potential tea venture

China Tech

China

Haidilao

With generative artificial intelligence poised to trigger seismic shifts across society, Japan's animation industry is opening up to its potential to stem critical labor shortages, even as concerns about protecting creators abound.
Nagoya-based K&amp;K Design introduced generative AI into its workflow last year to help with background art and coloring. "Background art that usually takes a week can now be done in five minutes," the company said.
"We decided that we needed to work with AI in order to improve the working environment while maintaining the quality of production," said the company's director, Hiroshi Kawakami.
The growth of internet anime streaming is demanding high standards in both production speed and quality. An industry labor shortage is providing another tailwind for the introduction of generative AI.
The market for Japan's anime industry—including overseas demand—stood at JPY 2.9 trillion (USD 19.7 billion) in 2022, up 7% from the previous year, according to the Association of Japanese Animations industry group.
The expanding market is being held up in part by low wages and long working hours.
In a survey of anime industry workers by the Nippon Anime &amp; Film Cultural Association (NAFCA), 38% of respondents said that their monthly income from anime-related work is less than JPY 200,000 (USD 1,358). The average monthly work time is 219 hours, 1.3 times that of Japan's general workforce.
Entrusting some work to AI may enable humans to focus on planning and character design. Higher productivity could lead to improved conditions, while increasing the variety of works would potentially boost overseas exports.
AI can also handle translation, a critical pillar for overseas business. AI startup Orange has developed technology that increases the speed of manga translation up to ten times the current rate and has received venture capital investment from a fund affiliated with Japan Investment Corporation.
"This is a project that will lead to strengthening Japan's industrial competitiveness," an executive from the fund said of the investment.
Of the approximately 700,000 manga works estimated to exist in Japan, only 14,000 have been translated into English. Orange is considering expanding into Spanish-speaking countries and India, where there are many readers.
Webtoon production company En-dolphin is developing a generative AI service that can reproduce illustrations by learning from manga artists' past works. By providing a script or a rough sketch, the system can generate a work with the same style and composition as one by the original artist.
The government is also encouraging the use of AI in the content industry. In July, Japan's Ministry of Economy, Trade and Industry (METI) published guidelines for animation and game companies that gave examples of AI implementation.
"Generative AI can contribute to creativity in many aspects of content production," the guidelines said. In the future, the government will also consider providing subsidies and other support to companies that utilize AI, hoping the technology can help solve the industry's labor issues.
But the rapid development of AI comes with risks. There are concerns that Japanese works will be incorporated into AI models overseas without permission, leading to widespread imitation.
A call for laws to protect creators, organized by a group of Japanese illustrators last year, has collected more than 10,000 signatures.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Media-Entertainment/Japan-s-anime-industry-looks-to-AI-to-solve-labor-crunch" rel="noopener noreferrer" data-token-index="1">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing <a tabindex="0" href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/" rel="noopener noreferrer" data-token-index="3">partnership with Nikkei</a>.

Japan's anime industry looks to AI to solve labor crunch

Entertainment

Deep Tech

Video

Creative

Content

Japan

Artificial intelligence

<h3>Didi offloads smart cockpit assets for stake in AutoAi</h3>
Didi, China's ride-hailing giant, is trading its smart cockpit division for a stake in AutoAi, a state-backed player specializing in intelligent cockpit software and hardware.
Details of the transaction emerged in a regulatory filing by NavInfo, AutoAi’s primary controller. According to Reuters, the deal values Didi’s assets at around RMB 500 million (USD 70.2 million), with Didi committing a total of RMB 670 million (USD 94.1 million) to acquire a 16.46% stake in AutoAi, making it the company’s second largest shareholder.
This strategic shift will allow Didi to double down on its core business, building on the momentum from its recent sale of electric vehicle assets to Xpeng Motors as it sharpens its focus on smart mobility.
<h3>Validus secures USD 50 million debt facility from HSBC</h3>
Validus, a Singapore-based digital lender serving small and medium enterprises, has secured a USD 50 million debt facility from HSBC under the ASEAN Growth Fund strategy. The funds will be directed through its Indonesian arm, Batumbu, which has seen strong profitability and sustained EBITDA margins above 50%.
This facility is designed to bolster financial inclusion for Indonesia's micro, small, and medium enterprises (MSMEs), who are said to contribute 61% to the nation's GDP yet face significant challenges in accessing capital. Validus, through this partnership, aims to bridge the financing gap in Indonesia, where MSME loans currently make up just 20% of total bank loans.
<h3>Genesia Ventures backs LaLa’s mushroom cultivation technology</h3>
<a href="https://www.lala-corporation.co.jp/">LaLa</a>, a biotechnology startup specializing in mushroom cultivation, has secured an undisclosed amount of funding from Japan-based investor Genesia Ventures.
Since its founding in 2019, LaLa has been developing an innovative, carbon-neutral system for cultivating organic mushrooms using a novel fermentation method with soil microorganisms to create bacteria beds.
This investment will help LaLa scale production and expand its market reach, bringing its mushroom products to more consumers.
<h3>Protege Ventures invests in Equatorial Space Systems</h3>
<a href="https://www.equatorialspace.com/">Equatorial Space Systems (ESS)</a>, a startup focused on sustainable rocket propulsion, has received SGD 25,000 (USD 19,126) in investment from student-led venture capital fund Protege Ventures, according to e27.
Founded by alumni from the National University of Singapore, ESS has developed a fuel called HRF-1 that could cut rocket launch costs by 90% and reduce emissions by 69%.
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<h3>Latest funding deals in India:</h3>
<ul>
<li aria-level="1"><a href="https://bluetokaicoffee.com/?srsltid=AfmBOorWf-IFqC43lYDz_KGdPuDM5aOh9UHfDTIi2Me0NrB4C_74ij8-">Blue Tokai Coffee Roasters</a>, a specialty coffee and bakery brand, has secured USD 35 million in a Series C funding round led by Verlinvest. Existing investors Anicut Capital and A91 Partners also participated in the round. The company plans to use the funds to expand its footprint across India over the next three years.</li>
<li aria-level="1"><a href="https://agrim.app/">Agrim</a>, a B2B platform for agricultural inputs, has raised USD 17.3 million in its Series B funding round led by Asia Impact. Existing investors Kalaari, India Quotient, Omnivore, and Accion Venture Lab also participated. The funds will be used to strengthen its technology, enhance offerings, and expand operations to become the preferred partner for agricultural retailers and manufacturers in India.</li>
<li aria-level="1"><a href="https://www.cleanelectric.in/">Clean Electric</a>, an energy storage solutions startup, has raised INR 485 million (USD 5.8 million) in a round of financing co-led by Info Edge and Pi Ventures. Kalaari Capital and several angel investors also participated in this round.</li>
<li aria-level="1"><a href="https://www.zeptonow.com/">Zepto</a>, a quick commerce company, has raised USD 340 million in a follow-on financing round led by General Catalyst, with participation from Dragon Fund and Epiq Capital. The company plans to double its number of dark stores to 700 by March 2025 and expand into new markets.</li>
<li aria-level="1"><a href="https://discoverpilgrim.com/">Pilgrim</a>, a D2C beauty and personal care firm, has raised INR 750 million (USD 8.9 million) in an extended Series B funding round jointly led by Fireside Ventures and Vertex Ventures. The funds will be used for expansion and general corporate purposes.</li>
<li aria-level="1"><a href="https://servify.com/in/">Servify</a>, a device management platform, has raised INR 840 million (USD 10 million) in a fresh tranche of its Series D funding round from Bajaj Holdings, Trifecta, and Innoven Capital. Comprising a mix of debt and equity funding, the capital will be used for working capital and general corporate purposes.</li>
</ul>
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<h3>TransTRACK, Lokatani, DCG, and more led last Friday’s headlines:</h3>
<ul>
<li aria-level="1"><a href="https://www.transtrack.co/en">TransTRACK</a>, a Southeast Asian startup transforming fleet operations with its digital solutions, raised USD 12 million in a Series A funding round. Eurazeo and Cocoon Capital co-led the round, joined by IFP Securities, Bintang Delapan, and AppWorks.</li>
<li aria-level="1"><a href="https://www.lokatani.id/">Lokatani</a>, an agritech startup reimagining hydroponic vegetable farming, secured an undisclosed sum in pre-seed funding from Asiapay Capital and Jakarta Ventura (Jakvent).</li>
<li aria-level="1">Digital Classifieds Group (DCG), the parent company of <a href="https://www.lamudi.com/">Lamudi</a>, clinched a strategic investment from Living Lab Ventures (LLV), the venture capital arm of Sinar Mas Land.</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: Didi takes stake in AutoAi, Validus secures USD 50 million debt facility from HSBC, Genesia Ventures backs LaLa, and more

Didi

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Singapore

Southeast Asia

India

In the race to develop end-to-end large models for autonomous driving, car manufacturers are picking up the pace on in-house chip development. Xpeng Motors has now pulled ahead by completing the tapeout of its self-developed artificial intelligence chip, named "Turing.” The announcement, made during the launch of Xpeng’s new Mona M03 model, confirms rumors that have been circulating for some time.
Sources familiar with the matter told <a href="https://36kr.com/p/2922321122384776">36Kr</a> the Turing chip is designed to meet specific AI demands, supporting end-to-end (E2E) large models. It integrates cockpit and driving functionalities within a central computing architecture, delivering AI computing power said to nearly match three of Nvidia’s Drive Orin X chips.
Tapeout is a crucial checkpoint in chip development, marking the finalization of a chip’s design before it can be manufactured. Xpeng’s Turing chip hit this stage on August 23, and if upcoming tests go smoothly, mass production will soon be underway. Built for Xpeng’s needs, the Turing chip is a keystone in the company’s R&amp;D strategy. CEO He Xiaopeng emphasized that this chip is vital for closing the loop on data handling for both autonomous driving and robotics.
This breakthrough also marks Xpeng as the second Chinese EV maker, after Nio, to make strides in self-developed chips.
Xpeng's investment in chip development dates back to 2020. Today, the company’s chip team has grown to between 200–300 members. The focus on chip computing power is closely linked to Xpeng’s work on deploying E2E large models in autonomous driving. Back in May, Xpeng rolled out an E2E model built around three core components: the XNet neural network, XPlanner regulation and control model, and XBrain large language model (LLM).
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Xpeng has set an audacious target: to rival the performance of Waymo’s robotaxi technology within 18 months. Achieving this goal requires substantial investment in both E2E large models and the chip platforms that support them, as Xpeng aims to leap from Level 2 to Level 4 autonomy.
Tesla, too, is navigating similar waters. In August, Tesla released version 12.5 of its Full Self-Driving (FSD) software, built on E2E large models. The new version boasts five times the parameters of its predecessor, V12.4, and was initially rolled out to models equipped with HW4, Tesla’s fourth-generation intelligent driving chip. Owners of HW3-equipped vehicles had to wait an additional two weeks for the update.
Elon Musk has admitted that Tesla needs more time to optimize its code for HW3, acknowledging that the hardware is nearing its limits. But Tesla isn’t stopping there. The company is already gearing up for its next-generation hardware, AI 5, which is expected to debut in December 2025 and be ten times more powerful than HW4. Given that HW4 is already five times more powerful than HW3, AI 5 promises a significant leap forward.
For Chinese automakers like Xpeng, the endpoint of E2E technology and chip computing power remains elusive, making it hard to predict a clear winner in the near term. This prolonged competition in both software and hardware is a true test of these companies’ commitment to sustained investment. Lang Xianpeng, vice president of smart driving R&amp;D at Li Auto, told <a href="https://kr-asia.com/transcript-why-li-auto-is-revving-up-its-smart-driving-efforts-chasing-tesla">36Kr</a> in an interview that playing in the autonomous driving space is impossible without USD 1 billion in net profits.
This financial reality looms large for Xpeng. In Q2, the company sold over 30,000 vehicles. While the numbers are modest, Xpeng’s gross profit margin rebounded to 14%, a significant year-on-year improvement.
Volkswagen has been a key player in helping Xpeng restore its profit margins. Through joint procurement efforts, Xpeng’s per-vehicle cost dropped from RMB 240,000 (USD 33,758) in the first quarter to RMB 211,000 (USD 29,682) in the second. Additionally, Volkswagen’s contributions were crucial to Xpeng’s nearly RMB 1.3 billion (USD 182.9 million) in service-related revenue reported in its financial statements. With an estimated quarterly increase of around RMB 500 million (USD 70.3 million), Xpeng’s gross profit margin could see further gains.
The Mona model's launch is also a crucial part of Xpeng’s strategy. With a presale price capped at RMB 135,900 (USD 19,106), it targets BYD’s core market segment. Xpeng expects Mona to achieve monthly sales of 10,000 units, helping the company hit 20,000 monthly vehicle sales.
<div style="width: 640px;" class="wp-video">
<video class="wp-video-shortcode" id="video-149783-1" width="640" height="360" autoplay="1" preload="metadata" controls="controls"><source type="video/mp4" src="https://console.kr-asia.com/wp-content/uploads/2024/09/Xpeng-Motors-Mona-M03.mp4?_=1" /><a href="https://console.kr-asia.com/wp-content/uploads/2024/09/Xpeng-Motors-Mona-M03.mp4">https://console.kr-asia.com/wp-content/uploads/2024/09/Xpeng-Motors-Mona-M03.mp4</a></video></div>
Video featuring the Mona M03 electric sedan developed by Xpeng Motors. Video and header image source: Xpeng Motors.
Boosting vehicle sales while enhancing technical services is key to Xpeng’s continued investment in AI R&amp;D, moving the company closer to its ultimate goal of full autonomous driving.
<style>@media (min-width:991px){video{min-width:760px;width:100%}}video{min-width:unset;width:100%;height:auto}.wp-video{width:unset!important}.addcaption{font-family:sans-serif;font-size:14px!important;line-height:20px!important;padding:8px 0;margin-left:auto;margin-right:auto;color:inherit;border-bottom:1px solid #e8e8e8}.addcaption em{font-size:12px;color:inherit}</style>

Xpeng’s new chip powers its push toward full driving autonomy

Xpeng Motors

Autonomous Vehicles

Electric Vehicles

Mobility

China's Fashion Momentum Group (FMG) is stepping up the expansion of its Benlai casual wear brand, which has a functional edge designed to compete with Uniqlo and Gap.
The group, whose Urban Revivo brand has been called China's rival to Zara, has 16 Benlai stores in China and plans to open 30–50 stores a year starting in 2025.
The Benlai chain started in 2022 and now has locations in some of China's biggest cities, including Beijing, Guangzhou, and Chengdu.
The stores typically measure 800–1,000 square meters and sell t-shirts, jackets, stretchy pants, and other apparel, mostly in simple, unadorned styles. Customers spend an average of RMB 300–400 (USD 42–56) per purchase.
Benlai stores carry almost none of the cotton wear or jeans that are found in typical casual clothing lines, according to Leo Li, founder and CEO of FMG.
This summer's lineup includes functional items like stay-cool, wrinkle-free shirts for men, and outerwear for women that feels cool to the touch and blocks ultraviolet rays.
The brand aims to compete on comfort, helped by research into clothing patterns that fit Chinese body types. Same-store sales are up over 10% on the year.
FMG sees Benlai's strategy of functionality as effective for differentiating against rivals like <a title="" href="https://asia.nikkei.com/Business/Retail/Uniqlo-owner-at-turning-point-in-China-due-to-large-profit-fall-there" target="_blank" rel="noopener">Uniqlo</a> and Gap.
"Uniqlo also has some functional products, but they make up a small share of the total," Li said. Benlai will stop selling the remaining cotton wear and jeans in its lineup as early as 2025, the CEO said.
It is also taking aim at Lululemon with yoga pants for women in the 100-yuan range.
"I like the fact that the clothes are functional and fashionable at the same time," said one Benlai shopper, a woman in her 40s who works in the apparel industry in Hong Kong, at the Guangzhou store in July.
Xu, a 35-year old woman who works in education, said she likes the brand's "natural designs."
FMG takes a detailed approach to collecting customer feedback. With shoppers' approval, sales staff members read complaints and suggestions into a database that uses voice-recognition artificial intelligence to pick out useful information.
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Urban Revivo has about 430 stores, mainly in China. Compared with Urban Revivo, Benlai attracts a higher share of male customers, as well as more middle-aged and older shoppers. Li said the brand has more potential for growth than Urban Revivo.
Benlai's first overseas store is set to open in Thailand by the end of the year. Li said the group aims to eventually have 2,000 stores for each brand.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Retail/China-s-answer-to-Zara-has-a-sister-brand-that-ditches-jeans-for-yoga-pants" rel="noopener noreferrer" data-token-index="1">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing <a tabindex="0" href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/" rel="noopener noreferrer" data-token-index="3">partnership with Nikkei</a>.

China's answer to Zara has a sister brand that ditches jeans for yoga pants

Fashion

Retail

Consumer Services

Thailand

… drive traffic.
Nevertheless, the partial consignment model remains a key focus for Temu’s future. Recently, Temu announced the official opening of registration for local stores in Europe, and the partial consignment model, originally scheduled to launch in Japan in October, has already been launched ahead of schedule.
While Temu continues to grow rapidly, geopolitical risks, tariff policies, and other uncertainties loom large. With growth slowing on its main platform and international business facing an unclear outlook, can PDD maintain its trajectory?
PDD has denied the above claims and data.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2924337345305477">article</a> was written by Li Xiaoxia for 36Kr. Zhong Yixuan and Ren Cairu also contributed to this report.

As Temu nears profitability, can it reverse PDD's market freefall?

Temu

E-commerce

Consumer Economy

<h3>TransTRACK powers up with USD 12 million Series A round</h3>
<a href="https://www.transtrack.co/en">TransTRACK</a>, a Southeast Asian startup transforming fleet operations with its digital solutions, has raised USD 12 million in a Series A funding round. Eurazeo and Cocoon Capital co-led the round, joined by IFP Securities, Bintang Delapan, and AppWorks.
This fresh injection of capital comes on the heels of a pre-Series A round in June 2023, where Ortus Star stepped in with USD 2.1 million.
With this new backing, TransTRACK is primed to accelerate its push across Southeast Asia, tightening its grip on key markets like Indonesia, Singapore, and Malaysia, while setting its sights on Australia and Taiwan.
<h3>Lokatani cultivates growth with fresh pre-seed funding, set to scale hydroponic farming</h3>
<a href="https://www.lokatani.id/">Lokatani</a>, an agritech startup reimagining hydroponic vegetable farming, has secured an undisclosed sum in pre-seed funding from Asiapay Capital and Jakarta Ventura (Jakvent), according to DailySocial. The funds are earmarked for ramping up production capacity, advancing agricultural technology, and expanding Lokatani’s distribution and marketing reach.
Since its launch in 2019, Lokatani has been building an integrated ecosystem that ensures hydroponic farmers hit high production standards. Its product lineup delivers on-demand fresh produce, empowers farming communities, and taps into internet-of-things technology for seamless farm management.
<h3>DCG secures strategic backing from Living Lab Ventures, eyes APAC dominance</h3>
Digital Classifieds Group (DCG), the parent company of <a href="https://www.lamudi.com/">Lamudi</a>, has clinched a strategic investment from Living Lab Ventures (LLV), the venture capital arm of Sinar Mas Land, according to DailySocial. This funding boost solidifies DCG and Lamudi’s leadership in the prop tech arena across the Asia Pacific, with a sharp focus on Indonesia.
This investment also follows DCG’s recent acquisition of Lamudi Indonesia from Dubizzle (formerly EMPG), marking another milestone in its expansion playbook.
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<h3>Recent deals completed in China:</h3>
<ul>
<li aria-level="1">Yujian Qionglou, a Hangzhou-based innovator aiming to reshape the housing rental market, has raised an eight-figure RMB sum in an angel funding round. Spearheaded by founder Tian Chunfang, the company is set to channel the funds into market expansion and brand building. —<a href="https://36kr.com/p/2928021940116361">36Kr</a></li>
<li aria-level="1">All-In-One Clinic (AIO Clinic), also hailing from Hangzhou, has pulled in RMB 27.9 million (USD 3.9 million) in funding from Innovative Medical. This infusion secures the investor a 20.55% stake in AIO Clinic, a high-tech firm that’s making waves with its artificial intelligence-driven medical products and IT services. The capital will fuel the expansion of AIO Clinic’s solutions, reinforcing its status in the medtech landscape. —<a href="https://36kr.com/newsflashes/2926991873415815">36Kr</a></li>
</ul>
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<h3>Protos Labs, Honor, Laiqa Wellness, and more led yesterday’s headlines:</h3>
<ul>
<li aria-level="1"><a href="https://www.protoslabs.sg/">Protos Labs</a>, a Singapore-based cyber risk management startup, scored SGD 3 million (USD 2.3 million) in an oversubscribed seed funding round. The startup drew interest from a diverse group of investors including A2D Ventures, Beenext, VinaCapital, Artem Ventures (in partnership with FWD Insurance), Plug and Play Silicon Valley, Investible, Gan Konsulindo, 1337 Ventures, and Gobi Partners.</li>
<li aria-level="1">Honor, the smartphone brand that spun off from Huawei, received investment support from China Mobile’s parent company. The deal details were not disclosed.</li>
<li aria-level="1"><a href="https://mylaiqa.com/">Laiqa Wellness</a>, a Gurgaon-based female tech company, secured INR 150 million (USD 1.8 million) in seed funding from IvyCap Ventures.</li>
</ul>
If there are any news or updates you'd like us to feature, get in touch with us at: <a href="mailto:hello@kr-asia.com">hello@kr-asia.com</a>.
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Deals in brief: TransTRACK secures USD 12 million for Southeast Asia push, Lokatani nets pre-seed funding, Living Lab Ventures backs Lamudi parent DCG, and more

Indonesia

… https://console.kr-asia.com/wp-content/uploads/2024/08/INART-Black-Myth-Wukong-2-1024x1536.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2024/08/INART-Black-Myth-Wukong-2.jpg 1080w" sizes="(max-width: 480px) 100vw, 480px" /><figcaption id="caption-attachment-149720" class="wp-caption-text">Image of the Black Myth: Wukong figure, crafted by Shouchuan C&amp;C’s INART brand in partnership with Game Science, the game’s creator. Image and header image source: INART via 36Kr.</figcaption></figure>
“Even for regular clothing, it needs to be custom-tailored to ensure it doesn’t look bulky, but when scaled down to 1:6, the challenge is to make it look unbulky while still allowing the figure to move,” Liu said. He noted that the biggest gain from this collaboration with Game Science was optimizing the entire production process internally. “10,000 sets are a significant challenge for us. Since we’ve chosen a customized route, there’s a high threshold and barrier to entry.”
Liu added that, even though the process involves handcrafting, a way to industrialize it still needs to be found, which requires a high level of team coordination. “In 2024, our INART production line will see significant improvements, and our shipment volume this year is expected to at least double compared to last year.”
<h3>From local to global</h3>
The success of Black Myth: Wukong has left many people excited, believing that Chinese AAA games are entering a new era of growth. In 2018, Shouchuan C&amp;C was experiencing a similar moment.
At that time, Pop Mart had not yet gone public, and the market for collectible action figures was still in its infancy. Few Chinese brands were involved in this space, and most had been founded only recently. In contrast, in Japan, the US, and even in regions like Hong Kong and Taiwan, companies had been established for a decade or more, with some having a history of several decades. Compared to them, China was just getting started with collectible action figures.
The collaboration with Game Science marks Shouchuan C&amp;C’s first partnership with a domestic IP. Prior to this, it primarily collaborated with classic Western film IPs—a testament to the cultural influence of Western soft power and the long-term cultivation of IPs by their operators.
"Marvel was on the verge of bankruptcy before 2008, but after Disney took over, it took ten years, from the first Iron Man movie in 2008 to Avengers: Infinity War in 2018, for it to become a household name." In Zhong’s view, there are now many excellent IPs in China, but just because the first one is a hit doesn’t mean the IP is established. “An IP must accompany a generation, or even several generations, to become deeply rooted in people's hearts.”
A strong cultural IP has immense value across its derivative industries, such as sculptures and action figures. Zhong noted that, in Western markets, derivative products can account for up to 70% of the market share, while movie box office, game revenue, music, and books combined may only make up 30%.
Behind Shouchuan C&amp;C’s growth is a relatively smooth financing process. The company secured Series A funding in 2020 and completed a Series B round in 2021. However, the pandemic marked a turning point, directly affecting consumption, with the market for sculptures and action figures inevitably impacted.
Before the pandemic, Shouchuan C&amp;C focused on the domestic market in China. But starting in the second half of 2023, it began to pivot toward overseas and global business, including markets in the US, Southeast Asia, Australia, and Europe.
Building a brand matrix and strengthening the upstream supply chain are also key areas where they plan to intensify efforts. “We don’t have any short-term financing needs because we have sufficient funds. Next year, we might consider additional financing,” Zhong said.
Shouchuan C&amp;C also plans to continue its collaboration with Game Science. "We have prepared a lot of content," Liu told 36Kr. Additionally, Shouchuan C&amp;C is exploring partnerships with Chinese film IPs. Besides films and games, the company has recently expanded into the music industry by signing a deal with Michael Jackson’s copyright holders, with future plans to extend into the sports field.
It’s worth noting that different countries and regions, and even different age groups, have varying preferences for IPs. Shouchuan C&amp;C’s approach is to develop multiple projects in parallel and conduct market research through exhibitions, fan gatherings, and other means to understand the IP and character preferences of different markets.
Shouchuan C&amp;C once conducted a survey on Facebook about the most popular movies and characters from different decades. The results showed that the most popular in the 1990s were Terminator and Bruce Lee. However, a recent market survey in the US revealed that the most popular American television series is The Boys, a show that hasn’t gained much traction in China. Based on such research, it plans to develop different trendy derivatives for different regions.
"The sustainability and impact of an IP are its most important soul. Whether it can accompany a generation or several generations is extremely important," Zhong said. Shouchuan C&amp;C initially started with Western IPs, but in the future, as the cultural industry in China flourishes, the company expects Chinese animation to also account for a significant proportion of its portfolio.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2923824871283592">article</a> was written by Yang Yafei for 36Kr.

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… showcased meaningful collaborations with pharmaceutical firms. For example, Huawei Cloud is exploring the use of its Pangu model for traditional Chinese medicine R&amp;D. According to Wang Wenjia, general manager of Tasly’s international innovation center for gene-based drugs, the digitization of traditional Chinese medicine is a direction with significant demand but few solutions. The two parties have collaborated to develop an R&amp;D model that, by learning from extensive repositories of knowledge, formulas, and treatment records, and fine-tuning based on the R&amp;D scenario, can help achieve functions such as smart consultation and health Q&amp;A in traditional Chinese medicine.
Meanwhile, challenges have emerged in finding suitable application scenarios. Zhang noted that many companies are actually trying to do things that, in principle, are not suitable for large models, leading to poor results and even concerns about the reliability of large models.
"That's why we often have customers map out their entire business process," Zhang explained. "We start with the horizontal axis, showing what they do and the costs involved, and the vertical axis, showing the capabilities of large models. Then, we look for the areas within this two-dimensional matrix where large models are most suited. After identifying enough areas, our understanding of both the models and the business evolves, allowing us to draw a new business process map. Through this iterative process, we find the greatest common ground between businesses and large models and identify the most suitable collaboration scenarios."
He illustrated this with an example from the pharmaceutical industry. When a new drug is launched and introduced to hospitals, reps need to answer questions from doctors about dosage, efficacy, and usage contraindications. In the past, reps often had to relay these questions to the medical affairs department, which would then spend days or even weeks reviewing experimental reports and research papers to ensure compliance before providing answers. However, with large models, the content delivered to the medical affairs department is already logically processed and systematized, similar to a standard operating procedure (SOP). It could take just 1–2 hours to confirm the accuracy of the content, which the reps can then relay to doctors.
As for pricing, it remains difficult to generalize about the price range that pharmaceutical companies or medical institutions are willing to pay for large model services. "You can spend a few thousand RMB to try it out, or spend hundreds of millions to implement it—it all depends on how you use the model," the industry insider said.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2916727102691973">article</a> was written by Hu Xiangyun for 36Kr.

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