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… premium of RMB 10.3 (USD 1.4), with a premium rate of 44.8%. The sales numbers also tell the story—Miniso’s pop-up store at Shanghai Jing’an Joy City, in collaboration with the Japanese IP Chiikawa, brought in RMB 2.68 million (USD 375,200) in just ten hours.
<figure id="attachment_150156" aria-describedby="caption-attachment-150156" style="width: 1024px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-large wp-image-150156" src="https://console.kr-asia.com/wp-content/uploads/2024/09/Miniso-Barbie-China-1024x683.jpg" alt="Photo of a Barbie-themed Miniso store in China. Since their October 2023 launch, Miniso’s Barbie-inspired stores and products have gained popularity in markets like Vietnam and China." width="1024" height="683" srcset="https://console.kr-asia.com/wp-content/uploads/2024/09/Miniso-Barbie-China-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2024/09/Miniso-Barbie-China-300x200.jpg 300w, https://console.kr-asia.com/wp-content/uploads/2024/09/Miniso-Barbie-China-768x512.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2024/09/Miniso-Barbie-China-1536x1024.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2024/09/Miniso-Barbie-China.jpg 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-150156" class="wp-caption-text">Photo of a Barbie-themed Miniso store in China. Since their October 2023 launch, Miniso’s Barbie-inspired stores and products have gained popularity in markets like Vietnam and China. Photo courtesy of Miniso.</figcaption></figure>
For Yonghui, however, the days of relying on fresh produce to lure customers into stores, followed by high-margin retail product sales, are behind it. The rise of e-commerce, group buying, and live streaming has disrupted this model. In the first half of 2024, Yonghui’s gross margin stood at just 21.58%, compared to Miniso’s significantly higher margin during the same period.
Miniso plans to inject IP-driven products into Yonghui’s offerings and help develop its private label portfolio, with an eye on benchmarking against Sam’s Club, Costco, and Pangdonglai. During the acquisition announcement, Miniso pointed out that Yonghui’s private label products lacked differentiation and were low-margin—areas where Miniso’s strengths could be leveraged.
However, the two companies’ product categories differ significantly. Miniso’s focus is on cosmetics and household goods, while Yonghui operates large supermarkets centered on fresh produce. This disparity raises doubts about the potential for IP synergy between the two.
An industry expert told 36Kr that for true synergy to occur, one party would likely need to relinquish control, suggesting Miniso would need full authority to execute changes at Yonghui. Another hurdle is that Miniso has little experience in fresh produce or fast-moving consumer goods (FMCG), making its ability to replicate Costco’s model through Yonghui uncertain.
A former Yonghui house brand developer added that, while opportunities for collaboration between the two companies exist, their distinct business models and target audiences would require significant adjustments.
For Miniso to shift from household goods to fresh food and replicate Costco’s model through Yonghui, its product development pace may need to slow. According to 36Kr, Sam’s Club and Costco refresh only 5–10% of their product lines annually, while Miniso updates over 20% of its products each year. While such rapid turnover works for smaller stores, it could prove unsustainable for a large supermarket like Yonghui.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2964014109233159">article</a> was written by Yang Yafei for 36Kr.

Retail gamble: Why is Miniso buying into Yonghui Superstores?

Miniso

China

Retail

Consumer Services

Diamond power semiconductors offering performance an order of magnitude beyond current materials are drawing closer to commercial viability thanks to advances originating from Japan.
Such semiconductors are made from synthetic diamond, which has been called the ultimate semiconductor material due to its thermal conductivity and other properties.
Diamond is particularly suited for use in power semiconductors because it has about 33 times as much electrical strength as an insulator as silicon. Diamond power semiconductors can also operate in environments roughly five times as hot, and theoretically have the capacity to handle approximately 50,000 times as much electricity.
Silicon carbide (SiC) and gallium nitride (GaN) have also attracted attention as next-generation semiconductor substrates, but the performance of diamond is vastly higher.
Using the Baliga figure of merit, diamond exhibits over 80 times the performance of SiC and more than 10 times the performance of GaN. A higher Baliga figure of merit score means the material is more able to significantly reduce power loss.
Diamond semiconductors are being considered for applications that require a large, stable power supply, including electric vehicles, flying cars, and power generation stations. Their resistance to high temperatures and radiation is also expected to make the semiconductors suitable for use in nuclear power and space, among other areas.
Research into diamond as a semiconductor material has been ongoing for more than three decades, but has faced many obstacles.
The hardness of diamond makes it difficult to grind and process the material with the precision needed for electronic devices. Diamond can also deteriorate when used in semiconductors for long periods of time. Trying to form larger substrates with diamonds is a particular challenge, while costs have impeded commercialization.
But following considerable progress over the past few years, diamond semiconductors are expected to enter the commercialization stage between next year and 2030. Japan is a leader in R&amp;D in the field.
In 2023, a team at Japan's Saga University successfully developed the world's first power circuit incorporating diamond semiconductors. Orbray, a Tokyo-based manufacturer of precision components, has developed technology to mass produce 2-inch diamond wafers, surpassing the previous limit of 1 inch. The company expects to develop a 4-inch wafer soon.
In December, Tokyo startup Power Diamond Systems developed a diamond component capable of handling a world-leading 6.8 amperes of electrical current. The company plans to start shipping samples within a few years.
Ookuma Diamond Device, another startup in Hokkaido, is constructing a factory in Fukushima prefecture that will mass produce diamond semiconductors. The plant is due to start operations in fiscal 2026, with a goal to install semiconductors in equipment used for removing debris at the disaster-struck Fukushima Daiichi nuclear power plant.
As expectations for commercial use grow, listed companies involved in related fields are likely to attract more attention. JTEC Corporation, which manufactures precision equipment for research facilities, has a unique technology for polishing the surfaces of high-hardness materials using plasma.
It has already succeeded in polishing single crystal diamond substrates of a world-leading size efficiently and without causing damage, and has received orders for development equipment used in diamond material processing. The company aims to increase sales in its related business to JPY 700 million (USD 4.9 million) by the year ending June 2027, more than double the target for the current fiscal year.
EDP, listed on the Tokyo Stock Exchange's Growth market, is the only company in Japan that manufactures and sells the seeds from which synthetic diamonds for jewelry are made. It has established a system to produce the world's largest single crystals using technology developed by the National Institute of Advanced Industrial Science and Technology.
If diamond semiconductors become widespread in the future, a stable supply of high-quality synthetic diamonds will be critical. Currently, most are made in India and China.
"The production of synthetic diamonds depends on the technological capabilities of the company, not on the machines being used," said Takuya Ito, representative director of synthetic diamond wholesaler Pure Diamond.
Ito added that each company customizes its production equipment and uses its own recipes to produce synthetic diamonds, so the quality and size vary greatly. Recently, a South Korean company developed technology to produce synthetic diamonds more rapidly.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Tech/Semiconductors/Japan-R-D-brings-powerful-diamond-semiconductors-closer-to-reality" 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 R&D brings powerful diamond semiconductors closer to reality

Deep Tech

Semiconductors

Japan

… while the other can handle 20,000 Onvo units.
"The automotive supply chain is particularly long," Li said. "We have to ensure quality alongside volume. Supply is important, but quality is everything."
whereRelatedArticle
The following excerpts are from an exchange between various members of the media with Li and Ai. These excerpts were prepared by 36Kr and have been edited and consolidated for brevity and clarity.
<h3>Q: What’s the order status of the Onvo L60 after its launch?</h3>
William Li (WL): In short, it’s a hit. We had to expand the server capacity by five times. That day, I specifically instructed the team to scale up by fivefold, but even then, we had some lag. Overall, it’s been smooth—things really played out like that.
We don’t release monthly sales reports, but deliveries each month form the foundation of everything. All other data is secondary.
<h3>Q: It has been said that the production capacity for this year is capped at 20,000 units. Is there any plan to ramp up production?</h3>
WL: The numbers in our financial reports are typically conservative. Internally, we’re going all out to exceed 20,000 units. The vehicle manufacturing plant has already started double shifts, and production will ramp up gradually. The biggest challenge is improving quality across the supply chain, which takes time. No automaker in the world can produce 10,000 units in the first month—it’s just not how the industry works.
We’re confident about producing 5,000 units in October, 10,000 in December, at least 16,000 in January, and 20,000 units by March. Our two factories in Hefei are fully capable—one can produce 10,000 Nio vehicles, and the other 20,000 Onvo vehicles.
The automotive supply chain is complex. We have to ensure quality alongside volume. Supply is important, but quality is everything.
<h3>Q: What’s the current penetration rate of the BaaS model for Onvo?</h3>
WL: Nio’s BaaS penetration rate has always been above 80%, reaching as high as 90% at times. Some bank promotions slightly affected it. Currently, 97% of customers opt for the standard battery, with 3% choosing the long range variant. Given our network of battery-swapping stations and flexible upgrade services, users don’t need to carry a large battery all the time. This not only saves money but also conserves resources, extends battery life, and reduces future costs. Customers appreciate it.
The Onvo L60 is getting a lot of attention. Our competitors have tried different narratives—some say you’re just buying an empty shell. But in reality, RMB 206,900 covers the battery cost, with a lifetime warranty. If you prefer to rent the battery, the price drops to RMB 149,900. You can’t compare that to a RMB 250,000 (USD 35,000) Tesla Model Y—it’s nonsensical.
<h3>Q: Onvo is expanding rapidly into third- to fifth-tier cities, but its brand recognition is still growing. What is Onvo’s sales and channel strategy?</h3>
Alan Ai (AA): We’ve done a deep dive into preorder customers. Most of those considering the L60 have also looked at the Model Y, but not so much at joint venture models like the RAV4 or Tiguan L.
By using BaaS, we’ve entered the price range of fuel cars, opening up new opportunities. If users do the math, the monthly fuel cost for driving 1,500–1,600 kilometers in a 92-octane gasoline car is around RMB 810–850 (USD 113.4–119). Our battery rental fee, combined with founder’s edition perks, is equivalent to the cost of a 60-liter fuel tank of 92-octane gasoline.
The average driver uses about one and a half to two tanks per month. In our case, that’s covered by the monthly battery rental fee plus a couple hundred RMB for electricity. Our total monthly cost is lower than that of a fuel car. We’re better suited for third- and fourth-tier cities.
<h3>Q: Won’t some Nio customers switch to Onvo? How are you managing that internally?</h3>
WL: If that’s a concern, we suggest sticking with Nio. Nio’s vehicles have distinct characteristics—some balance business and family needs, while others are more business-focused. The ES6, for example, overlaps with the Onvo L60 in terms of family use, but in some aspects, the L60 is even better since it’s newer and designed for family scenarios.
That said, the two models are priced tens of thousands of RMB apart, and they cater to different markets. Nio’s main competitors are premium brands like BMW, Mercedes-Benz, and Audi, so the positioning is very clear.
AA: I’ve been tracking the preorder numbers, and as we approached the launch, only about 2–3% of Onvo buyers were owners of Nio cars. The vast majority are making additional purchases, not switching brands.
<h3>Q: Onvo and Nio will share battery-swapping stations. Won’t that strain resources and affect Nio’s user experience?</h3>
WL: Let me give you an example. Think about how smartphones work today. Have data speeds and communication gotten better, even though more people are using smartphones? It’s the network effect. Nio’s battery-swapping stations are based on a distributed system, and each station costs about as much as some Nvidia training chips. The bigger the network, the better the user experience.
Without Onvo’s volume, our "county-to-county” battery-swapping project would have been delayed by two years. Relying on Nio alone wouldn’t be enough to sustain it. In urban areas with high user density, when the numbers hit a certain level, we can easily add new battery-swapping stations based on data-driven decisions. There’s no need to worry about resource strain.
<h3>Q: The BaaS plan is clear, but there hasn’t been much discussion about buying out the battery after five years. What’s the plan there?</h3>
AA: We’ve prepared a buyout option, though we haven’t introduced it yet. Onvo is a new brand, which allows us to cast a wider net. But many customers need education on how BaaS works. If we overload them with information, it complicates things for our frontline teams. That’s why we haven’t rolled out the buyout plan yet, but it’s coming.
For now, if customers want to buy the battery, they can purchase the entire vehicle. If they prefer BaaS, they can rent the battery—it’s that simple.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2958437631528965">article</a> was written by Li Anqi for 36Kr.

Can Nio’s Onvo L60 shake up the SUV market with its battery-leasing model?

Electric Vehicles

Mobility

<h3>Miniso purchases 29.4% stake in Yonghui Superstores</h3>
Miniso, China’s leading retailer of budget lifestyle items, has entered into share purchase agreements to <a href="https://kr-asia.com/miniso-bets-big-on-retail-with-major-stake-in-yonghui-superstores">acquire 29.4% of supermarket chain Yonghui Superstores</a> for RMB 6.27 billion (USD 877.8 million). The transaction will make Miniso the largest shareholder of Yonghui, which operates around 850 supermarkets across China.
Yonghui, a major player in the country’s retail sector, posted approximately RMB 78.6 billion (USD 11 billion) in revenue in 2023.
The acquisition is expected to close in the first half of 2025, subject to regulatory approvals, including antitrust clearance. Miniso plans to leverage this deal to diversify its business into essential goods and optimize its supply chain efficiencies by collaborating with Yonghui.
<h3>Blackpanda secures USD 6.7 million to expand across Asia</h3>
<a href="https://www.blackpanda.com/">Blackpanda</a>, an Asian cyber emergency response firm, has secured USD 6.7 million in strategic funding from Singtel Innov8, Gaw Capital Partners, and WI Harper Group, bringing its total Series A funds raised to USD 21.7 million.
The funds will fuel Blackpanda’s expansion across Asia and bolster its IR-1 cybersecurity solution, which offers comprehensive protection from cyber attacks, including incident response and cyber insurance.
The capital comes as Blackpanda integrates its underwriting arm, creating a holistic solution for businesses to manage cyber risks from all angles. With strong backing from various investors, Blackpanda aims to provide affordable, enterprise-grade cyber protection for small and medium enterprises across Asia.
<h3>Masdar to acquire Saeta Yield for USD 1.4 billion from Brookfield Renewable</h3>
Masdar, the clean energy powerhouse of Abu Dhabi, will acquire Saeta Yield from Brookfield Renewable for USD 1.4 billion. Saeta operates 745 megawatts of wind and solar assets across Spain and Portugal, with an additional 1.6 GW in its development pipeline. Brookfield will retain a portion of concentrated solar power assets.
This acquisition marks Masdar’s growing footprint in Europe, reinforcing its ambitious plan to hit 100 GW of renewable energy capacity by 2030. The transaction is expected to close by the end of 2024, pending customary regulatory approvals.
whereAdBanner.Uptake
<h3>Recent deals completed in China:</h3>
<ul>
<li aria-level="1">BioMeta, a Shanghai-based preclinical drug discovery service provider, has secured an eight-figure RMB sum in a pre-Series A funding round led by Huagai Capital. Pharma Resources participated in this round. The funds will be used for business expansion, R&amp;D, and team building. —<a href="https://36kr.com/newsflashes/2964845695602697">36Kr</a></li>
<li aria-level="1">Zhizi Xiyuan, an artificial intelligence startup registered in Shanghai, has completed an undisclosed angel funding round. —<a href="https://36kr.com/newsflashes/2964845241241605">36Kr</a></li>
<li aria-level="1"><a href="https://www.optorunsemi.com/en/">Optorun</a>, a semiconductor technology headquartered in Shanghai, has raised RMB 200 million (USD 28 million) in its Series A funding round. LeadingEdge Capital led the investment, securing a 10.39% stake in the company. Optorun specializes in atomic layer deposition (ALD) and etching technologies. —<a href="https://36kr.com/newsflashes/2964845040603142">36Kr</a></li>
<li aria-level="1"><a href="http://xinpletek.com/">XinpleTek</a>, a developer of RF frontend chips, has completed a Series A++ funding round, raising close to RMB 100 million (USD 14 million). The CDF Red Brick Fund, Xinyuan Asset Management, and Nuotie Assets co-invested in this round, with Chipai Capital advising the deal. The funds will be used to further the development of RF frontend modules for 4G and 5G networks. —<a href="https://36kr.com/p/2949653258821764">36Kr</a></li>
<li aria-level="1"><a href="http://www.foammetal.cn/">Foammetal New Material</a>, a Yiyang-based producer of advanced materials for power and storage batteries, has secured an eight-figure RMB sum in a pre-Series A round of financing led by Broadstream Capital. The funding will be allocated to expand its production capacity for new anode current collector materials. —<a href="https://36kr.com/p/2964146629431557">36Kr</a></li>
</ul>
whereRelatedArticle
<h3>Qist Bazaar, Doon, Mobee, and more led yesterday’s headlines:</h3>
<ul>
<li aria-level="1">Qist Bazaar, a buy now, pay later platform serving the Pakistani market, bagged USD 3.2 million in a Series A funding round led by Indus Valley Capital, with participation from Gobi Partners. Bank Alfalah, a banking player in Pakistan, which led the startup’s seed round, also participated.</li>
<li aria-level="1"><a href="https://www.doon.ph/">Doon</a>, a peer-to-peer car-sharing platform in the Philippines, raised USD 1.5 million in its pre-seed funding round. The raise includes USD 500,000 in equity from a diverse group of angel investors and a USD 1 million debt facility secured through AHG Lab, Doon’s first backer.</li>
<li aria-level="1">Mobee, a platform for used car transactions in the Philippines, Malaysia, and Indonesia, raised an undisclosed amount in a seed funding round led by Kaya Founders.</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: Miniso purchases 29.4% stake in Yonghui Superstores, Blackpanda secures Series A funding, Masdar to acquire Saeta Yield, and more

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Singapore

Southeast Asia

Middle East

… buyers—aligns well with the strengths of Suzhou’s industrial belt. By deepening its integration into the belt’s ecosystem, platforms like Amazon Business can help companies climb the ladder of cross-border trade, pushing them ever closer to becoming global brands.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2949448999755909">article</a> was written by Xiao Xi for 36Kr.

How are Suzhou businesses using Amazon to grow their global reach?

Amazon

E-commerce

Consumer Economy

On September 23, a surprise announcement came from Yonghui Superstores: its shareholders Dairy Farm Company, Jingdong Century Trade, and Suqian Hanbang, a JD.com affiliate, have sold their 29.4% stake in Yonghui to Guangdong Juncai International. The twist? Juncai’s controlling shareholder is none other than Miniso, the budget lifestyle chain known for bright, sleek stores full of impulse buys.
That evening, Miniso’s CFO, Zhang Jingjing, addressed investors, noting that the RMB 6.27 billion (USD 877.8 million) deal is expected to close in the first half of 2025. Zhang clarified that while Miniso will become Yonghui’s largest shareholder, it won’t control the board, meaning Yonghui will not be consolidated into Miniso’s financial statements.
Miniso’s CEO, Ye Guofu, has long admired the Chinese supermarket chain Pangdonglai, which he sees as a model for transforming China’s retail sector. He hopes to bring Pangdonglai’s business model beyond its Xuchang base and redefine Chinese retail. Ye recounted visiting a remodeled Yonghui store in Zhengzhou on July 30, where Pangdonglai’s influence had turned it into a bustling success. He found himself imagining owning the store.
Despite Ye’s optimism, the market’s reaction was less enthusiastic, with Miniso’s stock prices falling in both the US and Hong Kong after the announcement.
Founded in 2001, Yonghui was once China’s retail leader. At its height, the company expanded from its southern China roots to become a national chain, despite China’s complex geography and logistical challenges.
Yonghui went public on the A-shares market in 2010, earning the title of China’s first retail chain specializing in fresh produce. Before group buying became popular, Yonghui pioneered a model that emphasized the fresh produce section to differentiate itself from competitors and boost its attractiveness to consumers. Investors like JD.com were impressed, leading it to acquire a 10% stake in 2015 for RMB 4.31 billion (USD 603.4 million). Tencent followed suit in 2017, paying RMB 8.81 (USD 1.2) per share.
However, as new competitors like Freshippo (Hema Fresh) quickly rose, Yonghui struggled to keep pace. The company experimented with formats such as Yonghui Mini and the premium Super Species stores, but these initiatives stalled during the pandemic.
By 2021, Yonghui recorded its first-ever loss since going public. From 2021–2023, the company accumulated more than RMB 8 billion (USD 1.1 billion) in losses. In the first half of 2024, Yonghui’s revenue fell by 10.11% to RMB 37.78 billion (USD 5.3 billion), while net profit dropped 26.34% year-on-year to RMB 275 million (USD 38.5 million).
To curb its losses, Yonghui closed 136 stores in the first eight months of 2024. Its Super Species brand has been reduced to just four stores, down from 80 at its peak. Amid these struggles, JD.com has steadily reduced its stake in the company.
Yet, despite the market’s uncertainty, Ye sees this moment as an opportunity. During Miniso’s 2024 investor day, he outlined two future paths for retail: low-cost and specialty. Ye placed Miniso in the latter category, likening it to Sam’s Club and Costco. While Ye has long admired Costco’s membership model, he now believes Pangdonglai offers something even better, focusing on product quality, customer experience, and employee satisfaction—qualities he compares to those of Trader Joe’s.
Under Pangdonglai’s guidance, Yonghui has remodeled two Zhengzhou stores, doubling their daily revenue and turning a profit. Plans are underway to remodel stores in ten more cities, including Beijing, Hefei, Hangzhou, Shenzhen, and Shenyang. In Beijing, Yonghui’s first self-remodeled store at Xirondo Plaza in Shijingshan is set to reopen on October 19.
Ye predicts that these structural changes, led by retailers like Pangdonglai, will reshape China’s supermarket industry, providing Yonghui with enormous potential for growth. But how will Miniso benefit from its stake in Yonghui, and how will the two brands collaborate?
According to Zhao Lingyi, chief analyst at Shenwan Hongyuan, Miniso and Yonghui have synergies in supply chain and distribution channels that could enhance both companies’ competitiveness. Retail expert Wang Guoping added that Miniso’s national supply chain network is on par with Pangdonglai’s. As Miniso’s overseas business grows steadily, the company is eyeing larger domestic opportunities. Selling products through Yonghui and collaborating on larger stores may be a promising move for Miniso.
Ye stressed that Miniso could leverage Yonghui’s strengths to secure prime retail locations and better rental terms, while Zhang reaffirmed Miniso’s five-year plan to open 900–1,100 stores annually from 2024–2028, aiming to surpass 10,000 stores by 2027.
Ye also urged investors to trust his judgment, reminding them of his track record in retail.
For now, the full potential of this partnership remains to be seen.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2963632620835080">article</a> was written by Xie Yunzi for 36Kr.

Miniso bets big on retail with major stake in Yonghui Superstores

With domestic consumption in a slump and headwinds battering the home appliance sector, Haier Smart Home has managed to buck the trend in the first half of 2024. Against a backdrop of uncertainty, the company’s latest financial report tells a story of resilience: revenue climbed to RMB 135.62 billion (USD 19 billion), up 3.03% year-on-year, while net profit shot up by 16.3%, reaching RMB 10.42 billion (USD 1.5 billion). Among China’s top appliance makers—Haier, Midea, and Gree—it was Haier that led the way in profit growth.
This success didn’t just materialize out of thin air. While a pivot toward high-end markets helped, the company’s overseas expansion has proven to be a game changer.
In the first half of 2023, Haier’s international revenue swelled to RMB 70.82 billion (USD 9.9 billion), a 3.7% uptick from the previous year. In regions like South Asia, Southeast Asia, and the Middle East and Africa, the company saw growth rates of 9.9%, 12.4%, and 26.8%, respectively. With more than half of its total revenue now coming from international markets, Haier’s global playbook is paying off in a big way.
One notable move came in July, when Haier acquired Electrolux’s South African water heater business, marking a significant step into Africa’s emerging markets. But this is just the latest chapter in Haier’s longstanding strategy to make inroads into the continent.
Back in 2023, Haier broke ground on a USD 160 million eco-industrial park in Egypt. The park, operational by the first quarter of 2024, spans around 200,000 square meters and stands as the company’s first digital twin facility in the Middle East and Africa. With a yearly production capacity of over 1.5 million units, it supplies appliances to markets across Africa, the Middle East, and Europe. After two decades on the continent, Haier’s African adventure is moving into a new phase—one likely to be more intricate as it aims to deepen its presence.
<h3>Doubling down on South Africa</h3>
Since 2021, Haier’s international revenue has consistently outpaced its domestic sales, with growth rates abroad leaving its performance in China in the dust. By 2023, nearly 52% of the company’s total revenue came from international markets, with standout performances across North America, Japan, and Europe. In the U.S., subsidiary GE Appliances has been the fastest-growing appliance brand for two consecutive years. In Japan, Haier leads the white goods market, while in Europe, its Fisher &amp; Paykel brand has topped growth charts for eight years running.
The company’s strategy for capturing international markets is clear: acquire well-known local brands to quickly establish market share and deepen its brand awareness. Haier leans on these acquisitions to tap into existing sales channels and resources, accelerating its global reach.
In South Africa, this approach played out in July when Haier inked a deal with Electrolux to buy out its South African business for ZAR 2.45 billion. Electrolux had carved out a niche in the water heater market, especially with its Kwikot brand—a staple in South African homes for over a century. Kwikot’s strong sales network and after-sales service give Haier an immediate foothold in the region’s water heater market, with opportunities to cross-sell its broader range of home appliances.
Haier’s first steps into Africa came in 1998 as part of its broader globalization strategy. By localizing its research, manufacturing, and marketing efforts, it established a strong brand presence in the region early on. In Nigeria, for example, Haier developed products designed specifically for the local market—like freezers that can keep food frozen for 100 hours during power outages and air conditioners that can run on generators. These innovations were well received, strengthening Haier’s brand across Africa.
By 2001, Haier had air conditioner manufacturing bases in Algeria, Nigeria, and Tunisia. In 2019, the company set up a trading company in Egypt, and by 2020, it shifted its focus to building high-end localized brands. Haier’s influence in Africa has even extended beyond home appliances, with Haier Biomedical establishing vaccination stations and solar-powered mobile clinics to support healthcare in underserved areas.
<h3>Charging into Africa’s white goods market</h3>
Africa’s home appliance market, while still developing, holds immense potential. Statista estimates the market will generate USD 61.36 billion in 2023, with an expected compound annual growth rate of 7.53% through 2028. South Africa plays a pivotal role, with its appliance market set to reach USD 3.64 billion by 2024, growing at an annual rate of 6.55% through 2029.
This surge in demand is largely driven by rapid urbanization, population growth, and rising disposable incomes. As Africa’s middle class grows, so does the appetite for high-end appliances, particularly in markets like South Africa and Egypt. Haier’s financial reports show robust growth in Africa, especially in the water heater and home appliance segments. With rising incomes and growing economies, the company is well positioned to capture a larger slice of the appliance market, particularly in refrigeration and other key categories.
For African consumers, reliability is a must. The continent’s inconsistent electricity supply makes energy efficiency a top concern when selecting appliances. Haier’s products, such as air conditioners designed to run on backup generators, are in high demand. Government programs promoting energy-efficient products are also driving sales, as consumers look for appliances that can handle the region’s unique energy challenges.
While Chinese brands like Haier, Gree, and Midea dominate Africa’s home appliance market thanks to their manufacturing scale and cost advantages, they face stiff competition. Gree has introduced photovoltaic air conditioners to help tackle Africa’s energy supply issues, while Midea has also tailored its products for local conditions, offering air conditioners that perform well in coastal regions and handle West Africa’s voltage instability with ease.
Yet, the competition in Africa’s home appliance market is heating up, with brands from South Korea, Europe, and beyond vying for a piece of the pie. As infrastructure improves and the region opens up further, the battle for market share will only intensify.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2949656915976320">article</a> was written by Lin Qingqing for 36Kr.

Haier’s African gamble pays off as profits surge in a tough 2024

China Tech

Hardware

MENA

Xiaomi has revamped its smart driving team, merging its perception unit and its planning and control division into a new department focused on end-to-end (E2E) algorithm and function development. This restructuring marks a crucial step as Xiaomi accelerates the development of its smart driving solutions, aiming for mass production.
By shifting away from traditional modular methods and embracing E2E large model technology, Xiaomi is entering a new phase—one centered on rapid deployment and broader applications for its smart driving tech.
As electric vehicles flood the market, Xiaomi faces stiff competition, especially in the fast-evolving urban smart driving space. To stand out and maintain sales momentum, the company needs to close the gap in its autonomous driving capabilities. This organizational shake-up signals that Xiaomi is ramping up its efforts to compete.
At the same time, Xiaomi has elevated its team responsible for pre-research into autonomous driving, shifting their focus to developing Level 3 and Level 4 autonomous products. It’s a critical move as the company aims to push the boundaries of what’s possible in smart driving.
Xiaomi’s smart driving teams now span across Beijing, Shanghai, and Wuhan, employing around 1,200 people. This newly formed department will handle both light detection and ranging (LiDAR)-based and non-LiDAR-based systems, under the leadership of Ye Hangjun, chairman of Xiaomi’s technical committee and head of its autonomous driving division.
The urgency behind this restructuring comes as competition in the smart driving sector heats up. Xiaomi is determined to accelerate its path to market.
Since announcing its entry into car manufacturing in 2021, Xiaomi has moved fast. By August 2022, it had rolled out a Level 2 assisted driving system capable of navigating urban roads, highways, and parking scenarios. Just two years later, in June 2023, Xiaomi introduced its urban driving assistance feature to select users. By the end of August, this system was available nationwide, and after its fourth over-the-air update in September, users in cities like Beijing, Shanghai, and Guangzhou, who had logged at least 1,000 kilometers of safe driving, could activate the feature.
Xiaomi’s trajectory—from building the team to launching the urban navigate-on-autopilot (NOA) feature—took just three and a half years. For comparison, rivals like Huawei and Xpeng Motors took five years to achieve similar results. Xiaomi’s pace shows it’s catching up quickly.
Still, Xiaomi trails behind the market leaders. Huawei has introduced its full-scope navigation control assistant (NCA) feature in its new Aito M9, and Xpeng has launched a nationwide solution in its Mona 03, offering unrestricted adaptability across cities, routes, and roads. Xiaomi’s urban NOA, on the other hand, is only available for LiDAR-equipped models in ten cities, with slower progress.
Xiaomi’s newly reorganized department has been tasked with accelerating the expansion of urban NOA while developing both high-end and more affordable configurations. CEO Lei Jun has set an ambitious goal: to push Xiaomi into the top tier of the smart driving industry by year’s end.
Another outcome of this restructuring is the formation of a dedicated team focused on advancing Level 3 and Level 4 autonomous driving technologies.
While Xiaomi is keeping pace with the industry in mass production, the company has a real opportunity to lead in the emerging Level 3 and Level 4 autonomous space.
The industry is increasingly recognizing that E2E smart driving solutions outperform traditional modular systems. By leveraging massive datasets, cloud computing, and large models, automakers are unlocking new levels of smart driving capabilities.
Xiaomi isn’t the first to dive into E2E technology. Earlier this year, Nio consolidated its smart driving teams into a large model group, and Li Auto formed its own E2E autonomous driving department. Xpeng has also reorganized its divisions into E2E development and AI application teams. While Huawei has yet to announce a similar reorganization, it’s already released the third iteration of its advanced driving system, with even more upgrades in the pipeline.
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Traditional automakers are also playing catch-up. BYD has partnered with Huawei to develop advanced smart driving features, and Great Wall Motor has teamed up with DeepRoute.ai to accelerate E2E solutions. E2E technology is no longer just a trend—it’s becoming a defining factor in shaping automakers’ technological leadership, brand perception, and commercialization of smart driving.
Li Auto offers a clear example of how smart driving can impact sales. In its Q2 earnings call this year, the company revealed that nearly 70% of orders for models priced over RMB 300,000 (USD 42,000) were for its AD Max smart driving versions. The company sees E2E solutions, powered by AI, as a direct driver of sales.
For Xiaomi, the stakes are high. With fierce competition in the smart driving space, the company needs to fully embrace the E2E wave to maintain its image as a tech innovator and fuel continued growth.
If Xiaomi can continue refining its E2E smart driving system, the vast amounts of data it collects will drive continuous improvements. By reorganizing its resources around this effort, Xiaomi could significantly extend the capabilities of its E2E solutions. Meanwhile, pre-research into autonomous driving will remain a crucial step toward unlocking the next levels of smart driving.
With Xiaomi all-in on smart driving, the race to scale E2E solutions across the industry is about to get even more intense.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2956902677953927">article</a> was written by Xu Caiyu for 36Kr.

Xiaomi throttles up smart driving development with reorganization

Autonomous Vehicles

… from Alibaba’s Tongyi Lab.</figcaption></figure>
<h3>Liepin’s Doris: AI is sending you your next job offer</h3>
The first wave of digital human interviewers is already on the job. Doris, one of Liepin’s flagship products, is an AI-powered interviewer capable of conducting over 400 interviews in just 24 hours.
<figure id="attachment_150130" aria-describedby="caption-attachment-150130" style="width: 420px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="wp-image-150130 size-full" src="https://console.kr-asia.com/wp-content/uploads/2024/09/Liepin-Doris-Apsara-Conference.gif" alt="GIF showcasing Liepin’s Doris, an AI-powered interviewer tool." width="420" height="237" /><figcaption id="caption-attachment-150130" class="wp-caption-text">Liepin’s Doris could conduct your next job interview, in place of a human interviewer. Graphic source: 36Kr.</figcaption></figure>
Right now, Liepin’s AI interviews feature preset questions alongside an intelligent Q&amp;A system. The AI analyzes an applicant’s resume, picking up details like job changes or average tenure, and adjusts its follow-up questions accordingly.
But not everyone’s sold on the experience. Some candidates reported feeling more anxious during these AI interviews, pointing to the lack of real-time interaction and facial feedback from the emotionless digital interviewer.
Liepin’s team recommends using AI for initial screenings, but they acknowledge that when it comes to hiring top talent, the human touch still plays an irreplaceable role.
<h3>Motiff: Designing user interfaces with a single sentence</h3>
Motiff, China’s leading large model developer for user interface design, is making life a lot easier for designers. What used to take at least a week can now be done in seconds—literally.
All it takes is a sentence. Users just input the type of interface they need, list the components, and add a brief description. In about 20 seconds, Motiff generates two UI design drafts, ready for review.
The real magic is in the details. Motiff’s deep understanding of layout means repetitive tasks—like copying and pasting—have been reduced to a single drag-and-drop action, streamlining the entire process.
<figure id="attachment_150129" aria-describedby="caption-attachment-150129" style="width: 240px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="size-full wp-image-150129" src="https://console.kr-asia.com/wp-content/uploads/2024/09/Motiff-UI-Generation-Apsara-Conference.gif" alt="" width="240" height="300" /><figcaption id="caption-attachment-150129" class="wp-caption-text">Graphic source: 36Kr.</figcaption></figure>
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<h3>And plenty else…</h3>
Beyond robots and digital humans, AI-powered takes on the classic werewolf game were a frequent sight in the frontier tech pavilion.
Giant Network, for instance, has woven an AI-powered werewolf game into its seasonal events on platforms like Douyin and Bilibili. The non-playable characters (NPCs) in this game are relentless. If a player’s statement has even a hint of a logical flaw, the AI-driven NPCs jump on it without hesitation. The round-the-clock availability of these sharp-witted NPCs has led to a tenfold increase in user engagement during Giant’s seasonal events.
Meanwhile, Baibian Dazhentan, a murder mystery game app that launched back in 2018, has integrated AI-powered gameplay using the Tongyi Qianwen model. Players can now engage in voice conversations with AI-driven NPCs, but there’s a catch: the number of dialogue rounds is limited. If you want more interaction, you’ll need to pay—unlocking a key revenue stream for AI-driven murder mystery games.
However, adding AI isn’t a magic bullet for guaranteed success. According to 36Kr, incorporating large models has bumped up technical costs, and finding the right game scripts has become a delicate balance: too complicated, and the AI can’t keep up—too simple, and players lose interest.
In the end, as AI keeps evolving, the challenge for humans will be to keep pace.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2957972394723078">article</a> was written by Zhou Xinyu for 36Kr.

These AI products stole the show at Alibaba’s Apsara Conference 2024

Alibaba Cloud

Artificial intelligence