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… solution.
Moving forward, we’ll focus on developing on-device AI that understands users deeply, capable of handling complex tasks at their command.
<h3>Expectations exist for the iPhone 16, but less so for its hardware</h3>
AI innovation, particularly on-device AI, is still in its infancy. With Apple now in the game, we expect resources and future AI services to start pooling around this space. This is the competition we’re excited about.
As for the iPhone 16, I have some expectations—but honestly, not so much when it comes to hardware.
<h3>The advantages of ARM architecture</h3>
Honor’s foray into Snapdragon-based ARM PCs is largely driven by the future of cross-device collaboration. ARM architecture’s computing power and energy efficiency align perfectly with what mobile phones and tablets need.
On top of that, thanks to better heat dissipation, laptops running on ARM outperform phones and tablets in raw computing power. From a comprehensive solution standpoint, we’ll be leveraging Magic OS and AI-enabled MagicRing to unify devices into a seamless system. From this angle, ARM’s advantages are substantial.
It’s easy to see why Honor is developing ARM-based laptops.
And with AI-enabled MagicRing and cross-platform, cross-OS solutions aiming to merge Windows and Android, the potential here is massive.
<h3>Optimizing the ARM PC experience</h3>
When we started working on ARM PCs, the entire ecosystem was our focus. In Europe and overseas, over 90% of native apps run without a hitch. In China, we systematically analyzed the top 100 apps to pinpoint which ones might affect the user experience. We took a two-pronged approach:
<ul>
<li aria-level="1">First, Honor invested in R&amp;D to optimize conversion efficiency.</li>
<li aria-level="1">Second, we’ve partnered with Qualcomm, Microsoft, and the top 100 PC app providers in China to transition their programs to the ARM platform. This work is ongoing on both fronts.</li>
</ul>
Looking ahead, we recognize that ARM architecture’s software development and system capabilities will challenge some laptop manufacturers. While laptops tend to handle more office productivity data, they can’t compete with the sheer volume of personal data smartphones manage.
That’s why we’re exploring collaborations with laptop manufacturers to enable stronger AI interactions between laptops and phones. It’ll require breaking down the barriers between these devices, and MagicRing will be key in making that happen.
Two years ago, when we launched MagicRing, we talked about how the system would open up in the future. In this AI era, we’re pushing that even further—figuring out how to extend this capability to laptop manufacturers and platforms. The cross-device, cross-OS AI collaboration we’ve announced—Apple doesn’t have that yet, at least not right now. We’ve been thinking about these capabilities since the early days of MagicOS.
<h3>Magic V3-like foldable phones would have spurred the market</h3>
If foldable phones five years ago were anything like Honor’s Magic V3 today, I believe the market would have exploded back then. But five years ago, when the industry started making them, they weighed over 300 grams, and the thickness of two bar phones combined was about 14–15 mm, while foldable phones at the time were 17–18 mm. So, people’s impressions of foldable phones were formed in that era—they were heavy, thick, and fragile. With each iteration, those impressions evolved.
The smartphone market feels a bit monotonous now. If you’ve got a bar phone that can unfold into something entirely new, European consumers are bound to give it a try.
<h3>Honor is open to third-party collaborations</h3>
At the Mobile World Congress (MWC), we teamed up with Meta to release a large language model overseas. Going forward, we’ll continue working with Meta, Microsoft, Google, and other internet and AI partners. Honor remains open to collaborating with any third-party AI providers.
<h3>Conversion outweighs market share in importance</h3>
What excites me more is unlocking a larger market for foldable phones. For example, in Hong Kong, where the Magic V3 has been on sale for just over a week, it’s already grabbed more than 50% of the market. In Europe, the phone will undoubtedly sell well, and we expect strong sales.
But what matters more is how we influence and convert Apple and other bar phone users to try foldable phones. That’s why Honor’s decision to launch the Magic V3 at IFA and take on bar phones directly was crucial. The next step is getting those users to take notice, try the Magic V3, and ultimately choose it. That’s the real competition, and it has only just begun.
<h3>AI OS is designed to meet personalized needs</h3>
At Honor, a few years ago, our strategy—whether it was Android or iOS—focused on ecosystems and how they solved development efficiency problems.
But in the AI era, the key is personalization. It’s about how the operating system serves the individual. Every time you use the OS, you’re feeding it training data. It learns your habits and intentions, and optimizes itself accordingly.
Over time, your phone gets better at predicting your behavior. Whether it’s MagicOS 9.0 or 10.0, the system becomes more tailored to you. That’s what we’ve always emphasized—a personalized operating system.
Apple just introduced the idea of a personalized OS in June this year. But two years ago, when we defined MagicOS, we had already positioned it as a personalized, all-scenario OS. Apple might have borrowed our idea, but no one’s standing up for us.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2943958568622723">article</a> was written by Zhou Xinyu for 36Kr.

Honor’s foldable Magic V3 steals spotlight at IFA 2024, overtakes Samsung in west Europe

Honor

China Tech

Deep Tech

Smartphones

China

On September 10, Apple’s much-anticipated fall product launch went as expected, with one notable highlight being the demo of Honor of Kings: World to showcase Apple’s chip performance and mobile ray tracing technology.
Apple’s close relationship with Tencent, showcased during the event, suggests that the rumored rift between Apple and WeChat may be less likely than previously speculated.
In fact, according to a <a href="https://www.bloomberg.com/news/articles/2024-09-06/apple-clears-wechat-for-iphone-16-as-talks-persist-over-app-fees">Bloomberg</a> report from September 6, Apple had already approved the latest WeChat version update, though Apple’s technical advisors were reportedly still unaware of this. Earlier, when The Beijing News reached out to Apple for confirmation, the company stated it hadn’t yet received any notification.
Before the event, rumors circulated that the iPhone 16 might no longer support WeChat, fueling online debates about whether users could live without Apple or WeChat. However, the product launch has since rendered those discussions irrelevant.
The latest dispute between the hardware giant and the software titan stems from China’s recent minigames boom and the massive revenues they generate.
In August, <a href="https://www.bloomberg.com/news/articles/2024-08-14/tencent-says-in-talks-with-apple-about-mini-games-mobile-revenue">Bloomberg</a> reported that Apple had targeted WeChat’s share of minigame revenue. Previously, WeChat’s iOS version lacked in-app purchases (IAPs) for minigames, allowing users to make purchases through external links and bypass what’s commonly referred to as the “Apple tax”—a 30% commission Apple collects on in-app purchases (IAPs) from apps that earn more than USD 1 million annually.
During Tencent’s Q2 earnings call, chief strategy officer James Mitchell acknowledged the conflict, stating that Tencent hopes to work with Apple to achieve mutually beneficial business goals for both companies, game developers, and users. He added that Tencent seeks to do this under conditions that are economically sustainable and fair.
This isn’t the first time Tencent and Apple have clashed over revenue sharing.
Seven years ago, the two companies disagreed over whether WeChat’s tipping feature should be subject to the Apple tax. Tencent temporarily disabled the tipping feature on iOS until Apple’s app store integrated WeChat Pay in 2018, which resolved the dispute—for a while.
The current disagreement centers on the growing minigames market. According to Ocean Engine data, the market could reach RMB 60 billion (USD 8.4 billion) this year, representing one-fifth of China’s entire gaming industry.
Before Tencent, Mihoyo also attempted to bypass the Apple tax. In August last year, Mihoyo’s community app Hoyolab and its payment center mini program, co-launched with Alipay, were removed from Apple’s app store due to built-in payment and topup features.
However, Tencent is taking a bolder approach than Mihoyo.
Thanks to its early presence and extensive ecosystem in minigames, Tencent has attracted more than 400,000 developers, including both IAP game developers and in-app advertising (IAA) developers, who bring in a large number of active users. For both WeChat and Tencent, minigames are a high-margin business and play a critical role in sustaining the platform’s ecosystem. With China’s active internet user growth slowing and cost-cutting measures failing to reignite growth, minigames have become even more vital to Tencent’s strategy.
For Apple, the 30% tax has never been successfully challenged. When Mihoyo’s attempt to bypass it was discovered, its apps were relisted after removing the payment feature. Apple’s long legal battle with Epic Games also ended in its favor last year.
Nevertheless, Apple has faced antitrust investigations in South Korea, the EU, and the UK in recent years, which have led to some adjustments in its policies. With Apple’s revenue declining for two consecutive quarters, the company is eager to claim a share of the minigames market.
Yet, just as Mihoyo cannot sever ties with Apple, neither can Tencent. With Apple holding nearly 20% of the global smartphone market and a well-established iOS ecosystem, and with Tencent’s dominance in minigames and software, both companies will need to work together to find a solution.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2943675126078344">article</a> was written by Lan Jie for 36Kr.

WeChat stays on iPhones as Tencent and Apple spar over minigame revenues

Apple

Wechat

Japan, Korea, and the West

Gaming

Creative

Walmart China has made a significant leadership change. Effective September 2, Zheng Shuohuai has stepped into the role of Senior Vice President at Walmart China and taken over as COO of Sam’s Club. Along with this, Zheng will continue to lead the membership team at Sam’s Club, while his predecessor, Fang Xiaofeng, transitions to the role of Chief People Officer at Walmart China.
Zheng, who joined Walmart China in March 2022 as Senior Vice President of Strategy and Real Estate, brings a strong consulting background. Before taking on his current role, he was a global partner and head of retail for Greater China at Bain &amp; Company. His career parallels that of Walmart China’s CEO, Zhu Xiaojing, who also previously held a leadership position at McKinsey &amp; Company.
According to reports from 36Kr, Zheng has garnered praise for his contributions to expanding Sam’s Club’s store footprint and cloud warehouse network.
Sam’s Club has defied broader retail trends in China, showing notable growth. In 2023, the retailer posted approximately RMB 80 billion (USD 11.3 billion) in sales. The latest Walmart China financial report, released in August, revealed that the company’s net sales for the second fiscal quarter reached USD 4.6 billion—a year-on-year increase of 17.7%. This continues two years of robust growth, with Sam’s Club playing a key role. According to Walmart CFO John David Rainey, some of the company’s highest-grossing stores, in terms of total revenue, are Sam’s Club locations in China.
To date, Sam’s Club has opened 48 stores across 25 cities in China, with an array of online services such as one-hour express delivery, citywide delivery, and nationwide delivery rolled out alongside the brick-and-mortar expansion. By comparison, Costco, its closest competitor, had 19 stores in China by the end of fiscal 2023.
Since 2018, Sam’s Club has been building out its cloud warehouse network to support rapid delivery services. This hybrid model has enabled the retailer to achieve near-complete coverage in key cities. While its physical stores offer around 4,000 SKUs, the cloud warehouses feature a more curated selection of approximately 1,000 high-repeat-purchase items, tailored for quick commerce.
The momentum behind Sam’s Club’s cloud warehouse expansion has only accelerated. In August alone, new warehouses opened in Dongguan, Shaoxing, and Wenzhou, with many reporting near-immediate fulfillment upon launch. Industry insiders estimate that Sam’s Club now operates nearly 500 frontend warehouses across China, with each processing around 1,000 orders and an average transaction value exceeding RMB 200 (USD 28.2).
36Kr also reported that Sam’s Club’s e-commerce operations have been realigned to report to Zhang Qing, chief merchandising officer of Walmart China. Previously, the e-commerce business reported to the COO. Now, Zheng will oversee offline operations, while Zhang takes charge of its online channels.
E-commerce has become a critical growth engine for Sam’s Club in China. In fiscal 2023, nearly 47% of its revenue came from online sales. The first half of fiscal 2024 continued this trend, with Rainey stating during the second-quarter earnings call that membership growth has driven double-digit sales increases in China, with nearly half of the sales coming from online channels. Additionally, one-hour express delivery orders grew by 28% in the quarter, totaling 59 million.
Sources familiar with Sam’s Club told 36Kr that the e-commerce team focuses on product features, page design, online promotions, and themed events, working closely with the procurement team to ensure product selection aligns. One insider noted that, early on, collaboration between procurement and e-commerce was lackluster. It wasn’t until late 2021, when online sales surged, that some products began outperforming their offline counterparts—prompting improved internal cooperation.
With the recent organizational changes, expectations are that Sam’s Club’s procurement and online product strategies will become more closely aligned.
Walmart’s latest earnings report emphasizes three key priorities: growth, profitability, and returns. By putting growth first, Walmart aims to strengthen its omnichannel business model, offering customers the shopping experiences they desire. This strategy includes increasing membership, accelerating e-commerce sales, and expanding its omnichannel footprint. Yet, whether Sam’s Club can deepen its penetration in the Chinese e-commerce market under this new structure remains an intriguing question.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2945238249495429">article</a> was written by Ren Cairu for 36Kr.

Sam’s Club names new COO in Walmart China’s latest executive reshuffle

E-commerce

Retail

Consumer Economy

Deals in brief: Carsome fuels expansion with new financing, Bangladesh’s Pathao and iFarmer snag funding, five China deals, and more

Ant Group

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Singapore

Malaysia

Southeast Asia

An analysis of China's current semiconductor technology revealed that the country is approaching a level three years behind industry leader Taiwan Semiconductor Manufacturing Company (TSMC), showing the limitations of US efforts to stem Beijing's development of cutting-edge chips.
Hiroharu Shimizu, CEO of Tokyo-based TechanaLye, a semiconductor research company that disassembles 100 electronic devices a year, told Nikkei about China's capabilities.
Shimizu showed semiconductor circuit diagrams for two application processors, the brains of a smartphone: one from Huawei Technologies' Pura 70 Pro, released in April, and one from a top-of-the-line Huawei smartphone from 2021.
The Kirin 9010—the newest phone's chip—was designed by Huawei subsidiary HiSilicon and mass produced by major Chinese contract chipmaker Semiconductor Manufacturing International Corporation (SMIC). The 2021 phone's Kirin 9000 chip was also designed by HiSilicon, but mass produced by TSMC.
SMIC, which is subject to US measures to suppress advanced chip technology, is capable of producing 7-nanometer chips. TSMC supplied 5-nm processors to Huawei for the 2021 phone.
Generally, the smaller the nanometer size, the higher the performance and the smaller the chip. However, SMIC's 7-nm mass produced chip measures 118.4 square millimeters, while TSMC's 5-nm chip is 107.8 square millimeters. The two chips have similar areas and performance levels.
Although a difference in yield still exists, SMIC's capabilities are approaching a level three years behind TSMC, based purely on performance of the chips that were shipped. HiSilicon's design capabilities have also improved, as shown by its ability to produce chips with comparable performance as TSMC's 5-nm products, despite their wider circuit width.
Huawei's Pura 70 Pro is equipped with a total of 37 semiconductors that support memory, sensors, cameras, power supply, and display functions. Of these, 14 were from HiSilicon, 18 from other Chinese manufacturers, and just five from foreign manufacturers, including South Korea's SK Hynix for DRAM and Germany's Bosch for motion sensors. Some 86% of the phone's chips were made in China.
"In effect, the only semiconductors subject to the US regulations are cutting-edge server chips for artificial intelligence and other applications," Shimizu said. "As long as the chips do not pose a military threat, the US is probably allowing their development."
Chinese players made 34.4% of global chipmaking equipment purchases in 2023, roughly double the figure for South Korea and Taiwan, according to industry group SEMI. The country is expanding its mass production capabilities by focusing on equipment that is not targeted by export restrictions on cutting-edge technologies.
Given this trend, the fact that SMIC's 7-nm chips now rival TSMC's 5-nm chips in processing capability could have major implications for the industry. TSMC also faces growing hurdles to stay ahead of Chinese rivals technologically as miniaturizing circuits becomes increasingly difficult.
"The US regulations so far have only slightly delayed Chinese innovation, while sparking efforts by the Chinese chip industry to boost domestic production," Shimizu said.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Tech/Semiconductors/China-s-chip-capabilities-just-3-years-behind-TSMC-teardown-shows" 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 chip capabilities just three years behind TSMC, teardown shows

TSMC

Semiconductors

… major e-commerce platforms to release products that blend professionalism with style, catering to high-end consumers. Meanwhile, Anta has turned its main flagship stores into premium locations specializing in outdoor products.
Veteran retail expert Wang Guoping told 36Kr that Anta’s countercyclical growth has been bolstered by its ability to tap into the growing outdoor sportswear market in China.
He pointed out that, in a generally weak market, the outdoor, women’s, and children’s segments remain key growth areas for the sportswear industry. Outdoor gear, in particular, is undergoing a shift toward “light outdoor” items—less focused on performance, and more on fashion and lifestyle.
“This shift is changing the way consumers think about sportswear. For years, no brand truly dominated China’s outdoor market. Companies like Sanfo Outdoor, Toread, and Camel never managed to gain significant market share.”
Wang believes Anta’s decision to acquire several outdoor brands was a smart one. At the same time, the entire sportswear industry still has room to grow online. Reason being, In the early stages, brands tend to hold a relatively small share of online sales.
In the first half of this year, China’s retail sales of consumer goods increased by 3.7% YoY, while online sales of physical goods rose by 8.8%, accounting for 25.3% of total retail sales. New e-commerce models, such as live and quick commerce, have played a significant role in driving this growth.
Anta’s financial report shows that the company is aggressively expanding its presence in emerging e-commerce channels, with e-commerce contributing 33.8% of its total revenue across all brands. In absolute terms, this represents a 25.1% increase from 2023.
Since 2020, Anta has also embraced a D2C model. As of June 30 this year, more than 10,000 of Anta’s over 12,000 stores were operating under the D2C model, with over 6,000 directly operated by the brand—now accounting for over half of the group’s total store count.
However, Anta’s multi-brand strategy presents challenges when it comes to managing inventory.
According to the financial report, Anta’s inventory turnover stands at 114 days, down 10 days from 2023, but still higher than other Chinese sportswear brands that focus on a single brand.
As for cash flow, Anta recorded a net operating cash inflow of RMB 8.502 billion (USD 1.2 billion) in the first half of 2024, with free cash flow reaching RMB 7.619 billion (USD 1.1 billion). By the end of the reporting period, Anta had RMB 47.83 billion (USD 6.7 billion) in cash and equivalents, including long-term bank deposits and pledged deposits.
Notably, Anta’s strategy seems to align with Li-Ning’s when it comes to growth. During the earnings call, Ding stressed that, in a volatile external environment, Anta would stick to a “steady, sustainable growth strategy.”
Meanwhile, Anta’s core market—lower-tier cities—is facing increasing pressure as international brands like Nike and Adidas expand their reach. Sources at 36Kr said Li-Ning is also intensifying efforts to capture market share in lower- and mid-tier cities.
What’s clear is that, in China’s fiercely competitive sportswear market, the game is far from over. For Anta and its competitors, this is just halftime.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2935103471786627">article</a> was written by Xie Yunzi for 36Kr.

From Fila to Descente: How Anta’s global play is reshaping the sportswear market

East Asia

Anta

Fashion

Consumer Services

… undisclosed backing. —<a href="https://36kr.com/newsflashes/2945094809459336">36Kr</a></li>
<li aria-level="1"><a href="http://signal-easy.com/">Signal Easy</a>, a tech firm specializing in high-speed connectors and optical modules, secured funding in a round led by Huaqin. The capital will be used for product development and market penetration. —<a href="https://36kr.com/newsflashes/2945072067713668">36Kr</a></li>
<li aria-level="1">Fujin Power Semiconductor, a semiconductor company, has raised RMB 50 million (USD 7 million) in its Series A funding round, led by Hubei Shengxian Equity Investment. Founded in 2021 the company focuses on power system modules and power semiconductor technology. The funds will be used primarily for R&amp;D. —<a href="https://36kr.com/newsflashes/2945065332595335">36Kr</a></li>
</ul>
whereRelatedArticle
<h3>Humble, Renewable Metals, Funding Societies, and more led the recent headlines:</h3>
<ul>
<li aria-level="1"><a href="https://humblesustainability.com/">Humble Sustainability</a>, an e-waste management startup headquartered in Manila, raised an undisclosed amount in a pre-Series A funding round. Gobi Partners led the round through its Gobi-Core Philippine Fund, with participation from ADB Ventures and the Philippine government’s National Development Company (NDC).</li>
<li aria-level="1"><a href="https://www.renewable-metals.com/">Renewable Metals</a>, an Australian battery recycling company, raised AUD 8.1 million (USD 5.2 million) in a seed extension round from Investible’s Climate Tech Fund and Club Investible syndicate.</li>
<li aria-level="1">Funding Societies, a digital finance platform also known as Modalku in Indonesia, secured an investment from Maybank. The financial details of this deal were not disclosed.</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: Happy5 acquires SugarOKR, EDBI backs Arta Finance, Xendit’s XenCapital secures credit facility from Helicap, and more

Indonesia

… company realized that digitalization isn’t just for one department—it’s a company-wide effort.
To support this, Readline adopted Yida, a low-code platform that allows non-technical employees to create their own digital tools. This approach has cut development times from months to weeks, empowering teams to respond to business needs faster.
“Low-code platforms are a great complement to traditional software development,” Shou said. “Before, developing a tool could take a team of five to ten people several months. With Yida, a product manager and a developer can do it in one to two weeks.”
Since implementing Yida, Readline has created multiple business applications—from sales approval systems to equipment lifecycle management—developed entirely by non-technical staff.
Shou emphasized that DingTalk is Readline’s digital foundation, and using Yida ensures both efficiency and data security.
As digital transformation sweeps through industries—especially with rapid advances in AI—Readline’s approach offers valuable insights for other companies. For small and medium enterprises, adopting flexible, cost-effective digital systems now appears essential for supporting growth.
“You need to find the right-sized shoes for your feet—big shoes on small feet, or small shoes on big feet, just won’t fit,” Shou said.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2937996364356231">article</a> was written by Xiao Xi for 36Kr.

This biotech startup is using AI to make anti-aging products more affordable

Biotech

With monthly sales exceeding 50,000 units, Li Auto has firmly secured its position as the leader among China's new energy vehicle startups. This rapid growth has also spotlighted its supply chain partners, with one low-profile battery supplier now stepping into the limelight.
Industry sources reveal that Sunwoda, a <a href="https://kr-asia.com/sunwoda-clinches-battery-deals-with-li-auto-and-xiaomi">key supplier</a> for Li Auto's L7 and L8 models, is quietly weaving itself into the supply chains of several other automakers. This rise echoes that of China Aviation Lithium Battery (CALB), which gained a foothold with GAC Aion just before its sales took off. It seems another second-tier battery manufacturer is about to break through.
In an exclusive interview with 36Kr, Sunwoda’s chairman Wang Wei shed light on why his company has become the secondary supplier of choice for many leading EV manufacturers.
Back in 1997, Wang Wei co-founded Sunwoda with his brother Wang Mingwang. Today, Wang Wei remains the driving force behind the company as its chairman.
Though typically media-shy, Wang Wei spoke candidly with 36Kr, much like Sunwoda itself—low-key, yet sincere.
Right now, the power battery industry faces two pressing challenges: oversupply and cutthroat price wars. As automakers push for lower battery costs, the pressure is mounting on every part of the supply chain.
Wang Wei attributes Sunwoda’s resilience to three factors: having the financial stability to ride out tough times, producing unique products, and ensuring that customers can’t do without them. "You can’t start by haggling over price," he said. "First, you have to ask how much the product is really worth."
Differentiation, Wang Wei explained, is the key to breaking through in a market <a href="https://kr-asia.com/catl-and-byd-lead-the-charge-in-developing-6c-batteries-for-evs">dominated</a> by giants like Contemporary Amperex Technology (CATL) and BYD. “These companies are already excellent, with well-established ecosystems. If they decide to compete on price, there’s no way to defend yourself.”
Sunwoda’s competitive edge is its fast-charging technology. In 2022, it began mass producing the SFC480 fast-charging battery, which debuted in Xpeng Motors' G9 model. This year, Sunwoda has already pushed the technology to its third iteration, boasting a peak charging rate of 6C.
Sunwoda’s fast-charging expertise, however, didn’t come overnight. It traces back to the company's early work on its first hybrid EV (HEV) battery.
In 2017, when Sunwoda formally announced its entry into the power battery market, the stock price took a dive. "People thought we were crazy," Wang said. “Many companies were folding, and there we were, just entering the industry.”
That same year, battery maker OptimumNano faced a debt crisis that shook the industry, with many investors fleeing and weaker competitors being pushed out. Sunwoda survived by taking on the most challenging projects: HEV batteries, which had more stringent requirements for battery lifespan and fast charging capabilities. But this commitment paid off, laying the foundation for Sunwoda’s reputation as a leader in fast-charging technology, while also attracting major clients like Renault and Nissan.
Sunwoda's first battery took 3–4 years to move from development to mass production, finally hitting the market in 2019. Today, HEV batteries are the backbone of Sunwoda’s power battery business, with production operating at nearly full capacity, according to Wang.
This low-key battery company has managed to attract both domestic and international automakers. In 2022, Sunwoda Power, its power battery subsidiary, secured about RMB 8 billion (USD 1.1 billion) through two rounds of funding. By then, major automakers like Li Auto, Nio, Xpeng, SAIC Motor, GAC Group, and Dongfeng Motor had already joined its roster of clients.
Still, in the power battery market, technology alone doesn’t always stand out. While Sunwoda has made strides with the fast-charging capabilities of its batteries, CATL’s <a href="https://kr-asia.com/catl-introduces-shenxing-lfp-battery-to-usher-in-era-of-fast-charging-evs">Shenxing</a> and Qilin batteries remain dominant, with even more models relying on its technology.
So, how does a second-tier battery maker like Sunwoda compete with an industry giant like CATL? Wang’s strategy has been to avoid head-on confrontation. Instead, Sunwoda has positioned itself as a secondary supplier, quietly integrating into supply chains. Against its non-CATL rivals, Sunwoda’s stable foundation has become its greatest strength.
According to its financial report, Sunwoda generated RMB 23.918 billion (USD 3.4 billion) in revenue during the first half of 2024, a year-on-year increase of 7.57%. Net profit rose by 87.89% to RMB 824 million (USD 116 million). The consumer battery segment made up around 55% of revenue, bringing in approximately RMB 13.2 billion (USD 1.8 billion), while the power battery business accounted for about 26%, or RMB 6.2 billion (USD 871.2 million).
Sunwoda’s confidence in its foundation is what sets it apart when bidding for automaker contracts.
Founded in 1997, Sunwoda has weathered several industry upheavals. At the heart of its success is the Wang brothers’ cautious and steady approach. "You have to have a deep respect for batteries," Wang said.
Between 2021–2022, battery companies scrambled to scale up production. At that time, aside from CATL and BYD, most were producing batteries with a total annual capacity of less than 20 gigawatt-hours. Yet, their targets for 2025 were as high as 600 GWh.
Although Sunwoda is traditionally conservative, it continued ramping up production during this period. "We were careful, but we still stepped into a few traps," Wang admitted. “Some clients made big promises—placed orders, paid in advance—but in the end, some of those orders didn’t materialize. It wasn’t just a loss for production lines and R&amp;D. We lost opportunities too.”
But compared to other companies, Sunwoda’s expansion investments were modest. Wang believes that, based on its assets, revenue, and profits, Sunwoda has held its own.
If anything, caution and diligence have been the hallmarks of Sunwoda’s journey, propelling it to its current position. "You must respect the battery business,” Wang said.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2912547004996232">article</a> was written by Han Yongchang for 36Kr.

Unpacking Sunwoda’s rise as an EV battery player

Electric Vehicles

Battery

Mobility