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… before a stronger second half as the comparison base eases. They also pointed to renewed trade-in support as a constructive backdrop.
The risk is that this recovery thesis still depends on several developments occurring at once: steadier consumer demand, less aggressive competition in food delivery, and continued monetization of higher-margin advertising and services.
The cleanest way to read the quarter is that JD’s core retail business is stronger than the headline suggests, but the group is less profitable than that core would typically allow. Revenue diversification is progressing. Profit diversification has not yet followed. What to watch next is whether food delivery losses continue narrowing without another surge in subsidies, and whether retail margin gains remain intact as electronics demand recovers. That will determine whether 2025 marks an investment trough or the beginning of a longer period in which JD’s expansion plans continue to outpace its earnings.
Note: RMB figures are converted to USD at a rate of RMB 1 = USD 0.14 for reference, unless otherwise stated. Company disclosures may apply different exchange rates.

JD.com beats Q4 revenue estimates, but new businesses deepen losses

JD.com

East Asia

China

On-demand Services

Logistics

Retail

Consumer Economy

German sporting goods maker Puma announced on February 26 its biggest yearly net loss of EUR 645.5 million (USD 762 million) for 2025, looking to launch a quick comeback by adopting the methods of the Chinese competitor that will become its top shareholder this year.
"Puma has become too commercial, overexposed in the wrong channels, with too many discounts," Puma CEO Arthur Hoeld said. Hoeld, who took the helm last July, has spoken repeatedly of missteps that he said damaged the company's brand image.
In addition to sluggish sales in such key markets as Europe, the US, and China, Puma was hit hard by American tariffs in 2025. The net loss was a reversal from the previous year's profit of EUR 281.6 million (USD 332.3 million). Sales fell 13% on the year to EUR 7.29 billion (USD 8.6 billion).
Wholesale sales to retailers, supermarkets and sporting goods stores made up roughly three-quarters of Puma's sales in 2024, high compared with 60% for compatriot Adidas that year and 56% for US competitor Nike in the fiscal year ended that May. In wholesale, retailers have the power to determine product prices, so out-of-season products are sold at a discount.
For Puma, this created a vicious cycle that not only sapped profitability but also dragged down its brand value.
After becoming CEO, Hoeld switched to a strategy of recovering inventory from retailers to avoid price cuts. Product inventory temporarily increased 17% on the year for the July-September quarter as a result. Wholesale sales for the full year fell 17% to EUR 4.93 billion (USD 5.8 billion).
Puma is expanding its direct sales business, focusing on its own stores and online sales. As part of restructuring, the company announced cuts of 500 jobs in March 2025 and a further 900 in October.
With little know-how in the direct sales business, Puma is relying on Anta Sports, which will <a title="" href="https://asia.nikkei.com/business/business-deals/china-s-anta-to-buy-29-puma-stake-for-1.78bn" target="_blank" rel="noopener">acquire a 29% stake in Puma</a> to become its top shareholder in 2026.
whereRelatedArticle
"25 years ago, foreign brands were seen as being out of reach in the Chinese market," Anta founder and chairman Ding Shizhong said immediately after the investment announcement in January. "But today, Chinese brands stand shoulder to shoulder with foreign brands."
Founded in 1991 as a shoe factory, Anta has pursued a strategy of increasing the brands under its umbrella through aggressive mergers and acquisitions as well as investments. It acquired the Chinese business of Italy's Fila in 2009 and invested in Finland's Amer Sports, which handles outdoor sports brand Salomon, tennis brand Wilson, and others, in 2019.
<figure id="attachment_160244" aria-describedby="caption-attachment-160244" style="width: 1920px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-160244" src="https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Anta-Store-Dreamstime.jpg" alt="An Anta Sports store inside a mall in Kuala Lumpur, Malaysia." width="1920" height="1080" srcset="https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Anta-Store-Dreamstime.jpg 1920w, https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Anta-Store-Dreamstime-720x405.jpg 720w, https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Anta-Store-Dreamstime-1024x576.jpg 1024w, https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Anta-Store-Dreamstime-768x432.jpg 768w, https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Anta-Store-Dreamstime-1536x864.jpg 1536w, https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Anta-Store-Dreamstime-480x270.jpg 480w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-160244" class="wp-caption-text">An Anta Sports store inside a mall in Kuala Lumpur, Malaysia. Photo source: Dreamstime (<a style="border-bottom: 1px solid #1266f1; text-decoration: none;" href="https://www.dreamstime.com/uskarp_info">Uskarp</a>, ID: 362562082).</figcaption></figure>
By aggregating multiple brands across different price ranges and categories, Anta has grown to become the world's third largest sporting goods company, after Nike and Adidas.
It has expanded its China business by injecting the direct sales, product development and supply chain management know-how it cultivated through the Anta brand into other affiliated brands.
The company has increased the direct sales ratio for the Anta brand, bringing its wholesale ratio down to less than 10% in 2024. Direct sales make it easier to adjust production volume based on sales data and develop products that address consumer needs.
Anta also formed a joint venture with Japanese brand Descente, solidifying its position as a premium golf and ski brand in China.
Amer Sports has also successfully rebuilt itself by switching to direct sales, opening directly run stores in major cities and building up global brands.
"We're welcoming Anta as a strategic partner for us to help us on that growth," said Hoeld at a news conference on February 26. Puma is "very encouraged by the opportunities we see from it to long-term perspective, moving forward in China, but also beyond," he said.
In addition to a fundamental overhaul of its sales methods, Puma's revival will require the development of hit products. New products launched in 2025 under its popular Speedcat sneaker brand have struggled so far.
"We have recognized that our tactics when it comes to getting Speedcat to the market, and our anticipated success globally wasn't living up to expectations last year," Hoeld said.
"However, some of those reset measures, rebalancing our discounting and promotion policy have certainly helped Speedcat and give us a lot of confidence," he said.
This article first appeared on <a href="https://asia.nikkei.com/business/retail/puma-bets-on-direct-sales-playbook-of-new-top-shareholder-china-s-anta">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.0722vps.aieehr01.top/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

Puma bets on direct sales playbook of new top shareholder, China's Anta

Europe

On February 25, the Hong Kong government said it will log its first operating budget surplus after three consecutive years of deficit, thanks to a stock listing boom and economic recovery, while it steps up plans for more debt loading.
Hong Kong's fiscal deficit has snowballed in recent years due to a lagging economy and ballooning infrastructure costs for major development projects. A prolonged real estate downturn has also deprived the government of billions of dollars in land premiums, a key source of revenue.
But in his annual budget address, financial secretary Paul Chan said the government's consolidated account will have a HKD 2.9 billion (USD 370 million) surplus for financial year 2025–2026, compared to the HKD 67 billion (USD 8.6 billion) deficit previously expected. The operating account, which includes items such as stamp duties and salaries tax, is on track for a surplus of HKD 51.3 billion (USD 6.6 billion), while the capital account, which comprises land premium revenue and capital work expenditure, continues to be in the red.
Government bond borrowings are added to the revenue, offsetting a portion of expenditures.
The improved numbers come as stamp duty revenue from the city's securities exchange has jumped to nearly HKD 100 billion (USD 12.8 billion) amid a rush of listings and a revival in trading activity. Statistics from the Hong Kong Stock Exchange show average daily turnover value was up 89.3% in January compared to the same period last year.
Government revenue in the financial year through March is set to reach HKD 688.8 billion (USD 88.2 billion), around 4.5% higher than expected, compared to expenditure of HKD 789.2 billion (USD 101 billion).
The theme of the budget is "driving high-quality, inclusive growth with innovation and finance," Chan said at the beginning of his speech to the legislative council.
The development and adoption of artificial intelligence technology is at the center of the latest plan. A HKD 3 billion artificial intelligence subsidy scheme funding the development of large language models, new materials and biotech is backing over 30 approved projects, Chan said.
Central to its tech-related initiatives, the government is looking to secure more funding for its ambitious Northern Metropolis program, an urban development project that aims to turn Hong Kong's mostly rural border with Shenzhen covering 30,000 hectares into a technology powerhouse. Hetao Hong Kong Park, officially the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone, has already attracted 60 companies to move into two completed buildings, according to Chan.
"We will establish a dedicated company this year and seek approval from [the legislative council] to inject HKD 10 billion (USD 1.3 billion) as initial capital to take forward the development," Chan said of the latest plan for the tech park. Separately, another HKD 10 billion will be injected into a dedicated company for San Tin Technopole, an extension of the tech park project, Chan said.
The project is a key factor behind the Hong Kong government's increased debt levels in recent years. Chan announced that the government debt ceiling will be raised from the current HKD 700 billion (USD 89.6 billion) to HKD 900 billion (USD 115.2 billion), and the proceeds from bond issuances will be exclusively earmarked for infrastructure development. Meanwhile, total capital expenditure will reach HKD 128 billion (USD 16.4 billion) in the 2026 to 2027 financial year.
The government is also proposing to use HKD 150 billion (USD 19.2 billion) in investment income from the exchange fund, the financial hub's de facto sovereign wealth fund, to support infrastructure projects, according to the budget. A government official told Nikkei Asia on condition of anonymity that the first such fund transfer in decades would be a one-off not used for other recurrent expenditure or salary payments for civil servants.
The government's debt-to-GDP ratio will rise from 14.4% to 19.9% as a result of more borrowings during a midrange forecast period, which Chan called "a highly prudent level" and "well below that of most advanced economies."
Despite an overall surplus in the budget, again, taking into account bond issuances, Chan said the government will exercise caution and control its expenditure. As part of this drive to reduce spending, the government will cut over 10,000 civil service jobs within the current term, which finishes at the end of June 2027, the secretary announced.
Economists and analysts had painted a more negative outlook for Hong Kong's government budget ahead of its release. Accounting firms predicted a fiscal deficit somewhere between HKD 200 million (USD 25.6 million) to HKD 11.2 billion (USD 1.4 billion), while UBS saw the possibility of a slight headline surplus of HKD 200 million.
Land premiums, once a major source of government income, dropped by 85% from HKD 89 billion (USD 11.4 billion) to just HKD 13 billion (USD 1.7 billion) over the past five budget years. The government estimates land premium income at HKD 17.5 billion (USD 2.2 billion) for the current fiscal year and HKD 18 billion (USD 2.3 billion) next year, reflecting a slow recovery of the city's residential market but still a far cry from the peak. Chan said the land sale program in the coming year will include nine residential sites, and given the current oversupply situation for commercial real estate, there will be no commercial sites for sale next year. 
Lately, student housing has <a href="https://asia.nikkei.com/business/markets/property/hong-kong-plots-student-housing-buildup-as-land-revenue-shrinks" target="_blank" rel="noopener">emerged</a> as a bright spot amid sluggish land sales, with three commercial sites to be potentially tendered by the government to be used exclusively for such accommodation, depending on market interest.
The budget also devotes a new section to initiatives aligning the city with Beijing's 15th five-year plan. Chief Executive John Lee had announced last month that Hong Kong will devise its own five-year plan, and he will lead a special task force to oversee the formulation.
Chan said the city will promote more international sports and other events. The Kai Tak Sports Park, which opened a year ago and has hosted concerts by the likes of Coldplay, has racked up stronger ticket sales and more gross income than any other such venue in Asia, he said.
This article first appeared on <a href="https://asia.nikkei.com/economy/hong-kong-stock-listing-boom-helps-city-escape-string-of-deficits">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.0722vps.aieehr01.top/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

Hong Kong stock listing boom helps city escape string of deficits

Hong Kong

… improve slightly quarter-on-quarter in Q1 2026. Adjusted operating margin is also expected to improve YoY during the same period.
The company reiterated its medium- to long-term targets of 40–45% gross margin and 15–20% adjusted operating margin.
At the same time, Bilibili said it plans to modestly increase investment in AI. Part of the incremental profit will be reinvested into AI applications tied to its core business, with the stated goal of improving high-quality content supply and monetization efficiency.
The central question for investors in the coming year is whether Bilibili can sustain advertising growth while preserving the community experience that drives engagement. Recent results suggest the platform's growth remains steady. The next test is how far operating leverage can expand, particularly if gaming revenue remains uneven and AI spending rises.
Note: RMB figures are converted to USD at a rate of RMB 1 = USD 0.14 for reference, unless otherwise stated. Company disclosures may apply different exchange rates.

Bilibili posts first full year of GAAP profit as ad business strengthens

Bilibili

Short Video

Gaming

Live Streaming

Video

Creative

Content

Creator Economy

… srcset="https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Vivo-MWC-2026-X300-Ultra-Photography-Kit.jpg 1920w, https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Vivo-MWC-2026-X300-Ultra-Photography-Kit-720x405.jpg 720w, https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Vivo-MWC-2026-X300-Ultra-Photography-Kit-1024x576.jpg 1024w, https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Vivo-MWC-2026-X300-Ultra-Photography-Kit-768x432.jpg 768w, https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Vivo-MWC-2026-X300-Ultra-Photography-Kit-1536x864.jpg 1536w, https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Vivo-MWC-2026-X300-Ultra-Photography-Kit-480x270.jpg 480w" sizes="(max-width: 480px) 100vw, 480px" /><figcaption id="caption-attachment-160381" class="wp-caption-text">Vivo’s X300 Ultra photography kit. Photo source: 36Kr.</figcaption></figure>
The smartphone is equipped with a 400-millimeter Zeiss telephoto extender and a SmallRig professional video accessory kit that includes a grip, cooling system, and fill light.
All camera lenses on the device, including the ultrawide, main, and telephoto cameras, can capture video at 4K resolution and 120 frames per second.
More importantly, the phone supports ten-bit color depth, wide dynamic range, and consistent log color profiles across all focal lengths.
This allows footage captured on the device to enter professional post-production pipelines.
<h3>Leju explores applications for Kuavo humanoid robot</h3>
China Mobile and Leju Robotics jointly showcased the latest commercial progress of the Kuavo humanoid robot, described as the world's first humanoid robot equipped with 5G-Advanced (5G-A) technology.
At the exhibition, the robot played rock-paper-scissors with visitors.
<figure id="attachment_160373" aria-describedby="caption-attachment-160373" style="width: 480px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="wp-image-160373" src="https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Leju-Robotics-MWC-2026-Kuavo.jpg" alt="Photo shows visitors playing rock-paper-scissors with the Kuavo humanoid robot, developed by Leju Robotics and integrated with China Mobile’s 5G-A technology." width="480" height="270" srcset="https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Leju-Robotics-MWC-2026-Kuavo.jpg 1280w, https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Leju-Robotics-MWC-2026-Kuavo-720x405.jpg 720w, https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Leju-Robotics-MWC-2026-Kuavo-1024x576.jpg 1024w, https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Leju-Robotics-MWC-2026-Kuavo-768x432.jpg 768w, https://console.0722vps.aieehr01.top/wp-content/uploads/2026/03/Leju-Robotics-MWC-2026-Kuavo-480x270.jpg 480w" sizes="(max-width: 480px) 100vw, 480px" /><figcaption id="caption-attachment-160373" class="wp-caption-text">MWC 2026 visitors play rock-paper-scissors with the Kuavo humanoid robot, developed by Leju Robotics and integrated with China Mobile’s 5G-A technology. Photo source: 36Kr.</figcaption></figure>
Using the high bandwidth and low latency of 5G-A networks, the robot can transmit high-definition video to cloud systems in real time for analysis and decision-making.
Chang Lin, CEO of Leju Robotics, said the high uplink bandwidth and low latency of 5G-A allow the robot's multimodal sensory data to be transmitted continuously to large cloud models. This enables more complex motion control and human-robot interaction.
At the same time, high reliability and massive connectivity could allow multiple robots to collaborate across locations. This would support remote human-robot control and the evolution from single-agent intelligence to collective intelligence.
KrASIA features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3708674537484675">article</a> was written by Qiu Xiaofen for 36Kr.

AI glasses, concept phones, and other technologies that stood out at MWC 2026

Lenovo

Transsion

Enterprise Services

Artificial Intelligence

Hardware

Telecommunications

Internet of Things

Robotics

Deep Tech

Smartphones

… company's long-term direction.
KrASIA features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3708425301749891">article</a> was written by Deng Yongyi, with contributions from Zhou Xinyu, for 36Kr.

Alibaba scrambles after sudden departure of Qwen tech lead

… reported, citing central bank data. On a year-on-year basis, reserves increased 10%, or SAR 155.8 billion (USD 41.6 billion).
Authorities said the growth reflects strengthened fiscal and monetary capacity, supporting the riyal's peg to the US dollar and bolstering resilience against global volatility while advancing Vision 2030 reforms.
<h3>Apparel Group to open 200 stores in Saudi Arabia</h3>
Retailer Apparel Group is accelerating its Saudi expansion with plans to open 200 new stores in 2026, <a href="https://www.arabnews.com/node/2634112/business-economy">Arab News</a> reported. It also intends to introduce 25 additional fashion, food and beverage, and lifestyle brands, while increasing digital investment.
Its <a href="/industry/e-commerce">e-commerce</a> platform 6th Street currently contributes about 10% of total sales, and it plans to launch a unified app integrating membership and e-commerce functions this year.
Since entering Saudi Arabia in 2007, the group has opened more than 800 stores in the kingdom, now its second largest Middle East market. It has established a regional headquarters and main distribution center in Riyadh and secured positions in several new shopping mall projects.
<h3>Saudi fiscal deficit widens in 2025</h3>
Saudi Arabia's fiscal deficit reached SAR 277 billion (USD 74.8 billion) in 2025, exceeding earlier projections of SAR 245 billion (USD 66.2 billion) and more than double 2024's SAR 116 billion (USD 31.3 billion) shortfall, according to <a href="https://www.agbi.com/economy/2026/02/saudi-arabia-records-largest-budget-deficit-since-covid/">AGBI</a>.
The fourth-quarter deficit totaled SAR 95 billion (USD 25.7 billion), up 7% quarter on quarter, and marked the largest quarterly shortfall in nearly five years. Officials attributed the widening gap primarily to lower oil prices.
The government expects the deficit to narrow to SAR 165 billion (USD 44.6 billion) in 2026 and SAR 120 billion (USD 32.4 billion) in 2027. The economy is forecast to grow 4.4% in 2025, driven largely by 5% growth in non-oil sectors.
<h3>Saudi approves merger of competitiveness and business centers</h3>
According to <a href="https://www.arabnews.com/node/2634357/business-economy">Arab News</a>, Saudi Arabia's cabinet has approved the merger of its National Competitiveness Center and the Saudi Business Center to form a consolidated Saudi Competitiveness and Business Center.
Commerce minister Majid Al-Kassabi said the restructuring will improve the kingdom’s rankings in global competitiveness indicators and streamline business setup and operations in line with international best practices.
The new entity will operate a unified business platform and 20 branches across 15 cities, providing more than 6,000 government services.
whereRelatedArticle
<h3>Qatar launches new digital services</h3>
According to <a href="https://thepeninsulaqatar.com/article/23/02/2026/moci-launches-36-new-electronic-services">The Peninsula</a>, Qatar's Ministry of Commerce and Industry has introduced 36 new online services on its official website, covering lottery permits, seasonal promotions, clearance sales, and brokerage licenses.
The upgrade allows businesses to apply, amend, renew, and cancel services entirely online. The initiative supports Qatar National Vision 2030 and the third national development strategy by improving the business environment and promoting private sector growth and economic diversification.
<h3>5C partners with QIA to expand US lending platform</h3>
Private credit firm 5C Investment Partners has formed a partnership with the Qatar Investment Authority (QIA) to expand its US direct lending operations, <a href="https://www.agbi.com/finance/2026/02/5c-investment-partners-enters-strategic-partnership-with-qatar-investment-authority/">AGBI</a> reported.
Founded by former Goldman Sachs executives, 5C manages approximately USD 3 billion in long-term capital and provides financing to mid- to large-sized companies in commercial services, software, healthcare, and financial services. QIA said the investment will help 5C develop new strategies and financing solutions.
<h3>Apex opens office in QFC</h3>
Bermuda-headquartered financial services provider Apex Group has opened a new office in the Qatar Financial Centre (QFC) as part of its Middle East expansion, <a href="https://www.gulf-times.com/article/721231/business/apex-group-opens-office-in-qfc-to-expand-middle-east-operations">Gulf Times</a> reported.
With more than USD 3.5 trillion in assets under administration, Apex’s move aligns with Qatar’s ambition to position itself as a regional financial hub under its 2030 national vision. The expansion follows its presence in Saudi Arabia, Abu Dhabi, Dubai, and Bahrain.
The CEO of QFC said Apex’s entry will deepen the local financial services ecosystem and enhance Qatar’s appeal to international fund managers and institutional investors.
<h3>QatarEnergy awards North Field West contract</h3>
QatarEnergy has awarded the engineering, procurement, and construction contract for its North Field West project, <a href="https://www.agbi.com/oil-and-gas/2026/02/qatarenergy-awards-contract-for-major-lng-production-expansion/">AGBI</a> reported.
The project, with annual production capacity of 16 million tons, is the final component in its LNG (liquefied natural gas) expansion program and will raise Qatar’s total LNG output to 142 million tons per year.
The contract was awarded to a consortium comprising Technip Energies, Consolidated Contractors Company, and Gulf Asia Contracting Company. QatarEnergy expects the first LNG production before the end of 2031.
This <a href="https://mp.weixin.qq.com/s/mpBA9gF_Qv4YIsZbBMXnRg">article</a> was adapted based on a feature originally written and published by Al Shasia. KrASIA is authorized to translate, adapt, and publish its contents.

Middle East weekly: Aito secures first UAE order, Qatar launches 36 digital services, Dubai tests autonomous taxis, and more

Saudi Arabia

Qatar

Middle East

… opportunity for China's leading contract chipmakers. SMIC, for example, has emerged as the world's third largest contract chipmaker, behind only TSMC and Samsung, while Hua Hong Semiconductor, once a much smaller player, has closed in on GlobalFoundries of the US and UMC of Taiwan in terms of market value.
Sources noted, however, that even if China's chipmakers drastically increase their output, they are unlikely to meet all local demand for advanced logic chips, let alone pose an immediate threat to global leaders such as TSMC and Samsung.
Chinese chip developers are also seizing new growth opportunities. Cambricon, whose revenue has grown explosively since late 2024, reported its first annual net profit last year, a significant milestone for the company. The company is a core supplier of inference chips to Alibaba Cloud and is jointly developing next-generation chips with Alibaba. It said last year that it mastered a range of core technologies for complex physical chip design at advanced nodes, including seven-nanometer processes, and had already deployed these capabilities across several of its products.
Beijing-based Hygon Information Technology's DCU has emerged as a leading domestic alternative to Nvidia's A100 chips, as it is compatible with mainstream AI software ecosystems. The company's AI chip revenue reached RMB 2.74 billion (USD 383.6 million) in the first three quarters of 2025, up 45% year-on-year.
In a December research note, Donghai Securities said that domestically developed CPUs accounted for more than 60% of procurement under China's Xinchuang (information technology application innovation) program, with Huawei and Hygon Information Technology leading the first tier of suppliers.
China is also working to strengthen its chip ecosystem for AI computing servers. Nikkei previously reported that Chinese authorities are drafting rules to <a title="" href="https://asia.nikkei.com/business/technology/artificial-intelligence/china-drafting-purchase-rules-for-nvidia-h200-chips" target="_blank" rel="noopener">regulate purchases of Nvidia's H200 AI chipsets</a>, even if the US approves their sale, as the government seeks to balance support for domestic champions with the presence of foreign market leaders.
Restrictions on access to critical chipmaking tools, such as the most advanced EUV and immersion lithography machines, remain a major hurdle for China, but here, too, the country is making progress. Beijing has ramped up efforts to build the country's <a title="" href="https://asia.nikkei.com/business/technology/tech-asia/the-final-chip-challenge-can-china-build-its-own-asml" target="_blank" rel="noopener">own lithography tools</a>, and Chinese chipmakers are increasingly looking to domestic equipment suppliers wherever possible. At the same time, the slowdown of Moore's law—the idea that the miniaturization of transistors will continue to drive progress—and the growing emphasis on advanced chip packaging are giving China additional opportunities to make progress, though the pace may not be as rapid as the government and businesses would like.
"Despite Chinese chipmakers' ambitions, it is hard to reach the sky in one step. It remains challenging for them to expand and ramp up production very quickly with so many equipment restrictions still in place," said an executive with a foreign maker of chip production equipment that supplies to SMIC.
Mark Li, a veteran semiconductor analyst at Bernstein Research, said that according to supply chain checks, China's leading chipmakers are in expansion mode, ramping up local production and pushing further into relatively advanced manufacturing nodes.
"After many years of learning and improvement, China's domestic semiconductor equipment sector has made meaningful progress, except in lithography, particularly cutting-edge extreme ultraviolet systems. Overall, China's chip equipment industry and logic chip production do have some room to grow and have some upside," he said.
"China's drive to build more chip capacity at home will not only benefit domestic players, the spillover effects are also likely to support foreign equipment vendors whose products comply with export control rules."
SMIC, Hua Hong, and Huawei did not respond to Nikkei Asia's requests for comments.
This article first appeared on <a href="https://asia.nikkei.com/business/technology/tech-asia/china-aims-for-5-fold-increase-in-advanced-chip-output-to-meet-ai-demand">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.0722vps.aieehr01.top/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

China aims for fivefold increase in advanced chip output to meet AI demand

Semiconductors

AI Infrastructure

… class="size-full wp-image-137365" src="https://console.0722vps.aieehr01.top/wp-content/uploads/2021/12/Vietnam-ecommerce-scene.-Illustration-by-KrASIA.png" alt="" width="2084" height="1032" srcset="https://console.0722vps.aieehr01.top/wp-content/uploads/2021/12/Vietnam-ecommerce-scene.-Illustration-by-KrASIA.png 2084w, https://console.0722vps.aieehr01.top/wp-content/uploads/2021/12/Vietnam-ecommerce-scene.-Illustration-by-KrASIA-300x149.png 300w, https://console.0722vps.aieehr01.top/wp-content/uploads/2021/12/Vietnam-ecommerce-scene.-Illustration-by-KrASIA-1024x507.png 1024w, https://console.0722vps.aieehr01.top/wp-content/uploads/2021/12/Vietnam-ecommerce-scene.-Illustration-by-KrASIA-768x380.png 768w, https://console.0722vps.aieehr01.top/wp-content/uploads/2021/12/Vietnam-ecommerce-scene.-Illustration-by-KrASIA-1536x761.png 1536w, https://console.0722vps.aieehr01.top/wp-content/uploads/2021/12/Vietnam-ecommerce-scene.-Illustration-by-KrASIA-2048x1014.png 2048w" sizes="(max-width: 2084px) 100vw, 2084px" /><figcaption id="caption-attachment-137365" class="wp-caption-text">Having held off competitive pressure from <a href="/company/lazada">Lazada</a>, Tiki, and other rivals in Vietnam, Shopee’s position as the Southeast Asian country’s market leader is facing renewed pressure. TikTok Shop now <a href="https://0722vps.aieehr01.top/tiktok-shop-narrows-the-gap-with-shopee-in-southeast-asias-e-commerce-market">commands about 41% market share</a>, according to 2025 data. Graphic by KrASIA.</figcaption></figure>
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<h3>Going broader and scaling faster with Monee</h3>
Monee is the segment where Sea's growth is most directly tied to risk management. The quarter showed the company scaling credit rapidly while reporting stable headline credit metrics.
Monee's fourth-quarter GAAP revenue rose 54.3% YoY to USD 1.13 billion, while adjusted EBITDA increased 24.7% YoY to USD 263.1 million.
Loan principal outstanding reached USD 9.2 billion as of December 31, 2025, up 80.4% YoY. This included USD 8.2 billion on-book and USD 1 billion off-book. The ratio of non-performing loans (NPLs) more than 90 days past due stood at 1.1%.
Details from the earnings call show how Sea is widening the top of the funnel rather than relying only on existing cohorts. Management said it moved beyond a whitelist model to an “all-can-apply” approach for SPayLater and cash loans, adding 5.8 million unique first-time borrowers in Q4.
Active credit users crossed 37 million, up more than 40% YoY, while average loan outstanding per user was about USD 240, up 27% YoY.
The pivot that matters most, however, is Monee's move beyond Shopee checkout. Sea said SPayLater loans outside Shopee grew more than 300% YoY and accounted for more than 15% of its total SPayLater portfolio by the end of 2025. The company cited Malaysia as a market where off-Shopee usage was approaching 30%.
In practical terms, Monee is trying to turn Shopee distribution into a broader consumer finance franchise. That expansion increases the addressable market but also tests underwriting outside a more controlled commerce environment. For that reason, the stability of NPL metrics will remain a key point to watch in 2026.
<h3>Garena holds strong despite softer user engagement</h3>
Garena’s results highlighted the durability of a mature live-service franchise, where profitability can remain strong even as engagement metrics fluctuate.
Bookings rose 23.8% YoY to USD 672.4 million in the fourth quarter. Segment GAAP revenue increased 35.1% YoY to USD 701 million, and adjusted EBITDA rose 25.6% YoY to USD 363.8 million.
User metrics presented a more mixed picture. Quarterly active users reached 633.3 million, up 2.5% from a year earlier but down from 670.8 million in the previous quarter. The paying user ratio was 9.2%, compared with 8.2% a year earlier. Average revenue per paying user declined sequentially to USD 11.6 from USD 12.8 in the third quarter.
Management framed the results as evidence of the durability of Free Fire in terms of live operations and content cadence. Forrest Li, founder and chairman of Sea, described the franchise's persistence during the earnings call:
<blockquote>“It is remarkable for a franchise of its vintage to still be growing so fast.”</blockquote>
<figure id="attachment_117519" aria-describedby="caption-attachment-117519" style="width: 480px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="wp-image-117519" src="https://console.0722vps.aieehr01.top/wp-content/uploads/2021/03/SE-OB-Photo-171020-Press-Trading-Post-750x500-1.jpg" alt="Photo of Forrest Li, the founder, chairman, and CEO of Sea Limited." width="480" height="320" srcset="https://console.0722vps.aieehr01.top/wp-content/uploads/2021/03/SE-OB-Photo-171020-Press-Trading-Post-750x500-1.jpg 750w, https://console.0722vps.aieehr01.top/wp-content/uploads/2021/03/SE-OB-Photo-171020-Press-Trading-Post-750x500-1-300x200.jpg 300w" sizes="(max-width: 480px) 100vw, 480px" /><figcaption id="caption-attachment-117519" class="wp-caption-text">Forrest Li, also known as Li Xiaodong, is the founder, chairman, and CEO of Sea Limited. Photo from KrASIA’s archive.</figcaption></figure>
The question for 2026 is whether that growth will remain supported by organic engagement or increasingly rely on higher-frequency collaborations and monetization events that could raise content costs or alter the payer mix over time.
Across its portfolio, Sea's strategy appears consistent. It is pushing growth while attempting to improve the underlying economics:
<ul>
<li aria-level="1">Shopee is scaling logistics, fulfillment, and loyalty to deepen engagement and support monetization.</li>
<li aria-level="1">Monee is broadening access and expanding off-platform use cases while pointing to stable non-performing loan metrics as evidence that credit risk is not deteriorating.</li>
<li aria-level="1">Garena is relying on franchise management and live operations to sustain bookings growth and profitability.</li>
</ul>
The quarter's numbers appear to support each narrative.
The market response, however, suggests investors are focused less on whether Sea can grow and more on whether it can continue doing so without rebuilding familiar vulnerabilities: subsidy dependence at Shopee, credit cycle sensitivity at Monee, and volatility in Garena's engagement and monetization.

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