☕️ Good morning friends,

Luckin or Starbucks - we don't care who wins in the end - the Asiabits team loves the coffee from the small owner-operated cafés around our corner.

Still, it's extremely exciting to watch the battle of the coffee titans from the sidelines…

Also in this issue:

• Playboy sells China business: 50% for $122 million, stock +30%

• Kim Jong-un's daughter: Ju-ae (11) is officially being built up as successor

• Singapore pushes AI: "Champions of AI" takes companies from testing to implementation

📰 Enjoy reading!

P.S. Another German world markt leader has been sold to China. Michael analyzes the reasons here. What do you think? We're excited for your comments!

Zhipu AI surges 30 percent: Chinese AI stocks rally after multiple model updates. Zhipu jumped to HK$402 following the launch of its GLM-5 model with enhanced coding capabilities. MiniMax gained 11 percent and UCloud Tech rose 20 percent. DeepSeek and Ant Group also unveiled new models.

TOP BIT

☕ 30,000 Times Luckin: China's Coffee King Attacks Starbucks Premium

From accounting scandal to global challenger: This week, Luckin Coffee opened its 30,000th location in Shenzhen – a premium flagship that directly targets Starbucks' high-priced Reserve concepts.

The Strategic Shift

Until now, Luckin focused on budget coffee: Americano or latte for the equivalent of $1–2, ordered via app, picked up at a kiosk.

The new flagship breaks with this model:

• Pour-over and cold brew at higher prices

• Beans from Brazil, Ethiopia, and China's Yunnan Province

• Specialty drinks like "Tiramisu Latte" with pastry on top

• Wait times of 1–3 hours since the soft launch on January 20

Good to know: Luckin's Comeback Story

In 2020, Luckin had to delist from Nasdaq after an accounting scandal – much of its 2019 revenue was fabricated. The company kept its name and logo, continued operating, and rebuilt its business.

The stock moved to over-the-counter trading (OTC) and posted a rally of over 430%.

The success is based on three pillars:

1. App-first: Customers order and pay exclusively via the app – creating a loyal user pool

2. Collaborations: From premium spirit Moutai to Minions to gaming hit "Black Myth: Wukong"

3. Aggressive expansion: 10 stores in New York since last summer, 68 in Singapore, 45 in Malaysia

CEO Guo Jinyi has hinted at a US relisting – without a concrete date.

📊 All details & data: CNBC, Forbes, Nikkei Asia

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MARKET BIT

Playboy sells half of its China business for $122M

Playboy is selling 50% of its China business to United Trademark Group (UTG) for a total of $122M, handing over operational control across Mainland China, Hong Kong and Macau.

UTG to rehabilitate the lifestyle empire: At least $50M will go directly toward debt reduction. The stock jumped ~30% on the news.

The reset

• Deal structure: $45M cash, $67M in guaranteed minimum distributions over eight years, and $10M in brand support payments over three years.

• Goal: Playboy transitions from managing a complex licensing web to becoming a high-margin pure brand owner.

Why UTG is the right partner

Playboy has operated in China since the 1990s primarily as a licensed fashion and accessories brand. Too many agents, too many sub-licenses and a massive counterfeit problem diluted the brand.

UTG manages brands such as Jeep and Pierre Cardin and generates more than $1.5B in annual retail sales.

• The alliance aims to reposition the iconic bunny logo as a premium lifestyle brand in China and put an end to uncontrolled sub-licensing.

Market reality

Shifting operational control to local partners like UTG, Boyu or TFI reflects a market environment where local speed, regulatory sensitivity and distribution power outweigh global brand authority.

Starbucks, Burger King and McDonald’s followed similar paths when they ceded control of their China businesses:

• Starbucks: 60% sale to Boyu Capital (valued at $4B)

• Burger King: CPE takes 83% of the China JV ($350M)

• McDonald’s: Majority stake sold in 2017, China structured as a semi-autonomous unit, currently holding 48% directly.

The logic is consistent: Local investors bring speed, market understanding and political networks that global corporations often lack.

For Playboy, the driver is primarily loss of control through fragmentation, brand dilution and balance sheet pressure. The company is now betting on structural rehabilitation through its Chinese partner.

👉 Full story: Caixin Global, Yicai, Playboy, DealStreet Asia

HIGHLIGHTS 

🇰🇵 Kim Jong-un’s daughter emerges as possible successor: North Korea’s intelligence service has for the first time described 11-year-old Ju-ae as a potential, officially groomed successor. She is appearing more frequently at state events and is increasingly being positioned in a political role. A prominent appearance at the party congress in late February would further fuel succession speculation.

🇨🇳 China cuts EU dairy tariffs after 18-month review: After a year and a half of investigation, Beijing is significantly reducing additional tariffs on European dairy products, from as high as 42.7% to up to 11.7% for five years. The move affects more than $500 million in EU imports and is part of the broader tariff dispute linked to EU measures against Chinese electric vehicles. It marks the second time in recent months that China has eased retaliatory pressure.

🇯🇵 Japanese firms stay committed to China: 59% of Japanese companies operating in China plan to increase or maintain their investments in 2025, up from 56% a year earlier. Bilateral trade rose 4.5% to $322.2 billion. Despite tighter tech export controls, 35% of firms reported higher revenues and profits in the second half of 2024.

🇸🇬 Singapore launches AI push for businesses: Prime Minister Wong unveiled the “Champions of AI” program to help companies move from experimenting with AI to fully implementing it. Financial incentives are being strengthened: AI-related spending in 2027 and 2028 will qualify for up to a 400% tax deduction, capped at SGD 50,000 per year. The Productivity Solutions Grant will also be expanded to cover a wider range of AI solutions, particularly to support smaller firms.

BEHIND THE BITS

We're currently working on the most comprehensive report on humanoid robotics companies the world has ever seen.

👉🏻 Publication: In one to two weeks.

If you're interested, just click Yes! and we'll send you the info:

Have a great weekend!

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