EqualOcean Weekly Hotspots Series (6/8-6/13)

Event Highlights & Commentary

1. Insta360 Debuts on the STAR Market with a 285% Surge, Market Value Exceeds CNY 70 Bn 

【Event】On June 11, Insta360 (stock code: 688775.SH), a leading Chinese intelligent imaging company, officially listed on the Shanghai Stock Exchange's STAR Market. According to the prospectus, the offering price was CNY 47.27 per share, corresponding to a post-IPO market value of approximately CNY 18.96 billion. On its first day of trading, the opening price was CNY 182 per share, representing a 285% increase from the offering price, with the total market value surpassing CNY 70 bn.

The company’s prospectus states that the total funds raised in this offering amount to CNY 1.938 billion, which will mainly be used for the construction of the “Intelligent Imaging Equipment Production Base” and the “Insta Innovation Shenzhen R&D Center.” Upon completion, these projects will enhance the company’s operational stability, improve its ability to respond quickly to market demands, strengthen risk resilience, and promote the healthy development of its core business. Additionally, the company will effectively integrate existing resources, introduce advanced equipment and talent, and enhance the depth and scope of its core technologies.

Founded in 2015, Insta360 is a Chinese intelligent imaging company, with its primary business focused on consumer-grade and professional-grade intelligent imaging devices, accessories, and other related products under its own brand. The company’s consumer-grade products have expanded beyond extreme sports, gaining traction in Vlogging, live streaming, and everyday image creation.

Financial data shows that from 2022 to 2024, Insta360’s revenue was CNY 2.04 billion, CNY 3.64 billion, and CNY 5.57 billion, respectively, with a compound annual growth rate (CAGR) of 65.25%. During the same period, the net profit attributable to shareholders, excluding non-recurring gains and losses, grew from CNY 381 million to CNY 946 million, demonstrating strong profitability.

Moreover, Insta360 is actively expanding its global presence, with overseas revenue accounting for 70% of its total income. From 2022 to the first half of 2024, the company’s overseas sales revenue reached CNY 1.60 billion, CNY 2.90 billion, and CNY 1.84 billion, representing 79.43%, 80.83%, and 76.35% of total revenue, respectively. Europe and the United States are key markets, accounting for 24.3% and 22.92% of total revenue in 2024.

Source: Insta360 Prospectus

In terms of channel expansion, the company has proactively broadened its overseas sales network, with its products now available in over 200 countries and regions, covering more than 10,000 retail stores and over 90 airports worldwide. It has established partnerships with renowned channels such as Apple Store and BestBuy.

【Comment】Insta360 focuses on the panoramic sports camera field. There are no fully comparable companies listed on the A-shares market, so it holds a certain valuation advantage. The opening price increase meets expectations. Additionally, Insta360 raised CNY 1.94 billion in this round, which will mainly be invested in the research and development of cutting-edge technologies, further strengthening its technological moat.

2. BYD: Global Expansion and Premiumization Are Key Strategies

【Event】On June 6, the 2024 Annual Shareholders’ Meeting of Chinese electric vehicle manufacturer BYD was held. BYD’s Chairman and CEO, Wang Chuanfu, addressed shareholder concerns regarding the company’s overseas market expansion, electrification, and intelligent technologies, emphasizing that both international expansion and premiumization are critical strategies for BYD.

Currently, the company is seeing a monthly increase in overseas sales. In May, BYD sold over 89,000 electric vehicles overseas, a year-on-year increase of 137.46% and a month-on-month increase of 12.60%. The share of overseas electric vehicles sales in the company’s total sales reached 23.28%, setting a new record. This is up from 11.30% in May 2024, representing a significant shift in the sales structure over the past year.

Looking ahead, BYD will continue to focus on both business internationalization and brand premiumization. BYD’s products are now available in 112 countries and regions globally, with production bases and sales networks established across six continents. The company’s overseas strategy focuses on three key regions: Brazil, ASEAN, and the European Union. Among these, Brazil is the main driver of BYD’s overseas sales growth. In 2024, the company registered 76,700 vehicles in Brazil, a standout figure in the overall 417,200 units sold abroad. The upcoming Brazil factory will further strengthen the company’s growth in the region. Southeast Asia presents new potential for BYD, with the region’s growing economy and rising awareness of new energy vehicles expected to drive continued sales growth in the future.

In the European market, premiumization is BYD’s primary focus. In April of this year, BYD's premium brand, Denza, held a brand launch event in Milan, Italy, marking a significant step towards achieving its premiumization goals. Wang Chuanfu also mentioned at the shareholders' meeting that premiumization is a key challenge that must be won, and in some overseas markets, premiumization is progressing faster than in China. Currently, BYD has launched three premium brands: Yangwang, Denza, and Formula Leopard.

Founded on November 18, 1994, and headquartered in Shenzhen, Guangdong, BYD is a Fortune Global 500 company. It went public in 2002 on the Hong Kong Stock Exchange and in 2011 on the Shenzhen Stock Exchange. The company operates across four major industries: electronics, automotives, renewable energy, and rail transit, with a commitment to using technological innovation to meet people’s aspirations for a better life.

【Comment】BYD is rooted in technological research and development (with a global patent ranking among the top), and through vertical integration across the entire industry chain and an ecological overseas expansion model, it has not only rewritten the overseas market monopoly in Europe and Japan but also driven China’s transition from an "automobile giant" to an "automobile powerhouse". Its global strategy shows that the competitiveness of Chinese manufacturing has shifted from cost advantages to the export of technological standards, providing a "Chinese solution" for the global green transition.

3. CHERY to Become China’s First Automaker to Export Over 5 Mn Vehicles

【Event】On June 12, the 2025 International Automative and Supply Chain Expo (Hong Kong) opened, themed "New Journey New Car", attracting nearly 40 companies. At the press conference, Yin Tongyue, Chairman of CHERY Holding, announced that around June 20, CHERY would become the first Chinese automaker to export over 5 million vehicles.

As a leader in China’s automobile exports, CHERY has excelled in overseas markets. Its journey of going global began in 2001, transitioning from product exports to factory establishment exports, and now entering the "technology innovation, smart manufacturing export" stage. CHERY has maintained its position as China’s top exporter of self-owned brand vehicles for 22 consecutive years. As of May this year, CHERY had exported 443,940 vehicles, covering 110 countries and serving over 16.7 million global customers, with more than 4.94 million users overseas.

However, CHERY’s export advantages are being rapidly challenged by new energy vehicle makers like BYD, and the company’s transition to new energy vehicles has faced difficulties. According to the company’s sales report, in April 2025, CHERY exported 88,000 vehicles, a year-on-year decline of 1.83%. From January to April 2025, CHERY’s total vehicle exports reached 343,000, maintaining its position as the top Chinese automaker exporter, but showing a minimal year-on-year increase of just 0.1%, nearly stagnant compared to last year’s 34.2% growth. In January 2025, BYD's export volume surpassed CHERY for the first time, topping China’s auto export rankings. In February, BYD once again overtook CHERY to become the export champion. Currently, although CHERY is making significant efforts to transform into new energy vehicles, with models like the TIGGO and ARRIZO, the majority of its revenue still comes from internal combustion vehicles. From 2022 to 2024, the share of revenue from new energy vehicles was 13.2%, 4.9%, and 16%, respectively.

To accelerate research and development of new energy vehicles and deepen its expansion in overseas markets, CHERY filed for an IPO with the Hong Kong Stock Exchange at the end of February this year, seeking to raise approximately USD 1.5 billion in its May 6 listing.

【Comment】This IPO reflects CHERY’s aim to maintain its leadership in exports while avoiding being overtaken, as well as to address its gaps in new energy vehicle development. However, challenges in the capital markets are significant, with investors becoming increasingly cautious about the transformation narratives of traditional automakers. CHERY’s future in the capital markets remains uncertain, with key attention on whether its global user base can boost sales of new energy vehicles, and whether its significant R&D investments will result in technological breakthroughs and globally influential products.

4. Roborock Announces Planned Hong Kong Listing; Overseas Sales Surpass Domestic Market

【Event】Roborock, a Chinese smart appliance R&D and manufacturing company, announced its intention to list on the Main Board of the Stock Exchange of Hong Kong. The funds raised will be mainly used for international business expansion, product R&D and diversification, leveraging advantages of the global capital market to optimize capital structure, shareholder base, and financing channels.

Founded in Beijing in 2014, Roborock specializes in the development and production of intelligent cleaning robots and other smart appliances. Its first product launched in 2016, and the company went public on the STAR (Sci-Tech innovAtion boaRd) Market of the Shanghai Stock Exchange in February 2020. Roborock’s products are now available in over 230 countries and regions, with North America as its core overseas market. By the end of 2024, Roborock had achieved a 57% market share in North America.

In 2025, despite strong revenue growth this year, Roborock has seen a decline in net profit. The Q1 financial report shows that the company posted revenue of CNY 3.428 billion, up 86.22% year-on-year; net profit attributable to shareholders was CNY 267 million, down 32.92%; and adjusted net profit was CNY 242 million, down 29.28%.

(Source: Roborock 2025 Q1 Financial Report)

According to a research report from Tianfeng Securities, the decline in gross margin of core products was mainly due to intensified market competition and Roborock’s expansion of product price ranges to meet diverse consumer needs. The larger year-on-year drop in overseas gross margin was mainly attributed to increased tariff costs.

【Comment】Roborock's decision to list in Hong Kong is a strategic move to mitigate risks from high U.S. tariffs and strengthen its global strategy. North America remains the company’s key market, but substantial changes in China–U.S. tariffs have increased costs in overseas markets. Therefore, Roborock urgently needs to build an overseas supply chain to avoid high U.S. tariffs on Chinese goods. Establishing this overseas supply chain requires significant U.S. dollar funding. Listing in Hong Kong will help Roborock directly access USD/HKD financing, reduce currency conversion steps, lower debt repayment costs amid the depreciation of CNY, and support overseas acquisitions and supply chain expansion.

Additionally, a Hong Kong listing will help Roborock attract more international investors, enhance global brand influence, improve overseas capital turnover efficiency, and strengthen risk resilience. 

5. Trip.com Opens Over 1,100 Overseas Positions in 75 Cities Across 23 Countries

【Event】Recently, Trip.com has opened over 1,100 overseas positions in 75 cities across 23 countries, including London and Tokyo, covering business lines such as hotels and resorts. At the same time, the company has launched a CNY 1 billion tourism innovation fund and established strategic partnerships with hotel groups in Thailand, Malaysia, and other countries.

Trip.com's overseas expansion has been accelerating since 2020, when the company clarified its strategic direction of deepening in China and expanding globally. Initially, its outbound strategy focused on Chinese tourists traveling abroad, during which the company gradually strengthened its global network, establishing stable partnerships with key suppliers in the tourism industry, including hotels, airlines, and scenic spots. This allowed Trip.com to accumulate valuable overseas resources in international destinations, particularly in the Asia-Pacific region. In late 2020, Trip.com launched a locally tailored voucher model in Singapore, resulting in a 434% year-on-year increase in local travel bookings and a tenfold growth in new Singaporean users, validating Trip.com's "China experience + localized operations" overseas strategy.

Following the successful expansion of the voucher model, Trip.com replicated its successful domestic "live-streaming e-commerce" business model overseas. In 2023, it launched its first live-streaming tourism event targeting Chinese tourists in Thailand. In 2024, Trip.com established an Asian live-streaming center in Thailand, aiming to provide marketing solutions for partners and offer high-quality Thai travel products to consumers. Additionally, Trip.com is actively developing inbound tourism, launching initiatives like the "Free Half-Day Shanghai Tour" and "Free Half-Day Beijing Tour."

Trip.com’s global expansion has led to significant revenue growth. In Q1 2025, Trip.com's international platform, Trip.com, saw a year-on-year booking increase of over 60%, with inbound tourism bookings more than doubling, and outbound hotel and flight bookings surpassing 120% of pre-pandemic 2019 levels. CEO Sun Jie stated that the company aims to double the share of overseas revenue in the next 3 to 5 years. Industry experts point out that emerging platforms will find it difficult to challenge Trip.com's supply chain and service advantages in the short term, leading to a competitive landscape where "deep local focus" and "global expansion" are distinctly different strategies.

Trip.com Group Limited, a one-stop travel platform from China, provides travel products, services, and differentiated travel content. Established in 1999, Trip.com went public on NASDAQ in 2003 and listed on the Hong Kong Stock Exchange in 2021.

【Coment】A series of recent actions by Trip.com demonstrate its strong determination to expand overseas. This time, it has opened over 1,100 overseas positions, which will significantly drive business expansion. Strategic cooperation with hotel groups will consolidate supply chain advantages, while the CNY 1 billion innovation fund provides ample ammunition for business innovation. Previously, Trip.com achieved great success through its "Chinese experience + localized operations," but with intense competition in the overseas market, Trip.com needs to continuously optimize the user experience, gain accurate insights into local needs, and leverage its technological advantages to deepen services. Only then can it continue to lead the global tourism market and achieve the goal of doubling its overseas revenue share.