As promised, here is the recording of our China trip insights. While financially focused, much of the content explores the cultural and human aspects of both the people and the businesses.
This is our lived experience of what feels like a futuristic country paving a well-constructed road into the future.
Hope you enjoy!
Beyond the recording, here are a few insights on our top three picks of the companies we visited.
For all of them, we met with middle and senior management for sit-down meetings and toured their facilities.
Their reactions were of pure astonishment; they were surprised by the level of international interest in their business methods.
As they were mostly accompanied by interpreters, the language barrier was also part of the experience.
Rather than a deep dive, we’ve focused on their business models and the lessons we can extract to make them more applicable and approachable for a Western audience.
So, in no particular order, here are our top three.
300926 | (#1) Jiangsu Bojun Industrial Technology
Jiangsu Bojun serves as a masterclass in how a traditional manufacturer can pivot to dominate the high-growth New Energy Vehicle (NEV) supply chain.
Based in Kunshan, the company has evolved from a precision mold specialist into a tier-one strategic partner for global and domestic giants like Geely, XPeng, and Seres.
Note: It is important to understand that these prices are remarkably low for modern vehicles. The average domestic price for these four popular models… the Geely EX5 (SUV), XPeng G6, Seres 5, and Geely EX2, is approximately €22,000 ($24,000) in China.
Outside of China, these figures are significantly distorted by international shipping, import duties, and local taxes.
And… there’s more. Chinese customers benefit from government consumption incentives.
While the full purchase tax exemption transitioned to a 50% reduction at the start of 2026, buyers can still save up to ¥15k (~€2k).
Additionally, aggressive “trade-in” and “scrappage” programs currently offer subsidies between 8% and 12% of the vehicle’s price.
These layers of support mean the final retail price for a local consumer is often 10–15% lower than the listed sticker price.
Going back to the business. Their success is rooted in a Full-Cycle Integration business model. In layman’s terms, they own the entire value chain.
From the initial design and production of high-precision molds to complex assembly, Bojun has eliminated the typical delays associated with third-party tooling.
This vertical integration allows them to act as a one-stop shop for automakers who are under immense pressure to shorten their product development cycles.
The company’s facilities are, similar to AEP, the definition of smart manufacturing (at scale). Walking through their plants in Changzhou, it is clear that they prioritize high-end automation over low-cost labor.
They’re also heavily linked with German CNC tech. For example, by integrating TRUMPF laser cutting and welding systems, Bojun ensures that its 3D structural components meet the extreme tolerances required for modern vehicle frames.
Just like OML, they also seem to be very proud to be expanding into hot forming and magnesium alloy die-casting. This is a calculated move to solve the “lightweighting” challenge in the EV industry, where reducing vehicle weight is the most effective way to extend battery range.
Financially, in 2025, Bojun reported a 37.4% revenue growth, reaching ¥5.81bn (divide by 10, and you get dollars).
Their massive investments in lights-out automation (running 24h with machines) and Phase II factory expansions are close to reaching a point of high-margin scalability.
Being designated as a national “Specialized and Sophisticated Little Giant” in China further cements their position, providing them with the regulatory and financial backing to continue their rapid land-grab for manufacturing capacity.
For a Western audience, we’d say the applicable lessons from Bojun are centered on strategic proactivity and technical agility.
Western firms usually wait for guaranteed contracts before breaking ground on new facilities. Bojun builds capacity for the expected demand, ensuring they are the only ones ready to ship when the market spikes.
In our opinion, this is both a product of lower red tape and much lower energy prices that provide a margin of safety (operationally speaking).
They also prove that owning the moat means owning the tooling. If you’re vertically integrated, you pretty much define/create/destroy bottlenecks.
301061 | (#2) MotoMotion China Corporation
MotoMotion China Corporation (also known as HHC Changzhou) stands as a premier architect of the Smart Home and Motion Furniture industry.
Their business model is fundamentally rooted in the combination of electronic control systems with mechanical engineering. They research, design, and produce smart electric sofas, beds, and chairs under their well-recognized MotoLiving and MotoSleep brands.
Their strategy centers on a direct-to-retail (global) supply chain, where they serve nearly a third of the top 100 US furniture retailers.
They currently have a massive footprint in both China and Vietnam, plus they’re pretty much avoiding all tariffs with the China Plus One manufacturing strategy that ensures supply chain stability even during geopolitical or regional disruptions.
The company’s facilities in Changzhou are kind of crazy and filled with precision electronics and robotics labs.
MotoMotion has vertically integrated its production to include specialized SMT (Surface Mount Technology) workshops for circuit board manufacturing and dedicated centers for structural mechanism development.
So they own the IP behind the ‘motion’ in their furniture, supported by a portfolio of over 500 (granted) patents.
They seem to be proud of having an R&D-heavy approach, consistently reinvesting nearly 7% of their total revenue back into product innovation to maintain the edge. This also means less people and more robots.
Financially, in 2025, the company achieved annual revenue of ¥3.38bn, marking a robust 32.6% year-on-year increase.
Throughtout the last few years they’ve had a pretty solid ROE of 20%, significantly outperforming the industry median for consumer discretionary goods.
This financial health is a direct result of their ability to scale high-margin smart products while maintaining a diversified global customer base that includes premium brands like the Italian furniture maker Natuzzi.
For Western observers, MotoMotion offers a compelling lesson in merging traditional crafts with modern electronics.
They’re proof that even low-tech industries like furniture can be revitalized through digitization and vertical integration of the supply chain.
They’re also a great example of China Plus One (Vietnam), plus they have a massive showroom and service center in High Point, North Carolina.
Our personal take… Made in China can feel more like a tech-enabled (lower cost) lifestyle experience if you play your cards right
301004 | (#3) Zhejiang Cayi Vacuum Container
Zhejiang Cayi Vacuum Container is a critical OEM/ODM partner for some of the world’s most recognizable outdoor and beverage brands.
Their business model is built on actively co-designing and manufacturing high-performance stainless steel containers, travel mugs, and vacuum flasks.
Their approach allows them to capture value through both high-volume manufacturing and specialized R&D services.
The company’s facilities in Jinhua and their rapidly scaling base in Vietnam showcase a sophisticated blend of automation and supply chain know-how.
Cayi has also pushed for ‘Informatization’, using advanced ERP systems to manage a production capacity that aims for 130m units annually.
Their factories are a combo of high-precision metal fabrication and automated coating lines, which allow them to maintain a consistent quality benchmark that is difficult to replicate at lower price points.
Cayi is also another manufacturer implementing China Plus One manufacturing via Vietnam.
Financially, in 2025 revenue reached ¥2.35 billion, but the company navigated a temporary dip in profitability due to shifting order schedules and inventory-clearing cycles among their major Western clients.
Despite these headwinds, the company maintains a strong balance sheet with a cpretty solid ROIC of 27%+.
For Western audiences, Cayi offers a masterclass in commodity logistics. They demonstrate that surviving in a competitive global market bboth a game of lower costs plus integration into (recognizable) customer’s brand ecosystem.
They are pretty hard to substitute.
We will note that there’s a bit of greenwashing regarding recent changes and the way they sold themselves, probably to appear like an ESG brand for Western audiences.
We were very interested in exploring EdTech in China, as it currently feels like a depressed chamber of secrets. It’s a sector that has been heavily restricted but remains full of untapped potential. In other words, it is a fertile hunting ground for us. That is why we will include:
605098 | (Bonus) Shanghai Action Education Technology
Shanghai Action Education targets the management needs of small and medium-sized enterprises (SMEs). Their business model is built on High-Impact Management Training and Consulting, focusing on practical, results-oriented education rather than theoretical academic study.
Note: Context here is important. China has undergone a massive structural shift, moving away from K-9 academic tutoring toward a high-stakes focus on vocational training and corporate professionalization.
Following the 2021 Double Reduction policy (effectively regulation that dismantled the $100+bn private tutoring industry for children), the government has pivoted to aggressively support non-academic, ‘practical’ education that serves the country's industrial goals.
Today in 2026, the sector is defined by a deep integration between industry and education. That’s the only way to thrive
The company offers ‘practical’ or ‘hands on’ management courses that cover everything from financial control to marketing strategy.
They operate on a high-margin, pre-payment model, where clients pay upfront for long-term training cycles.
This creates a massive pool of “contract liabilities”, effectively guaranteed future revenue/work, that allows the company to maintain a dominant cash position and reinvest aggressively into their content and platform.
Rather than sticking to a centralized headquarters model, Action Education is rapidly expanding its physical footprint by establishing branch campuses in key (industrial) hubs across China. In 2025 alone, they successfully launched ten new branches, with a long-term goal of reaching 100 campuses by 2030.
Beyond physical space, they are heavily investing in AI-driven education.
Their facilities now include R&D labs dedicated to ‘Practical Management + AI’, developing tools like ‘Erlang Shen’ for talent identification and ‘War God’ for marketing, effectively moving the company from a traditional training firm to a technology-enabled consulting platform.
We tried both, and they were pretty engaging.
Financially, in 2025, the company reported revenue of ¥811m, with a pretty healthy net profit of ¥320m, representing a sharp 19.12% year-on-year increase.
This efficiency allows them to maintain a high dividend profile (4-5%). For instance, in 2025, they returned over 93% of their net profit to shareholders through dividends.
For a Western audience, Action Education offers a unique look at the professionalization of the Chinese private sector. This is especially applicable to low-tech service businesses in Europe that often operate with low levels of efficiency.
There is currently very little competition for these types of services in the EU, at least compared to their Chinese counterparts.
We’re thinking specifically of the local apartment management or flat administrator style of business.
We particularly liked the subscription-like prepayment model in the service industry, which provides the financial stability needed to scale physical locations while simultaneously funding digital R&D.
Hope this sparks some new ideas,
- Alejandro Yela — CEO, Hermit Ventures Ltd.
