On July 8, at the production workshop of Shaanxi Hanxin Electronic Technology Co., Ltd., located in the Wuli Industrial Cluster Zone in Hanyin District, Ankang City, workers were busy manufacturing plush toys. Through processes such as cutting, stuffing, sewing, and inspection, a series of adorable smart plush pet toys are “born” on the production line.

One of the company’s best-selling products is “Hug Cat.” Unlike traditional plush toys, “Hug Cat” features a built-in intelligent core, allowing it to mimic real cat behaviors and deliver emotional value to consumers.

“When you stroke its chin or back, ‘Hug Cat’ responds by blinking or wagging its tail. It can even imitate speech and interact with users,” said Luo Fengjie, production manager at Hanxin. “This year, we’ve made several innovations in both design and technology and have launched the second-generation ‘AI Hug Cat,’ which will soon go into mass production.”

Hanxin Electronic Technology has been a leading enterprise in the field of electronic intelligent toys and mechanical modules for many years. Its “FunNest” brand of intelligent plush toys is popular both domestically and internationally. Following the industry trend of integrating artificial intelligence with toys, the new-generation AI Hug Cat incorporates AI technologies to provide more personalized interactive experiences and diverse companionship.

“The AI Hug Cat is equipped with an advanced conversation system that enables smooth, natural communication with users. It features rich dialogue content and emotion analysis, allowing it to respond to user emotions with appropriate gestures and feedback,” Luo added. Today, many AI toys integrate voice recognition, natural language processing, and machine learning, evolving from simple interactive toys to products focused on emotional companionship, real-time feedback, and personalized learning.

As AI and hardware continue to merge, AI toys have become a key application scenario for large-scale models. At the Ankang Investment Promotion and Returning Talent Economy Conference held in January, the city unveiled its first AI plush toy “Ai Ankang,” injecting new vitality into the transformation and upgrading of the plush toy industry.

The “Ai Ankang” plush toy was jointly developed by Ankang Aidobao Animation & Cultural Industry Co., Ltd. and a research team from Xi’an Jiaotong University. Based on cutting-edge achievements in large language models, the toy supports intelligent interaction, long-term memory, and emotional recognition, allowing it to deeply understand user needs and provide personalized companionship. At this year’s Canton Fair, the company secured customized orders from Japan and the Netherlands for its AI plush toys.

“As more toy companies adopt AI technology, product innovation will accelerate, and market potential will continue to grow,” said Zhao Yunyun, AI plush toy product manager at Edobo Animation Culture Industry Co.. The company will continue to accelerate innovation, expand into sub-sectors such as early education, scientific growth, and elderly health monitoring, and increase product value.

Innovation is giving the traditional plush toy industry a smart new core. Ankang City is accelerating the construction of technology innovation platforms and focusing on building key industrial chains, pushing the plush toy industry toward high-end, intelligent, and clustered development. As of June this year, Ankang was home to 806 operational plush toy (and sock-knitting) enterprises, employing over 22,000 people.

“Technological innovation is a key lever for upgrading the industry and driving high-quality development of the plush toy sector,” said Wang Kun, Deputy Director of the Ankang Municipal Human Resources and Social Security Bureau. The city has appointed tech innovation teams for the plush toy industry, partnered with universities for R&D, and co-hosted “AI Innovation Management” training sessions with the China Toy and Juvenile Products Association to foster innovation in product categories, design, and technology, creating richer consumption scenarios.

Technology is also transforming the production end. At Super Vitality (Ankang) Supply Chain Co., Ltd., a self-developed semi-automated digital production line has significantly improved both productivity and product quality.

“In the past, worker efficiency varied. The new production line allows us to precisely control the process, reduce human error, and improve overall efficiency by 10%,” said Xiong Xinlin, business manager at Super Vitality.

Just next door, Ankang Wow Factory Intelligent Supply Chain Management Co.. has also benefited from its tech upgrades.

“We specialize in customized plush toys and develop a large number of new models every month. With our in-house production management system, we can track everything from raw material procurement to final delivery, monitor equipment status, and instantly identify any issues in the production process,” said Lü Bujun, the company's production general manager. Their product lines now include plush designer toys and IP derivatives in entertainment, anime, gaming, ACG, and cultural sectors.

Looking ahead, Ankang plans to further enhance its tech capabilities. In partnership with Xi’an Polytechnic University, the city will establish the Ankang Textile & Plush (Hanfu) Industry Innovation Institute to continue developing new technologies, products, and markets—accelerating the shift from "manufacturing" to "smart manufacturing."

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