At Hebei Hai Fa Toy Co in Xiong'an New Area, Hebei province, a plush dog named Xiaowen does more than look cute. Talk to it, and it talks back.

"Xiaowen! Xiaowen!" its owner called.

"Yeah? What's up?" the dog replied sarcastically. "I'm so tired of endless work. Do you even have a job?"

After a playful pat, the dog quickly shifted tone: "I promise it won't happen again. Please forgive me!"

This is the "AI Apology Dog", created by 62-year-old entrepreneur Zhang Qingli, who has spent decades in the toy and garment industry in Rongcheng county, Hebei.

Zhang's journey began in the 1990s with clothing manufacturing. By 2011, he had moved into plush toys, building a production base in Rongcheng, long known as a hub for the industry. Like many local factories, his business relied heavily on contract manufacturing.

"For most of that time, we made toys for other brands, with thin profits and little say in design or pricing," Zhang said.

The establishment of Xiong'an New Area in 2017 marked a turning point. "We couldn't just keep making ordinary toys," he said."Xiong'an is about high-end and smart development."

The idea for change crystallized in 2022, when a friend asked Zhang to find a replica of a worn-out bunny toy his daughter had cherished for years. After a nationwide search, Zhang finally tracked down a replacement in Guangdong province.

"That toy was more than just fabric and stuffing," he said. "A child keeps a simple toy for over 10 years — that's real attachment. "That inspired him to give plush toys a "brain".

In 2023, Zhang assembled an artificial intelligence research and development team, integrating software and hardware capabilities to develop intelligent products. In 2024, the company launched its first fully self-developed smart toy line, AI Kids, featuring more than 60 functions spanning education, entertainment and companionship.

"We combine AI technology with plush toys, putting a self-developed core inside to make them smart," said Gao Mengyang, head of the company's R&D department. "With one-press chat, children can talk remotely with their parents anytime."

The first release struggled, with sales of only a few thousand units in the first month — less than one-tenth of the company's daily sales of traditional toys.

Zhang persisted. Early designs lacked a manual switch in pursuit of seamless interaction, but user feedback revealed issues such as false triggers. "We also realized the market needs time to mature," he said.

Continuous upgrades followed. Version 2.0 introduced multitouch interaction. When lifted high, for example, the toy responds in a soft voice, "Too high, I'm scared!" — enhancing emotional engagement.

A breakthrough came early last year, when a similar product gained popularity overseas, boosting interest in AI toys domestically. "Our AI Kids series gradually won recognition, and sales began to rise steadily," Zhang said.

Among the most popular products is the AI Apology Dog. Soft and huggable, it integrates a large AI model capable of chatting, telling jokes, offering early-years education, detecting emotions and even responding physically to touch.

"It helps users release stress," Zhang said. "Children see it as a friend and teacher, while parents use it as a companion and assistant."

Of its 66 functions, the most-used include voice interaction, near field communication card learning, remote messaging between parent and child, music and storytelling, and emotional support with habit reminders.

The NFC system — a patented feature — allows children to trigger learning content simply by holding a card near the toy.

"It solves the problem of poor voice recognition for young children. It's simple and accurate," Zhang said.

Zhang's company exports to Europe, Japan, South Korea, Southeast Asia, the Middle East and North America. Its international versions support more than 100 languages and meet local standards.

Last year, the company sold millions of traditional toys and over 100,000 AI-powered models, with one-third shipped overseas.

"We want to make Xiong'an smart plush toys a global name," Zhang said.

Now working with AI and chip specialists drawn to Xiong'an, Zhang is looking ahead.

His next projects include a smart pillow that can store a loved one's voice, and AI pets designed for elderly care, capable of monitoring health, offering companionship and connecting families.

"Toys are no longer just toys," Zhang said. "They are companionship, education, stress relief and warmth."

Zhao Rixi contributed to this story.

zhangyu1@chinadaily.com.cn