Functions for a system like this very depending on want. generally though you want a range finder to select get the distance of a object and a interface to then input the desired point of Airburst so a round knows to punch through a window and explode in a room rather then on the window or to explode over the enemy position and not on the wall behind them. you also want some Enhanced vision and magnified aiming. if your trying to compare based on the size of the optics and systems remember that the XM29 was a product of the late 90's early 2000's. If you consider the overall scale of the sight for this not just the optic but the base on which it sits which I believe to be part of the FCS and compare to the sighting system on the XM29 The Chinese unit is actually a little bigger. the system on the Neopup is rather basic and seems to lack airburst well the K11's sighting system is includes Day night, Thermal modes.
I suspect the PLA may skimp on the thermal and possibly use a more simplified night vision mode but the system has the size for a range finder and simple ballistic computer functions.
I have however never seen a picture I am satisfied with in regards to the the controls.
Instead of a complicated GUI based interface to adjust parameters such as aim point, I suspect they developed a user interface that does NOT require GUI, and hence can cut out a lot of electronics.
My guess is that the gun will detect the type of grenade as it is cambered. To establish the range, aim somewhere else (behind, ahead, on the side, etc) to establish the range, such as the expected range plus one meter, and half pull the trigger -- and that will programed the round in camber. Then aim at the actual target and fully pull the trigger to launch the grenade.
Note also you can use existing optical and night sight for this kind of interface, hence further reduce cost.