Good News on Listing | Frost & Sullivan Congratulates Jiangsu Kangwei Century Biotechnology Co., Ltd. on Successful Listing on the Sci-tech Innovation Board

Jiangsu Kangwe Century Biotechnology Co., Ltd. (hereinafter referred to as 'Kangwe Century') successfully went public on October 25, 2022, issuing 2,329,027 shares at an issue price of 48.98 yuan per share.

• Based on the company's independent R & D of underlying molecular detection technologies, it has established a product line covering the core links of the molecular detection industry. Its products are mainly supplied to participants in the upstream and downstream of the molecular detection industry, empowering customers with R & D, production, and services related to molecular detection;

• Based on the technical advantages of its core molecular detection links, the company has expanded its business into the fields of screening and diagnosis of digestive tract diseases and respiratory infectious diseases. It has developed a number of innovative products and services, achieving an integrated layout of 'core enzyme raw materials + kits + testing services' for molecular detection.

• The company has a vast and complete product system, with over 700 products on the market. It also holds nearly 80 medical device registrations and filings both domestically and internationally.

• The company has established a complete intellectual property system and holds dozens of patents;

• The company has an experienced management team with a deep understanding of the molecular testing industry and market.

Frost & Sullivan has long been monitoring the global and Chinese biopharmaceutical industries, publishing a large number of research reports, which are widely cited in the prospectuses of leading science and technology innovation board listed companies, helping clients accelerate growth.

After the outbreak of the COVID-19 pandemic in 2020, the demand for virus sample preservation reagents rapidly increased, making it the main product type among pathogen preservation reagents.

The market for virus preservation reagents in China is relatively fragmented. In 2020, Canwin Century ranked third among domestic brands, accounting for 4% of the virus sample preservation reagent market.

At the same time, the demand for nucleic acid extraction due to COVID-19 nucleic acid testing has also increased significantly. In 2020, Kangwe Century ranked fourth among domestic brands, accounting for a market share of 3.9% in the domestic brand segment.

In recent years, with the aging population, increased health awareness, and advancements in emerging technologies, the market size of molecular testing has been steadily growing. The domestic molecular testing industry has also developed rapidly. In 2020, the market size of molecular testing in China reached 36.17 billion yuan; over the next five years, the improvement of China's hierarchical medical system, technological innovation, and support from relevant policies will continue to drive the development of the molecular testing industry. It is estimated that by 2025, the market size of molecular testing in China will reach 48.07 billion yuan.

The raw material enzyme industry for molecular detection is at the upstream of the molecular detection industry's industrial chain. The broad development prospects of the molecular detection reagent industry will feed back into the growth of the molecular detection enzyme raw material market. In 2020, in the face of huge demand for nucleic acid testing, there is an urgent need to meet rigid demands for molecular diagnostic reagents in the market. The domestic market scale of molecular detection raw material enzymes increased from 1.4 billion yuan in 2016 to 3.21 billion yuan in 2020, and it is estimated that by 2025, the domestic market scale of molecular detection raw material enzymes will reach 52.1 billion yuan.

In recent years, with the development of China's molecular testing industry, the popularization of early cancer screening and home testing, and breakthroughs in sample preservation technology, the market scale of nucleic acid sample preservation reagents in China has been steadily growing. The outbreak of the COVID-19 pandemic in 2020 accelerated the market demand for China's molecular testing industry, which in turn led to an increase in the nucleic acid sample preservation reagent market. From 2016 to 2020, the market scale of nucleic acid sample preservation reagents in China increased from 550 million yuan to 2.47 billion yuan, with a compound annual growth rate of 45.5% during this period. In the next five years, the molecular testing industry will continue to maintain a relatively fast development speed. By 2025, the market scale of nucleic acid sample preservation reagents in China is expected to reach 43.9 billion yuan, with an annual growth rate of 12.2% during the forecast period.

The main driving force for the growth of the domestic nucleic acid extraction market comes from the gradual promotion of early tumor screening. The COVID-19 pandemic that broke out in 2020 also caused a surge in the market size of nucleic acid extraction and purification products. From 2016 to 2020, the domestic market for nucleic acid extraction and purification reagents increased from 340 million yuan to 1.68 billion yuan, with a compound annual growth rate of 49.3% during this period. In addition, with the technological development of local Chinese enterprises, lower market prices and communication costs of local companies will drive an overall increase in market size. By 2025, the market size of nucleic acid extraction and purification kits in China is expected to reach 2.57 billion yuan, with an annual growth rate of 10.1% during the forecast period.

The company's molecular detection product development in the field of digestive tract disease screening and diagnosis mainly focuses on Helicobacter pylori and colorectal tumor screening. The market situation in the above areas is as follows:

Helicobacter pylori screening is currently the most commonly used method for gastric cancer screening. According to Frost & Sullivan statistics, in 2020, the penetration rate of Helicobacter pylori screening among those recommended for gastric cancer screening reached 11.3%, with a market potential of about 12 billion yuan. In the future, with the continuous improvement of public health management awareness, the penetration rate of Helicobacter pylori screening is expected to continue to rise, and the market scale for Helicobacter pylori screening will continue to grow.

The screening for colorectal cancer in China is still in its early stages of development. However, in recent years, due to increased government support, improved public awareness, and updates to the colorectal cancer screening guidelines that recommend regular screenings, the penetration rate among those who are advised to undergo cancer screening has significantly increased. It has risen from 14.1% in 2016 to 17.5% in 2020, and is expected to reach 26.4% by 2025. The market for colorectal cancer screening in China increased from 2.6 billion yuan in 2016 to 3.3 billion yuan in 2020, with a compound annual growth rate of 6.4%, and is expected to further increase to 7.6 billion yuan by 2025 at a compound annual growth rate of 19.9%.

The outbreak of the COVID-19 pandemic has heightened public attention to molecular testing for respiratory infectious pathogens, significantly boosting market potential. The 'National Influenza Prevention and Control Work Plan (2020 Edition)' states that strict pre-triage should be implemented, and multi-pathogen combined testing for respiratory infectious diseases should be promoted, supporting the simultaneous testing for various pathogens such as the novel coronavirus and influenza virus. The 'Diagnosis and Treatment Protocol for Novel Coronavirus Pneumonia Infection (Trial Seventh Edition)' also requires the differentiation of mild manifestations of novel coronavirus infection from upper respiratory infections caused by other viruses, mainly including influenza virus, adenovirus, respiratory syncytial virus, etc. This requires the use of rapid antigen testing and multiplex PCR nucleic acid testing methods to detect common respiratory pathogens.

Compared to immunological products targeting respiratory pathogens, molecular testing has superior sensitivity and specificity. Therefore, it has been widely implemented by governments around the world since the early stages of the COVID-19 pandemic as the gold standard for COVID-19 infection diagnosis. According to Frost & Sullivan statistics, the domestic market size of COVID-19 molecular testing reached 198 billion yuan in 2020. Among respiratory system disease molecular testing technologies, point-of-care testing (POCT) technology and multi-pathogen combined testing technology are the development trends. In the future, China may face long-term pressure from imported COVID-19 cases from abroad, making the differential diagnosis between influenza and COVID-19 increasingly important. The launch of combined testing products will further meet the testing needs under the pandemic context.