2025 Annual Review — Frost & Sullivan, Leading the Way for Companies Seeking to Go Public in Hong Kong

[Biopharmaceuticals]

Against the backdrop of continuously upgrading global health demands and accelerating technological progress, the biopharmaceutical industry is entering a new phase of high-quality development with significant opportunities. Focusing on cutting-edge areas such as cell and gene-related therapies, nucleic acid drugs, and digital R&D, the industry is deepening technological integration and industrial collaboration to accelerate the transformation of innovative achievements into clinical applications and commercialization. The policy environment also provides a solid guarantee for the development of the industry. Under policy guidance that encourages innovative drug research and development and optimizes the review and approval mechanism, biopharmaceutical companies are continuously consolidating their foundations in aspects such as R&D system construction. At the same time, local biopharmaceutical companies are actively integrating into the global innovation system, committed to bringing breakthrough therapies originating from China to the international market and contributing innovative forces to addressing global health challenges.

As the industry continues to mature, the market has put forward clearer and more specific requirements for companies that exit through capitalization.As an industry advisor, Frost & Sullivan has been deeply involved and collaborating with biopharmaceutical companies throughout their entire development lifecycle. In 2025, it served companies includingWeicheng Pharmaceutical (2561.HK),Yingen Biology(9606.HK), Jiangsu Hengrui Medicine (1276.HK), Yaojie Ankang (2617.HK), TED Medicine (3880.HK), Bokang Sivyun (2592.HK), Dongguangyang Medicine (6887.HK), Zhonghui Yuantong (2627.HK), Yinnuo Medicine (2591.HK), Jingfang Medicine (2595.HK), Changfeng Pharmaceutical (2652.HK), Baoji Pharmaceutical (2659.HK), InnoSmart (3696.HK)A series of life science companies have gone public in Hong Kong.

Against the backdrop of continuously growing global health needs and rapid advancements in science and technology, the biopharmaceutical industry is continuously driving innovation in treatment models and technical pathways, strengthening cross-field collaboration and international cooperation, and accelerating the implementation from basic research to clinical translation. The emergence of new therapies and products not only improves the treatment outcomes for major diseases but also plays an important role in promoting the accessibility of innovative drugs and global health equity.

[Digital Healthcare and Medical Services]

In 2025, driven by both policy resonance and technological implementation, China's digital healthcare and medical services industry has entered the deep waters of 'full industrial chain digitalization.' Under the coordinated guidance of the National Data Administration's 'Data Elements' initiative and the 'Implementation Plan for the Digital Transformation of the Pharmaceutical Industry (2025-2030)' by seven departments including the Ministry of Industry and Information Technology, the industry's development mainline has expanded from the early 'Internet + healthcare' traffic model to an industrial upgrade centered on new quality productivity. Digital technology is no longer just a tool for optimizing service experiences; it has become the core engine for reshaping pharmaceutical R&D, intelligent manufacturing, and supply chain resilience.

In this new stage of high-quality development, market entities have responded to the call of the 'Plan' and accelerated the strategic layout of Pharma 4.0. Enterprises are not only empowering clinical decision-making and new drug research and development through generative AI and large models, but also committed to building an integrated digital and intelligent ecosystem of 'research and development - production - marketing' to achieve cost reduction and efficiency improvement throughout the entire process. At the same time, industry governance is shifting its focus from ensuring data security and privacy protection to the valuation and standardized circulation of data assets, aiming to unleash the multiplicative effect of medical industry data and clinical data under a compliant framework.

Frost & Sullivan assisted digital healthcare and medical service companies listed in Hong Kong in 2025, including BrainGate (6681.HK), Mindray (2629.HK), Biorx Group (2609.HK), iFlytek (9678.HK), Volcano Dental (2651.HK), Vellecare (9887.HK), Health160 (2656.HK), BenQ Hospital (2581.HK), Huafeng Biotech (2396.HK), Hengsai Aite (3378.HK), and others.

Looking ahead, at this critical period of digital-real integration, China's digital healthcare industry will abandon mere scale expansion and turn towards in-depth technological innovation and industrial chain modernization. By implementing a long-term mechanism for digital and intelligent transformation, the industry will join hands with all parties to overcome key core technologies and jointly promote the historic leap of the healthcare industry from 'digital transformation' to 'intelligent upgrading'.

[Chemistry and Materials]

The chemical and materials industry is the cornerstone and forerunner of a new round of scientific and technological revolution and industrial transformation. It plays an irreplaceable core role in promoting high-quality development and industrial upgrading of the Chinese economy, and is a key area for cultivating new productive forces and constructing a modern industrial system. The development level of the chemical and materials industry is directly related to the advancement of China's industrial foundation and the modernization process of its industrial chain. It has significant strategic importance for achieving high-level scientific and technological self-reliance and self-improvement, building a manufacturing powerhouse and a quality powerhouse.

Facing the '15th Five-Year Plan', the core mission of the chemical and materials industries is to shift from 'following and catching up' to 'leading and driving'. By focusing on developing advanced chemical materials such as high-end polyolefins and special engineering plastics, and striving to overcome 'bottleneck' sectors such as high-end chip manufacturing materials and aerospace engine superalloys, the industry ensures the security of core material supply for strategic emerging industries such as new-generation information technology, new energy, and aerospace. At the same time, along the supply chain upwards, a number of leading domestic enterprises are consolidating their core advantages on the supply chain side through globalization development and green, efficient manufacturing transformation in terms of resource support such as rare metals and basic materials production capacity. In the era of artificial intelligence, the deep integration of the chemical and materials industries with AI is also accelerating the transformation of R&D paradigms (for exampleAI for MaterialsAI for Science), industry innovation will continue to accelerate.

In 2025, Frost & Sullivan, as an industry advisor, will assist with its rich industry experience and professional servicesShell Materials Technology (2560.HK)Biyu Group (9893.HK), Chifeng Gold (6693.HK), Nanshan Aluminum International (2610.HK), Jiaxin International (3858.HK), Zijin Gold International (2259.HK), Zhongwei Shares (2579.HK), Jinyan Gaoling New Materials (2693.HK)Successfully listed on the Hong Kong stock market.

Automobiles and Transportation Equipment

In 2025, China's automotive market continues to move towards high-quality development driven by electrification, intelligence, and globalization, with active capital market activity. Chery Automobile, SAIC Motor, and Xpeng Motors have successfully gone public, while AVIC, Yuxing Technology, Yikong Intelligent Driving, CheLian Tianxia, Shanghai Electric Co., Ltd., and Dingtai High-tech have also submitted prospectuses for listing on the Hong Kong stock market.

The market demand for new energy vehicles is growing, and the transformation towards electrification has achieved remarkable results. In 2025, the annual production and sales of automobiles are expected to exceed 30 million units, with a year-on-year growth rate maintained at 3% - 5%. Among them, the production and sales of new energy vehicles are expected to exceed 15 million units, with the penetration rate breaking through 50% for the first time, officially entering an era dominated by electrification. The growth drivers come from the continuation of "dual carbon" policies (purchase tax exemptions, subsidies for charging infrastructure), the reduction in battery costs (the introduction of semi-solid-state batteries), and the deepening of consumers' concept of green travel. Traditional fuel vehicles are accelerating their transformation towards hybrid/electric/hybrid plug-in vehicles, and the market has entered a period of stock competition. Electrification has become the core strategic direction for automakers.

Technological innovation focuses on intelligence and connectivity, with remarkable achievements in the development of autonomous driving. Roboaxi has expanded to over 50 cities, achieving full unmanned commercialization; Pony.ai has received additional investment from Saudi Arabia, with Robotaxi orders exceeding 2 million; the Neolithic unmanned delivery vehicle will achieve large-scale operation in 200 cities across the country by 2025, with orders exceeding ten million, promoting the automation upgrade of end logistics. AI large models deeply empower intelligent cockpits, with voice interaction and scenario-based services becoming standard features. The user experience has upgraded to an 'mobile living space', and intelligence has become the core of product differentiation.

Globalization layout is accelerating. Relying on the advantages of the new energy industry chain, Chinese enterprises' automotive exports are expected to continue leading the world in 2025. Europe, as a core incremental market, is driven by carbon emission regulations. Chinese brands' pure electric models are seizing market share with their long-range capabilities and intelligent configurations; BYD, NIO, and others are accelerating the construction of factories in Europe (such as the Hungarian base) to adapt to local trade policies. Southeast Asia, with its demographic dividend and policy openness (such as Thailand's EV incentives), has become a dual hub for Chinese automakers' exports and KD assembly (parts assembly), with Wuling and Great Wall reducing costs through localized supply chains. In 2025, the export structure will continue to optimize, with mid-to-high-end models accounting for over 40%. Automakers such as SAIC are accelerating overseas layout, moving from 'product output' to 'brand + service' globalization.

Frost & Sullivan maintains long-term partnerships with well-known enterprises in China's automotive and transportation industries, with targets for 2025 beingHui Ge Environmental Protection (2613.HK)New Joy (0805.HK), Beijing Caimo (2571.HK), Sanhua Intelligent Control (2050.HK), Cao Cao Mobility (2643.HK), Chery Automobile (9973.HK), Zhida Technology (2650.HK), Sany Heavy Industry (6031.HK), Seres (9927.HK), Joyson Electronics (0699.HK), Pony.ai (2026.HK)Provides exclusive industry advisory services for Hong Kong listings.

[Dual Carbon and New Energy]

Entering 2025, the "dual carbon" strategy has gradually shifted from initial top-level design to the stage of mechanism implementation and dividend release. The core feature of dual carbon development lies in the accelerated transformation from mainly energy consumption control to carbon emission control as the core. With the implementation of the "Work Plan for Accelerating the Construction of a Dual Carbon Emission Control System," the national level is gradually establishing an evaluation and assessment mechanism that focuses on carbon intensity control with total carbon emissions control as a supplement, placing higher demands on the accuracy of carbon emission data accounting and quota management capabilities. Against this backdrop, green new productive forces have become the core engine of annual economic development. The country vigorously promotes the "Implementation Opinions on Establishing a Carbon Footprint Management System," not only continuously consolidating industrial and scale advantages in the three core areas of electric vehicles, lithium batteries, and photovoltaic products, but also guiding traditional manufacturing industries to carry out in-depth low-carbon reshaping through full-life-cycle carbon footprint certification, internalizing the pressure of carbon reduction into the endogenous driving force for industrial chain upgrading.

In terms of energy system transformation and marketization construction, by 2025, a new pattern will emerge featuring deep coordination among sources, grids, loads, and storage, along with the expansion of the carbon market. With the official implementation of the 'Energy Law of the People's Republic of China' and the deepening of power marketization reforms, the focus of new energy development has gradually shifted from mere scale expansion to a higher proportion of consumption and the enhancement of system regulation capabilities. The state is strongly promoting the commercial application of new energy storage and long-duration energy storage technologies, and accelerating the construction of a new power system suitable for high proportions of renewable energy to ensure stable supply and efficient utilization of green electricity. In addition, in response to the increasing pressure brought about by global carbon tariff barriers, policy orientation is paying more attention to the connection and mutual recognition of domestic and international carbon accounting standards and certification systems. This marks that China's new energy development is extending towards full life cycle carbon management and global green supply chains, occupying a key node position in the global green and low-carbon development.

Frost & Sullivan continues to make a significant contribution to the energy market in China, forZhengli New Energy (3677.HK)Hainan Junda (2865.HK), Shuangdeng Group (6960.HK)Provide exclusive industry advisory services for Hong Kong stock listings. In the future, China will enter a new phase of building a modern energy system, with further acceleration of green and low-carbon transformation of energy. The energy industry will continue to be favored by the capital market. Frost & Sullivan will continue to pay attention to the latest industry developments and jointly witness the transformation and upgrading of the energy industry.

[Consumer Retail]

According to data from the National Bureau of Statistics, from January to November, the total retail sales of consumer goods across the country reached 4560.67 billion yuan, a year-on-year increase of 4.0%. Among them, online retail sales across the country amounted to 1445.82 billion yuan, a year-on-year increase of 9.1%. The growth of online sales was higher than that of offline sales.

Building on the moderate recovery trend in 2024, China's consumer retail industry in 2025 is characterized by 'divergence in recovery and accelerated structural upgrading'.

Overall, the recovery in consumption still faces many challenges. At the consumer level, residents' consumption behavior has become more rational and cautious, with increased price sensitivity. However, their demands for quality, functionality, and long-term use value have also risen. Basic and improvement-oriented consumption has maintained relative resilience, while within discretionary consumption, differentiation has accelerated, with 'high cost performance + definite needs' becoming the mainstream choice logic.

At the policy level, 'trade-in' has gradually shifted from a temporary stimulus measure to a regular tool, providing continuous support for home appliances, home improvement, durable consumer goods, and new energy-related sectors. It has become one of the important means to stabilize consumption. It can be said that government subsidies have a very direct and effective impact on annual consumer retail. However, it is also necessary to be aware of the potential slowdown in growth rates if the government subsidy intensity decreases in the future.

Source: National Bureau of Statistics, Frost & Sullivan analysis

Looking at different industries, from January to November 2024, the top five categories with the fastest growth rate in retail sales of goods by units above designated size were communication equipment, cultural office supplies, furniture, sports and entertainment products, and household appliances and audio-visual equipment. Among them, communication equipment ranked first with a growth rate of 20.9%, mainly benefiting from the deepening of the 5G terminal replacement cycle, the accelerated penetration of domestic high-end smartphones, and the implementation of policies such as 'trade-in' and 'digital product subsidies' in various regions, which have concentrated consumer demand; sub-industries such as cultural office supplies, furniture, and household appliances and audio-visual equipment also benefited from national policies promoting 'home improvement and kitchen renovation' and 'trade-in', leading to the release of demand for improved existing housing; sports and entertainment products also maintained very good growth, reflecting consumers' increasing demand for experiential consumption and being influenced by national policies such as actively promoting national fitness in recent years.

In contrast, the top five categories with the weakest growth rate in retail sales per unit of goods above the quota were petroleum and products, building and decoration materials, automobiles, beverages, and Chinese and Western medicines. The overall performance of these sub-industries was weak, mainly affected by changes in demand structure and cyclical factors of the industry.

Looking ahead to 2026, after the overall structural adjustment and differentiation in 2025 and policy support, the consumer retail industry as a whole is expected to continue evolving towards a more rational structure, rational consumption, and high-quality product development.

In 2025, Frost & Sullivan participated as an industry advisorBrocade (0325.HK)Shubao International (2569.HK), Rongda Technology (9881.HK), Haitian Flavor Industry (3288.HK), Xiangjiang Electric Appliance (2619.HK), Shengbela (2508.HK), Saturday Fruits (6168.HK), Yingtong Holdings (6883.HK), Oaks (2580.HK), Different Groups (6090.HK), Le Comfort (2698.HK), Impression Dahongpao (2695.HK)The listing process of a series of consumer retail enterprises such as Frost & Sullivan. Frost & Sullivan will continue to provide strong support to consumer businesses with its continuously accumulated industry experience, objective data analysis, and insights.

[Catering and Beverages]

In 2025, under the multiple influences of consumption structure transformation, intensified market competition, and policy guidance support, the catering industry exhibits a more complex and dynamically balanced development pattern. On one hand, although the overall industry scale has slowed down in growth rate but continues to expand, the foundation of the consumer market remains solid; on the other hand, the structural differentiation of growth drivers has become increasingly significant, and the industry as a whole enters a critical stage of transitioning from 'scale expansion' to 'equal emphasis on quality and efficiency'.

According to data from the National Bureau of Statistics, from January to November 2025, catering revenue reached 5,224.5 billion yuan, a year-on-year increase of 3.3%; among them, the catering revenue from units above designated size reached 1,493.3 billion yuan, a year-on-year increase of 2.3%. Although all data have maintained a moderate growth rate, the year-on-year growth rate has further slowed down compared to the previous two years. There is a widespread situation of weak sales within the industry, and single-store operational efficiency faces challenges. Against this backdrop, leading catering enterprises such as Yum China and Dasheng Co., Ltd. have maintained relatively stable operating performance by leveraging their brand effect, supply chain capabilities, and digital operation advantages, with the industry concentration showing a slow upward trend.

In the face of changes in the market environment, catering enterprises generally tend to be more cautious about their expansion strategies, significantly slowing down the pace of opening new stores. Some companies choose to strategically close down some restaurants that perform below expectations and lack growth potential. More chain brands have shifted towards refined and differentiated operational models, deepening innovative models such as cooperative joint ventures and cross-border collaborations while consolidating direct-operated and franchise systems. They are also actively promoting the development of multiple brands. Leading companies such as KFC and Haidilao, while moderately controlling the expansion pace of their main brands, have incubated new brands targeting niche or lower-tier markets. By operating multiple brands and integrating resources through group operations, they share costs and create a second or even third growth curve.

In addition, the 'Delivery War' initiated by major food delivery platforms in 2025 has significantly accelerated the online transformation of the catering industry. By offering high subsidies and traffic conversion, platforms not only stimulate consumption but also prompt chain catering businesses to further adjust their business structures and increase strategic investment in delivery services. As of the third quarter of 2025, the delivery services of many leading chain catering brands have generally seen a significant improvement, with some brands focusing on fast food and tea drinks having online business accounts approaching 50% at one point. This 'war' has not only boosted sales in the short term but has also promoted the deepening construction of digital enterprise platforms and a mixed supply chain model of 'pre-order warehouses + central kitchens,' marking that delivery has evolved from a channel supplement to an indispensable core growth engine for catering businesses.

At the policy level, China's first departmental regulation specifically targeting catering chain enterprises, namely 'Regulations on the Supervision and Administration of Catering Service Chain Enterprises' Enterprises for Implementing the Main Responsibility for Food Safety', came into effect on December 1st. Its aim is to solve the long-standing problem of 'strong franchising and weak management' in the chain catering industry, opening a new chapter of 'equivalence between brand and responsibility'. This is not only a regulation to ensure food safety but also a cornerstone document that profoundly reshapes the business model and growth logic of the catering chain industry. In the future, only chain enterprises that can truly build a food safety control system covering the entire network, with real-time traceability and implementation at the end point, can operate steadily and far into the future in the market.

In summary, China's catering industry in 2025 is entering a new development cycle characterized by greater structural changes and reliance on operational innovation and brand resilience. Against the backdrop of rational consumption returns, the industry is expected to improve quality and efficiency through multiple dimensions, leading to a more diversified, high-quality, and sustainable growth phase.

Frost & Sullivan, as an industry advisor, has been deeply involved in the listing projects of leading enterprises, serving a series of industry-leading companies includingNewman's (2530.HK)Anjing Food (2648.HK), Bama Tea (6980.HK),Meeting Noodles (2408.HK)and others.

[Network Technology]

In 2025, China's network technology industry, at the beginning of the '15th Five-Year Plan' period, is steadily advancing along the trajectory of technology integration, data empowerment, and security control, with the comprehensive deepening application of artificial intelligence as its core driving force. The government continues to improve top-level design, strengthening legal protection through measures such as the revision of the 'Cybersecurity Law', and providing policy guidance for fields such as artificial intelligence and computing infrastructure. The synergistic effects of technologies such as the Internet, artificial intelligence, big data, the Internet of Things, and blockchain are further unleashed, promoting the deep integration of the digital economy with the real economy and injecting new momentum into economic and social development.

Internet infrastructure has achieved both quantitative and qualitative improvements in 2025. By the end of 2025, China's Internet penetration rate was close to 80%, making the foundation of the online society more solid. The construction of 5G networks continues to advance, showing potential in scenarios such as low-altitude economy and telemedicine. The construction of a national integrated computing power network is accelerating, improving the interconnection level of computing resources and providing a solid foundation for the development of industries such as artificial intelligence.

Generative artificial intelligence entered the stage of large-scale application from a concept boom in 2025. As of December 1st, 2025, a total of 663 large models had completed filing in China. At the same time, the user scale has shown explosive growth, indicating that this technology is shifting from 'usable' to 'usable and common'. The focus of technology development has shifted from 'heavy training' to 'heavy reasoning', significantly improving efficiency. The combination of artificial intelligence with enterprise production, social management, and people's livelihood services has become closer, with applications such as industrial intelligent agents and AI doctors moving from demonstration to practical use.

As a key production factor, the value of big data was further unleashed in 2025 through institutional innovation and market construction. The establishment of the National Data Administration and related policies have accelerated the marketization process of data elements, aiming to transform data resources into a new engine for economic growth. The management mechanism for cross-border data flow has been explored and improved in practice, such as attempting to formulate a negative list for data outbound in free trade pilot areas to facilitate international economic and trade cooperation. The application of data technology in public services, traffic scheduling, and financial risk control has continued to deepen, supporting more precise decision analysis.

Blockchain technology focused on solving trust issues in actual economic activities in 2025, forming large-scale application cases in specific fields such as supply chain finance and cross-border payments. Its integration with artificial intelligence and the Internet of Things has explored innovative models such as digital asset management. Technical standardization work has been promoted, laying a foundation for the healthy development of the industry.

The maturity of Internet of Things technology is mainly reflected in the popularization of low-power wide-area networks (LPWAN) and 5G Internet of Things, supporting efficient access and collaborative management of massive devices. Application scenarios continue to broaden, achieving deeper layouts in fields such as smart homes, industrial Internet, and smart cities, becoming an important engine for promoting the digital transformation of the economy and society.

In 2025, the network technology sector remains one of the more popular sub-markets in the IPO market. As an industry advisor, Frost & Sullivan has been deeply involved in the IPO projects of many Chinese network technology companies such as BlueSight (6613.HK), FengYing Technology (1304.HK), Xunzhong Shares (2597.HK), Yunji (2670.HK), Guanghetong (0638.HK), Cambridge Technology (6166.HK), Dipo Technology (1384.HK), Minglue Technology (2718.HK), Quantitative Finance (2685.HK), Lemao Technology (2539.HK), Excellence RuiXin (2687.HK), Wuyi Vision (6651.HK), Xunce Technology (3317.HK), WOAN Robotics (6600.HK)and others.

Overall, in 2025, China's network technology industry, on the basis of a solid network foundation, led by artificial intelligence, driven by data elements, and guaranteed by a security system, has entered a new stage of comprehensive leapfrog development in digitization, networking, and intelligence. The government's strategic planning and market innovation vitality form a joint force, promoting technology empowerment in all industries and providing core impetus for the high-quality development of the economy and social inclusiveness progress.

[Semiconductors]

Against the backdrop of continuous deepening global technological competition and accelerating release of computing power demand, the semiconductor industry in 2025 has welcomed a new round of structural development opportunities. Technological evolution centered on AI computing chips, interconnect chips, advanced packaging, and storage technologies is driving the semiconductor industry from single-point performance improvement to system-level collaborative acceleration. Thanks to the continuous increase in the training and reasoning of large models, the construction of data centers and computing power infrastructure, and the continuous expansion of automotive electronics and end-side AI applications, the semiconductor market demand has maintained resilient growth, and capital attention and investment activity in related sub-sectors have further increased.

In 2025, as an industry advisor, Frost & Sullivan, with its rich industry experience and professional services, helpedTianyue Advanced (2631.HK)Tianyu Semiconductor (2658.HK), Naxin Microelectronics (2676.HK)successfully go public in Hong Kong.

[Financial Services]

In 2025, under the combined effects of deepening services to the real economy, improving the efficiency of financial resource allocation, and continuous technological innovation empowering the industry, China's financial services industry as a whole showed a development trend of steady progress with continuous optimization of structure. With the gradual stabilization of macroeconomic operations, enhanced resilience of the financial system operation, and accelerated implementation of fintech, the support capacity of financial services for the real economy has been continuously strengthened, and the development quality and efficiency of the industry have been improved synchronously.

In terms of serving the real economy, in 2025, the financial services structure continued to be optimized, with financial resource allocation paying more attention to efficiency and quality. The role of medium- and long-term financing tools in enterprise investment and industrial upgrading has been continuously enhanced. Bank loans, bond financing, and multi-level capital markets have formed a more coordinated capital supply system, providing diversified financing support for the real economy. The coverage of inclusive finance and small and micro enterprise financial services continues to expand. Financial institutions continue to improve their financial service capabilities for small and micro enterprises, technology innovation enterprises, and emerging business forms through differentiated product design and digital risk control measures. At the same time, the financing scale related to green finance has maintained an upward trend, with tools such as green credit and green bonds playing an increasingly prominent role in supporting industrial structure optimization and low-carbon transformation, further strengthening the structural support function of financial services.

In 2025, digital transformation remains one of the most important development threads in China's financial services industry. Fintech continues to penetrate into core business areas such as payment, credit, wealth management, and risk management, becoming a key infrastructure to improve financial service efficiency and customer experience. In the credit field, financial institutions generally reconstruct credit approval and post-loan management processes by introducing artificial intelligence, big data analysis, and cloud computing technologies. Risk identification models based on machine learning algorithms and customer profiling systems significantly improve loan approval efficiency while enhancing the dynamic identification and management capabilities of credit risks, effectively supporting the financing needs of small and micro enterprises and individual customers.

In the fields of wealth management and asset management, intelligent investment advisor systems and algorithm-driven asset allocation models are gradually maturing, providing more personalized and refined investment advice to customers through data-driven methods, and promoting the upgrade of wealth management services towards digitization and intelligence.

In 2025, artificial intelligence technology plays an increasingly critical role in the development of fintech. Financial institutions continue to increase investment in AI technology around scenarios such as intelligent customer service, intelligent risk control, automated operation, and intelligent investment research. The application of large model technology in financial text analysis, risk identification, customer interaction, and internal operational support has gradually deepened, providing new technical paths for financial institutions to improve operational efficiency and decision-making capabilities. At the same time, the application of blockchain and distributed ledger technologies in payment and settlement, supply chain finance, and cross-institutional collaboration continues to expand, promoting more transparent, efficient, and traceable financial transaction processes and providing important technical support for fintech innovation.

Overall, in 2025, while China's financial services industry expanded steadily in scale, the quality of services to the real economy and the depth of fintech integration were significantly improved. Fintech, especially artificial intelligence and data-driven technology, has gradually evolved from an auxiliary tool to an important part of the core competitiveness of financial institutions.

The development of China's financial service industry complements the prosperity of the capital market. In 2025, as an industry advisor, Frost & Sullivan was deeply involved in the listing process of enterprises in the industry, serving financial service industry companies such as Handui Group (2621.HK), HashKey (3887.HK), Nanhua Futures (2691.HK), and Relaxing Health Group (2661.HK).

Looking ahead, the financial services industry is expected to further enhance intelligent risk control, refined operation, and full lifecycle customer services on the basis of continuous deepening digital transformation. By empowering with technology, it will continuously enhance the support efficiency of the financial system for the high-quality development of the real economy, providing more solid financial support for China's economic structure optimization and long-term sustainable development.

[Construction Engineering]

In 2025, China's construction engineering industry showed a low-speed growth trend in the complex economic environment, with residential buildings, commercial buildings, and infrastructure construction still being the main areas. Despite facing pressures such as real estate adjustment and differentiation of infrastructure investment, the overall resilience of the industry was evident. In the first half of the year, the added value of the construction industry reached 3821.1 billion yuan, a year-on-year increase of 0.7%, accounting for 5.78% of GDP. In the first half of 2025, the total output value of construction enterprises across the country was about 1.367 trillion yuan, a slight decrease year-on-year, but orders from large central state-owned enterprises were stable, and overseas business growth was remarkable.

Large state-owned enterprises continue to dominate complex large projects with their capital, technology, and brand advantages; private enterprises maintain development through flexible innovation; foreign-funded enterprises contribute significantly in the field of high-end intelligent buildings. Industry concentration continues to increase, and market share of leading enterprises is further expanded through mergers, reorganizations, and strategic cooperation.

In 2025, the construction engineering industry faces challenges such as fierce market competition, increased pressure on enterprise resource allocation, and rising compliance costs due to stricter environmental and safety regulations. At the same time, opportunities coexist: urbanization deepens, infrastructure demand grows steadily, especially in fields such as green buildings, intelligent construction, and urban renewal. Driven by the 'dual carbon' goal, carbon emission constraints are strengthened, and efforts in environmental improvement and energy consumption control are intensified. The integration of informatization and industrialization accelerates, with low-carbon technology innovation, energy conservation and emission reduction, and prefabricated buildings becoming mainstream directions. This puts forward higher requirements for technological and service innovation and injects new vitality into market expansion.

In 2025, Frost & Sullivan provided exclusive industry advisor services for leading enterprises in the construction engineering field such asGolden Leaf International Group (8549.HK)United Overseas (2671.HK)to go public in Hong Kong, comprehensively presenting to investors and the Hong Kong Exchange the company's and industry's growth rate, driving force, future development potential, etc. Frost & Sullivan continues to accumulate industry experience and provides growth consulting services for more enterprises in the construction engineering field.

Looking ahead to the next five years, the construction industry is accelerating into the era of circular economy, with large-scale application of renewable building materials. According to the 'Guiding Opinions on the Comprehensive Utilization of Bulk Solid Waste during the 14th Five-Year Plan Period', by 2025, the comprehensive utilization rate of new bulk solid waste will reach 60%. The proportion of green renewable building materials continues to increase, the digital construction and intelligent construction markets expand rapidly, and it is expected that the scale of digital buildings will exceed 100 billion yuan. The industry will deepen green and low-carbon transformation, further increase the proportion of prefabricated buildings, significantly improve the intelligent level, and promote China's construction from 'big' to 'strong'.