Recently, Northeast Pharmaceutical disclosed that in order to accelerate the advancement of its collaboration with the United States MedAbome company ADC Medications and CAR-T The subsidiary established through the implementation of the cell therapy technology cooperation project has completed its industrial and commercial registration. Northeast Pharmaceutical stated that innovative drug research and development is characterized by high technology, high risk, and high added value. Whether the products can successfully be commercialized in the future is easily affected by some uncertain factors.   Currently, traditional pharmaceutical companies are getting involved CAR-T and ADC What are some of them? Traditional pharmaceutical companies are conducting CAR-T and ADC Where does the difficulty lie in the development of such innovative drugs? Frost & Sullivan Frost & Sullivan Zhang Dian, the consulting director for healthcare in Greater China at Frost & Sullivan (referred to as 'Frost & Sullivan'), was interviewed by Huaxia Times to discuss the above topics. Huaxia Times Traditional pharmaceutical company Northeast Pharmaceutical is experimenting with innovative transformation. Recently, Northeast Pharmaceutical disclosed that in order to accelerate the advancement with the United States MedAbome company ADC Medications and CAR-T The subsidiary established through the implementation of the cell therapy technology cooperation project has completed its industrial and commercial registration. Northeast Pharmaceutical stated that innovative drug research and development is characterized by high technology, high risk, and high added value. Whether the products can successfully be commercialized in the future is easily affected by some uncertain factors. In recent years, many traditional pharmaceutical companies such as Shanghai Pharmaceutical Group Co., Ltd., Sihuan Pharmaceutical Group Co., Ltd., and Shijiazhuang Pharmaceutical Group have started to make efforts ADC and CAR-T But the difficulty seems not small. Zhang Dian, consulting director for Frost & Sullivan Greater China, told the China Times, ADC and CAR-T The capital investment required for biotech innovation drugs is substantial, the R&D cycle is long, and the risks are high. This places higher demands on technical talents and platforms, making R&D, especially self-developed projects, more difficult. In the field of biotech innovation drugs, it is becoming increasingly Northeast Pharmaceutical is a traditional generic drug company, formerly known as Northeast Pharmaceutical General Factory, which was established in 1946 The year is hailed as the cradle of China's national pharmaceutical industry. The company's main business covers four major sectors: chemical pharmaceuticals, pharmaceutical commerce, pharmaceutical engineering, and biomedicine. The company's main products include vitamin series drugs, anti-infective system medications, obstetrics and gynecology system medications, digestive system medications, urinary system medications, etc. 2018 In [year], Northeast Pharmaceutical became the only mixed-ownership reform pilot enterprise in Shenyang. Fangda Group, through the secondary market and private placements, became the largest shareholder of Northeast Pharmaceutical, while Dongyao Group dropped to second place. 2020 year 10 In the month, Fangda Steel became the largest shareholder of Northeast Pharmaceutical, and Dongyao Group and its concerted actor Shengjing Financial Holdings completely withdrew from Northeast Pharmaceutical. This means that state-owned assets have officially withdrawn from this company with 70 An established pharmaceutical company with a history spanning many years. Northeast Pharmaceutical hopes to introduce mature and advanced market management models, business models, cost-effective models, as well as substantial financial support through the Fangda Group. Fangda took control of Northeast Pharmaceutical 2018 In that year, the performance of Northeast Pharmaceutical improved briefly. The revenue of Northeast Pharmaceutical in that year 74.67 Yuan billion, a year-on-year increase 31.54% Net profit attributable to the parent company 1.95 Yuan billion, a year-on-year increase 64.04% However 2019 year 2020 In the year, performance declined significantly. Data shows that the company 2019 year -2020 The net profit attributable to the parent company for the year was 1.74 yuan, 1226 Ten thousand yuan, with the growth rates of net profit attributable to the parent company being -10.87% , -92.95% Arrived 2021 In [year], Northeast Pharmaceutical's performance soared, achieving a net profit attributable to the parent company 9903 Ten thousand yuan, a year-on-year increase 707.93% The company stated that the significant increase in performance was due to actively carrying out sales business, formulating differentiated marketing strategies, and effectively enhancing product competitiveness. At the same time, the company has continuously strengthened enterprise management, utilizing various measures such as structural adjustment, technological breakthroughs, process optimization, cost reduction, and efficiency improvement. It has quantified refined management into each position, allowing benefits to be fully reflected in all aspects of supply, production, and sales, thus achieving the company's healthy development. In the third quarter of this year, Northeast Pharmaceutical forecasted a net profit attributable to the parent company 1.15 - 1.40 Yuan, a year-on-year increase of more than 300% . In terms of R&D, the investment of Northeast Pharmaceutical is not high among generic drug companies. 2020 year -2021 The proportion of annual R&D investment to total revenue is as follows: 1.70% , 1.85% And 2021 The annual report shows that all the company's R&D investment projects are new generic drug products. It is also worth noting that the asset-liability ratio of Northeast Pharmaceutical remains very high. 2019 The asset-liability ratios for the year ending June this year were 68.76% , 66.12% , 67.45% , 70.33% . " Zhang Dian pointed out that traditional pharmaceutical companies' previous layout mainly revolved around generic drugs in the chemical drug field, whereas ADC and CAR-T The capital investment required for biotech innovation drugs is substantial, the R&D cycle is long, and the risks are high. This places higher demands on technical talents and platforms, making R&D, especially self-developed research, more difficult. In the increasingly competitive homogeneous environment of the biotech innovation drug field (for example ADC Target homogenization) has increasingly raised requirements for technological and product originality as well as differentiated competition, further increasing the difficulty for traditional pharmaceutical companies in developing new drugs. A reporter from China Business Times contacted the secretary-general's office of Northeast Pharmaceutical regarding issues such as innovation transformation and asset-liability ratio. The secretary-general's office replied that everything shall be subject to the announcement. Northeast Pharmaceutical, which has always had a weak R&D investment, takes the plunge ADC and CAR-T The odds of success remain to be seen.   * This article is reprinted from China Times.   Reporters: Wang Yu, Yu Na   Original title:    investment 5 100 million yuan to test the waters ADC and CAR-T What is the chance for traditional pharmaceutical company Northeast Pharmaceutical to innovate and transform successfully?    "> In a highly competitive homogeneous environment (for example ADC Target homogenization) has increasingly raised requirements for technological and product originality as well as differentiated competition, further increasing the difficulty for traditional pharmaceutical companies in developing new drugs. Before this collaboration, Northeast Pharmaceutical had been focusing on generic drugs, with R&D investment and revenue accounting for a relatively low proportion compared to other generic drug companies. This is the first attempt at this area. ADC and CAR-T What is the chance of Northeast Pharmaceutical succeeding? " Experiment with innovation Recently, Northeast Pharmaceutical announced that its subsidiary Northeast Pharmaceutical ( shanghai ) Bio-Tech Co., Ltd. has completed industrial and commercial registration and obtained a business license. this year 9 month 20 On the same day, the board of directors of Northeast Pharmaceutical reviewed and approved the "Proposal on the Company's Intended External Investment to Establish a Subsidiary", agreeing that the company will use its own funds 5 Invest hundreds of millions to establish a wholly-owned subsidiary, thereby accelerating the advancement with the United States MedAbome introduced through a company agreement ADC Medications and CAR-T The cell therapy technology cooperation project has been implemented. Initially, the subsidiary focused on advancing the research and development of cooperation projects to meet clinical product preparation needs, while also building a small-scale production platform for culture media. this year 9 At the beginning of the month, Northeast Pharmaceutical and the United States MedAbome Sign the MAb11-22.1 Antibody project transfer, cooperative development, and technical service agreement". Public information shows, MAb11-22.1 yes MedAbome A monoclonal antibody developed by the company that selectively identifies malignant tumor cells without reacting with normal peripheral blood cells and major organ tissues. This antibody is used in antibody conjugated drugs (ADC drug ) and CAR-T The app mentioned is currently in the preclinical research and development phase. MedAbome The company has provided MAb11-22.1 The technical achievement of antibody development has been applied for a US patent and PCT Patents. The results of in vitro and in vivo tumor growth suppression experiments, as well as preliminary toxicological studies on small animals, have demonstrated good efficacy and safety. Northeast Pharmaceutical and MedAbome Cooperation includes original antibodies MAb11-22.1 Transfer of the antibody and the development of antibody conjugates based on this antibody (ADC drug ) and CAR-T Co-development of cell therapy products, etc. In this collaboration, Northeast Pharmaceutical is responsible for applying for clinical trials outside the United States, Canada, and Mexico. (IND) Certificates and New Drugs on the Market (NDA) certificate. Northeast Pharmaceutical believes that this investment meets the company's strategic development needs for internationalization and scientific research innovation, as well as the interests of all shareholders and the company's long-term development strategy. " Zhang Dian told the reporter from Huaxia Times that in recent years, many traditional pharmaceutical companies have developed their own products as well as introduced new ones. / The cooperation methods include establishing independent subsidiaries or acquiring new companies to layout in the field of biopharmaceutical innovation. Currently involved ADC Traditional pharmaceutical companies include Shanghai Pharmaceutical, Sihuan Pharmaceutical, Shijiazhuang Pharmaceutical Group, Qilu Pharmaceutical, Zhenbao Island Pharmaceutical, and Kelun Pharmaceutical. CAR-T In the field, traditional pharmaceutical companies have relatively few layouts and most of their pipelines are in preclinical stages, such as Bo'an Biology, a holding subsidiary of Shanghai Pharmaceutical and Greenleaf Pharmaceuticals. " Transformation challenges

IPO listing It is an important milestone in the company's development, and going public does not mean that the marathon has been finished. From the perspective of corporate development logic, going public actually means that there will be more financing tools available. In the current market environment, pharmaceutical companies facing listing face many opportunities and challenges. For companies that have already gone public, they need to consider how to open up and activate more financing channels.   Frost & Sullivan Frost & Sullivan Mao Hua, Partner and Managing Director of Frost & Sullivan Greater China, was invited by CBN.com to participate in the financial dialogue program 'Square and Round Knows'.   Wang Yinyan, Executive General Manager of Investment Banking at CICC Li Zhixian, Partner-in-Chief of PricewaterhouseCoopers' China East and West Markets, and Consultant at Junhe Law Firm   Let's go together,   Joint Interpretation of Enterprises IPO listing And the channels and paths for refinancing, to broaden industry horizons, connect capital with industry, and provide more effective solutions for the market. Q Currently IPO listing "Postponed" or "Forward"? " Fattening: Firstly, from the actual situation, compared to 2020 Year-on-year, 2021 The year was a 'big' one both in terms of fundraising amount and volume. Indeed, there were fewer projects this year in the Hong Kong stock market, but this year A The number of shares has increased particularly significantly.   Overall, Frost & Sullivan's entire workload for this year IPO listing The number of listings has actually increased rather than decreased compared to last year. Therefore, overall speaking about the capital market, we believe that companies can maintain their pace and plans for continued listing. Secondly, although there have been some corrections in the current capital market, we still believe that the overall financing progress of companies should be carried out according to their financing plans, and listing should continue as scheduled.   The capital market for biotechnology is currently in a correction phase and will not see a large-scale rebound for a long time to come. This is because the capital market for biotechnology will tend to be more rational in the future. Third,   For listed companies in the biotechnology sector in the future, reasonable expectations, market valuation upon listing, and stock price performance after listing are very important.   This is actually the same as the R&D cycle of innovative drugs in China. In the initial stages, everyone may rush to grab the market share, targets, and time windows. However, as there are more and more products on the market and biotech companies emerging, competition for the same track, variety, target, and indication will become increasingly fierce. At this point, it becomes difficult to think about the previous high valuations and premiums, so we need to have reasonable expectations for post-market valuations and stock prices. Fourthly, for enterprises, we often say that going public is actually just the first step an enterprise takes on the capital market; it is not the final step. Going public does not mean that the company can rest easy from then on. At the level of the capital market,   The listing is just the beginning. In the future, the company needs to continue developing its business, advancing its clinical pipeline, commercializing products, telling more investment stories in the secondary capital market, and doing well as a PR/IR Management.   In today's and even future biotechnology industries, IPO listing It is no longer a scarce target, and in such a context, it is a very important issue. We need long-term development rather than short-term attempts to go public.   Q How does the new listing venue weigh up its considerations when it opens? " Fattening: First, from 2019 The official launch of the Sci-Tech Innovation Board for innovative pharmaceutical companies this year 6 The opening of the Sci-tech Innovation Board for innovative medical devices, and spac Judging from the listings in Hong Kong and US stocks, this provides more options for future innovative pharmaceutical companies and devices to list on capital markets. For example, 2018 Before the year is over, going public in the US may be an inevitable choice for innovative tech companies. But from 2018 After a year, there are Hong Kong stocks 18A The domestic Science and Technology Innovation Board has opened its doors to innovative drugs and devices, as well as spac With more options, enterprises have a wider range of financing channels. This is indeed a progress that has created more pathways for biotech companies and investors. This is a major prerequisite. Second, for biotech companies, it's not just the Sci-tech Innovation Board; there are also spac The launch on the market, although it didn't take very long. We are dealing with Hong Kong stocks 18A It has been observed that from 18 Niange Li started as the first one, and now there are dozens of companies listed 18A In fact, the exchanges and regulatory authorities have made some adjustments to the listing rules for device and pharmaceutical companies. Therefore, although spac While relatively new channels have created many avenues for capital circulation, they will not immediately form a very mature and complete listing system in the short term. It still requires continuous improvement to better suit Chinese biotech companies, which is a long-term process.   Therefore, when choosing a listing location, enterprises need to comprehensively consider the maturity of various listing location structures and their suitability for the enterprise itself. Thirdly, in addition to the structural maturity mentioned earlier,   It is also necessary to make comprehensive considerations regarding the company's own organizational structure, fundraising amount, and the nature of its business operations, in order to formulate an IPO choice that suits the development of the enterprise, its positioning, and its financing needs.   Since there are now so many alternative listing venues, we can make more choices based on our own and external conditions.   Q What is the risk of refinancing or private placement? " Fattening: Although there have indeed been instances of low-price issuance during private placements, and there are also many cases where company stock prices have fallen below par, we still need to make practical considerations based on financing and business development needs. When it is necessary to conduct a private placement or raise additional funds, you should do so accordingly. As is well known, biotech companies require substantial financial support. The biotech industry is a capital-intensive sector, especially clinical development, which is an expensive phase from Phase I to Phase III and even into commercialization. And as the R&D track becomes increasingly crowded, it's important to find your unique strengths in this space and do industry-leading The difficulty is getting higher and higher, which requires a lot of capital. In addition, in order to expand their R&D pipeline and reduce their R&D risks, enterprises will do a lot in license to operate Such businesses also require more capital. Moreover, after the product is launched, it is necessary to establish one's own sales team, market entry team, and PR Teams actually cost money. Therefore, companies will have a need for private placements at certain stages. Of course, it would be great if one could find a better timing point to raise sufficient funds without having to break even.   However, at present, during the hot summer of this year or for some time next year, if there are no earth-shaking changes in the trend of the entire biotechnology industry, we still need to make practical considerations based on the business development and financing needs of enterprises.   For example, if a company currently needs so much capital and has to purchase factory buildings to expand production capacity, it cannot overly consider the factor of bankruptcy. Instead, it should be based on the actual situation of the company.   Q Where can I activate more financing channels? " Fattening: GDR This year has indeed been quite active, with capital markets in the London Stock Exchange, the Swiss Exchange, and Germany all being viable options GDR Yes, but currently it is mainly focused on the Hong Kong Stock Exchange. First, within the entire healthcare industry, our Frost & Sullivan has also covered two companies GDR The companies, namely Leopar Medical and Health Yuan, have all been taken over by Frost & Sullivan. Second,   GDR It has indeed opened up a new path for eligible Chinese enterprises to go public overseas. Being able to meet the business expansion needs of Chinese enterprises in Europe in the future while also achieving financing is indeed a relatively good two-way choice. For enterprises, there is no doubt that exchanges like the New York Stock Exchange are larger in scale, which is actually a consideration for their financing positioning—do they want to be a 'big fish' in a 'small pond', or a 'little fish' in a 'big pond'? If it's the former, then on the RuSE side... GDR It may be more attractive. In reality, do GDR Indeed, it's quite fast, even faster than Hong Kong stocks. It is a very effective way to save time for both the company and intermediaries. Although Hong Kong stocks 18A The overall time has accelerated significantly because now, whether it's regulatory authorities, various intermediaries, or companies themselves, they all have a good understanding of the entire Hong Kong stock listing process. Therefore, the pace is actually very fast.   But GDR The speed will be even faster, so in the future, Chinese medical industry companies that meet the requirements can proceed GDR The number will undoubtedly be even greater.   Q Where does external financing and endogenous hematopoiesis go from here? " Fattening: Since the capital market is indeed not particularly friendly at present, after companies in the secondary market successfully go public, they tend not to be keen on hearing more about their investment stories. Therefore, it has become very important for companies in the future to perform better and generate internal revenue more effectively in the capital market. I would like to share with you from the following aspects:   Firstly, the company's positioning is as a biotechnology company. Therefore, future technological demands will be more hardcore and cutting-edge, and the grasp of clinical needs requires greater precision.   Now, we can see that the research institutes of some domestic scientific research institutions and universities are at the forefront of their respective technologies. They have recognized the shortcomings in original technologies both domestically and internationally and have made many improvements and developments internally. If these technologies can continue to advance, they will indeed form a relatively good technological advantage. Therefore, for biotech companies that have successfully gone public, whether through in-house or in license to operate in a way, find The most cutting-edge and hardcore technologies can help you continuously write investment stories in the capital market.   Secondly, the concept of early layout runs through the entire development trajectory of biotech companies, not only in terms of R&D but also in commercialization.   For example, in R&D, people usually say fast-following It's not actually a good business model. But actually Fast follow-up For Chinese companies, it's not a very bad model, and there are many technology companies globally Fast follow-up It's done very well aboveboard. So why is it now despised by everyone? It's just this Fast follower algorithm followed by follower The time window is relatively narrow, and this is just follow up The original research team is moving quite fast, but the speed of your follow-up teams will also be very high, making the time gap between you and them extremely short. Therefore, when your product goes on market, the follow-up teams are basically close to obtaining approval for Phase III clinical trials, leaving you at a disadvantage. If you want to Fast follow-up You need to move the time window forward, expanding the time gap between you and your followers. This allows you to accumulate a certain amount of time, which in turn can create a disparity. So, in commercial transaction When that happens, we usually say, “My Phase III clinical trial has been approved, and even my product is about to go Non-Disclosure Agreement At that time, I started commercialization efforts here," and now you can look further ahead, even considering entering the company's commercialization phase during Phase II.   How to proceed in the future partnership arrangement How to select distributors, how to negotiate prices with medical insurance... These can be planned ahead of time. As a result, the company will be more relaxed in future product development projects, clinical trials, and commercialization, and it will also be easier to achieve success in these various fields.   Thirdly, since this is a period of capital correction, 'surviving' is one of the primary issues that every enterprise needs to consider. We recommend that enterprises re-examine their pipelines and business capabilities.   Yes Out of license Some pipelines, or for collaborative development of pipelines, do not require full development by the company itself. In fact, some pipelines that are currently in high competition or whose preliminary clinical data is not particularly good can be scaled back to save on R&D funds and better leverage the company's own strengths. For example, if the company has a large production capacity or strong drug discovery capabilities, we can appropriately launch some new businesses, including CDMO and CRO company Such services can generate some cash flow, as long as we ensure our survival first. Of course, it is unlikely that these new businesses will become the company's main business; the main focus remains on product research and development. However, this is indeed a relatively viable direction for our company's survival. Fourth, the positioning of our enterprise needs to be clearer, because at the beginning of starting a business, every entrepreneur actually hopes to make their enterprise Biopharma company Our product goes through a complete lifecycle from research and development, clinical trials, commercialization to market entry. I can help it grow throughout this entire process, and every entrepreneur has such an original intention.   However, there are very few enterprises that can complete the entire process, as the R&D and commercialization processes are actually two separate events with completely different requirements for a company's capabilities and judgment. Not every enterprise is suitable for both R&D and commercialization. Therefore, in the end, Biopharma company There are relatively fewer companies. But if we position the enterprise as a Biotech At this time, the company has a clear attribute positioning. We neither need to handle the entire product development process from start to finish ourselves, nor do we need to build our own teams, sell products, or commercialize them for profit-making purposes.   We just need to focus our strengths on the areas where we excel, and then promote them for collaboration to do more license out Focus on activities that leverage your strengths. I believe this is a very important topic for both current and future biotech companies. First, you need to identify your strengths, and then position yourself accordingly based on those strengths.   Q How do mergers and acquisitions promote resource flow and balance? " Fattening:   The general tone for mergers and acquisitions is that they can be carried out at any time, but it is crucial to align with the company's own development status.   We cannot just buy a bunch of stuff in order to make a profit because the current market is a capital correction period and stock prices are relatively cheap. Because acquisition is not simply about buying things; after acquiring them, the company has to 'swallow' them up and also use them to promote the development of its own business. Only in this way is an acquisition useful. In terms of acquisitions,   Firstly, the product or service must be valuable to the company. It either currently lacks this product or target, or the technology platform or production capacity can bring highlights and value addition to the company's business. This is the most fundamental consideration.   If it's not useful to the company At least there is no added cost 1 equal to 2 , or rather 1 add 1 even less than 2 , so there is indeed no need to make this acquisition.   Secondly, the acquisition target should be able to make up for some weaknesses in the company's industrial chain.   If a company is prone to supply chain risks with upstream raw materials, then we can engage in the acquisition of those raw materials. For example, if we are IVD Enterprises that supply large quantities to domestic medical institutions IVD Test kit, so you can buy one and make it IVD For raw material companies, in the future, they can ensure the security of their supply chain. At the same time, I can also supply to other companies in the industry, achieving a win-win goal. If I am CDMO The company, I have acquired some production bases from old domestic and foreign pharmaceutical factories, which can indeed expand CDMO The acquisition is made with clear considerations for capacity expansion and addressing the issue of insufficient production capacity.   Thirdly, we must have the capability to absorb the acquisition business ourselves, or have a plan for doing so.   Because, in fact, every acquisition business has more or less some differences from the company's existing operations, especially cross-industry acquisitions. For example, if I'm a company that deals with small molecules and now I want to acquire CGT The company, although CGT The track is very attractive, but its R&D logic and model are different from those of the small molecule sector. How to effectively digest acquired targets and better align them with the company's current business requires advance consideration and planning.   Q What suggestions are there for investment and financing in the field of biotechnology? " Fattening: All in all,   although 2022 The capital market of the entire biotechnology industry throughout the year 2021 Compared with last year, there has been a slight decline, but we believe that it is more due to rationality and prudence.   Because the development of the biotechnology industry cannot remain constant 2019 - 2021 The rapid development characterized by soaring growth in that year. In fact, when the domestic biotechnology industry has not grown for a particularly long time, rapid progress can indeed lead to many problems, such as:   The product lacks originality, the market is highly competitive, the initial valuation was high, and the commercialization capabilities are insufficient in the later stage.   Stopping at an appropriate node allows us to examine and review these issues, and to a certain extent, solve them. This is very helpful for the healthy development of the entire biotechnology industry in the future.   Therefore, I believe that the capital correction is also a favorable factor for our biotechnology industry. I also hope that this industry can develop in a more positive direction in the future.   👇     Click at the end of the article    Read the original text    You can watch the full program directly.  

Recently, the National Healthcare Security Administration issued the "Notice of the National Healthcare Security Administration on the 5th Meeting of the 13th National Committee of the Chinese People's Political Consultative Conference 02866 number ( Social Management 263 number ) The "Proposal Reply Letter" once again sent a signal that innovative medical devices will not be included in centralized procurement.   What are the reasons why innovative medical devices still find it difficult to be procured through centralized procurement? What changes will occur in China's cloud service market?   The State Healthcare Security Administration's clear stance that innovative medical devices are not currently included in centralized procurement is either negative or positive news? What impacts will it have on enterprises and the market respectively? Frost & Sullivan Frost & Sullivan Li Qian, Senior Consulting Director for Healthcare in Greater China at Frost & Sullivan (referred to as 'Frost & Sullivan'), was interviewed by Huaxia Times to discuss the above topics. Huaxia Times Innovative medical devices have temporarily become a safe zone for centralized procurement. Recently, the National Healthcare Security Administration issued the "Notice of the National Healthcare Security Administration on the 5th Meeting of the 13th National Committee of the Chinese People's Political Consultative Conference 02866 number ( Social Management 263 number ) The "Proposal Reply Letter" once again sent a signal that innovative medical devices will not be included in centralized procurement. Previously 9 In the month, the National Healthcare Security Administration issued a document titled "The National Healthcare Security Administration's Response to the Fifth Session of the Thirteenth National People's Congress 4955 In the 'Reply to the Proposal No. [X]' document, a comprehensive explanation was provided regarding mechanisms such as online listing and pricing for innovative medical devices, as well as issues related to centralized procurement. It was clarified that innovative medical devices are not yet included in centralized procurement. It is reported that innovative devices specifically refer to a category of high-value medical device products that possess internationally leading patent technologies and are characterized by special review procedures for innovative medical devices. With continuous issuance of documents, some industry views suggest that enterprises in the medical device industry are gradually adapting to the pace of centralized procurement, and innovative medical devices may be poised to receive 'warmth' from policies.   In response, Li Qian, Senior Consulting Director of Frost & Sullivan Greater China, told a reporter from China Times that 'centralized procurement has always been market-oriented, focusing on including products with high clinical usage and full market competition into the procurement scope. The National Healthcare Security Administration has made it clear that innovative medical devices are not included in centralized procurement at this stage, providing ample space for innovative device companies to improve technology and cultivate the market.' " No centralized procurement for now 10 month 12 On the same day, the National Healthcare Security Administration issued the "Opinions of the National Healthcare Security Administration on the 5th Meeting of the 13th National Committee of the Chinese People's Political Consultative Conference 02866 number ( Social Management 263 number ) The 'Proposal Reply Letter' (hereinafter referred to as the 'Reply Letter') responds once again to the issue of procurement of innovative medical devices. According to the 'Reply Letter', this proposal involves discussions 3D Whether the printing of innovative spinal products is included in the scope of centralized procurement. The National Healthcare Security Administration stated that the current focus of centralized volume-based procurement will be to include some medical consumables with high clinical usage, mature clinical applications, high procurement amounts, and sufficient market competition into the procurement scope. By publicly disclosing competitive rules and ensuring transparency, prices are expected to return to a reasonable level. The National Healthcare Security Administration pointed out that consideration 3D The printing product is still in its startup phase, with insufficient market competition. Moreover, the product features are quite complex, and some products have personalized customization capabilities. The cost and efficacy of these products are difficult to simply compare directly with those produced in large quantities. Therefore, there are no clear requirements for centralized procurement of consumables for spinal products. 3D Printers participating in spine-related products should choose whether to participate in centralized procurement on their own. At the same time, to prevent inflated prices and promote fair competition, for those that have not participated in centralized procurement 3D Printed products will have their online prices standardized in subsequent work. The National Healthcare Security Administration has made it clear that for similar 3D In printing innovative products such as orthopedic consumables, comprehensive considerations will be given to their technical characteristics, production costs, usage conditions, clinical efficacy, and other features. An 'one product, one policy' approach will be adopted to determine appropriate procurement rules, improve the market-led price formation mechanism, promote the high-quality development of the medical device industry, and provide the public with more innovative products at reasonable prices. a certain 3D Print machinery industry insiders told the China Business Times reporter, 'The clarification of centralized procurement policies (either purchasing or temporarily not purchasing) is conducive to the development of domestic innovative enterprises in this sector. At this stage.' 3D The printing of orthopedic consumables is still in an upward phase, and companies are conducting dual explorations in the market and technology. Users of these consumables have high requirements for systems, and product user services are not yet mature. If there is a sudden drop in profits due to centralized procurement price cuts at this time, it is very likely to affect employee motivation. " Commercialization dilemma In fact, 3D The policy on printing consumables only presents the tip of the iceberg of the challenges faced by innovative device development. For innovative medical device companies, the issue that urgently needs to be addressed is that they are not yet able to commercialize and profit from technology research and development. 'Innovative devices not included in centralized procurement may not have a substantial impact on the company's operations, but it is a significant positive for the company's development and product research.' A person in charge of marketing at a domestic surgical robot enterprise told the China Times. It is reported that the concept of 'innovative devices' 2014 year 2 month 7 It was first made clear on the day. At that time, the China Food and Drug Administration issued the Food and Drug Administration's Medical Device Administrative Approval [ 2014 〕 13 The 'Special Approval Procedure for Innovative Medical Devices (Trial)' was issued. The document specifies that innovative devices need to possess the following elements: First, a patent, which must include an invention patent with core technology; second, performance, where the main working principle or mechanism is domestically original, technologically leading internationally, and has significant clinical application value; third, finalization, meaning that preliminary research has been completed and a basic finalized product is available. Therefore, the industry generally regards products approved through the special review procedure for innovative medical devices as 'innovative medical devices'. 2018 year 11 month 5 On the same day, the National Medical Products Administration revised and issued the "Special Review Procedures for Innovative Medical Devices," further refining the applicable circumstances for "innovative devices." It is pointed out that this includes the applicant having legally owned the core technology invention patent of the product in China, and the time for applying for innovative review shall not exceed the date of patent authorization. 5 In [year], the core technology invention patent possesses novelty and creativity; the main working principle and mechanism of the product are domestically original, with significant clinical value, etc. The person in charge of the marketing department mentioned that, 'Innovation device companies currently have an advantage over their competitors in the domestic market, but they still need time to settle in. These companies are entering new fields with a late start and high industry technical barriers in China, where the market has long been firmly held by established foreign brands. Coupled with patent restrictions, it takes some time for domestic companies to achieve a commercial closed loop.' Against this backdrop, the National Healthcare Security Administration has started from practical considerations and this year 9 The released "On the Fifth Session of the 13th National People's Congress 4955 In the 'Reply to the Proposal', it was clearly stated for the first time that innovative medical devices are not yet included in centralized procurement. The National Healthcare Security Administration pointed out that due to the immaturity of clinical use and the temporary difficulty in estimating usage, it is still difficult to implement volume-based methods. During the centralized volume-based procurement process, the National Healthcare Security Administration will reasonably determine the volume ratio based on factors such as clinical usage characteristics, market competition patterns, and the number of winning enterprises. A certain market space is reserved outside of centralized volume-based procurement to provide room for innovative products to develop their market. In fact, the 'first move' in medical device centralized procurement was made with coronary stents, which is also the category of consumables with the highest penetration rate in China. According to a Frost & Sullivan report, 2019 In China, the number of coronary intervention surgeries reached 108 10,000,000, and in the same year, WHO statistics showed that the total number of coronary heart disease patients in China was approximately 187 ten thousand. " Regarding this, Li Qian analyzed, 'The centralized procurement follows the development cycle and phased changes of medical devices, focusing on including products with high clinical usage and full market competition into the procurement scope. The temporary non-centralized procurement of innovative devices reflects the country's strong encouragement for technological innovation in the medical field. This will reserve a certain development space for innovative device R&D enterprises, enhance their confidence in R&D, focus on innovative technology development, optimize their product lines, strengthen market access and commercialization capabilities. At the same time, centralized procurement will also lead to an increase in market concentration and promote the market towards innovation.' Taking the surgical robot track in innovative devices as an example, in terms of market deployment, among the top ten companies ranked by sales volume, domestic products... 23688.57 Ten thousand yuan, proportion 14.6% ;Sales volume of foreign brand products 138540.06 Ten thousand yuan, proportion 85.5% Data from the Medical Device Data Cloud shows that from 2021 In terms of the market share of surgical robots in 2023, iRobot, a subsidiary of Compassion Robotics, 67.52% Ranked first, its varieties cover endoscopy, neurology, and orthopedics, while Chinese enterprises are only visible in orthopedics and dentistry. "Temporary centralized procurement has helped enterprises secure sufficient development time. Domestic companies are still in the shaping phase, so costs are relatively high in all aspects for the short term. In the future, as domestic companies continue to mature, our local advantages will gradually increase, but it takes time to accumulate," said the head of the marketing department mentioned above.   * This article is reprinted from China Times.   Reporters: Guo Yilin, Yu Na   Original title:    Innovative medical devices are not included in centralized procurement for now. How much room is left for innovation under the 'one product, one policy'?    ">

9 month 28 day    paragraph 16 Global Growth, Innovation and Leadership Summit 2023 & Frost & Sullivan Biotechnology Investment Sub-forum    The Shanghai International Convention Center successfully concluded its operations, Sharley    Dr. Wang Xin, Partner at WEN Global and President of Greater China, delivered a welcome speech at the conference.   Live video     The following are the key points of Dr. Wang Xin's speech: With the intensification of aging, the healthcare industry faces both challenges and opportunities. According to the data, as of 2021 At the end of the year, nationwide 60 The elderly population aged 60 and above reached 2.67 Yi, accounting for the total population 18.9% ; 65 The elderly population aged 60 and above reached 2 More than 100 million, accounting for the total population 14.2% According to United Nations standards, 65 The proportion of people over [age] exceeds 14% , it is already a society in deep aging. As China enters an aging society, the number of elderly chronic disease patients is also increasing year by year, posing a huge challenge to the development of China's healthcare industry. However, challenges and opportunities coexist, and the future prospects for the healthcare industry are broad. The digital and intelligent transformation of industries is the direction to be determined. The new generation has seen black swans and grey rhinos becoming the norm, with investment logic breaking down in search of new patterns. Dataization and intelligence will be certain investment opportunities in China's next decade. Industrial digitization has become the best response practice for China, and the healthcare industry is no exception. With the gradual improvement of public health and medical information system construction in China, the healthcare industry is undergoing a development transformation from medical informatization to medical service digitization and then to medical intelligence, ultimately aiming to establish a value-oriented healthcare system. The development of biotech companies cannot do without capital support.   Over the past decade-plus, the development of Chinese biotech companies has essentially been like crossing a river by feeling for the stones. The rapid market explosion started with 2018 Released by the Hong Kong Stock Exchange 18A chapter, in Biotech Enterprise as an example, 18 Second half of the year 21 First half of the year Biotech Companies conduct intensive operations IPO listing However, a more rough estimate can better explain the current situation faced by biotech companies in the capital market: one Biotech It takes an average of two years for a company to go from listing on the Hong Kong Stock Exchange to the launch of its first product; it takes an average of 3 - 5 year; currently exceeds 80% of Biotech Listed companies are still in a state of loss. In other words, a large number of listed and pre-listed companies still have a long way to go before becoming giants in biotechnology.     Capital investment is an indispensable and important factor in driving the growth of biotech companies, and it is crucial for promoting research and development and accelerating business success in the life sciences industry. since 2022 Since the first half of the year, there have been certain fluctuations in global and Chinese capital markets. As of 2022 year 8 month 30 day 32 Hong Kong stocks 18A Among unprofitable biopharmaceutical companies 25 The company released its semi-annual report, according to 2022 The level of 'three expenses' disclosed in the interim report, as well as the total amount of cash and cash equivalents currently held by the enterprise 25 There may be 10 Enterprises cannot sustain 2 year, but also 5 Enterprises can maintain 5 For more than a year. Some companies have even had to consider shutting down some promising pipelines and even selling off their core products. According to Frost & Sullivan ( shenzhen ) Cloud technology data shows, 2022 Looking at the data on price changes from the lowest price this year to now, biotech -B Overall increase of about 34.54% , increase or decrease in price Top 15 The overall enterprise price rose by about 54.83% The rebound strength is acceptable; looking at the cumulative rise and fall data since listing, biotech -B Overall decline 37.33% Increase Top 15 The overall stock market fell 28.4% The biotechnology industry has indeed seen some market capitalization consolidation, and overly high market cap values are under pressure for adjustment. Facing the capital winter, the common 'uncertainty' in the capital market, and the inevitable cyclical nature of the industry, if one wants to find more certain investment opportunities in the biopharmaceutical field, it is necessary to conduct long-term and continuous in-depth research on technological trends, policy changes, and industry dynamics in the biotechnology sector. Only by doing so can one keenly capture market fluctuations and provide profound insights for partners. TIM ——New investment concepts and methodologies   In the face of the current market environment and challenges, new investments will become the development direction for biotech companies' investment and financing.   According to the report of the National Bureau of Statistics, last year China's total R&D investment was 2.8 trillion yuan, accounting for GDP recent 2.5% It firmly ranks as the world's second-largest spender on research and development funding. According to reports from the World Intellectual Property Organization, whether it is the global innovation index or the intensity of R&D expenditure, China has ranked globally as 12 , 13 The name exceeds that of innovative countries such as France and the Netherlands. With the country's high emphasis on innovation and technology, there is enormous long-term growth potential and investment opportunity for Chinese science and technology innovation enterprises. Frost & Sullivan, together with representatives from all sectors, has launched a three-dimensional, multi-dimensional spatial point cloud-based service system - TIM （ Total Investment Management ), namely 'All-region Investment Management', is different from the classic investment model of 'fundraising, investment, management, and exit' in the past. All-region Investment Management is committed to creating an ecological service system covering the entire life cycle and industrial chain of enterprises. It integrates a series of service capabilities through internalization and linkage within the system, including enterprise management, regulatory communication, industry development trend analysis, market and strategic planning, brand value empowerment, etc., to provide enterprises with better investment management services in all aspects. In order to fully tap into the growth potential of biotech companies and accelerate their growth rate, Frost & Sullivan has specially invited professionals from various institutions including industry, academia, research, and investment sectors. It is hoped that through joint efforts with all sectors of society, collaborative cooperation can be achieved. Adhering to the concept of 'many hands make light work', we aim to achieve high-level synergy among all stakeholders, providing integrated service solutions for corporate development.   Together, we aim to create an upgraded version of the classic investment model of "fund raising, investment management, and asset disposal". Frost & Sullivan and LeadLeo have nearly 500 The human analyst team at Frost & Sullivan has long been committed to in-depth industry and corporate original research. Frost & Sullivan has a global presence of over 60 The industry's most comprehensive database accumulated over the years is included in the reports of LeadLeo, one of the world's largest financial market data and infrastructure providers, with precise access. 190 country 4 More than 10,000 institutions, 40 For users of the Ten-thousand-Dollar Professional Finance platform, seamless integration is available, building a bridge between both the supply and demand sides of investment and financing. I believe that by working together, each fulfilling their role, we can meticulously craft and long-term implement pan-region investment management to help biotech companies achieve growth. By empowering the transformation and upgrading of the biotech industry through innovation and technology, we can cultivate leading Chinese entrepreneurs and ultimately promote the economic and social development of China.   LeadLeo —— Making professionalism even more professional   LeadLeo Information Technology Nanjing Co., Ltd., abbreviated as 'LeadLeo' in Chinese, is the abbreviation for 'Investment Report'.    was officially established 2018 In [year], it was a leading domestic research project on industry and enterprises    Original content platform and provider of innovative professional knowledge and research services.   LeadLeo creates “ ABCK "Innovating business models", A "Use it    AI Empowered by AI algorithms    Knowledge Management and Research Assistance SaaS system,    Intelligent content creation assistance reduces analysts' time costs.    Significantly improve efficiency and quality; “ B "that is,"    Big Data , leveraging big data    A database of research elements for millions of enterprises;    " C "that is,"    Blockchain Using blockchain technology and solid data traceability,    Build Data IP address Ensure originality, accuracy, and authenticity; “ K "that is,"    KaaS, Knowledge is a service. Empowering the government with knowledge, so that    Knowledge revitalizes industries, and knowledge empowers enterprises.   LeadLeo Education, based on basic research methods and industry analysis systems, combines practical experience in finance, investment, consulting, and other fields to create LeadLeo Classroom ™s online video courses.    LeadLeo's research and analysis training, including practical courses for analysts at all levels, with three progressive stages. It integrates with LeadLeo's intelligent research assistance system.    Help students at different levels and backgrounds improve their research skills effectively. rise.   LeadLeo Education hopes to help more graduates and job seekers acquire the foundational skills needed to enter the workplace through research skills training, thereby enhancing their overall competitiveness and enabling them to enter finance,    In industries such as investment and consulting, it empowers national pre-employment education and innovation and entrepreneurship, continuously supplying high-quality research talents to the business community.   This year, the number of fresh university graduates in our country has exceeded one million for the first time, setting new records in both scale and increment. Moreover, amidst the 'mass entrepreneurship and innovation' craze, more and more college students are engaging in entrepreneurial practices. However, they also face issues such as financing difficulties, lack of experience, and inadequate services. They need professional institutions to facilitate their career selection, employment, entrepreneurship, and innovation. since 2021 Since the second half of last year, LeadLeo Education has joined hands with Frost & Sullivan to successively establish partnerships with Fudan University School of Management, Shanghai Jiao Tong University Advanced Finance Institute, Wenzhou University, Sichuan University, and Shanghai Luson Hotel Management.   The college has carried out cooperation with other institutions and received unanimous praise from students participating in the university courses. Frost & Sullivan—— Growth Sci-tech innovation Leadership   Achieving growth is the top priority for corporate development, while innovation and entrepreneurship are the core driving forces. Becoming a market leader is a lofty goal for companies to ensure their long-term sustainability. 'New investments' refer to those made in companies that have already achieved or are expected to demonstrate growth, innovation, and leadership in the future.    The Frost & Sullivan Summit integrates professional resources, a pool of high-quality targets, capital pools, and expert teams in growth and technology innovation. It deeply empowers practitioners of 'new investment', helping enterprises achieve growth, enabling industrial transformation and upgrading through technology innovation, cultivating leading Chinese entrepreneurs, and ultimately promoting China's economic and social development. The Frost & Sullivan Summit is attended by more than 20 Countries and regions, with nearly 30 With its 10-year history of hosting, it has successfully attracted the world 1000 Strong participation from leading companies, top domestic and international investment institutions, and other leading enterprises helps them identify opportunities, accelerate growth, innovate continuously, and gain a leadership position in an increasingly complex and dynamic world. The Frost & Sullivan Summit has been held since 2008 Since its inception in China last year, the event has successfully held sixteen sessions domestically. It has become an important platform for outstanding domestic enterprises, academic institutions, investment experts, and regulatory authorities to exchange successful experiences and jointly explore development directions. It is also an important window for the world to understand China's most cutting-edge development trends. Frost & Sullivan can assist enterprises in writing in-depth articles and industry whitepapers, as well as conducting multi-channel dissemination. For example, it was established last year 60 On the occasion of its 10th anniversary, Frost & Sullivan has released a series of significant research findings, including the globally published 'Leading Global Growth 60 'Technology Leadership in China', 'Global Technology and Application Trends: A Forward-looking Perspective', and the report 'China's Future' jointly released by Frost & Sullivan China and LeadLeo Research Institute 50 White Paper on Industry Trends for 2021'; another example is the 'Hong Kong Stock Market 18A The 'Biotech Tech Companies Issue Investment Prospectus' is a thematic and panoramic investment report that covers all aspects of the listed healthcare activities in Hong Kong, especially 18A The chapter on listed companies' listing and (subsequent financing) has made a systematic summary, which has received an excellent response within the industry. since 2018 Since the beginning of this year, Frost & Sullivan has also successively released multiple white papers covering the biotechnology sector, including cell and gene therapies, oncolytic viruses, ophthalmic treatment drugs, etc. This has enabled them to deeply participate in the research and promotion of various sub-industries, providing important reference perspectives for market investors. In the future, Frost & Sullivan looks forward to collaborating with you to delve into new trends in biotech investment and financing, identify cutting-edge investment opportunities, and explore the successful paths of biotech companies in the capital market.

10 In early October, Kingsoft Software 3888.HK ) disclosed an 'Insider Information Announcement' stating that due to the sluggish stock price of Kingsoft Cloud and recent financial performance, the company will make provisions for impairment on its investment in Kingsoft Cloud. Although the specific amount has not been determined, it is recommended that the pre-tax provision amount be approximately RMB 56 Yuan to 65 100 million yuan.   As a result, there has been much discussion about the current survival status of cloud service providers. What is the future for small and medium-sized cloud service providers? How will the competitive landscape among the top three cloud service companies evolve? Will operators emerge as the new leaders and replace the top three in the industry? What other changes will occur in the Chinese cloud service market? Frost & Sullivan Frost & Sullivan Li Qing, Director of Frost & Sullivan Greater China, was interviewed by Economic Observer to discuss the above topics. Economic Observer What's going on with cloud service providers? 10 In early October, Kingsoft ( 3888.HK ) disclosed an 'Insider Information Announcement' stating that due to the sluggish stock price of Kingsoft Cloud and recent financial performance, the company will make provisions for impairment on its investment in Kingsoft Cloud. Although the specific amount has not been determined, it is recommended that the pre-tax provision amount be approximately RMB 56 Yuan to 65 100 million yuan. According to our reporter's understanding, Kingsoft Software is the largest shareholder of Kingsoft Cloud, and Kingsoft Cloud was established in 2020 year 5 The company is listed on NASDAQ and is the first independent cloud service provider in China to go public on the US stock market, with a market value of 2021 It was close at the beginning of the year 150 billion dollars. 10 month 20 Today, the latest market value of Kingsoft Cloud has fallen to 5.74 billion dollars. " Industry growth rate has slowed significantly For a moment, there were many discussions about the current survival status of cloud service providers. Some believe that the Matthew effect in the cloud service industry is too pronounced, and the living space for small and medium-sized service providers will be further compressed. However, it is worth noting that Kingsoft Cloud is not an obscure small provider.   According to the report from Frost & Sullivan, 2021 In [year], Kingsoft Cloud ranked fourth in revenue among Chinese cloud service providers. Some are also concerned about the financial condition of cloud service providers. Currently, among Chinese cloud service providers, only Alibaba's cloud business has announced profitability. As for Kingsoft Cloud, 2021 Ninghua Jinshan Cloud incurred losses 15.91 yuan, 2022 Loss in the first quarter of the year 5.54 yuan, 2021 year and 2022 The loss amounts in the first quarter of each year expanded year-on-year. If time could be rewound a few years ago, cloud services were in high demand. Since 2018 Since the beginning of this year, China has replaced the EU as the world's second-largest cloud service market after the US. To this day, some industry insiders still remember 2019 Around 2014, the Chinese cloud service market was in full swing: 'Everyone rushed in and took over the business, vying for government contracts that could bring in many vendors as general contractors.' At that time, leading companies in the industry were actively investing in building data centers domestically, with an investment in a single data center often reaching hundreds of billions. Of course, cloud services have their promising aspects. The digital wave sweeping across the globe is almost irreversible, compared to traditional IT The model of cloud computing allows users to quickly and conveniently access a configurable pool of computing resources through online interaction with cloud service providers. Users can retrieve various resources such as computing, storage, and applications as needed and pay by usage. This makes the cloud service model economical, agile, and scalable. There are mainly three models of cloud services: IaaS (IaaS), PaaS (PaaS), SaaS (Software as a Service). From IaaS reach PaaS then to SaaS , the burden that users need to bear IT Work is getting easier and easier. However, currently, the growth rate of the cloud service market is slowing down significantly.   According to a report by Frost & Sullivan, 2018 In the year, revenue of China's cloud service market increased by approximately 44% , 2019 Year-end 2021 The growth rate for the year fell at 33% till 37% interval. Leading companies in the industry have long been aware of these changes and are 'shifting gears forward'. Alibaba 9988.HK The latest quarterly report shows that as of 2022 year 6 month 30 day 3 Within the month, the revenue of the cloud business segment was 176.85 Yuan billion (Alibaba Cloud's cloud business division consists of Alibaba Cloud and DingTalk), a year-on-year increase only 10% far lower than 2021 Same period of the previous year 29% , 2020 Same period of the previous year 59% growth rate. Alibaba introduced that the revenue growth of its cloud business division was mainly driven by non-internet industries such as finance, public services, and telecommunications. An important reason for the significant slowdown in revenue growth at the Alibaba Cloud business division is that ByteDance has gradually stopped using Alibaba's overseas cloud services in international operations. At the same time, cloud revenue from the online education industry has decreased, as well as reduced customer demand in other internet sectors. Tencent Holdings 0700.HK ) which dates back even earlier 2021 In the annual report, when introducing cloud services, it is stated that priority can be given to expansion SaaS The scale of the business, but without pursuing significant revenue growth, IaaS and PaaS It is necessary to reset the focus on development, shifting from simply pursuing income growth to creating value for customers and achieving high-quality development. An industry insider told the Economic Observer reporter that in the past two or three years, what he has heard enterprises in the industry talk about most is the pursuit of business health, which is different from the aggressive expansion before the COVID-19 pandemic. In addition, the emergence of the 'National Cloud' concept has added uncertainty to the competitive landscape of the cloud service market. 2021 In 2021, despite the slowdown in growth rates of Alibaba Cloud and Tencent Cloud businesses, China Telecom's Tianyi Cloud and China Mobile's MEC (Mobile Enterprise Cloud) revenues doubled directly. So, as the wave of cloud computing develops to its current state, what will be the future for small and medium-sized cloud service providers? How will the competitive landscape among the top three cloud service providers evolve? Will operators' clouds catch up and replace the top three in the industry? What other changes will occur in the Chinese cloud service market? " The Future of SMBs The drag on Jinshan Software's profits by the stock price and financial performance of Kingsoft Cloud has directly triggered an external review of the prospects of small and medium-sized cloud service providers. However, in fact, the current industry concentration in the cloud service market is not low.   According to the report from Frost & Sullivan, 2021 Among Chinese cloud service providers in 2023, Alibaba ranked first (market share of 24.7% ), the second is Tencent (market share is 11.1% ), third is Huawei (market share of 6.9% ), the fourth is Kingsoft Cloud (market share is 3.1% ), fifth is China Telecom (market share is 3.0% ), the market share of the top five enterprises is nearly 49% Among the top five, some only provide IaaS and PaaS Services, such as Huawei, some provide all three service modes, while others like Tencent do so.   And where heavy capital investment is required IaaS Layers, with a higher industry concentration. IDC The report shows, 2021 In the first half of the year, China's public cloud IaaS The market share of the top five manufacturers in the market has reached 77% . Jinshan Cloud was established in 2012 year, 2020 In previous years, it once ranked among the top three public cloud internet service providers in China. Although its market share has been eroded to some extent, its revenue has been growing. Jinshan Cloud's financial data shows that 2021 In the year, its revenue increased by [X]% year-on-year 37.9% , 2022 Year-on-year growth in the first quarter was nearly 20%. Judging from the stock price trend of Kingsoft Cloud, 2021 year 2 Month is almost a watershed, 2020 year 5 Monthly listing to 2021 year 2 In January, the market value climbed, but then it tumbled all the way down. Li Qing, director of Frost & Sullivan, analyzed to our reporter that the decline in Jinshan Cloud's stock price is due to performance reasons. Jinshan Cloud is particularly adept at the internet sector, where businesses naturally thrive on networked environments. Moving to the cloud or transitioning from one cloud to another tends to be more consistent with non-internet businesses, which was also a reason for the rapid growth of the cloud computing market in these areas at the beginning. The strong entry of JD.com and ByteDance in recent years has also brought significant changes to the cloud market landscape. In the past two years, the industry growth rate of internet cloud services has slowed down. However, the decline in Jinshan Cloud's stock price is largely related to the impact on Chinese concept stocks in the US stock market, in addition to business factors. Several industry insiders also told reporters that the situation of Kingsoft Cloud does not mean that small and medium-sized cloud service providers will lose their space for survival. 'Small and medium-sized cloud service providers can target areas with strong customization attributes, such as niche industry clouds,' said Gu Huangliang, General Manager of the Security Operation and Maintenance Department at Suning Consumer Finance. Internet observer Guo Tao also suggested that small and medium-sized cloud service providers delve into vertical industries or scenarios to form differentiated competitive advantages, such as choosing emerging vertical fields like the metaverse and connected vehicles. Others from leading cloud service providers in the industry believe that the key to survival for small and medium-sized cloud service providers is to establish their own core capabilities. They told reporters that in the early years, leading cloud service providers were keen on becoming general contractors for projects. After securing large orders with their brand recognition and financial strength, they would subcontract some tasks away. However, the completion results of outsourced vendors often fell short of expectations, ultimately leaving the general contractors bearing the burden. This has led to a decline in some leading vendors' enthusiasm for becoming general contractors. To change this situation, small vendors need to cultivate their internal strength. "As long as small manufacturers can excel in a certain module, they can still find their place in outsourcing projects even if they don't receive large-scale projects," the person said. "   Li Qing pointed out to reporters, 'If you simply sell infrastructure resources, it's indeed difficult for small manufacturers. However, if they can develop cloud applications to solve practical problems, small manufacturers still have the potential for growth in niche markets.' She believes that compared to IaaS Layering, where cloud service providers build distinctive cloud products around applications in niche areas or industries, makes it easier to establish their competitive advantage. " Top three enterprises in the industry PK The competitive landscape among the top three providers in the cloud service industry, namely Alibaba, Tencent, and Huawei, has always been a topic of interest to the public. In terms of service mode selection, the three vendors vary. 10 month 11 On the same day, Huawei Cloud made it clear to an Economic Observer reporter that Huawei Cloud does not SaaS focus IaaS and PaaS , helping enterprises and customers quickly build SaaS Application, acceleration SaaS Development has entered a golden decade. Don't SaaS Huawei Cloud and SaaS The manufacturer and the partner have a cooperative symbiotic relationship. 2021 year 5 In Huawei Cloud's ecosystem summit in October, “Huawei Cloud Starlight Program 2021 Action ”Launch. Huawei Cloud's initiative this time will be joined by the first batch 50 home SaaS Partners, jointly expand the industry market. Enterprise SaaS Headquartered in China, Kingdee International is a leading provider of cloud ERP solutions. 0268.HK ) is one of them SaaS partner. In fact, Kingdee International provides SaaS services, as well as provision PaaS Services, which have a close relationship with Huawei, this year 5 In [month], Kingdee International launched a human resource solution for large and super-large enterprises. SaaS Cloud integrates Huawei's practices in human resource management. As for Kingdee International, which serves a large number of enterprises, to meet the needs of different enterprise clients, Kingdee International IaaS In addition to collaborating with Huawei, the company has also partnered with vendors such as Tencent, Alibaba, and Kingsoft Cloud. Alibaba's cloud services are also given priority. IaaS and PaaS mode. 2019 year 3 In a recent Alibaba Cloud Summit, Zhang Jianfeng, President of Intelligent Cloud at Alibaba Cloud, said, "Alibaba Cloud doesn't do it itself SaaS , so that everyone can do better SaaS "However, 2019 year 6 In January, DingTalk, which has been around for about five years but has not gained much traction, joined Alibaba Cloud's Intelligent Business Group. Since then, Alibaba's cloud services have included both Alibaba Cloud and DingTalk, kicking off the prelude to Alibaba's "cloud-ding integration" strategy. In the eyes of school teachers, students, and enterprise employees who started using DingTalk frequently after the epidemic, DingTalk is a SaaS Application, just download and install to use. However, Alibaba is adding DingTalk PaaS base color, 2021 year 1 In [month], DingTalk released a new version, announcing the evolution from a collaboration platform to a dual-platform for collaboration and application development. In Alibaba Cloud's intelligent system, DingTalk can be connected downstream IT Infrastructure, connecting to applications PaaS Role establishment. Tencent's cloud business has chosen IaaS , PaaS and SaaS Model. In the eyes of industry insiders, this is very easy to understand. Tencent relies on QQ Starting from scratch, dominating the social media app industry with WeChat QQ Both WeChat and Tencent are software products, considered applications. Tencent has a strong background in developing software and applications, and is familiar with the business models of software. People close to Tencent told this reporter that Tencent now attaches great importance to SaaS service. IaaS Services are a business with heavy asset investment and an area that Tencent was not very familiar with in the past. Most of Tencent's previous businesses relied on human resource input (behind which technology investment can also be seen as human resource expenditure), rather than fixed asset investment. Businesses that rely on human resources can be adjusted flexibly. For example, if the market cools down, personnel can be laid off, but once a data center is built, it is difficult to make adjustments. Moreover IT Infrastructure is already a relatively mature industry, and it is difficult for manufacturers to make significant differentiation among themselves. However, the person also pointed out that currently SaaS In the service domain, there are two major problems that need to be solved urgently. One is that users' willingness to pay is not very strong, and the other is that it is difficult to find standardized application scenarios that can be widely promoted and replicated. In non-internet industries, Tencent Cloud's business is currently focusing on identifying opportunities in the energy and manufacturing sectors. The energy sector is relatively more standardized, while the manufacturing sector is more complex. However, Tencent Cloud has an advantage in having many business scenarios. In individual production links, it is expected to achieve standardization and find large application scenarios, for example. AI Quality inspection. 2021 year,   Both Alibaba and Tencent's cloud businesses have been affected by the reduction in customer demand in the internet industry. A major impact on Alibaba has been the gradual discontinuation of ByteDance's international business from using Alibaba's overseas cloud services, as well as a significant decline in online education demand due to the 'Double Reduction' policy. For Tencent, in addition to the cooling of online education, its most lucrative gaming industry has also encountered difficulties due to issues with game licenses. 2018 In [year], China saw the first suspension of game publishing licenses, which lasted for as long as 8 After that month, although distribution resumed, the monthly amount issued decreased significantly. 2021 year 8 In January, the game's publishing license was suspended. 2022 year 4 Reissue after a month. In contrast, 2021 In [year], Huawei Cloud's revenue growth rate was quite good, with a year-on-year increase of more than 30% although 2021 In FY2021, Huawei Cloud's revenue was still lower than Tencent Cloud's, but IDC The data shows, 2021 In the first half of the year, China's public cloud IaaS In the market, Huawei Cloud has overtaken Tencent Cloud with a narrow margin to become the second-largest provider. The market share of Alibaba Cloud is 38.6% Huawei Cloud is 11.2% , Tencent Cloud is 11.1% . " Li Qing pointed out to our reporter: 'In recent years, the speed of cloud adoption in government affairs has accelerated, and Huawei has more experience in serving government and large enterprise clients.' The aforementioned person close to Tencent told this reporter that the customer base has a relatively clear understanding of the advantages of the top three companies in the industry. For example, Alibaba's cloud services are favored by e-commerce customers, and its database capabilities are also outstanding. IDC Report, Alibaba Cloud 2021 China ranked first in the relational database market in China for [X] consecutive years. 3 Has ranked first in the public cloud market for consecutive years. And Tencent's C2B Tencent has a strong capability and is the preferred choice for those looking to build links, especially those that integrate with the WeChat ecosystem. Additionally, as the largest game developer in China and owner of Tencent Video, Tencent's cloud services are favored by the video and gaming industries. Huawei Cloud's team also has strong business capabilities and excels at dealing with the government. " Opportunities in operator cloud? A few years ago, internet cloud services often attracted the most attention, with both Alibaba and Kingsoft Cloud having disclosed in their annual reports that cloud service revenue had grown by more than 50% The good times are here, however, the biggest threat to the top three companies in the industry in recent years has not come from within the internet cloud, but from operator clouds. China Telecom 601728.SH ) disclosed in the performance report, 2022 In the first half of the year, the revenue of Tianyi Cloud reached Renminbi 281 Yuan, a year-on-year increase 100.8% . 2021 In [year], the revenue of Tianyi Cloud reached RMB 279 Yuan billion, doubling the amount. 2022 In the first three quarters of the year, Tianyi Cloud's revenue continued to double. Since 2020 After securing the top spot in the public cloud market for government affairs in China in 2019, China Telecom has maintained this position to date. China Mobile 600941.SH ) shall be disclosed in the performance report, 2022 In the first half of the year, we signed more than 3500 One, driving revenue exceeds 130 Yuan, with central and state-owned enterprises exceeding 1100 one. 2021 In [year], China Mobile's industry cloud revenue reached RMB 192 Yuan, a year-on-year increase 109.6% , self-developed IaaS , PaaS , SaaS product exceeds 230 model, introduce cooperation SaaS product exceeds 2700 model "   In Li Qing's view, 'the main battlefield for domestic cloud services will be operator clouds in the future,' while Alibaba, Tencent, and Huawei's cloud businesses' main battlefield will be overseas. Li Qing believes that there are several situations that support her making this prediction. First, the cloud market in retail and internet industries has been fully exploited. 2021 In the coming years, government cloud and financial cloud will be the main market drivers. Operators with a central enterprise background have an advantage over private enterprises when securing government contracts due to their background; secondly, enterprises need capital support for digital transformation, and state-owned enterprises have stronger financial strength, as well as policy support and fiscal subsidies, making them more likely to prioritize operator clouds; thirdly, distributed clouds will become more popular in the future, as users always prefer nodes closer to them. Operators naturally have an advantage in this area, capable of deploying or optimizing on existing widely distributed network facilities; fourthly, cloud computing is ultimately a resource, and it is a very important one. It is not difficult to understand why the government hopes to control cloud computing in its own hands. Li Qing saw that the construction of 'National Cloud' has gradually begun to take effect. 2022 year 7 In the month, the State-owned Assets Supervision and Administration Commission of the State Council held a promotion meeting for central enterprises to deepen specialized integration. The meeting mentioned that China Telecom will introduce strategic investors from multiple central enterprises to build an 'National Cloud' company. 2022 year 7 In January, at the 5th Digital China Construction Summit, the country's first state-owned asset supervision cloud service was officially launched. Led by China Telecom and participated in by multiple central enterprises such as CETC and Electronics Corporation of China, it is backed by significant support from the Chinese government. Li Qing pointed out that in the future, operators' cloud becoming a leader in the domestic cloud service market does not mean that internet cloud has no market. In terms of application product development and iteration, technological innovation, and diversified services with deep market penetration, internet cloud still has its advantages. However, in this round of interviews conducted by our reporter, some respondents held different views from Li Qing. For example, Guo Tao believes that the starting point of the 'National Cloud' represented by China Telecom is to solve the security and compliance issues of data migration to the cloud during the digital transformation of central state-owned enterprises. Although it may capture a portion of these customers, it will not fundamentally threaten the market positions of Alibaba, Huawei, and Tencent Cloud services. At present, the top three companies may need to consider the challenge that the existing market space for cloud migration and use in the internet industry is shrinking. 2022 year 4 month to 6 In the month, the proportion of Alibaba's cloud business revenue from non-internet industries reached 53% For the first time, it exceeded the proportion from the Internet industry. In addition, in the US cloud service market, from SaaS The service has a high revenue proportion, coming from IaaS The proportion of service revenue is low, but in contrast, Frost & Sullivan's report shows that in the Chinese public cloud industry, from IaaS The revenue proportion from service mode is the highest. 2021 In the year, in the Chinese public cloud market, IaaS The proportion of service revenue is 61.3% , SaaS The revenue proportion of the service is 26% . In the early days of cloud services, industry participants often could not launch highly competitive applications and were even confused about the applicable use cases for cloud services. It was normal to build infrastructure first, but in the future, it is necessary to enhance application-layer capabilities. " Li Qing believes that the current involutionary and nanny-style business model of cloud services in China may affect the healthy development of the industry. 'Cloud products should be highly standardized, similar to leading foreign manufacturers.' AWS Their cloud has achieved extreme standardization and modularization, enabling agile deployment and application for customers across various industries. However, currently, many industries in China still require a large amount of manpower for on-site operation and maintenance when adopting the cloud. Additionally, gray market competition and price wars among vendors can make the market overly dependent on services rather than products, hindering the development of cloud-based products. Meanwhile, Chinese enterprises IT team, IT The capabilities are not strong enough, and there is a significant reliance on the cloud vendor's direct services. To some extent, this also exacerbates the situation where cloud market competition overly focuses on services rather than products, which needs to change. The cloud service market in China is on the rise, and it's still uncertain who will succeed or fail.   * This article is reprinted from Economic Observer.   Reporter: Li Huaqing   Original title:    The cloud service market is undergoing 'silent but significant changes'    ">

9 month 27 day -28 Today, Frost & Sullivan Frost & Sullivan Co-hosted by Frost & Sullivan, LeadLeo and Lianyuan Media Group, with the participation of Tencent Cloud 2022 The 1st New Investment Expo and the 16th Frost & Sullivan Global Growth, Innovation and Leadership ( GIL The Summit (hereinafter referred to as the 'Conference') grandly opened at the Shanghai International Convention Center.    Dr. Wang Xin, Global Partner and President of Frost & Sullivan Greater China, delivered a speech at the conference.   Live video   The full text of Dr. Wang Xin's speech is as follows:   Distinguished leaders, guests, media friends, and online viewers,    Hello everyone!     First of all, on behalf of the event organizers Frost & Sullivan and co-organizers LeadLeo, I would like to express my heartfelt gratitude and warm welcome to all of you!   New investment is a brand-new investment concept and methodology "New investment" is a brand-new concept and methodology of investing. In the past, "fundraising, investment management, and exit" was the classic investment model. With the reform and upgrading of the capital market and the intensification of competition in the primary market in recent years, investment institutions have become more urgent about early judgment of opportunities and the exploration of targets in the earlier upstream stages. According to the report of the National Bureau of Statistics, last year China's total R&D investment was 2.8 trillion yuan, accounting for GDP recent 2.5% It firmly ranks as the world's second-largest spender on research and development funding. According to reports from the World Intellectual Property Organization, whether it is the global innovation index or the intensity of R&D expenditure, China has ranked globally as 12 , 13 Ranked ahead of innovative countries such as France and the Netherlands. Although China's innovation-driven development momentum has strengthened and new progress has been made in building an innovative country over the past decade, there is still room for further improvement in terms of the 'magnitude' rather than 'strength' of China's investment in science and technology. 15 Most large enterprises are high-tech companies, and China's high-tech sector has not yet fully entered the ranks of the highest market value companies, with room for further improvement. The state places great emphasis on innovation and technology.   The long-term growth potential and investment opportunities for Chinese technology innovation enterprises are enormous.   To fully tap the growth potential of science and technology innovation enterprises and accelerate their growth rate, it requires the joint efforts and collaboration of all sectors of society.   Especially, the support from the capital market is crucial to jointly creating an upgraded version of the classic investment model of 'fund raising, investment management, and exit'. New Investment is a three-dimensional, multi-dimensional spatial point matrix service system For this reason, we have specially invited professionals from various institutions including industry, academia, research, and investment to establish the Frost & Sullivan & LeadLeo Science and Technology Innovation Expert Committee. "Many hands make light work," and all stakeholders collaborate highly to provide integrated service solutions for enterprise development. We believe that by working together hand in hand, each fulfilling their duties, we can meticulously craft and long-term practice pan-region investment management, benefiting all stakeholders and contributing to the country's innovative development. New investments shoulder the mission of 'three empowersess'     Frost & Sullivan, in collaboration with its partners, adds value to corporate capital operations with professional knowledge, fuels industry transformation and upgrading, and provides services for national economic development. As of the end of last year, the number of small, medium and micro enterprises across the country reached 4,800 Ten thousand households, compared 2012 Year-end growth 2.7 times, accounting for more than 95% , absorbing more than 80% create GDP exceed 70% However, during the rapid development phase, most startups do not possess a relatively mature business plan or direction of development, and their understanding of policies and industries is relatively superficial. Especially in the first two years of entrepreneurship, which are critical for growth, risks are higher and need to be guarded against. This year, the number of fresh university graduates in our country exceeded one million for the first time, setting new historical highs both in scale and increment. Moreover, amidst the 'mass entrepreneurship and innovation' craze, more and more college students are engaging in entrepreneurial practices. However, they also face issues such as financing difficulties, lack of experience, and inadequate services. They similarly need professional institutions to facilitate their career selection, employment, entrepreneurship, and innovation. At the same time, in the face of an uncertain environment, investment institutions need to accurately assess global trends and national policies to find more certain investment opportunities, as well as have a profound understanding of 'good industries' and 'good enterprises'.   "New Investments" is committed to empowering the unmet needs of enterprises, industries, and society through the aforementioned initiatives.   Frost & Sullivan has more than 60 Accumulated industry-wide databases over the years. Frost & Sullivan and LeadLeo have nearly 500 The human analyst team at LeadLeo has long been committed to in-depth industry and corporate original research. The LeadLeo reports are included by one of the world's largest financial market data and infrastructure providers, Refinitiv. The LeadLeo reports can be accessed accurately. 190 country 4 More than 10,000 institutions, 40 For users of the Ten-thousand-Dollar Professional Finance platform, seamless integration is available, building a bridge between both the supply and demand sides of investment and financing. Frost & Sullivan' 60 We have been committed to capital market services for many years and understand quite well what kind of enterprises can succeed IPO listing We enable investors to exit; we also have rich experience in how to package and highlight investment highlights, as well as how to maintain a healthy interaction with the capital market. For enterprises at different development stages, we help them focus on innovation and R&D capabilities through initiatives such as the 'Pioneer Program', 'Lighthouse Program', and 'Best Practice Awards'. We assist them in establishing effective investment and financing strategies, talent strategies, industrial ecosystems, and market layouts, thereby building core competitiveness to achieve deeper long-term driving growth.   growth Sci-tech innovation Leadership Achieving growth is the top priority for corporate development, while innovation and entrepreneurship are the core driving forces. Becoming a market leader is a lofty goal for companies to ensure their long-term sustainability. 'New investments' refer to those made in companies that have already achieved or are expected to demonstrate growth, innovation, and leadership in the future.   The Frost & Sullivan Summit integrates professional resources, a pool of high-quality targets, capital pools, and expert teams in growth and innovation. It deeply empowers practitioners of 'new investment' by helping enterprises achieve growth, empowering industrial transformation and upgrading through innovation, cultivating leading Chinese entrepreneurs, and ultimately promoting China's economic and social development.   The Frost & Sullivan Summit is attended by more than across the globe. 20 Countries and regions, with nearly 30 With its 10-year history of hosting, it has successfully attracted the world 1000 Strong participation from leading companies, top domestic and international investment institutions, and other leading enterprises helps them identify opportunities, accelerate growth, innovate continuously, and gain a leadership position in an increasingly complex and dynamic world. The Frost & Sullivan Summit has been held since 2008 Since its inception in China last year, the event has successfully held sixteen sessions domestically. It has become an important platform for outstanding domestic enterprises, academic institutions, investment experts, and regulatory authorities to exchange successful experiences and jointly explore development directions. It is also a crucial window through which the world can understand China's most cutting-edge development trends. 2022 The year is a crucial one for the implementation of the "14th Five-Year Plan" and also an era of forging ahead towards the second centenary goal. Against the backdrop of China's entry into a new development pattern of "dual circulation" and industrial upgrading, opportunities in the times have deeply intersected with capital deployment. Cultivating and strengthening new drivers represented by new technologies, new industries, new business forms, and new models cannot be separated from the empowerment of industrial capital and the drive of technological innovation. Against this backdrop, we have focused on the 'New Investment' theme for the first time this year and added a New Investment Expo. We aim to create a professional platform that focuses on investment and financing services in the new era. We welcome everyone to visit and inspect over the next two days, listen to the roadshow reports of startup teams, and pay attention to and support their innovative practices. For this reason, we have specially invited professionals from various institutions including industry, academia, research, and investment to establish the Frost & Sullivan & LeadLeo Science and Technology Innovation Expert Committee. "Many hands make light work," and all stakeholders collaborate highly to provide integrated service solutions for enterprise development. We believe that by joining hands, each performing their part meticulously, we can carefully craft and long-term practice all-domain investment management, benefiting all stakeholders and contributing to the country's innovative development.   Acknowledgements Finally, we would like to express our heartfelt gratitude to the co-sponsors of this conference: Titanium Media, Roadshow China, and Huajun Media Group, as well as our partners at the conference: Yunxing Medical and Silan Technology. Thank you all!

  10 month 27 day -30 On the day, the 22nd China Pharmacy Summit Forum was held at the Qingdao Starlight Island Convention Center. With the theme of "Incorporating in the Face of Resistance, Enhancing the Future", this forum focused deeply on the pharmaceutical retail industry, aiming to contribute and empower the future development of the industry with professional and dedicated concepts. The conference included multiple thematic sub-forums, and the first China Pharmacy Medical Aesthetics Forum was held on 10 month 28 Held daily, focusing on the beauty economy and incremental market   Frost & Sullivan Frost & Sullivan Zhu Yi, Executive Director of Frost & Sullivan Greater China, was invited to attend the event and delivered a speech on the scale, structure, channels, consumer situation and trends of the medical aesthetics product market. Executive Director, Greater China, Frost & Sullivan Zhu Yi Medical cosmetology (medical aesthetics) refers to the cosmetic method that uses drugs, surgery, medical devices, and other invasive or irreversible medical technical methods to repair and reshape a person's appearance and various body parts. According to Zhu Yi, medical cosmetology products / Services are mainly divided into surgical and non-surgical categories. Non-surgical services mainly include traditional cosmetic surgery, medical cosmetology based on energy devices, and injectable medical cosmetology. Plastic surgery is a type of surgical medical cosmetology product. / The main representative of the service. The industrial chain structure of the Chinese medical aesthetics industry is divided into upstream suppliers, midstream medical aesthetics institutions, and downstream consumers. The upstream suppliers mainly include medical colleges, beauty schools, and product or equipment providers, primarily providing talent, skills, products, and equipment to the midstream medical aesthetics institutions; midstream medical aesthetics institutions are mainly service providers for medical aesthetics, offering aesthetic services to end consumers through offline and online channels. According to a study by Frost & Sullivan, 2017 Since [start year], the total revenue of China's medical beauty service market has been continuously growing, with 2021 Annual achievement 5,779 RMB 10 billion, with a compound annual growth rate of 6.8% Among them, the compound annual growth rate of medical aesthetics based on injection and energy devices is relatively the largest. 2017 Year-end 2021 Annual achievement 24.9% , 2021 reach 2026 The annual target is expected to be reached 19.5% The proportion of revenue from the traditional beauty market is gradually decreasing, 2017 year 77.7% Expected reduction to 2030 year 58.2% ; while the proportion of medical aesthetics and plastic surgery based on injections in energy instruments has been increasing year by year, accounting for a total of approximately 2030 Will reach in 25.3% . Zhu Yi pointed out that the development of the medical beauty market can be divided into three stages:     2010 - 2018 In [year], benefiting from traffic dividends, the medical beauty market has been experiencing continuous growth in popularity.   2019 In recent years, the medical beauty industry has witnessed multiple serious medical accidents. There have been frequent issues such as false advertising on internet platforms, illegal practice, medical beauty loan schemes, and channel hospitals involved in organized crime. The state has 'taken a heavy hand' against the medical beauty industry, further strengthening supervision over the approval of medical institutions, the qualification certification of doctors, and advertising. 2019 Among the medical beauty-related policies released in [year], 87% Industry supervision and standardization documents. 2020 Since the beginning of this year, affected by the 'black swan' impact of the pandemic, consumer demand has decreased, leading to a decline in overall investment enthusiasm. Despite the severe situation,    However, as a new sunrise industry, the medical beauty sector has great potential under the general trend of consumption upgrading. Moreover, the medical beauty industry is gradually developing towards standardization, systematization, and specialization, and the investment enthusiasm for the industry has gradually warmed up. Subsequently, Zhu Yi conducted a brief analysis of various sub-markets within the medical aesthetics industry.   He pointed out that the Chinese medical aesthetics market currently exhibits rapid market growth, increasing penetration of light medical aesthetics procedures, lightweight medical aesthetic surgeries, younger consumers for medical aesthetics services, and the rise of the 'male beauty economy'. Life beauty refers to the use of cosmetic products, health supplements, and non-medical devices such as skincare and massage for maintenance or health-oriented non-invasive beauty care. Life beauty is mainly divided into facial care and body care. Among them, skin cleansing and moisturizing, skin whitening, and skin repair are the main types of facial care provided by life beauty service institutions, while weight loss and health treatments are common types of body care.   Due to the slow but comfortable experience of traditional beauty services, which are non-invasive and safe, consumers tend to repurchase and consume frequently. The entire Chinese beauty and lifestyle market is growing rapidly, with a market scale of 2021 The year has broken through 4,000 The RMB 10 billion mark is expected to maintain a rapid growth momentum within the next decade, with huge market potential yet to be unleashed. However, the market concentration is relatively low, and there is a lack of monopolistic chain enterprises in the industry. It is anticipated that the main participants in the future market will continue to expand through means such as establishing new stores and acquiring other institutions. At the same time, beauty and wellness services have been developing towards specialization over the past five years, with significant growth in digital channels. The growth of medical aesthetics (light medical cosmetology) based on injection and energy devices has also been very rapid in recent years. Data shows that the market scale of injectable beauty treatments in China is 2021 Reaching a new high 505 100 billion RMB, estimated 2030 Will reach in 2,189 1000 million RMB 2021 Year to 2030 The compound annual growth rate for the year will reach 17.7% The market scale of beauty products based on energy instruments is in 2021 Reaching a new high 472 100 billion RMB, estimated 2030 Will reach in 1,969 1000 million RMB 2021 Year-end 2030 The compound annual growth rate for the year will reach 17.2% .   Zhu Yi stated that consumers of light medical aesthetics and traditional lifestyle beauty are mutually transforming. Research shows   about 20% Traditional beauty service clients who have tried light medical aesthetics 68.7% Consumers who have received light aesthetic medicine regularly receive traditional beauty services. At the same time, competition in the mid- to high-end segment of the entire light medical aesthetics market is fierce. Compared with the downstream sector, the profit margins for the upstream and mid-tier segments are higher, which are 85% and 95% , while downstream only 70% ,   Therefore, with its characteristics of high profits and returns, the mid-to-upper-middle segment has become a hot track for investment and financing in the medical beauty industry. Plastic surgery services refer to cosmetic procedures performed by licensed doctors, aimed at changing the appearance of various parts of the face or body, such as eyes, nose, chest, and facial features. These usually involve local or general anesthesia, as well as incisions on the skin or body. After the surgery, clients typically need one to six months to recover. The recovery time for surgical beauty services is relatively longer compared to energy-based and injection-based cosmetic surgeries, and the risk of complications is also higher. In addition, the industry and legal standards for cosmetic surgery services are more stringent, with attending physicians providing these services should have more than six years of relevant surgical experience.   The plastic surgery market has also grown rapidly.    The market scale of plastic surgery in China is in 2021 Year-on-year break 771 100 billion RMB, estimated 2030 Will reach in 2,225 1000 million RMB 2021 Year to 2030 The compound annual growth rate for the year will reach 12.5% .   In recent years, thanks to advancements in medical technology and biomaterials, the trend of 'lightweight' plastic surgery has become increasingly evident. Taking rhinoplasty as an example, from comprehensive nasal reconstruction to minimally invasive procedures such as thread lifting, which result in smaller incisions and shorter recovery periods, the threshold for plastic surgery has been greatly reduced. At the same time,   With the continuous development of plastic surgery,     The proportion of body plastic surgery consumption is increasing year by year.    Liposuction is the most popular surgical consumer category.     "It is worth noting that,   At present, although women are still the main consumer group for plastic surgery and cosmetic treatments, accounting for 88% However, with the continuous rise of the 'male beauty economy', male consumers' demand for their own 'appearance' has gradually increased, and there is an obvious growth trend among male consumers.' Zhu Yi said.  

Recently, Wantai Biotech announced its third-quarter report, with revenue and net profit hitting new highs since the company went public. Regarding the reasons for the double increase in revenue and net profit, Wantai Biotech stated that it was mainly due to an increase in revenue from bivalent cervical cancer vaccines, reagents, and active ingredients. this year 8 Month, Merck Sharp & Dohme's 9-valent Human Papillomavirus Vaccine (Yeast)-based Vaccine (hereinafter referred to as '9-valent HPV The new indication of "vaccine" has been approved by the National Medical Products Administration of China, expanding the applicable population to 9 - 45 Women of childbearing age. In addition, domestic 9-valent HPV The vaccine is also on the verge of being launched, nine-valent HPV Will the vaccine affect domestically produced bivalent vaccines? HPV Vaccine market share?   Frost & Sullivan Frost & Sullivan Chen Zhenrong, consulting director for healthcare in Greater China at Frost & Sullivan (referred to as 'Frost & Sullivan'), was interviewed by Lanjing Finance to discuss the above issues. Blue Whale Finance 10 month 17 On the evening of the same day, Wantai Biotech announced its third-quarter report. Revenue and net profit for the first three quarters reached new highs since the company went public, among which revenue 86.51 Yuan, a year-on-year increase 140.56% Non-recurring profit after deducting impairment losses 38.5 Yuan, a year-on-year increase 233% . For the single quarter, revenue for the third quarter 27.21 Yuan, a year-on-year increase 66.71% Net profit attributable to the parent company 12.5 Yuan billion, a year-on-year increase 168.03% Net profit attributable to the parent company after deducting non-recurring gains and losses 11.98 Yuan, a year-on-year increase 159.21% . Regarding the reasons for both revenue and net profit growth, Wantai Biotech stated that it was mainly due to an increase in income from bivalent cervical cancer vaccines, reagents, and active ingredients. It is worth noting that this year 8 Month, Merck Sharp & Dohme's 9-valent Human Papillomavirus Vaccine (Yeast)-based Vaccine (hereinafter referred to as '9-valent HPV The new indication of "vaccine" has been approved by the National Medical Products Administration of China, expanding the applicable population to 9 - 45 Women of childbearing age. In addition, domestic 9-valent HPV The vaccine is also on the verge of being launched, nine-valent HPV Will the vaccine affect domestically produced bivalent vaccines? HPV Vaccine market share? "   divalent HPV Vaccine production and sales are booming Although, the third-quarter report of Wantai Biotech did not disclose detailed sales or batch release information for this vaccine. However, Huaxi Securities pointed out in its research report that, according to the data of approval and issuance by the China Inspection and Quarantine Administration, 2022 year Q3 quarter WanTai Biotech Bivalent HPV Vaccine Batch Release Appointment 76 Batches, expected and estimated, approximately 750 - 800 Ten thousand. 2022 year Q1-Q3 quarter WanTai Biotech Bivalent HPV The estimated batch release volume of vaccines is about 2050 - 2150 Ten thousand. this year 5 In January, Wantai Biotech once stated that its bivalent HPV The annual vaccine production capacity reaches 3000 Ten thousand pieces. 2021 Year, its second price HPV Vaccine sales exceeded 1000 Ten thousand pieces. That is to say, relative to 2021 In [year], the current bivalent of Wantai Biology is HPV The estimated batch release volume of vaccines has doubled, with rapid growth. "Domestic HPV The vaccine is still in a state of unbalanced supply and demand, with Wanta Biotech's bivalent vaccine HPV Vaccines are currently in a state of strong production and sales. The company's production and batch issuance rhythm is proceeding smoothly, with an expected 2022 year Q4 2019 Company's Second-tier Price HPV Vaccines will continue to see significant volume growth." The research report from West China Securities points out. According to a research report by Guosen Securities, domestically 9 The year is coming 45 Approximately 3.6 hundred million ( Approximately 1.2 hundred million ) , from 2017 Domestic introduction in the current year HPV Since the launch of the product, the total number of batches issued is approximately 6500 Ten thousand, discounted 2000 Ten thousand people, with an overall penetration rate of about 5.5% The penetration rate of women of childbearing age in cities is about 16.5%) At a low level. "   Nine-valent HPV Will the vaccine affect domestically produced bivalent vaccines? HPV Vaccine market? Public information shows that Wantai Biotech was established in 1991 year, 2020 year 4 The company is listed on the Shanghai Stock Exchange, and its bivalent cervical cancer vaccine 'Xinkening' is available 2019 Approved for marketing at the end of the year, it is the first domestically produced cervical cancer vaccine and has become the company's star product. "Xinkening" is applicable to 9 - 45 female, 15 - 45 annual vaccination 3 needle 9 - 14 annual vaccination 2 needle, is the first domestic 9 - 14 Approved 2 Cervical cancer vaccine product using acupuncture techniques. this year 8 Month, Merck Sharp & Dohme's 9-valent Human Papillomavirus Vaccine (Yeast)-based Vaccine (hereinafter referred to as '9-valent HPV The new indication of "vaccine" has been approved by the National Medical Products Administration of China, expanding the applicable population to 9 - 45 Women of childbearing age. Previously, nine-valent HPV The applicable population for the vaccine is 16 - 26 Female, aged 9. With nine-valent HPV The approval and supply of expanded age-range vaccines are gradually increasing. Some market participants are concerned whether this will affect domestic bivalent vaccines. HPV The vaccine market?     In this regard, Chen Zhenrong, consulting director for healthcare in Greater China at Frost & Sullivan, pointed out that the domestic 9-valent vaccine HPV After the vaccine is launched, for domestic bivalent HPV The market for vaccines will be affected to some extent, with some consumers who have economic power and a higher pursuit of vaccine effectiveness choosing to receive domestic nine-valent vaccines. HPV Vaccines. However, this impact will not be significant, as the consumer group targeted by the bivalent vaccine is different from that of the nine-valent vaccine, and currently, the overall situation in our country HPV The vaccination rate remains low and has not yet entered a state of full competition. As of now, domestically listed in China HPV Vaccines in total 5 The drugs are valacyclovir and ganciclovir, each in the bivalent form HPV Vaccine, Merck's Quadrivalent HPV And nine prices HPV Vaccine, Wantaibio's bivalent HPV Vaccine and Watson Biotech Bivalent HPV Vaccines, with the last two being domestic Chinese companies. ZF Bio is Merck's quadrivalent vaccine. HPV And nine prices HPV Exclusive domestic distributor of vaccines. Due to different prices HPV Preventable with vaccines HPV The number of subtypes varies, and so do the price differences. Domestic bivalent HPV The price of a single vaccine dose is about 300 Yuan, import at a discounted rate HPV The price of a single vaccine dose is about 600 Yuan, imported quadrivalent HPV The price of a single vaccine dose is about 800 Yuan, imported 9-valent HPV The price of a single vaccine dose is about 1300 yuan. "   Chen Zhenrong pointed out, bivalent HPV Vaccines have a good preventive effect against cervical cancer. Considering their relatively low cost, domestically produced bivalent vaccines are currently available HPV The vaccine has been piloted in some provinces and cities of our country, providing free vaccinations to eligible women. In the future, it may also be included in the national immunization program or covered by medical insurance. That is, bivalent HPV Vaccines provide basic protection against cervical cancer and are cost-effective, making them an economical choice. Nine-valent HPV The vaccine further enhances the protection against cervical cancer based on the bivalent formulation, offering prevention 90% Cervical cancer, and can also prevent low-risk HPV Genital warts caused by subtypes. However, considering the 9-valent vaccine HPV The higher unit price of the vaccine, 9-valent HPV Vaccines are considered an improved option compared to bivalent vaccines and are more suitable for individuals with a certain economic foundation and demand for vaccination.   "At present, our country HPV The vaccination rate remains low, and a large number of eligible women have not received any vaccinations at all HPV vaccines. Therefore, for now, improving the public's awareness of HPV The awareness and vaccination rate of vaccines are more important." Chen Zhenrong reminded. "   Domestic 9-valent vaccine HPV The vaccine is about to be released In fact, the domestic 9-valent HPV Vaccines are also on the verge of being launched, under the brands of Watson Biotech, Wantai Biotech, Shanghai Bowei, Kangle Weishi, and Ruike Biotech HPV The nine-valent vaccine has entered phase III clinical trials. this year 9 month 27 On the same day, Wantai Biotech said in an investor relations event that the company's nine-valent HPV The research and development progress of vaccines is at the leading level in China, currently III Phase I clinical trials and industrialization are progressing smoothly. Nove-valent HPV The subjects of the vaccine have completed three doses of vaccination and are currently under follow-up according to the clinical protocol, with data collection underway. 12 Among the continuously infected cases for [X] months; with JiaDaXiu 9 The head-to-head clinical trial has completed on-site testing and specimen analysis, and data statistical analysis is underway; the small-age bridging clinical trial has completed enrollment; commercial production workshops have been built, and industrial scale-up production research is in progress. For domestic 9-valent vaccines HPV Will the vaccine's launch affect domestic bivalent vaccines? HPV The vaccine market? Wantedai Biology 9 month 27 On the 28th, Ruihui replied to a question by saying, 'Nine-valent HPV This situation can occur after vaccines are launched. China HPV The vaccine market is large enough, but limited by various factors, bivalent HPV There is still a large market space for vaccines. "First, there are nine valences." HPV Vaccine manufacturing processes are more complex, and production capacity cannot expand rapidly; secondly, from the perspective of cervical cancer prevention, in our country approximately 84.5% Cervical cancer HPV16 and 18 Type-related, in response WHO 2030 Agenda Global Strategy to Eliminate Cervical Cancer by the Year 2030, at Nine Doses HPV When vaccine production capacity cannot meet requirements, bivalent HPV Vaccines are a key focus of government procurement; thirdly, the company is actively exploring overseas markets, in addition to HPV In addition to exporting vaccine finished products, efforts are also being made to promote technology transfer. "WanTai Biotech said.   * This article is reprinted from Blue Whale Finance.   Reporter: Tu Jun   Original title:    Is the impact of the "age extension" of the nine-valent vaccine limited? Wantai Biotech's performance in the first three quarters hit new highs.    ">

Recently, the Fujian Provincial Medical Device and Pharmaceutical Co-Procurement Center released the "Inter-provincial Alliance Centralized Volume-based Procurement Documents for Cardiac Interventional Electrophysiological Medical Consumables". 1 number 2 File number, officially finalized 27 Provincial Alliance Cardiac Electrophysiology Centralized Procurement Plan. How do you view the first centralized procurement of electrophysiology devices? Unlike other varieties with special attributes, cardiovascular diseases have a large patient base. From this perspective, will the price cut for stents continue after this centralized procurement? The electrophysiology field has long been dominated by imported brands. Is this centralized procurement conducive to promoting domestic substitution? In the long run, what benefits does the centralized procurement bring to the market?   Frost & Sullivan Frost & Sullivan Liu Weiqi, Executive Director of Frost & Sullivan's Greater China Region, was interviewed by Huaxia Times to discuss the impact of the first centralized procurement of electrophysiological medical consumables on industry development. Huaxia Times Comprehensive Procurement Bidding for Coronary Stents 23 One month later, the large-scale centralized procurement of cardiovascular products also sounded the clarion call, with the Cardiac Electrophysiology Medical Consumables Alliance initiating its first centralized procurement. Recently, the Fujian Provincial Medical Device and Pharmaceutical Co-ordination Procurement Center issued the "Inter-provincial Alliance Centralized Volume-based Procurement Document for Cardiac Interventional Electrophysiological Medical Consumables". 1 number 2 File number, officially finalized 27 Provincial Alliance Cardiac Electrophysiology Centralized Procurement Plan. Judging from the announcements issued at this stage, industry analysts generally predict that this centralized procurement will be more 'gentle' compared to previous coronary stent procurements. This statement comes from the detailed rules stipulated in the aforementioned documents, and companies are choosing to participate based on 7 fold /5 Just fold it and you can win the bid. In response, Liu Weiqi, Executive Director of Frost & Sullivan Greater China, told the Huaxia Times reporter, 'Although the patient base for electrophysiological consumables is vast, the overall penetration rate is low. Therefore, there is a significant gap in market size compared to coronary intervention. Considering the price reference set in this document, the demand for price cuts is stated as relatively mild, and it is expected that there will not be a repeat of the significant price cuts seen for coronary stents.' " The boots hit the ground Recently, the Fujian Provincial Medical Device and Pharmaceutical Procurement Center released the "Interprovincial Alliance Centralized Volume-based Procurement Document for Cardiac Interventional Electrophysiology Medical Consumables." For electrophysiology companies, there have long been rumors about centralized procurement. With the release of this document, the long-awaited boots have finally landed. It is reported that the scale of this electrophysiological medical consumables centralized procurement alliance is comparable to the "national procurement." Members include Fujian, Hebei, Shanxi, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Jiangsu, Zhejiang, Anhui, Jiangxi, Shandong, Henan, Hunan, Guangdong, Guangxi, Hainan, Chongqing, Guizhou, Yunnan, Tibet, Shaanxi, Gansu, Qinghai, Ningxia, Xinjiang, and the Xinjiang Production and Construction Corps. 27 province (region, municipality). As of press time, the project has been launched, and procurement declaration documents have been released. An industry insider who wished to remain anonymous told The China Times that 'if this 27 If inter-provincial volume-based procurement can be successfully implemented, then the electrophysiology market will see new bidding, and patients will experience tangible benefits. The above documents show that the procurement cycle for electrophysiology products is calculated from the actual execution date of the winning bid, in principle, as 2 Year. The procurement volume under the first-year agreement is in 2023 year 4 Implementation starts from the month following the announcement, with specific execution dates determined by each region of the alliance. After the procurement cycle for the first year ends, the renewal of agreements will be carried out based on comprehensive consideration of procurement usage, market supply, clinical needs, etc. In principle, the procurement volume for the second year's agreement shall not be less than the volume of the winning bid product's procurement volume in the previous year. In addition, in terms of varieties, this centralized procurement covers a more comprehensive range, involving 11 There are several major varieties, including atrial septal puncture sheaths, electrophysiological catheter sheaths, atrial septal puncture needles, surface positioning reference electrodes, infusion lines, electro-positioning diagnostic catheters, magnetic-positioning diagnostic catheters, intracardiac ultrasound catheters, electro-positioning therapeutic catheters, magnetic-positioning therapeutic catheters, and cryotherapy catheters. These are products with high unit prices in the entire surgical process and are key targets for centralized procurement. For the public, the focus of centralized procurement is always 'price cuts'. Although there has been no bidding for this round of centralized procurement, industry insiders have predicted a 'gentle' reduction in prices. The reason lies in the detailed rules contained in the document. On one hand, compared to previous procurement rules for high-value consumables such as coronary stents, this round's electrophysiological procurement rules are more comprehensive, divided into three major models: group procurement, single-piece procurement, and supporting procurement. On the other hand, the document provides guidance on prices, that is, enterprises can choose to... 7 fold /5 You can win the bid by bidding at a reduced price. According to the document data, in the same group, the reduction rate ≥ 30% To obtain the qualification to be shortlisted, you need to 7 If you fold it, you can guarantee a middle selection. In the same group, if the decline is ≥ 50% , you can obtain the qualification to be shortlisted, that is, play 5 If you bid at a certain discount, you can guarantee a spot selection. In addition, the enterprise's quotation this time shall not be higher than the current valid provincial minimum online price for the same product nationwide, as well as the centralized procurement (including volume-based procurement) prices at the prefecture-level city (including alliances) and above. This means that, under the above mechanism, as long as an enterprise reduces its price to the maximum declared price 40% The following will enable you to win the bid. " Liu Weiqi stated, 'It is not difficult to see from this price reduction guidance rule that the enterprise's demand for price cuts this time is relatively mild. Therefore, I predict there will be no significant price cuts like those for coronary stents.' " Market reconstruction " In Liu Weiqi's view, centralized procurement is a redemption for the electrophysiology industry. 'At present, the penetration rate of electrophysiological surgeries in China is very low. Centralized procurement can reduce medical costs and help with healthcare cost control through insurance. At the same time, winning bid enterprises reduce channel expenses, enabling them to quickly establish market brand advantages and invest more fully in research and development, which is beneficial for the long-term development of the enterprise.' In terms of electrophysiological consumables, the 'astronomical' prices deter patients. Magnetic positioning diagnostic catheters, electrophysiological treatment catheters, etc., are all in high-price segments, with mapping catheters costing several thousand yuan and ablation catheters reaching tens of thousands of yuan or more. In electrophysiological surgeries, atrial fibrillation, supraventricular tachycardia, and premature ventricular contractions are the three most common types of surgery. Taking atrial fibrillation, which accounts for a significant proportion of electrophysiology cases, as an example, the surgical cost is 8 ten thousand -10 Ten thousand yuan. Over time, the surgical penetration of electrophysiology has been overtaken by coronary stents. According to data from the Cardiovascular Alliance, as of now, the number of atrial fibrillation patients in China has reached 2000 ten thousand, and 2019 Annual surgical volume 18 Ten thousand cases, a year-on-year increase 18.42% . in 2020 The number of catheter ablation surgeries in the year was only 15 Ten thousand cases.   Comparing the number of coronary intervention surgeries, according to a report by Frost & Sullivan, 2019 In China, the number of coronary intervention surgeries reached 108 10,000,000, and in the same year, WHO statistics showed that the total number of coronary heart disease patients in China was approximately 187 ten thousand. The core difficulty in reducing prices lies in two aspects: the surgical complexity and the high proportion of imported consumables. Firstly, due to the complexity of electrophysiological surgery, it has not been included in centralized procurement for a long time. It is reported that unlike surgical suite products such as orthopedics, which are relatively fixed, the difficulty of electrophysiological surgery lies in dealing with different disease types and ablating different areas, requiring different products. Surgical suites need to be combined differently according to different disease types. This results in a more diverse range of instrument models used during surgeries for patients, thereby limiting the market size accordingly. Secondly, in terms of the market, domestic electrophysiology has started relatively late, and the high-end sector is basically monopolized by foreign companies, which is not conducive to domestic brands occupying the market. According to Frost & Sullivan's statistical data, 2020 In [year], in the Chinese cardiac electrophysiological device market, the three giants - Johnson & Johnson, Abbott Laboratories, and Medtronic - together accounted for 85% The above market share. The main domestic participants in cardiac electrophysiology include Minimally Invasive Electrophysiology, Xinuoop Medical, Jinjiang Electronics, and Huitai Medical, etc., but their combined share only accounts for 9.6% Among them, Huitai Medical, which holds the largest share, only accounts for 3% left and right. If the price cut is moderate this time, it implies that the impact on imported brands will be smaller. So, after the winning bid results are announced, will there be a situation where domestic brands 'outperform' imported brands? " Liu Weiqi believes that 'this centralized procurement covers 27 In a province or city, if an enterprise's products win bids, it can quickly expand its market share. Looking at the selection rules, they seem to favor the lowest price, which has a very obvious promoting effect on domestic substitution. From the perspective of enterprises, this round of rules is more about a sincere competition for price cuts. The selection rules demonstrate a 'price orientation' sincerity. That is, within the same bidding unit, rankings are determined based on the enterprise's price order, with the lowest declared price being ranked first, followed by the second-lowest, and so on. Additionally, if a declared enterprise does not obtain the intended selection qualification according to the proposed rules but the reduction is ≥ 50% Yes, you can also obtain the qualification to be shortlisted. As more domestic medical device companies have started to enter the electrophysiology market in recent years, domestic enterprises have continuously strengthened their R&D efforts and made breakthroughs in core technologies. A new generation of high-quality companies such as MicroPort Medical, LeP Medical, Meizhong Shuanghe, Weixin Medical, Huitai Medical, Beijing Xianruida, and XinNOP have emerged one after another. Can they carve out a new territory through this centralized procurement? We will wait and see.   * This article is reprinted from China Times.   Reporters: Guo Yilin, Yu Na   Original title:    Electrophysiology experiences its first alliance procurement. Can the 'gentle cut' boost domestic substitution?    ">

10 month 21 day 2022 Power Health Fund 5th Edition CEO The forum and pharmaceutical investor conference was held in Shanghai, with the theme of 'Good Planning, Good Execution'. Frost & Sullivan Frost & Sullivan Dr. Wang Xin, Global Partner and President of Greater China at Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), was invited to attend the conference and delivered an opening speech for the 'Impact Report' session, with the theme 'New Investment in Biotechnology'. Global Partner and President, Greater China at Frost & Sullivan Dr. Wang Xin At the beginning of his speech, Dr. Wang Xin analyzed the development opportunities in China's healthcare market. According to him, China has become the world's second-largest pharmaceutical market, but per capita medical expenditure is less than one-tenth that of the United States, indicating that there is still tremendous growth potential in China's pharmaceutical market.   Dr. Wang Xin pointed out that as a necessary foundation for developing new molecules and new therapies, the R&D costs of enterprises are increasing day by day. Chinese biopharmaceutical companies continue to increase their R&D investment to support innovation, especially in the pharmaceutical industry 2021 It is also not difficult to see from the R&D investment ranking of the year that capital is crucial for the development of biotech companies. Although affected by the COVID-19 pandemic, cross-border mergers and acquisitions have decreased significantly in recent years, biotech companies are actively introducing advanced R&D technologies from home and abroad. License-in granted Transactions continue to set new highs in terms of volume and value, involving multiple emerging medical fields. According to statistics, 2021 In [year], Chinese pharmaceutical companies License-in Acquisition The number of transactions has reached 130 Yuqi, with most transaction volumes exceeding 1 billion US dollars, with some transactions exceeding 3 billions, product selection involves dual antibodies, siRNA , mRNA Vaccines, cell therapy, ADC and many other emerging fields. Meanwhile, biotech companies are also constantly License-out of the Mainland Transactions bring domestic technology abroad to generate stable cash flows, enhance international influence, and facilitate better participation in global competition through cooperation with multinational enterprises. Currently, the steps for biotech companies to innovate and go global can be divided into 4 Stage one: The first step is product internationalization, directly authorizing the product to multinational pharmaceutical companies for global development; the second step is clinical internationalization, establishing overseas operational teams and conducting multi-center clinical research; the third step is R&D internationalization, directly forming early R&D teams overseas for global R&D; the fourth step is commercial internationalization, building a commercial team overseas to complete globalization sales.   "Today, Chinese enterprises have completed the first two steps of product and clinical internationalization, and some have even started setting up R&D departments abroad. China's innovation drug R&D capabilities and its ability to export products overseas are expected to further improve," said Dr. Wang Xin. Overall, the level of domestic innovative drugs has been continuously improving under policy incentives. The R&D level of innovative drugs is growing day by day, and the development of COVID-19 vaccines has also driven rapid technological development in the industry. It is believed that under the guidance of national policies, nurturing from the global market, and catalysis by the COVID-19 pandemic, 2022 In 2021, China's healthcare industry will increasingly integrate into the global innovation pulse. Subsequently, Dr. Wang Xin analyzed the performance of the healthcare industry in the capital market for the guests present.     Dr. Wang Xin first introduced   Compiled especially for cloud technology     The 'Frost & Sullivan Frost & Sullivan index series', which consists of two indices, namely: Frost & Sullivan's Select Biotechnology Index 30 The Composite Index of Biotechnology, which includes both the Hang Seng Biotech Index and the Frost & Sullivan Index. Both indices have their own characteristics, focusing on different needs of all parties in the market and highlighting the Hong Kong Stock Exchange from their respective perspectives. 18A Group characteristics of the biotechnology sector and listed companies.   Frost & Sullivan featured 30 index   by 30 The Hong Kong Stock Exchange, which has the greatest market influence and strongest representativeness 18A The constituent index of biotech listed companies is positioned to accurately reflect 18A The overall performance of the most representative companies in the sector. The index undergoes regular sample adjustments quarterly to ensure the representativeness and timeliness of the index's constituent stocks. The index adopts a free float market value weighting method and has a weight cap for its constituent stocks to ensure the high investability of the index, as well as to depict the Hong Kong Stock Exchange from the perspective of investors. 18A Rational investment expectations in the biotechnology sector.   Frost & Sullivan's Comprehensive Index of Biotechnology Companies   from all 18A The constituent index of Biotech Listed Companies includes companies that follow the Hong Kong Stock Exchange. 18A When a company goes public, the index will include its shares in the index sample before the market opens on the first day of listing to ensure that the index fully represents the sector. The Bio-Comprehensive Index specifically adopts the total market value weighting method to reflect the overall issuance structure characteristic of biotech companies with less publicly offered shares at their initial listing, restore the true influence of enterprises, and depict the overall investment and financing heat of the sector.   In addition, cloud technology has also compiled supplementary indicators for the Frost & Sullivan Greater China Biotechnology Index series based on statistical data, to complement the index series and assist all market participants in comprehensively understanding the Hong Kong-listed 18A The rules implement other overall operational characteristics of listed biotech companies.     "The 'Frost & Sullivan index series' reflects Hong Kong stocks." 18A We hope that the overall operating characteristics of stock prices of listed companies in the biotechnology industry can help market participants such as investors, listed companies, and capital market intermediaries to understand comprehensively and deeply. 18A The biotechnology sector provides reference tools for sector investment research.” said Dr. Wang Xin.   According to the changes in the Frost & Sullivan Jili Biotechnology Index, China's biotechnology sector has gone through 2018 Year to 2020 The initial settling period, 2020 First half of the year to 2021 During the high-speed development period in the first half of the year and the subsequent recession that has continued to this day, the interest in China's biotechnology sector has rapidly declined in the past two years.   2022 In the first half of the year, there were certain fluctuations in global and Chinese capital markets. From a global perspective, financing rounds for the global healthcare industry gradually shifted back to earlier stages, with early-stage investment companies gradually growing stronger. At the same time, exceeding 1 The proportion of large financing events worth hundreds of millions has increased, and the scale effect of enterprises is gradually emerging. It can be seen that investment institutions tend to choose high-quality targets with clearer business models and higher stability. Unlike globally, 2021 In China in 1 The proportion of large-value financing events in hundreds of millions of dollars has decreased rather than increased. In the future, the rounds of financing for China's healthcare sector will gradually move backward, indicating that capital investment is more cautious, investments are becoming rational, and there is a preference for mature targets.   In the post-pandemic era, the healthcare sector has gradually gained more attention due to public interest. Major medical enterprises have seen significant performance growth, and their potential and growth prospects have been further explored. In the future, this is expected to accelerate capital entry.   Biopharmaceuticals, “Internet + "Medical health, medical informatization, and IVD The domain is a popular tag for global healthcare investment and financing. Among them, due to the high capital demand brought about by market size and R&D investment, biopharmaceuticals have always dominated the financing amount over the years, with the financing amount exceeding 30% . 2021 In the year, the global biopharmaceutical field totaled 880 Start trading, with 411.81 The financing amount of hundreds of millions of US dollars ranks first in the healthcare sub-sector, while in the field of medical informatization 550 Start trading, 194.13 USD 10 billion followed, “Internet + "Medical health and IVD Ranked third and fourth in the field. Compared with 2021 For the first half of the year, 2022 In the first half of the year, global total financing and the number of financing events in various sectors all declined to varying degrees. 2022 In the first half of the year, there were a total of 568 Financing events, a year-on-year decrease 163 rise; total financing reached nearly 200 billion US dollars (about RMB 1,300 (Yi-billion), a year-on-year decrease of about 37% .   In line with global convergence, biopharmaceuticals have long held a dominant position in the healthcare segment of China's capital market. In addition, IVD R&D and production outsourcing CDMO Also highly favored by the capital market. for IVD On the one hand, this is due to a significant increase in performance in epidemic-related sectors such as in vitro diagnostics. On the other hand, there are various factors such as the implementation of volume-based procurement for medical devices, lower listing thresholds, relatively lower risks and higher certainty compared to innovative drugs, and greater space for domestic substitution, which have made the medical device sector once again an important target for capital allocation. Regarding R&D and production outsourcing, on the one hand, China's pharmaceutical industry is in an industry stage transitioning from imitation to innovation, with emerging Biotech Rapid rise, but lacking self-production capacity, has led to a significant outsourcing of production operations. The identity of outsourcing service providers has gradually shifted from being sellers of services to those seeking gold; on the other hand, China's engineer dividend remains, and its labor cost advantage over overseas markets has also driven the focus of outsourcing services from overseas to China's industries. Dr. Wang Xin pointed out, Chinese medical enterprises Top 20 The average total market value gap with US companies 9 Multiple times, and the total market value is more concentrated in leading enterprises, with a much lower market maturity compared to the United States. United States Top 20 Enterprise market value average 1,759.73 billions, half of the enterprises are above the average, while in China Top 20 The average enterprise market value is only 193.20 billions of dollars, and only 7 Leading companies are above the average. In addition, China's top 20 The market value of the top enterprises is the sum 3,864 billion US dollars, still lower than UnitedHealth 1 Family-owned 4,319 Billions of dollars, multiple data points indicate that Chinese pharmaceutical companies are still focusing on the domestic market, with enormous growth potential ahead.   The data shows, 2021 The global equity financing scale has been steadily increasing, with the Chinese mainland consistently ranking second in recent two years. Affected by A The promotion of the share registration system, 2021 Domestic for the year IPO listing The amount and number of funds raised have reached new highs, compared with Hong Kong stocks IPO listing The market is more active. 2021 year A share IPO listing In terms of financing scale, the top five industries are equipment manufacturing, information media, healthcare, energy and chemicals, and consumer goods. Among them, the healthcare industry 910.7 The financing scale of hundreds of millions ranks third. IPO listing In terms of the number of enterprises, the healthcare industry ranks fifth. Brief introduction A After discussing the current situation of the healthcare industry, Dr. Wang Xin focused on introducing Hong Kong stocks 18A And the situation in the biotechnology field of the Sci-tech Innovation Board. According to a study by Frost & Sullivan, biotech companies listed on the Sci-tech Innovation Board are mostly concentrated in the pharmaceutical sector. The vast majority of these companies focus on the research and development and production of oncology drugs, autoimmune disease drugs, and metabolic system diseases drugs. Among the biotech enterprises with a high market value, there are many that specialize in oncology drug research and development. In the Hong Kong stock market 18A Biotech companies in pharmaceuticals, medical devices, and AI The company covers all three major medical fields, with a focus on biopharmaceuticals in the pharmaceutical sector. Medical device companies are concentrated in three sub-sectors: in vitro diagnostics, medical equipment, and medical consumables. 18A The cornerstone investors in the market play a pivotal role, according to TradeGo. APP Fundamentals investors data, for those that have been unlocked 379 Among the cornerstone investors, there are 170 Homefund, which remains profitable after the lifting of the ban, 209 Home Basic lost money after the lifting of the ban. If calculated based on the date of lifting the ban, 170 The total profit of cornerstone investors contributing to the company's profitability is approximately 106.32 HK$10 billion, 209 The combined losses of cornerstone investors with losses at home are about 95.17 HK$10 billion, overall biology -B Net profit of cornerstone investors is about 11.15 HK$10 billion. Dr. Wang Xin pointed out that the overall market value of biotech companies is showing a downward trend. Data shows that the total issued market value of all biotech companies listed on the Hong Kong stock market is about 7,283.6 HK$10 billion, with the current total market value about 4,574.9 HK$10 billion, with the overall market value declining 37.2%. At the same time, since 2021 year 7 Since the beginning of this month, the total number of subscribers to biotech companies has also shown a downward trend. On the other hand, there is a polarized change in the market value of biotech companies. The current market value of BGI HealthTech has increased compared to its initial offering market value. 175.3% On the contrary, the current market value of Harvest Biotech has declined 92.3% . Recently,   Hong Kong stocks rebounded, and pharmaceutical stocks continued to surge. Among biotech stocks, Cobi Pharma rose more than 21% Rongchang Biotech surges 19% Gensrite Biotechnology surges 12% Nuo Cheng Jianhua and Yasheng Medicine rose more than 11% Baiji Shenzhou, Fuhong Hansen, and others followed the trend up.    Dr. Wang Xin stated that although the current valuation of the pharmaceutical sector is still at a low level over the past decade, and the institutional allocation ratio is also at a low level, there have been frequent favorable domestic policies recently, with significant marginal improvements in policies. Market sentiment is expected to continue to recover, and investment opportunities in the pharmaceutical sector are still favored. Looking at the entire Hong Kong stock market 18A Market, according to Frost & Sullivan Jely ( shenzhen ) Cloud technology data shows, 2022 Looking at the price changes from the lowest price this year to now, biotech -B Overall increase of about 34.54% , increase or decrease in price Top 15 The overall enterprise price rose by about 54.83% The rebound strength is still acceptable; looking at the cumulative rise and fall data since listing, biotech -B Overall decline 37.33% Increase Top 15 The overall stock market fell 28.4% .   "Benefiting from industry characteristics and market environment, the healthcare sector has broad development opportunities in the medium to long term. In the face of short-term fluctuations, biotech companies need new investment for empowerment and support," said Dr. Wang Xin.   In the face of the current market environment and challenges, new investment will become the development direction for biotech companies' investment and financing. What is new investment? Dr. Wang Xin further explained that new investment is a brand-new investment concept and methodology, a three-dimensional, multi-dimensional spatial point matrix service system. New investment shoulders the mission of 'three endowments', namely endowing enterprise capital operations with value, industry transformation and upgrading with energy, and national economic development with services.   Frost & Sullivan, together with representatives from various sectors, has jointly launched a three-dimensional, multi-dimensional spatial point cloud-based service system..." TIM （ Total Investment Management ), namely 'All-region Investment Management', is different from the classic investment model of 'fundraising, investment, management, and exit' in the past. All-region Investment Management is committed to creating an ecological service system covering the entire life cycle and industrial chain of enterprises. It integrates a series of service capabilities through internalization and linkage within the system, including enterprise management, regulatory communication, industry development trend analysis, market and strategic planning, brand value empowerment, etc., to provide enterprises with better investment management services in all aspects. Frost & Sullivan and LeadLeo have nearly 500 The human analyst team at Frost & Sullivan has long been committed to in-depth industry and corporate original research. Frost & Sullivan has a global presence of over 60 The annually accumulated industry-wide database, reported by LeadLeo and included in the databases of one of the world's largest financial market data and infrastructure providers, Refinitiv, enables precise reachability of reports. 190 country 4 More than 10,000 institutions, 40 For users of the Ten-thousand-Dollar Professional Finance platform, seamless integration is available, building a bridge between both the supply and demand sides of investment and financing. Dr. Wang Xin pointed out that achieving growth is the top priority for the development of biotech companies, while innovation and entrepreneurship are the core driving forces for their development. Becoming a market leader is a lofty goal for the long-term sustainability of a company's foundation. "New investments" refer to those made in companies that have already achieved growth, or are expected to demonstrate growth, innovation, and leadership in the future.   Frost & Sullivan aims to integrate professional resources, a pool of high-quality targets, capital, growth and R&D experts, and deeply empower practitioners of 'new investments' in the biotechnology field. Help biotech companies achieve growth, empower the transformation and upgrading of the biotech industry through innovation and technology development, cultivate leading Chinese entrepreneurs, and ultimately promote China's economic and social development.