10 month 19 On the same day, Hong Kong Exchanges and Clearing Limited (HKEX), a wholly-owned subsidiary of the Hong Kong Stock Exchange in China, published a consultation paper proposing to expand the existing listing system in Hong Kong by allowing technology-specific companies to list there. The consultation paper solicits public opinions on this matter. The technology-specific industry includes five major sectors: new-generation information technology, advanced hardware, advanced materials, new energy and environmental protection, and new food and agricultural technologies.   Currently, what is the development status of Hong Kong-listed technology-specific companies? Overall, what is the role and significance of these new rules? How do you view the new regulations, including commercial and non-commercial companies? Why were the above five technology sectors chosen? What role has the release of these rules played in attracting Chinese concept stocks? Frost & Sullivan Frost & Sullivan, Dr. Wang Xin, Global Partner and President of Greater China at Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), was interviewed by Securities Daily to jointly interpret the Hong Kong Stock Exchange 18C Zhang Consulting Document. Securities Daily 10 month 19 On the same day, Hong Kong Exchanges and Clearing Limited (HKEX), a wholly-owned subsidiary of the Hong Kong Stock Exchange in China, published a consultation paper proposing to expand the existing listing system in Hong Kong, allowing technology-specific companies to list there. The technology-specific industry includes five major sectors: new-generation information technology, advanced hardware, advanced materials, new energy and environmental protection, new food and agricultural technologies, etc. "Connecting capital with opportunities is the core strategy of the Hong Kong Stock Exchange. For this reason, we are committed to further enhancing Hong Kong's status as the preferred listing destination for global innovation companies." said Kevin Lau, Chief Executive Officer of the Hong Kong Stock Exchange Group. The new proposal will increase the variety of listed companies in Hong Kong, allowing more different types of companies to enter this international market with depth and liquidity, while also bringing more choices to investors. According to the consultation document, Tencent Smart Enterprise will be divided into two major categories: commercialized companies and uncommercialized companies. Among them, uncommercialized companies are subject to higher risks and stricter regulations. In terms of listing qualifications, it mainly stipulates five aspects: the threshold for commercial revenue, the expected minimum market value at listing, R&D, minimum third-party investment, and the commercialization path. " "The consulting document takes into account the unique role that technology plays in a company's business. Compared to the industries of other listed applicants, the development of the technology-specific industry is still in its infancy. The introduction of this regulation has significantly reduced the threshold for technology-specific companies listing in Hong Kong," said Wang Xin, Global Partner and President of Frost & Sullivan Greater China at a press conference with Securities Daily reporters. Specifically, the threshold for commercial revenue is that the revenue generated from the company's special technology business in the most recent audited fiscal year is at least 2.5 HK$10 billion. A technology company that can reach the recommended commercialization revenue threshold upon listing is considered a commercially developed company, while those that do not are uncommercialized companies; the expected minimum market value at listing is 80 HK$10 billion (commercialized companies) or 150 HK$100 million (uncommercialized companies); in terms of research and development, all applicants must have been engaged in R&D for at least three fiscal years before listing, and the amount of R&D investment must account for at least 15% (commercialized companies) or 50% (Non-commercial companies): In terms of minimum third-party investment, listed applicants must obtain a significant amount of investment from senior independent investors; in terms of commercialization path, non-commercial companies must demonstrate and disclose in their listing documents a credible pathway that can reach the threshold for commercial profitability. " Wang Xin stated that the regulations this time classify technology-specific companies into 'commercialized companies' and 'uncommercialized companies'. Especially for 'uncommercialized companies', more emphasis is placed on their initial operational and financial risks, as well as information disclosure during the listing process. "From the perspective of entry barriers, more emphasis is placed on R&D investment. Setting separate input ratio requirements for commercialized and non-commercialized companies is quite scientific and reasonable. This will also attract large technology companies in the special technology industry to list in Hong Kong," said Zheng Lei, chief economist of Samoy Cloud Technology Group, to the Securities Daily reporter. " Wang Xin believes that the special listing system established for consultation documents this time is aimed at promoting and facilitating more technology-specific companies to enter the Hong Kong market. It is conducive to expanding investment opportunities in the Hong Kong market, enriching the types of listed companies in Hong Kong, making the Hong Kong stock market more diversified, and further enhancing the competitiveness of the Hong Kong capital market. "Overall, the new regulations have increased the attractiveness to emerging technology companies, which will promote the clustering of global technology enterprises and further consolidate Hong Kong's status as an international financial center," said Zheng Lei. "The new regulations specify the listing conditions for technology-specific companies, providing clear expectations for eligible tech startups, facilitating financing for related enterprises, and helping to promote industry development and the aggregation of capital in the technology sector. The five major technology industries are in an early stage of development, with many being unicorn companies. They have clear business models, obvious technological advantages, broad development prospects, and represent the direction of emerging industries," said Fu Rao, Executive Director of the Hong Kong International New Economy Research Institute, to a reporter from Securities Daily.   * This article is reprinted from 'Securities Daily', with reporter Xing Meng.    ,    Original title:    The Hong Kong Stock Exchange plans to allow technology-specific enterprises to go public The competitiveness of the Hong Kong stock market is expected to further improve.    ">   Frost & Sullivan Insight & Extended Readings   Reporter from Securities Daily: Currently, what is the development status of Hong Kong-listed technology-specific companies? Overall, what role and significance do these rules play? Dr. Wang Xin:   at 2018 After the Hong Kong Stock Exchange announced the introduction of the 'same-stock different rights mechanism and listing for biotech companies', Chinese mainland tech giants such as Xiaomi and Meituan have chosen to list in Hong Kong. Currently, the speciality technology companies listed on the Hong Kong stock market are developing well. Relying on Hong Kong's status as an international financial center and its interconnected connectivity with the mainland, it has attracted numerous investment institutions from both international and mainland sources. This is following 2018 Annual Main Board Listing Rules of the Hong Kong Stock Exchange 18A Zhang: 'Allow biotech companies to go public', 18B After the 'Special Purpose Acquisition Companies' (SPACs), the Hong Kong Stock Exchange has once again established a special listing system aimed at promoting and facilitating more technology-specific companies to enter the Hong Kong capital market. This 'Consultation Paper' expands investment opportunities in the Hong Kong market, enriches the types of listed companies in Hong Kong, makes the Hong Kong stock market more diversified, and further enhances the competitiveness of the Hong Kong capital market.   Securities Daily Reporter: How do you view the regulation that includes commercial and non-commercial companies? Dr. Wang Xin: The Hong Kong Stock Exchange has taken into account the unique role that technology plays in a company's business, as well as the fact that the development of the industry for tech-specific companies is still in its infancy compared to other industries where listed applicants are based. The introduction of this regulation significantly reduces the threshold for tech-specific companies seeking to go public in Hong Kong. However, this regulation classifies special purpose technology companies into 'commercialized companies' and 'uncommercialized companies' for separate management. Especially for 'uncommercialized companies', the Hong Kong Stock Exchange will pay more attention to their initial operational and financial risks. Therefore, for 'uncommercialized companies', the Hong Kong Stock Exchange will place greater emphasis on information disclosure during the listing process. Considering the investment risks of 'uncommercialized companies', this 'Consultation Document' emphasizes that listed applicants need to disclose additional content on product research and development, product development details, commercialization risks, etc., based on industry information, R&D, intellectual property, pre-public offering investments and cash flows, current product and commercialization status, risk warning statements.   Securities Daily Reporter: Why were the above five technology industries chosen? What role has the release of these rules played in attracting Chinese concept stocks? Dr. Wang Xin:   The industries included in Hong Kong's special technology companies are those that currently enjoy high capital interest and have great potential for development in the future. For example, the new generation information technology industry encompasses cloud services and artificial intelligence; the advanced hardware industry includes robotics, semiconductors, and autonomous vehicles; and the new energy and environmental protection industry covers areas such as energy production and new green technologies. These fields are in Both globally and in China, it is supported by policies and is also a key area for the development of various countries in the future. The Hong Kong Stock Exchange has demonstrated its welcome attitude towards emerging industries and cutting-edge technologies this time, and will update the list of acceptable sectors for technology-specific industries as needed. The release of these rules provides more options for Chinese mainland technology companies regarding their listing path.

In the past decade, significant achievements have been made in the institutionalized two-way opening of the capital market. Interconnection measures such as the Shanghai-Hong Kong Stock Connect, the Shanghai-London Stock Connect, and the Bond Connect have been successively implemented. A Equities and Chinese bonds have been successively included in major international indices, attracting a continuous inflow of large amounts of foreign capital. This has optimized investor institutions and brought long-term incremental funds to the capital market.   How do you view the important role played by a series of interconnected capital market systems initiatives? As the stock and bond markets are gradually included in international indices, what positive impacts will it have on enhancing the internationalization level of China's capital market? Overall, what are the attractions of Chinese assets, and how do you view the future development prospects of China's capital market? Frost & Sullivan Frost & Sullivan, Dr. Wang Xin, Global Partner and President of Greater China at Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), was interviewed by the Capital Market Opening-up Special Edition of the 20th National Congress Reportage Series published by Securities Daily. The interview aimed to discuss the achievements and future development trends of China's capital market opening up in recent years. Securities Daily Since the 18th National Congress of the Communist Party of China, a new pattern of high-level opening up of China's capital market to the outside world has been accelerating: restrictions on foreign equity in the securities, funds, and futures industries have been fully lifted; interconnectivity has been continuously deepening; A The stock is included in internationally renowned indices; the Shanghai-London Stock Connect mechanism has been extended to the Shenzhen market domestically and to Germany, Switzerland... The launch of a series of opening measures has not only laid a solid foundation for the high-level two-way opening of China's capital market, but also added a significant stroke to the high-quality development of China's capital market. "Against the backdrop of economic globalization and regional integration, capital markets in various countries and regions are learning from each other and integrating with each other, becoming an inseparable whole that relies on each other." Yi Huiman, Chairman of the China Securities Regulatory Commission, once stated that the global capital market has achieved its current development mainly through openness and cooperation. Moving forward, it still requires deepening open cooperation. " "Introducing in" and "going global" advancing hand in hand An important aspect of the two-way opening up of the capital market is high-quality 'bringing in' and high-level 'going out'. In terms of 'bringing in', in recent years QFII The system is continuously optimized. 2012 year 7 In the month, the China Securities Regulatory Commission (CSRC) issued relevant regulations on foreign capital holdings A The share ratio limit for listed companies is 20% relaxed to 30% ; 2016 year 9 Month, canceled QFII and RQFII Limit on equity investment ratio; 2019 year 9 Month, canceled QFII Investment quota limit; 2020 year 9 month, will QFII , RQFII The combination of qualifications and institutional rules has been further reduced QFII and RQFII Investment access thresholds, expanding investment scope, etc. According to data from CICC, over the past decade, QFII hold A The scale of stocks has increased significantly. 2013 At the end of the year, QFII Market value of shares held 3450 100 million yuan; 2022 year 6 month, QFII Market value of shares held 1.26 trillion yuan. The market value of shares held exceeded 3 Double growth. Meanwhile, in recent years, China has continuously relaxed the foreign share ratio restrictions on securities, futures, and fund management companies. Foreign institutions have achieved 'national treatment' in terms of business scope and regulatory requirements. Many internationally renowned institutions have accelerated their investment and business development in China. As of now, there are 9 Domestic and Foreign-controlled Securities Companies, 4 Joint-venture financial management company, 3 Domestic wholly foreign-owned fund company, 1 Domestic and foreign wholly-owned futures companies have been established one after another. At the same time, across various regions QFLP , QDLP Pilot approval has been accelerating. "The continuous optimization of the business environment in China by foreign-funded financial institutions has not only accelerated the internationalization process of our capital market, but also introduced advanced investment concepts, excellent risk management experience, and diversified investment strategies into the Chinese market. This is conducive to enhancing the maturity of our capital market." CICC QFII Zhang Yiming, business leader and managing director, told the Securities Daily reporter. In terms of 'going global', as an important route for various asset management institutions to allocate overseas assets, QDII The Qualified Domestic Institutional Investor (QDII) system is an important capital 'going global' mechanism, providing opportunities for domestic institutions to expand their international business. 2018 Since [start year], the State Administration of Foreign Exchange has launched it multiple times QDII Quota issuance to meet the overseas investment needs of domestic investors QDII The fund's scale has achieved rapid growth. As of 2022 At the end of the second quarter of 2019, QDII Fund management scale exceeds expectations 3000 yuan. In addition, QDII The investment scope of the fund has also expanded from the original stock market to bonds, Real Estate Investment Trusts Commodity and other asset classes; involving multiple markets such as the United States, Europe, Japan, India, Vietnam, and more. In Zhang Yiming's view, QDII The system provides an effective channel for Chinese institutional and individual investors to allocate global assets, helping to broaden the investment scope of domestic investors and seize global investment opportunities. International institutional investors through QFII Entering China's capital market helps to guide the concept of value investing, optimize the investor structure, and further enhance market confidence. In the long run, it is conducive to better combining 'bringing in' with 'going out', promoting cross-border capital flows in both directions, and facilitating balance of payments. "   The connotation of interconnection and interoperability is constantly enriching.   "Promote deepening reform through expanding openness, and promote expanding openness through deepening reform." The pace of capital market reform and opening-up has never ceased. High-level two-way openness has yielded fruitful results everywhere, and the interconnection mechanism has made breakthrough progress repeatedly. "In the past decade, China's capital market has continuously advanced towards high-level two-way openness. A series of interconnected systems have effectively supported Chinese enterprises in using both markets and resources in accordance with laws and regulations to grow and expand." said Zhu Jiandi, Secretary of the Party Committee and Chief Partner of Lixin Certified Public Accountants. 2014 year 11 The launch of the Shanghai-Hong Kong Stock Connect in a particular month marked a milestone event in the development of the capital market, and the 'North-South Connectivity' began. The mainland exchanges established a connection mechanism with the Hong Kong Exchanges for the first time, allowing investors from both regions to buy and sell stocks listed on each other's exchanges through local institutions within the specified scope. "The establishment of the Shanghai-Hong Kong Stock Connect mechanism is an important measure for high-level two-way opening up of capital markets between the mainland and Hong Kong. It is conducive to meeting the reasonable needs of domestic and foreign investors for asset allocation in the capital markets of both places, promoting the long-term stable and healthy development of the capital markets between the mainland and Hong Kong, and consolidating Hong Kong's status as an international financial center," said Zhu Jiandi. Two years later 2016 year 12 In a certain month, Li Ka-shing, then Executive Chairman of the Hong Kong Exchanges and Clearing Limited (HKEX), stated at the launch ceremony of the Shenzhen-Hong Kong Stock Connect that if the Shanghai-Hong Kong Stock Connect is the first step towards interconnectivity, the opening of the Shenzhen-Hong Kong Stock Connect would be the second. The main institutional arrangements for the Shenzhen-Hong Kong Stock Connect are based on those of the Shanghai-Hong Kong Stock Connect, following the current trading and settlement laws, regulations, and operational models of both markets. this year 7 Month-on-month, 'North-South Connect' has taken another big step forward. Exchange-traded open-end funds ETF It has been officially incorporated into the interconnection mechanism for trading between the mainland and Hong Kong stock markets. Zhu Jiandi believes that this is conducive to global investors' wider participation in index investment tools, and will promote asset managers on both sides to improve their management and service levels. At present, the Shanghai-Hong Kong-Macao Stock Connect has become a participation point for foreign capital A The most important channel for stock market trading. Data shows that as of 9 month 5 Since its launch, the cumulative net purchases through CSI-Exchange Connect have been 1.69 trillion yuan, cumulative net purchases through the Hong Kong Stock Connect 2.41 trillion yuan. "The interconnection mechanism can facilitate cross-border investment and financing, promoting the globalization of factor resource allocation." Zhang Kun, a postdoctoral researcher at the China International Credit Rating & Research Institute, said that on one hand, it can meet the cross-border asset allocation needs of domestic investors, improving the efficiency of global asset allocation for domestic investors; on the other hand, it broadens the channels and investment scope for overseas funds to participate in the domestic capital market. The 'north-south connectivity' of the bond market has also made new progress. 2017 year 7 In a certain month, the Bond Connect officially went live. The northbound and southbound services were launched one after another, achieving two-way connectivity between the mainland and Hong Kong bond markets. This year, regulatory authorities from both places put 'swap connect' on the agenda to facilitate overseas investors to participate in derivative transactions such as interbank interest rate swaps. Since then, the mechanism for capital market connectivity between the mainland and Hong Kong has been further expanded from the original areas of stocks, funds, bonds, etc., to the field of interest rate derivatives, continuously improving the level of two-way opening up of the capital markets. 2019 year 6 Month, the Shanghai-London Stock Connect was officially launched. Huatai Securities issued the first global depositary receipt under the Shanghai-London Stock Connect GDR The product is listed and traded on the LSE. This year 2 Month, the Shanghai-London Stock Connect mechanism has been expanded and optimized. Domestically, eligible listed companies on the Shenzhen Stock Exchange have been included; internationally, it has been extended to Switzerland and Germany. This year 7 month 28 day, the first batch 4 Domestic Chinese enterprise issuance GDR Successfully logged in to the Ruixin Stock Exchange. Zhu Jiandi stated that issuing global depositary receipts is conducive to exploring diversified two-way financing channels overseas, promoting the globalization of factor resource allocation, advancing institutional opening up of capital markets, supporting the development of China's real economy, and enhancing the international recognition of Chinese enterprises. " "Overall, under the interconnected mechanism, there are higher requirements for information disclosure, regulatory intensity, and transaction convenience. This has optimized the capital market structure in China, which is conducive to long-term investment activities by domestic and foreign investment institutions and investors, and helps promote the stable, healthy, and orderly development of the market," said Wang Xin, Global Partner at Frost & Sullivan and President of Greater China. " Three major international mainstream indices were successively included A With the gradual deepening of the two-way opening up of China's capital market, it has also attracted the attention of more and more international investors, leading global mainstream indices to extend olive branches. 2018 year 6 month, A The stock has been officially included in Morgan Stanley Capital International ( MSCI ) The emerging market index marks a crucial step in the internationalization of China's stock market. The following year 6 Month, FTSE Russell will A The inclusion of stocks into its global stock index system came into effect. 3 A thousand months later, a thousand Chinese A The stock was included in the S&P Emerging Markets Global Benchmark Index. In just over a year, A The stock has connected three consecutive highs — "entering the market cap list," "entering the rich list," and "entering the top 100." Since then, the three index companies have continued to improve. A Equity inclusion factor, maintained at 20% and above, A The internationalization level of the stock market has been increasing year by year. Meanwhile, China's bond market has also been gradually incorporated into international mainstream indices. Currently, three major global bond index companies—Bloomberg Barclays, FTSE Russell, and JPMorgan Chase—are including onshore RMB bonds in their indexes. " A The inclusion of stocks and Chinese bonds in international mainstream indices is an important step towards the opening up of China's capital market to the outside world. 'Zhang Kun stated that this fully demonstrates the confidence and recognition of international investors in China's economic development and the reform and opening-up of the capital market, which has positive implications for attracting foreign investment inflows and promoting the integration of China's capital market with international standards.' Zhang Kun believes that, on the one hand, it helps to attract overseas passive funds; on the other hand, it can increase the attention and recognition of overseas investors towards China's capital market, which is conducive to enhancing overseas active funds' investment in our country. A The allocation intensity of stocks and bonds. "The mainstream international indices incorporating Chinese stocks and bonds fully reflect the confidence of international investors in the long-term healthy development of China's economy, as well as their recognition of the achievements in the construction and opening up of China's capital market," said Zhu Jiandi. With the steady progress of China's capital market reform, it will provide an even more efficient and convenient investment environment for international investors, and related international indices will continue to be optimized and upgraded for inclusion. A The degree and scope of equity and bonds can help better enhance the internationalization level of China's capital market, achieving win-win cooperation between international investors and the Chinese economy. With the continuous deepening of interconnection mechanisms, China's long-term and steady economic dividends as well as relatively stable and secure investment opportunities will come into close contact with global investment institutions. China is in a period of industrial structure upgrading, and new adjustments to the industrial structure will inevitably bring capital market dividends. The opportunities generated by these industrial economies will provide investors with better returns. Only those who reform advance, and only those who open up become strong. Currently, our country is accelerating the construction of a new development pattern that takes the domestic big cycle as the main body and promotes mutual reinforcement between domestic and international dual cycles. Consequently, China's capital market will also enter a new stage of greater openness, inclusiveness, and high-quality development.   * This article is reprinted from 'Securities Daily', with reporters Hou Jiening, Xing Meng, and Meng Ke.    ,    Original title:    High-quality "bringing in" and high-level "going out" The opening up of the capital market has yielded fruitful results    ">   Frost & Sullivan Insight & Extended Readings   Securities Daily Reporter: How do you view the important role played by a series of interconnected capital market systems and measures? Dr. Wang Xin: The important role brought about by this series of interconnected systems can be interpreted from three aspects: Firstly, for China's capital market, due to the interconnection mechanism, there are higher requirements for information disclosure, regulatory enforcement, and trading convenience. These measures are steadily strengthening the openness of China's capital market to the outside world, while also promoting the improvement of the capital market system, optimizing the structure of the capital market, and facilitating long-term investment activities by domestic and foreign investment institutions and investors. This helps to ensure the stable and orderly development of China's capital market. In addition, for the Hong Kong Special Administrative Region (HKSAR), under the interconnection mechanism, Hong Kong will become an important hub for international funds investing in the mainland, which is conducive to strengthening its global financial position. For domestic investment institutions and investors, it has also created an opportunity for differentiated development. In the future, the overall financial investment industry will also enter a new stage of development. At present, internationally leading investment institutions generally possess their own distinctive business models and investment positioning. In China, the business homogenization of top investment institutions is quite evident, with relatively single models and products. Under the backdrop of interconnectivity, top investment institutions will have more types of investment products and funding channels, and can adopt more innovative investment strategies. The liquidity of capital will also continue to strengthen. For ordinary domestic investors, in an environment where real estate investment is restricted and appreciation narrows, they are no longer constrained by the original investment thresholds and market conditions, and have the ability and more opportunities to make more diversified and rational global asset allocations. For Chinese enterprises, the interconnection system has reduced their financing costs and broadened financing channels. At the same time, with the continuous entry of more mature overseas investment institutions, they will also empower the future development of Chinese enterprises.   Securities Daily Reporter: As the stock and bond markets are gradually included in international indices, what positive impacts will there be on enhancing the internationalization level of China's capital market? Dr. Wang Xin:   Firstly, optimizing the investment structure of China's capital market involves not only diversification of investment institutions but also reflects in the richness of market products and the diversity of capital raising channels. Secondly, newly established overseas investment institutions and investors often bring with them their mature market management and risk control experience as well as products when entering the Chinese capital market. This is conducive to China's market learning from and continuously optimizing its capital market structure and risk management to align with international standards. Thirdly, international capital can deeply participate in the upgrading of China's industrial structure through this opening-up process. This will bring about more distinctive and innovative cooperation models and areas, which will also strengthen and enhance the role and influence of major Chinese exchanges in international finance. Securities Daily Reporter: Overall, what do you think are the attractions of Chinese assets, and how do you view the future development prospects of China's capital market? Dr. Wang Xin:   1 ) After the implementation of several five-year plans, China's economic growth dividends have not been fully opened up to global capital. With the advent of interconnectivity, China's long-term and steady economic dividends as well as relatively stable and secure investment opportunities will come into deep contact with global investment institutions. 2 ) China is in the period of industrial structure upgrading, and the government's relevant policies are also strongly supporting new economic pillars such as chip development, the utilization of new energy, and the establishment of the Internet of Things. The new industrial structure adjustment will inevitably bring capital market dividends, and the opportunities generated by these industrial economies will bring better and higher product returns to investors. 3 ) In recent years, the income level of Chinese residents has been continuously rising, but the appreciation rate of real estate has gradually narrowed. At the same time, China's 14th Five-Year Plan aims to create a low-interest-rate investment environment while building a dual circulation economy. Chinese residents will continue to increase their proportion of capital investment allocation, which will also drive the expansion of the overall capital market and generate additional investment dividend space. 4 ) At present, China's financial regulatory environment is more relaxed, which will inevitably give rise to a series of financial innovation products and derivatives. These products will provide additional and rich financial products and investment tools for domestic and foreign investors. Overall, the development of China's capital market in the future will surely involve a more sustained and intensive opening up to the outside world, continuously increasing the liquidity within the capital market. The strengthening cooperation between domestic and foreign investment institutions will also promote the construction of a more complete, inclusive, stable, and solid financial system in China's capital market.

AstraZeneca's Rare Diseases Business Unit Alexion Pharmaceuticals (Later referred to as 'Ali Brothers Pharmaceutical') announced that 6,800 10,000 US dollars (about 4.84 RMB 10 billion) to acquire a clinical-stage gene company LogicBio Therapeutics In recent years, with policy support and market demand, many pharmaceutical companies including Novartis and Takeda are accelerating their layout in the field of rare diseases. Why do large companies choose to layout in the rare disease field through mergers and acquisitions? In recent years, the research and development of rare disease drugs has become a hot area for pharmaceutical companies to compete in. With continuous capital inflows, what impact will this have on the entire industrial chain?   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 reasons and impacts of large enterprises deploying in the rare disease space. Huaxia Times Net Multinational pharmaceutical giants are increasing their investment in the field of rare diseases. Eastern US Time 10 month 3 AstraZeneca's Rare Diseases Business Unit Alexion Pharmaceuticals (Later referred to as 'Ali Brothers Pharmaceutical') announced that 6800 10,000 US dollars (about 4.84 RMB 10 billion) to acquire a clinical-stage gene company LogicBio Therapeutics On the same day, Pfizer announced that it will 116 US$100 million acquisition Biohaven The company, just two days later, Pfizer announced again with 54 US$100 million acquisition GBT The company has been interpreted by the outside world as Pfizer beginning to seek new assets in the biopharmaceutical field to expand its pipeline and capture the rare hematology market. In fact, Merck Sharp & Dohme, Novartis Pharmaceuticals, and GlaxoSmithKline have been investing heavily in rare disease areas over the past year through acquisitions. Domestic pharmaceutical companies such as Beijing Kangcheng Biotechnology Co., Ltd., Boya Yijing Biotech Co., Ltd., Conti Biotech Co., Ltd., Shanghai Zhongqiang Pharmaceutical Co., Ltd., Shufang Medicine Co., Ltd., and Deyi Sunshine are also actively deploying rare disease R&D pipelines. "In recent years, rare diseases have become a popular investment area, with mergers and acquisitions worth hundreds of billions frequently occurring." Li Qian, senior consulting director for healthcare at Frost & Sullivan, said in an interview with the China Times that pharmaceutical companies will face the crisis of product patent expiration and need to expand their product pipeline to achieve sustainable growth, with mergers and acquisitions being one solution. The continuous influx of capital will drive the development of the rare disease industry, benefiting more patients with rare diseases. " Increase investment Recently, AstraZeneca and its subsidiary AstraZeneca Oncology announced the acquisition LogicBio Therapeu It is reported that this acquisition, LogicBio It will bring unique technologies, an experienced rare disease team, and expertise in preclinical development to support the development of Genomics Medicine at Alisheng Pharmaceutical. Public information shows, LogicBio Established 2014 Genome Therapeutics, a clinical-stage gene therapy company located in Lexington, Massachusetts, treats a variety of genetic diseases including rare disorders. At present, it is mainly focused on developing novel gene therapies for children with rare diseases. LogicBio A technology platform for delivering and inserting genes to treat genetic diseases, as well as a platform for improving the manufacturing process of viral vectors, have been developed. These platforms, together with LogicBio An experienced team, along with the progress of Brother Alistair and AstraZeneca, will drive future scientific possibilities and the development of next-generation drugs for treating rare genetic diseases. Alexandre Dunoire, CEO of Alistair Pharma, said: 'The proposed acquisition LogicBio It represents a significant development for our growing genomic medicine research. LogicBio The personnel, experience, and platform have provided new scientific capabilities by integrating first-class technology and expertise into our genomics strategy. Since the acquisition last year, scientific collaboration between Alexion and AstraZeneca has been an important area of focus. LogicBio The addition will expand this foundational work. Coincidentally, another multinational pharmaceutical giant, Pfizer, has also 10 month 3 Riyo 5 Today, it was announced that 116 US$100 million acquisition Biohaven company, with 54 US$100 million acquisition GBT company. It is understood that Biohaven A neurology drug development company, specializing in migraine medications Nurtec ODT at 2022 Net revenue in the first quarter of the year reached 1.24 billion US dollars, Pfizer's acquisition is mainly to secure this drug. After the acquisition is completed, Biohaven The company's medical business for amyotrophic lateral sclerosis (ALS) and obsessive-compulsive disorder (OCD) will be spun off into a new entity. Biohaven This acquisition is 2022 One of the largest pharmaceutical mergers and acquisitions globally. GBT The company was established in 2011 In [year], research and development of drugs for the treatment of sickle cell disease were initiated. 2019 year, GBT Sickle cell disease treatment drugs Oxbryta Approved in the United States, with two other drugs in 3 - 4 The clinical phase is ongoing. This acquisition by Pfizer will strengthen its business in the rare disease space. In fact, in recent years, with policy support and market demand, major pharmaceutical companies are accelerating their layout in the field of rare diseases. Earlier this year, GlaxoSmithKline took the lead. 2022 year 4 Month, GlaxoSmithKline with 19 $100 million acquisition of rare cancer targeted therapy company Sierra . Sierra Oncology Focus on the development of targeted therapies for rare tumors, with its main candidate products Momelotinib Already this year 6 Towards the United States FDA The submission of a new drug application for the treatment of myelofibrosis is expected to be 2023 went public in the United States last year. At the same time, GlaxoSmithKline expects to 2022 Submit a new drug application for the product in Europe in the second half of the year. 2021 year 11 Month, Merck Sharp & Dohme announced that 115 Billion dollars to complete the acquisition of a rare disease new drug R&D company Acceleron Pharma The acquisition, it is reported, Acceleron It is a clinical-stage biopharmaceutical company focusing on the research and development of anti-cancer drugs and rare medicines for rare diseases. 2021 year 12 In January, Merck Sharp & Dohme acquired a drug research and development company focused on rare neuro-inflammatory diseases Chord Therapeutics With this acquisition, Merck Sharp & Dohme will gain access to the treatment for neuromyelitis optica obstacle NMOSD ) and myasthenia gravis MG pipeline drugs CRD1 Further strengthen the layout in the field of rare diseases. 2021 year 12 In January, Novartis Pharmaceuticals announced the acquisition of a neuroscience drug developer Cadent Therapeutics The maximum acquisition amount will reach 7.7 billion US dollars. As part of the acquisition, Novartis has received Cadent Rare disease products CAD-9303 and CAD-1883 , wherein CAD-9303 For schizophrenia, CAD-1883 For movement disorders (e.g., cerebellar ataxia). Earlier, 2019 year 1 month 8 Today, Takeda Pharmaceutical invested 640 Acquired US-based Therapeutics Moderna for $1000 million, becoming the largest company in rare diseases. " M&A in the Blue Ocean Rare diseases, also known as 'orphan diseases', refer to those with extremely low incidence rates, typically chronic and serious conditions that often endanger the lives of patients. According to the American Rare Diseases Organization (NORD) Official website. Currently, there are more than rare diseases known globally 70,000 species, and the number of rare disease patients has exceeded 3 billion, of which 50% The patient is a child. Due to the limited number of applicable populations and high R&D costs, pharmaceutical companies rarely invest funds in research and development production. Therefore, rare disease drugs are also known as 'orphan drugs'.   Frost & Sullivan's 'Frost & Sullivan' 2022 The 'China Rare Disease Industry Trend Observation Report' points out that in recent years, capital has continuously flowed into the research and development of rare disease drugs, innovative biotechnology platforms, internet technology, and innovative medical services, promoting the construction of a rare disease ecosystem. Resources are collaborating with each other, injecting vitality into the rare disease industry chain. Meng Lilian, the chief expert at Sichuan Tianfu Health Industry Research Institute, pointed out in an interview with a reporter from China Times that although rare diseases seem to have a large population base, they are a general term for all rare conditions, and the number of people affected by each rare disease is not very large. People suffering from rare diseases need effective medications, which is their right as well as the obligation of the state, enterprises, and relevant parties. With the gradual improvement of various conditions, the development of rare disease drugs has received attention, and capital from all sectors is gradually entering the field of rare diseases. This is the result of joint attention and anticipation from all parties. Deng Zhidong, General Manager of Hainan Boao Medical Technology Co., Ltd., said in an interview with a reporter from China Times that globally, the total number of rare disease patients has exceeded 3 hundreds of millions, and the number of rare disease patients in our country is about 2000 Ten thousand, and the number of new patients each year exceeds 20 Ten thousand, expected to arrive 2024 In [Year], the global market size for rare disease medications will reach 2420 billion dollars. He further pointed out that in recent years, the research and development of drugs for rare diseases has become an important area in international new drug research and development. With social attention and policy support, the market for rare disease drugs is promising for the future.   * This article is reprinted from China Times.   Reporters: Sun Mengyuan, Yu Na   Original title:    In the rare disease sector, three mergers and acquisitions were announced intensively in a week. Behind the pharmaceutical giants' increased investment in orphan drugs    "> Recommended Reading   👉 International Rare Diseases Day | Frost & Sullivan, in collaboration with the Pledge to End Violence Against Women, has released 2022 China Rare Diseases Industry Trend Observation Report

10 month 14 day 2022 The annual World Egg Products China Day, themed 'Egg Product Technology and Marketing', Invite experts from various fields to jointly discuss the development of the egg industry. Frost & Sullivan Frost & Sullivan Zhu Yiming, Executive Director of Greater China at Frost & Sullivan (referred to as 'Frost & Sullivan'), was invited to attend an online meeting and deliver a speech on insights into the Chinese egg industry. Eggs, as one of the most important poultry egg varieties, have a vast consumer base nationwide. Based on different selling prices and product positioning, eggs can be divided into mid-to-high-end eggs and mass-market eggs, with the mid-to-high-end category evolving more towards branded eggs. Looking at the development history of the industry, the development process of China's egg industry can be summarized into four stages: traditional free-range farming, large-scale operation, corporatization, standardization, and branding.   According to Zhu Yiming, after experiencing large-scale production and model company operations, relying on the huge domestic demand for eggs, the development of China's egg industry has reached a certain scale. It has become the world's largest producer and consumer of eggs, with output accounting for nearly 40% .   According to data from the National Bureau of Statistics, 2021 The annual poultry egg output is at 34 million About ten tons, based on egg production 31 million Calculated in tons, according to data from the Ministry of Agriculture and Rural Affairs, the national average wholesale price of eggs is 9 - 10 yuan / kilograms, from which the output value of China's egg industry can be calculated at 3,000 More than 100 million yuan.   However, under the vast market scale of China's egg industry, there are still issues such as blurred category boundaries, lack of standardization, low brand recognition, and severe product homogenization. The domestic egg industry is in its infancy, with most business models being small and scattered, resulting in low concentration. The vast majority of eggs on the market are still sold loose, with a low branding rate. 5% The industry is still in a state of low-level competition characterized by price, lacking overall innovation advantages.    The reasons for the above phenomena are as follows:   ·            Product features   Egg products have a relatively short shelf life. The industry consensus is that the optimal coverage sales range for egg producers is 800 About kilometers. Since eggs are primary agricultural products, ensuring product freshness is a factor that must be considered. Limited by transportation costs, factories have to be built nearby. At the same time, the small and decentralized industry model inevitably limits the enterprise's expansion capabilities, restricting egg companies from expanding breeding bases. ·            consumer perception   Consumers lack awareness of the safety, nutrition, and practical functions of truly high-quality eggs, believing that the quality of bulk eggs is already sufficient to meet their needs. ·            Brand building requires high investment and a long return cycle.   Enterprise brand building requires both time and investment. Even so, it is not certain that the brand will achieve quick results when introduced into the market. Once there are mistakes or errors in brand strategy formulation, there is often a high possibility of no returns at all. Currently, only large and medium-sized egg production enterprises in China have the financial strength to establish brands, while small enterprises or small farms simply do not have the capital to productize their brands.   Data shows that in recent years, egg prices in China have fluctuated cyclically, with the overall trend showing an upward trend. 2017 In the first half of the year, affected by H7N9 influenza Affected by the epidemic, egg prices have continued to operate at a low level. In the second half of the year, breeding profits will increase and continue 2019 year, 2019 In 2019, affected by African swine fever, the prices of poultry meat and eggs soared. Subsequently, egg prices weakened due to sufficient inventory and falling demand. 2020 The outbreak of the COVID-19 pandemic in 2020 prompted consumers to pay more attention to nutritional diet and physical health, leading to a significant increase in egg consumption demand. Egg prices have fluctuated from 2020 year 0.49 yuan / Upgrade to 2021 year 0.56 yuan / pieces, a year-on-year increase 14.5% . In the Chinese egg market, mid- to high-end eggs are a relatively new category that has emerged in recent years. The basic market size is therefore relatively small. 2021 Only accounts for about 0.1% Left and right. However, with the advancement of consumption upgrading, in recent years, the proportion of mid- to high-end egg categories in national egg consumption has steadily increased. 2019 - 2021 The annual compound growth rate reached 57.0% It is far higher than the general growth rate of eggs in the market, becoming an important component driving the growth of China's egg market size. Due to the still vast potential market space and consumer demand, it is expected that mid- to high-end eggs will continue to 2025 Annual achievement 5.2% The market share of eggs, with a market scale exceeding 207 Yuan, with an annual compound growth rate as high as 48.5% . In recent years, the state has introduced a number of favorable policies to ensure the development and market stability of the poultry industry. The focus of these policies tends to be on accelerating the transformation of the poultry industry towards large-scale, standardized, and modern breeding methods, improving product quality and safety levels, promoting the localization of egg supply, establishing and improving a complete logistics transportation system, etc., to guide the large-scale and modern development of the egg industry. In addition, the successive introduction of multiple environmental protection policies has also put forward higher requirements for the entire egg production process. The continuous improvement of the egg testing standard system promotes the quality enhancement of domestic eggs and drives industry standardization.   Zhu Yiming stated that, on the basis of good macroeconomic conditions and policies, China's egg market has seen growth driven by both consumer demand and production supply; at the same time, the development of online sales channels such as internet platforms has also brought new opportunities to the egg industry. In the future, it is expected that the Chinese egg industry will show the following development trends: 1 With the increasingly evident trend of consumption upgrading and the impact of the pandemic, people are paying more attention to their physical health and dietary safety. Eggs with good quality assurance and capable of providing high-quality nutrition have become a purchasing choice for more consumers. Concepts such as raw eggs and sterile eggs are even more popular among consumers, and egg consumption demand is trending towards higher quality. 2 With the continuous development of the national economy and the sustained improvement of residents' living standards, consumers' attention to traceable branded products is constantly increasing. The change in consumption concepts has also made well-known brands such as eggs more popular among consumers. The brand effect in the egg market is becoming increasingly evident, and branding will become one of the important trends for egg producers in the future. 3 The standardization construction of the laying hen and egg industry has been continuously strengthened. The industry standard for raw eggs has been established and is gradually being improved, making the egg industry increasingly oriented towards standardized development. 4 The epidemic has driven enterprises to explore online marketing channels, and the transformation of consumption methods and habits has facilitated O2O model With the development of sales models, the application of online channels and new retail models will bring more possibilities to the egg industry.   Finally, Zhu Yiming analyzed the competitive focus of China's mid-to-high-end egg industry. He pointed out that the competition in the mid-to-high-end egg industry mainly revolves around four aspects: brand and marketing, food safety, supply chain, and channel expansion. ·          Brand promotion and marketing increase exposure   The egg industry in China is highly fragmented, with few well-known brands. Consumers generally have a low memory for egg brands, and eggs produced by small and medium-sized unbranded chicken farms dominate the market. With consumption upgrading and the pursuit of healthy nutrition, various egg brands are using integrated marketing strategies to increase brand exposure and conversion rates, aiming to achieve rapid overtaking on the market and drive brand sales growth. ·          Strictly control food safety to ensure deliciousness and safety   The quality of brand eggs is guaranteed. From the introduction of ancestral chickens, parent stock to breeding hens, Salmonella is strictly controlled. Antibiotics are not used in breeding, and eggs go through cleaning, sterilization and other steps before leaving the factory, meeting consumers' demands for 'aseptic' and 'antibiotic-free' products. In addition, egg production and transportation are strictly controlled to ensure the market time and storage conditions, guaranteeing the safety and freshness of eggs. ·          Improve the supply chain to ensure product quality   Currently, the egg industry is characterized by scattered farms, mostly small-scale operations. The professional knowledge of the breeders varies widely, and chicken farm facilities are generally average with extensive management practices. Moreover, labor costs and feed prices have been rising year by year, making it difficult to control production capacity and egg quality. Egg merchants need to face up to the transformation and upgrading of the egg industry, appropriately expand production scale, control the supply chain, and improve the entire industrial chain from feed, chicks, breeding, distribution, to retail terminals. This can ensure a continuous and stable output of high-quality products and enhance brand competitiveness. ·          Expand through multiple channels to increase sales   In addition to traditional egg sales channels such as supermarkets and farmers' markets, online sales channels have gradually received attention in recent years. Especially after the pandemic, major brands quickly seized the online market. The main online channels include comprehensive e-commerce platforms such as Tmall, Taobao, Pinduoduo, etc.; new retail channels such as Hema, Dingo.com, etc.; sharing platforms like Rednote, etc.; and some B2B E-commerce platforms such as Meicai, which use online live streaming for promotion and offline multi-channel distribution to increase brand exposure and awareness, thereby leading to repeat purchases.

  In recent years, domestic enterprises OK The layout in the mirror field is accelerating continuously, whether it's in raw materials or product research and development. Haohai Bio-tech has acquired raw material manufacturers and developed its own products that have entered clinical trials; Aibo Medical has fully achieved self-production of materials; and Opcom Vision is also advancing the self-production of some materials. OK What are the core technical barriers in the mirror industry, from materials to products, and how has domestic enterprise progress made in breaking through these barriers? ? as OK The possibility of relaxing optometry fitting policies may present an expansion opportunity for domestic manufacturers. What are the advantages and challenges? With the improvement of domestic enterprises' R&D capabilities and localization service capabilities, OK Will the mirror market accelerate the arrival of the era of domestic substitution?   Frost & Sullivan Frost & Sullivan Liu Weiqi, Executive Director of the Healthcare Team for Greater China at Frost & Sullivan (referred to as 'Frost & Sullivan'), was interviewed by Bullet Financial Perspective to discuss domestic OK The current development status and future trends of the mirror industry. Bullet wealth view "Myopia 12,000 What is the experience like?' Recently, this topic that made it onto the hot search has sparked numerous discussions. 12,000 Myopia is rare in daily life, but it resonates the most. In China, the number of myopic people exceeds 6 Yi, which means more than 40% People with myopia are more prevalent among children, adolescents, and college students. The data shows, 2018 The overall myopia rate among children and adolescents nationwide is 53.6% , with the total number exceeding 1 Hundreds of millions. Many parents are worried—under the circumstances of increasing study pressure and frequent use of electronic products, it seems inevitable that children will develop myopia. Under the “myopia anxiety” of parents, orthokeratology lenses (hereinafter referred to as OK As one of the main methods for vision correction and myopia prevention and control among teenagers, glasses are favored for their ability to 'prevent and control myopia during sleep' and slow down the progression of myopia. According to data from Zhiyan Consulting, 2020 Domestic in the year OK The market scale of the mirror segment has reached 106.62 yuan, 2021 Year-on-year growth to 125.32 yuan, only 2012 - 2021 In that year, the market scale achieved an average annual compound growth rate of 24.8% . According to data from Dongguan Securities, as early as 2019 year, OK The enterprise with the highest market share in the mirror segment is OPPO Vision, accounting for approximately 30.8% , and iBioMed OK Mirror products are 2019 It was only approved for listing last year, accounting for only 1% Others 68.2% The shares are held by overseas enterprises. In addition, OK The mirror industry has 90% The gross profit margin on the left and right, domestically 1% The market penetration rate, coupled with the pressure on policy-level myopia prevention and control among teenagers, provides ample room for imagination for market players. As an industry that highly relies on offline services and local doctor resources, there are currently only 8 Outside the home country, 3 Mainland manufacturer. With the continuous improvement in consumer acceptance, as well as the iteration and advancement of material and product research and development, OK What kind of changes are expected to occur in the mirror market? Will the era of domestic substitution arrive? " 1 chaos, rectification and "liberalization" OK A contact lens is a customized lens made of breathable, rigid corneal contact lens material. Through a special reverse geometry design, it can temporarily change the shape of the cornea, thereby achieving a temporary reduction in myopia. It can be used for the prevention and delay of myopia. In fact, OK Mirror is not a new thing in the domestic market, dating back to 1998 year, OK The mirror was first introduced into China, but it soon suffered a severe setback. Due to the lack of effective supervision in the early market, counterfeit and substandard products were rampant. Coupled with inadequate fitting and post-treatment diagnosis and treatment, many medical accidents occurred. 2000 In [year], multiple provinces and cities across the country experienced cases due to wearing OK The use of contact lenses has caused cases of corneal damage, ulceration, and even near blindness, leading to a large number of lawsuits. 2001 year 3 month OK The mirror made headlines on CCTV as a negative case 315 , by that year 6 In the month, the National Medical Products Administration will OK The inclusion of intraocular lenses in the management of 'Class III medical devices' requires strict supervision in all aspects such as production, operation, and fitting. This series of measures has made OK The mirror once disappeared from the market. Until now, this storm has on OK The negative impacts of the mirror industry still persist, and even more so, “ OK False claims such as 'mirrors are banned abroad' continue to circulate. Looking back, 2000 The turmoil of that year led to the regulatory authorities facing OK The control of mirrors is particularly strict. 2005 In [year], “Mengdaiwei”, a product under Opcom Vision, was approved for listing, becoming the first domestic product to be approved OK Mirror products. Thereafter 6 In the year, there were no new products approved until 2011 In [year], centralized approval was finally passed 5 Overseas brands OK mirror. As of now, there are a total of 11 Enterprises include 8 Offshore enterprises, 3 Domestic enterprises OK The mirror product has been approved for market launch. 2019 Since the beginning of this year, there have been a total of 3 The product has been approved for market launch, and regulatory authorities have significantly accelerated the process OK Approval progress of mirror products. In fact, the official response OK The positive attitude towards the mirror has also become more evident in recent years. 2021 year 10 In the month, the National Health Commission's official website released the 'Guidelines for Appropriate Technologies for Myopia Prevention and Control in Children and Adolescents (Updated Version)' along with an interpretation, clearly proposing the wearing of orthokeratology lenses ( OK Relevant recommendations for slowing down myopia progression (eyeglasses). and 2022 year 6 In [year], a document circulated within the industry titled 'Letter from the Medical Administration Bureau of the National Health Commission on Soliciting Opinions on the Clinical Application Management and Operating Specifications for Orthokeratology Lenses' abolished the requirement for orthokeratology lens fitting institutions to be 'medical institutions at or above the second level (including the second level)'. The industry regards the relaxation of this clause as OK The downstream sales terminal of the Mirror is signaling a 'relaxation'. So, at present OK What is the specific development situation of the mirror industry in China? " 2 Imported or domestic?   This is a question Ms. Fan from Beijing's son was diagnosed with myopia when he was in the third grade of primary school after a physical examination revealed abnormal vision. She then took her child to the hospital for a reexamination and was diagnosed with myopia, with each eye having a myopia degree of 125 degree, 175 degree. "It happened to be the summer vacation, and I thought taking a break during the holidays might help my vision recover. To my surprise, just a few months later, it had risen 200 "It's been too much." Ms. Fan said that after school starts, she will take the child for another check-up, and her child's vision has risen to 175 degree, 225 At that moment, she deeply regretted her fluke mentality. "Many children are now found to be nearsighted during check-ups." 200 multiple times, 10 Children around the age of 4 typically have a certain reserve of hyperopia. 200 For adults, the degree may not be very high, but for children of this age group, it is already quite significant. Moreover, children's eyes are still developing, and this situation can very likely lead to high myopia. "The staff at the optometry department of Peking University Third Hospital told Bullet Finance." After the second vision check-up, Ms. Fan decided to get her child glasses right away, considering OK The glasses are only worn at night and do not affect daytime activities. They can also relatively effectively slow down the progression of myopia. Despite their high value, Ms. Fan chose to get them fitted without hesitation. OK mirror. Ms. Fan hopes to have her child wear glasses immediately to avoid further progression of myopia, but the reality is not as easy as she imagines. After comprehensive consideration and the doctor's advice, Ms. Fan chose the United States CRT brand OK The glasses, after preliminary optometry, trial fitting, and parameter confirmation, were ordered. The cost was 1.28 Ten thousand yuan. But OK Lenses are custom-made, and the parameters for each lens need to be customized based on the wearer's own conditions. The customization cycle for imported brands often 1 - 2 Months. Just like this, it took another two months from fitting to receiving the glasses. Liang Liang (a pseudonym), a physician at the Optometry Center of Peking University Third Hospital, commented on 'bullet wealth views' that the differences between domestic and imported brands include tear circulation, coverage of myopia degrees, etc. Overall, there is not much difference in vision correction and prevention and control effects. However, in terms of time cycle, the customization cycle for mainland brands is about 2 In about a week, it is significantly superior to overseas brands. Additionally, the price difference is more pronounced. picture / Peking University Third Hospital Optometry Center Taking the Optometry Center of Peking University Third Hospital as an example, options are available OK The mirror brands basically cover the existing brands on the market, including 7 Large overseas brands, 2 Mainland brands. As can be seen from the price list, mainland brands are significantly more affordable in terms of price, about 1/2 . According to Bullet Finance View, a pair OK The general wearing period of the mirror is 1 From year one to one and a half years, if myopia worsens, it may be necessary to replace it earlier. Adding to this are the daily maintenance costs such as eye drops and irrigation solutions, along with the cost of wearing imported brands. OK The annual cost of the mirror is about 1.5 ten thousand -2 Ten thousand yuan. If a child starts wearing it from primary school and continues to do so 18 years, according to 10 The total annual costs incurred are nearly 20 Ten thousand. If an inland brand is chosen, then it is 10 Around 10,000 yuan. "The proportion of consumers choosing imported brands is at 50% That's above. However, there are indeed more and more people choosing domestic brands now." Liang Liang said. Currently, on Rednote OK Notes of the mirror exceed 2 Among them, many parents choose to give their children national brand products. Besides weighing various factors, a large portion of people do so because 'there is no other choice'. "We only have the Dream David brand of children's hospital here, and there's no other choice," said a Guangdong consumer. OK Magnifying glasses belong to Class III medical devices and require a high level of expertise. Consumers do not have the ability to make independent choices and mainly rely on doctor recommendations, etc. The channel advantage that covers more medical terminals has obviously become OK The foundation for the rapid expansion of mirror brands. "If you want to come from afar to see me for glasses, no matter what, I have to persuade you to go back." An ophthalmologist replied to a consultation on social media. 3 Monthly follow-ups and immediate consultation for any discomfort are fundamental guarantees for achieving eye health and preventing myopia. OK The mirror is destined to be a localized consumption product, and this feature also provides an opportunity for domestic enterprises to catch up and gain the upper hand. "In the medium to long term, domestic manufacturers have a stronger ability to penetrate into grassroots markets compared to importers. They can also provide more timely feedback on issues arising in local optometry and ophthalmic medical institutions, which is conducive to increasing market share and achieving broader product coverage." Liu Weiqi, Executive Director of Frost & Sullivan's Greater China Healthcare Team, told Bullet Financial View. " 3 ,   Mainland brands placing bets    Channels and R&D In fact, OK The reason why the Mirror Circuit is occupied by overseas brands 68% The market share, while mainland brands have been declining, is mainly due to the fact that for many years only one mainland enterprise has been able to provide OK Mirror products and services. 2005 In [year], OPPOCON Vision obtained OK The mirror was listed on the stock market, becoming the first mainland company to be approved for listing OK Mirror manufacturing enterprise. 2019 In [year], the second mainland enterprise, Aibo Medical, received OK The Mirror's market launch license, although it entered the market relatively late, iBioMed OK The development momentum of mirror products has provided more room for imagination for newcomers. According to Orient Fortune choice data, 2020 Annual revenue of iHealthCare OK mirror business revenue 0.41 yuan, 2021 Year-on-year increase to 1.07 Yuan, a year-on-year increase of more than 160% . and 2022 First half of the year, Aibo Medical OK Mirror product revenue 0.76 yuan, year-on-year growth rate 71.7% The overall scale has reached the same level of revenue as that of established enterprise Opcom Vision. 21% . " "China has a large number of myopic teenagers, and the country has frequently introduced policies for myopia prevention and control in recent years. For domestic manufacturers, this presents an opportunity to cooperate with more medical institutions to jointly establish OK Optometry centers equipped with glasses, while strengthening the fitting capabilities of local ophthalmic medical institutions to address the current shortage of optometric healthcare resources OK The gap in spectacle fitting.” Liu Weiqi said. picture /  Photography Network Whether it is the encouragement of development at the policy level or domestically OK The revenue of Mirror Enterprises has been increasing year by year, which can be seen to a certain extent OK The Mirror Circuit already shows signs of 'domestic substitution', and objectively speaking, domestic products OK The mirror is also beneficial to teenagers in more regions in terms of price and after-sales service. Currently, OPPOCON Vision is also paying attention to opportunities in the underserved market and stated in its financial report: 'The company is a local enterprise with all R&D and production processes carried out domestically. It is less affected by import and export tariffs, policies, transportation, etc., and has a clear advantage in product delivery times and complete model specifications, which can meet the needs of different surgeons and patients.' According to Bullet Finance's observation, in addition to relying on traditional channels such as public hospital optometry centers, OPPOCON has also been enhancing its service capabilities and penetration by expanding its own service terminals. 2022 In the first half of the year, OPPOCON Vision has established a total of more than 1500 Home, and continues to invest in and hold shares in related service terminals, 2022 Consolidated subsidiaries in the first half of the year 319 The home, with the vast majority being service terminals such as ophthalmic clinics. In addition to expanding into sinking channels, the upstream raw materials and product R&D fields are also in the Mainland OK The mirror enterprise is seeking an important direction for breakthrough. " " OK The main R&D barriers for lenses are concentrated in materials, optical design, and processing technology. Among them, materials directly determine the comfort and safety of wearing, with higher oxygen permeability leading to a lower likelihood of conjunctival congestion; optical design directly determines imaging clarity, with greater defocus resulting in better myopia control; processing technology directly affects the product's yield rate and toughness, with stronger toughness making the product less prone to damage. "Liu Weiqi told Bullet Finance." Although currently on the market OK Mirror products exceeded 10 Variety, but in terms of raw materials, it can be said to be largely the same. Currently OK There are mainly three types of raw materials for mirrors, namely: American Dralon boston series, PARAGON of Paragon Materials and the UK Contamac lens In addition to Jingshi C&E ) and CRT use Paragon Materials, adopted by iBeo Medical Contamac Except for materials, the rest are used by other manufacturers boston Materials, the performance of which can meet the requirements for the production of orthokeratology lenses. 2017 In [year], Haohai Biosciences acquired it through a purchase Contamac company 70% Equity 2021 Year-on-year increase to 79% In fact, Haohai Biosciences is about to launch, and it is currently in the application for registration phase OK Mirror products are based on Contamac materials. In addition, Haohai Biosciences is also 2021 In the year, it acquired Hengtai Optical's OK Mirror product “Mairkang myOK " ” "Hengtai Hiline Exclusive distribution rights in the Chinese mainland region. Once the self-developed product is approved for market launch, Haohai Bio-Tech will become the first company on the Chinese mainland to integrate raw materials, agency, and production. OK Mirror manufacturers, which will inevitably bring OK Changes in the competitive landscape of the mirror industry. " "In recent years, domestic OK Leading mirror enterprises have all made new product layouts, and newly entering manufacturers are also optimizing and improving their technical paths and product structures. Driven by various favorable policies for research and development and myopia prevention and control, OK The spectacle fitting process has become more convenient and efficient, along with the launch of more domestic iteration products. In the next few years, revenue from domestic brands will continue to grow at a high rate and occupy a larger market share." Liu Weiqi said. OK The change in the market landscape is already a high-probability event. However, security remains the most important 'red line'. Having gone through a severe setback OK The mirror industry, which cost nearly 10 It can only recover again in a year, and domestic products OK Can mirrors truly achieve 'good quality at affordable prices'? This remains to be seen with further observation.   * This article is reprinted from Bullet Financial View   Author: Hu Fangjie   Original title:    OK Mirror Group products compete with imported ones, including OPPOKANG Vision and Aibo Medical. OK Hmm?    ">

According to Frost & Sullivan Frost & Sullivan According to data from Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), the global market size for surgical robots will be 2015 year 30 USD billion growth to 2020 year 83 billion US dollars, with a compound growth rate of 22.6% It is expected that the global surgical robot market will continue to maintain a rapid growth momentum, in 2026 Annual achievement 336 billion US dollars, since 2020 The compound growth rate from inception to 26.2% . What stage has the development of domestic surgical robots reached currently? What are the difficulties in popularizing them?   In the market, imported surgical robots still dominate. What is the current technical gap between domestic and imported surgical robots? Is domestic substitution feasible? Apart from the technical gap, are there any other obstacles?     Frost & Sullivan's consulting director for healthcare teams in Greater China, Zhang Dian, was interviewed. 21 Century Economic Report interviewed to jointly discuss the current development status and future trends of the domestic surgical robot market.   21 Century Economic Report At the recent AI conference, the Tuomei laparoscopic surgical robot from MicroPort Medical was a major highlight of the exhibition. The device consists of a doctor's console, a patient's operating platform, and an imaging platform. Doctors operate from the console, and the robotic arms on the operating platform can perform corresponding actions.   The incision is small, recovery is fast, and with higher precision, more complex operations can be performed. The emergence of surgical robots has undoubtedly been a tremendous innovation for surgical procedures. Although China started relatively late in this field, it is making rapid progress to catch up with the international first-tier teams.   According to Frost & Sullivan Based on the data, the global surgical robot market size will be 2015 year 30 USD billion growth to 2020 year 83 billion US dollars, with a compound growth rate of 22.6% It is expected that the global surgical robot market will continue to maintain a rapid growth momentum, in 2026 Annual achievement 336 billion US dollars, since 2020 The compound growth rate from inception to 26.2% . Among them, the market scale of surgical robots in China is 4 billions of dollars, accounting for the global market 5.1% There is broad development potential. Currently, the most advanced technology is in the field of laparoscopic surgical robots, which are still in the clinical research phase for natural orifice and vascular surgery robots. Monopolizing the imported equipment market, the goal of the 'latecomer' domestic medical robot industry is to achieve localization. An industry insider told 21 A reporter from Century Economic Report stated that their company is continuously optimizing and iterating products through policy support. At the same time, they are conducting hospital assessments for hospitals that have not installed imported equipment, establishing training centers to enable more doctors to access domestic surgical robots first.   Zhang Dian, consulting director of the medical team at Frost & Sullivan Greater China, said in an interview with reporters that in the context of China's aging population and increasing health awareness, surgical robots can alleviate problems such as public healthcare resource shortages and talent reserves. They have long-term value in health economics and clinical applications. Moreover, as the application fields and scopes of various products continue to expand, they will further unleash market potential and have a bright future outlook. " Pioneers and Challengers In the field of surgical robots, Intuitive Surgical, a US-based company specializing in robotic-assisted minimally invasive surgery technology, is an undisputed king. Established 1995 In [year], Intuitive Surgical focused solely on researching robotic surgical systems, winning the favor of numerous capitals, and since 2000 The company went public on NASDAQ in [year], and with its Da Vinci surgical robot, monopolized the global laparoscopic surgical robot market for nearly 20 year. Technically, the advent of Da Vinci surgical robots has been a huge change for traditional surgical procedures. The Da Vinci Surgical System is divided into three parts: the doctor's end, the patient's end, and the display end. Through this system, surgeons can sit at an ergonomic console to perform surgery while viewing three-dimensional high-definition images of the surgical area. For doctors, the Da Vinci robot is like giving them a pair of stable and 360 The hand that moves freely and a pair of high-definition magnifying glasses 3D Eyes; for patients, the precision of surgery has been greatly increased, resulting in smaller incisions, faster postoperative recovery, and better healing. The early entrants left no one in their wake, with Intuitive Surgical leveraging its pre-market advantage to 2003 Acquired its largest competitor at that time Computer Motion , establishing a dominant position in a new field. 2004 After turning losses into profits in the year, the stock price soared all the way, from 2 US dollar / The stock soared to a maximum of over 350 US dollar / The stock, now with a market value of 675.2 billion dollars. Behind it is its perceived as a commercial textbook's “razor + Blade' business model. Under this model, the revenue from the Da Vinci surgical robot business mainly comes from three sources: system revenue, consumables revenue, and service revenue. After selling robots, the company provides corresponding accessories, replacement of instruments, as well as after-sales services such as training and maintenance. As the inventory gradually increases, the growth of system revenue slows down, while consumables and services become stable. Growth in revenue sources. 2009 In the year, the revenue proportion of intuitive surgical consumables and services exceeded that of the system for the first time, reaching 53.4% , 2021 In the annual financial report, this proportion has exceeded 70% . Whether it's technology or business model, Intuitive Surgical has firmly established its position at the forefront. Its absolute strength in the entire ecosystem dwarfs many newcomers, making them hesitate to join. 2021 The annual financial report shows that Intuitive Surgical's revenue reached 57.10 billions, accounting for more than 50% as of 2022 year 6 At the end of the month, the cumulative global installation of Da Vinci surgical robots 7135 table, coverage 70 In multiple countries and regions, the cumulative number of surgeries executed has exceeded 1000 Ten thousand cases. It is understood that the total installed capacity of Leonardo da Vinci in China has approached 300 Taiwan, total number of surgeries exceeding 32 Ten thousand units. Although this has brought considerable pressure to China's surgical robot company, a rising star, the brave never fear. 2010 In [year], China's first orthopedic navigation robot with independent intellectual property rights was introduced to the market. Since then, it has developed rapidly, and the market scale has grown from 2016 year 8.53 RMB billion increased 2020 year 29.35 Yuan, with an annual compound growth rate of 36.2% estimated 2030 Year is coming 584.26 100 million yuan. The momentum in the past two years has been even more rapid. 2021 In the year, there were more than 30 A home surgical robot company has received financing. 2022 More than a year later, several domestic surgical robots were NMPA Registration has accelerated the commercialization process. In the field of domestic surgical robots, Weigao Surgical Robots, minimally invasive 'Tuomei' products, and Kangdu Surgical Robots have successively passed the review by the National Medical Products Administration, filling a domestic gap. " Zhang Dian is accepting 21 According to an interview with a reporter from Century Business Herald, domestic surgical robots are still in the early stages of development, but 2022 The year started entering a period of rapid growth, with 9 A domestic surgical robot has been approved, covering multiple sub-application areas such as laparoscopy and orthopedics. The number has exceeded 2021 The number of approvals throughout the year also indicates that domestic products are breaking through import monopolies. " The R&D investment is substantial Domestic surgical robot companies are in the initial stage and therefore must face a longer investment period. Taking Tianzhihang, the "first domestic surgical robot stock", as an example, its 2022 The annual semi-annual report shows that revenue reached 6094.54 Ten thousand yuan, a year-on-year decrease 20.23% ; net profit attributable to the parent company was in deficit 4417.85 Ten thousand yuan, with a year-on-year increase in losses 547.17 Ten thousand yuan. An important reason for the widening of losses is the continuous increase in research and development expenses. 2022 In the first half of the year, Tianzhihang's R&D investment was 5163.52 Ten thousand yuan, a year-on-year increase 10.59% , accounting for as high as 84.72% . Another leading company in the field, MicroPort Medical Robotics, is also facing a similar situation. As of 2022 year 6 month 30 RMB 10,000,000, accounting for 95.67% of the reported revenue 104.8 Ten thousand yuan, mainly arising from the sales of Dragonfly Eye, rather than its core product, surgical robots. The loss has increased significantly compared to the same period last year, with a net loss in the first half 4.64 Yuan billion, a year-on-year increase 91.09% Net loss for the same period last year 2.43 100 million yuan. Regarding the significant increase in the company's net loss for the first half of the year, MicroPort Robotics explained that there are three reasons. First, there has been an increase in investment in the research and development, clinical trials, and product registration of ongoing products. Second, the commercialization of surgical robot products has led to increased sales and marketing expenses. Additionally, the progress of research and development and business layout have resulted in an increase in the number of employees, with employee costs including stock-based compensation also rising. From the data, during the reporting period, the sales and marketing expenses of minimally invasive robots reached 6416 Ten thousand yuan, an increase compared with the same period last year 337.74% ; R&D expenditures reached 3.36 Yuan, a year-on-year increase 110.16% . " "Profit is a gradual process, and most domestic manufacturers are currently still in the research and development phase or the initial commercialization stage," said Zhang Dian. Due to the large upfront investment in surgical robot research and development and various links, companies are also continuously investing in new product research and development. Moreover, it is difficult to achieve rapid commercial application in the short term, making it challenging to generate profits in the early stages. "From the perspective of the commercialization model of Da Vinci robots, what truly supports their cash flow operations and the scale effect of commercialization is the continuous revenue from consumables and services. However, this process also requires consideration of how to truly meet the needs and interests of hospitals, doctors, and patients, which will be a major challenge." Zhang Dian told. 21 Reporter of Century Economic Report. Apart from the initial difficulties, it is not easy for domestic surgical robots to capture the market. Imported manufacturers have established barriers through core technology patents and continuously iterate their product technologies to maintain market dominance. For example, in terms of hardware, the Da Vinci surgical robot possesses three key core technologies: the patent for the turnable surgical instrument. 3D High-definition imaging technology and human-machine interaction design of the console. In terms of software, Da Vinci's Operating System The software system has been upgraded to the fourth generation, providing information such as instrument utilization rates, supporting data communication between components, and possessing surgical simulation technology. Industry insiders with surgical robots said 21 According to a reporter from Century Economic Report, at the technical level, domestic robots can basically perform the same operations, but there are still gaps in performance such as algorithms and machinery, which are most evident in the doctors' senses, such as smoothness of operation, lagging effects, and delays. 'These real issues affect the doctors' surgical experience and are factors that doctors will prioritize.' The domestic robotics sector has received widespread attention, with a large amount of capital injected into it. 2021 More than 30 A home surgical robot company has received financing. 2022 In 2023, several more domestic surgical robots were launched NMPA Registration is accelerating, which means the competition in the market is becoming increasingly fierce. 'If there is a dominant company, it can seize the market share of Leonardo da Vinci, but if Leonardo da Vinci has already occupied... 90% , and we're left with 10% "It's more difficult to expand inside," the person in charge said. In the existing market, domestic surgical robots exhibit strong regional characteristics. For example, Shandong Weigao, Shanghai MicroPort, and Shenzhen Jingfeng in the field of head surgery have basically covered the markets of North China, East China, and South China. Companies that cooperate with hospitals in their respective regions have an advantage. 'As far as I know, some companies have expanded their business to the southwest and northwest regions,' said an industry insider. " Policy dividends give rise to blue oceans   According to industry insiders, domestic surgical robots do not lack advantages compared to imported products. 'We have made some improvements in design to better suit the usage habits of Chinese doctors. There are still some issues with implementation that require optimization and iteration through successive product generations.' The state encourages innovation and investment in this field. 2021 year 12 In the monthly report, the '14th Five-Year Plan' for the development of medical equipment industry focuses on enhancing the performance levels of intelligent surgical robots such as laparoscopic and orthopedic surgical robots. The plan proposes that by 2035 In [year], the research, development, manufacturing, and application of medical equipment were upgraded to world-leading levels; China has entered the forefront of innovative countries in medical equipment, providing strong support for ensuring comprehensive and lifelong health services for the people. 2022 year 5 In the month, the General Office of the State Council issued the '14th Five-Year Plan' National Health Strategy, proposing to optimize and strengthen the health industry, promote the manufacturing and production of high-end medical equipment and health products, and streamline the registration review process for innovative medical equipment. 9 month 3 On the same day, the National Healthcare Security Administration's website released "The National Healthcare Security Administration's Response to the Fifth Session of the 13th National People's Congress 4955 The Reply to the "Proposal No. 12" states that the non-application of volume-based procurement for innovative medical devices has provided space for their innovative products to expand into new markets. " Zhang Dian said that in terms of equipment configuration, the introduction of multiple policies has simplified the approval process for medical institution equipment use and further relaxed restrictions on equipment configuration planning. This is also favorable for domestic surgical robots to enter the market. At the same time, domestic manufacturers understand the characteristics of local markets better in terms of promotion, and with lower prices, there is hope for increased production. Meanwhile, Beijing and Shanghai have taken the lead in including surgical robot costs in their medical insurance directories, which is expected to reduce patients' financial burden. It is reported that the Shanghai Medical Insurance Bureau has included laparoscopic robot surgeries under Class B medical insurance with the name 'Artificial Intelligence-Assisted Treatment Technology', with patients paying out of pocket. 20% The scope of medical insurance reimbursement includes radical prostatectomy, partial nephrectomy, total hysterectomy, and radical resection of rectal cancer. The Beijing Medical Insurance Bureau has issued a document clarifying that 'robot-assisted orthopedic surgery' as an auxiliary operation is subject to government pricing, and it is included in the Beijing medical insurance payment catalog together with 'one-time robot-specific instruments'. This means patients can obtain 100% Full reimbursement. " Zhang Dian believes that in the future, it is expected that more product or robot-assisted surgical services will be included in the medical insurance reimbursement list. This will reduce the patient's payment burden and increase both doctors and patients' acceptance of surgical robots. The entry of more manufacturers will also make price cuts an inevitable trend, driving downstream applications and market growth.   * This article is reprinted from 21 Century Economic Report   Author: Dong Jingyi   Original title:    Domestic robots "take charge" of operating the scalpel    "> Q What stage has domestic surgical robots currently reached, and what are the difficulties in their popularization? A :   Currently, the technology of domestic surgical robots is mainly achieved through joint research relationships established by enterprises, universities, and research institutes for clinical application and commercial transformation. Some enterprises have also crossed over from the field of industrial robots into the surgical robot sector. Domestic surgical robots are still in their early stages of development, but from 2022 It entered a period of rapid growth at the beginning of 2022 In the first half of the year, there was 9 A domestic surgical robot has been approved, covering multiple sub-application areas such as laparoscopy and orthopedics. The number has exceeded 2021 The number of approvals throughout the year also indicates that domestic products are breaking through import monopolies. In some niche areas where domestic products have not yet been commercialized, products will gradually enter the market. For example, the first domestically developed single-port laparoscopic surgical robot has entered the clinical trial phase. Surgical robots in different fields vary in their development stages in China due to differences in timing of development abroad or introduction into the country. The most advanced are laparoscopic surgical robots, while those for natural or vascular surgery are currently still in the clinical research stage. Due to the significant procurement funds required for surgical robots themselves, as well as the need to accumulate and prepare for applying for prices and establishing surgical service fee items, there are certain obstacles in commercial promotion and downstream application stages, making widespread popularization difficult. Additionally, at present, the allocation and procurement of Class B large medical equipment (including surgical robots) in China have clear plans and complex procedures. Most only large tertiary hospitals with large medical equipment configuration licenses can purchase such equipment. In limited circumstances, hospitals tend to prefer purchasing imported surgical robots that have entered the market first and whose clinical value has been verified. Moreover, since surgical robots will also change the clinical habits of surgeons, market education and popularization require a certain amount of time. Q In the market, imported surgical robots still dominate. What is the current technological gap between domestic and imported surgical robots? A :   Importers build barriers through core technology patents and continuously iterate product technologies to gain market dominance, leading in technology. For example, in hardware, the Da Vinci surgical robot possesses three key core technologies: the patent for the bendable surgical instrument. 3D High-definition imaging technology, as well as the human-machine interaction design of the console. In terms of software, Da Vinci's Operating System The software system has been upgraded to the fourth generation, providing information such as instrument utilization rates, supporting data communication between various components, and possessing surgical simulation technology. The continuous upgrading of hardware and software still gives imported manufacturers a technological advantage, but domestic products are not inferior in performance to imported ones and are relatively more cost-effective. Another major technical gap lies in high-end performance components upstream. Currently, most domestic manufacturers mainly rely on imported suppliers for these components, such as purchasing robotic arms and then assembling them themselves. Q The 'Regulations on the Administration of Medical Devices' encourage increasing the market share of domestic products and accelerating the import substitution of medical device products. In your opinion, is domestic substitution feasible? Apart from the technical gap, are there any other obstacles? A :   Currently, although more domestic manufacturers have joined the field of surgical robots and more products have been approved, domestic surgical robot enterprises are still concentrated in the midstream manufacturing sector. As mentioned above, high-end performance components upstream still mainly rely on imports, thus not achieving complete domestic substitution. In the long run, dependence on overseas supply chains upstream is also not conducive to increasing corporate profit margins and commercial stability, posing certain risks and obstacles to commercialization. However, for domestic manufacturers that control upstream technology, such as the minimally invasive robot company with its own robotic arms, their long-term commercial advantages will gradually become apparent. As more key components achieve domestic substitution, the true significance and advantages of domestic substitution will further come into play. Although technology and commercialization are somewhat correlated, commercialization itself is also a major obstacle. The application of surgical robots is a process that gradually cultivates surgeons' habits and acceptance, thus having a certain degree of usage stickiness. Coupled with factors such as conversion costs, products that enter the market first will have an advantage. At the same time, continuous use after admission also requires constant exploration and improvement. Looking at the commercial model of Da Vinci robots, what truly supports their cash flow operation and commercial scale effect is the continuous income from consumables and services. This process also needs to consider how to truly meet the needs and interests of hospitals, doctors, and patients, which will be a significant challenge. Against the backdrop of domestic substitution, policies will also encourage the application of domestic surgical robots. For example, in terms of equipment configuration, several policies have been introduced to simplify the approval process for medical institution equipment use and further relax restrictions on equipment configuration planning, which will also be beneficial for domestic surgical robots entering the market. At the same time, domestic manufacturers are more familiar with the characteristics of local markets in their promotion efforts, coupled with lower prices, so there is hope for increased production. Q Domestic surgical robots such as Minimally Invasive Surgery (MIS) have excellent technology, but their commercialization is still a challenge as shown in the financial reports. What do you think are the main reasons for the difficulty in profitability? A :   In the past two years, policies oriented towards epidemic prevention have also led hospitals to shift their funds to areas with more urgent needs under limited budgets. Although surgical robots provide long-term solutions that benefit medical quality by reducing operation time, minimizing wound size, and improving precision, they have encountered certain commercial obstacles due to the need for hospitals to prepay millions for equipment costs. This is particularly true in the context of the pandemic. Profit is a gradual process, and most domestic manufacturers are currently still in the research and development phase or the initial commercialization stage. Due to the large upfront investment in surgical robot research and development and various links, companies are also continuously investing in new product R&D. Moreover, it is difficult to achieve rapid commercial application in the short term, making it challenging to generate profits in the early stages. However, after the commercialization model and company profit model gradually mature, the cost rate of each link is expected to decline and remain stable, which will also lead to profitability. Q What is the future outlook? A In the context of China's aging population and increasing health awareness, surgical robots can alleviate issues such as public medical resource shortages and talent reserves. They have long-term value in health economics and clinical applications. Moreover, with the continuous expansion of application fields and scopes of various products, market potential will be further unleashed, and the future prospects are quite bright. Additionally, driven by favorable policies, multiple medical expenses related to surgical robots have been gradually included in medical insurance (for example, Shanghai has included certain procedures of the Da Vinci robotic system in Class B medical insurance, Beijing has included robot-assisted orthopedic surgery in medical insurance, and the People's Welfare Insurance in many provinces can now reimburse part of the costs of self-paid surgical robots). In the future, it is expected that more products or robot-assisted surgery service items will be included in the medical insurance reimbursement list, which will reduce the patient's payment burden and increase both doctors and patients' acceptance of surgical robots. The entry of more manufacturers will also make price cuts an inevitable trend, driving downstream applications and market growth.

2022 year 10 month 10 Today, Frost & Sullivan Frost & Sullivan The Hong Kong office of Frost & Sullivan (referred to as 'Frost & Sullivan Hong Kong') celebrated its relocation. The Hong Kong office is one of the important strategic deployments of Frost & Sullivan's Greater China region, and together with the Shenzhen office, it forms a dual-core base in the Guangdong-Hong Kong-Macao Greater Bay Area, providing high-quality services to clients in the region. The new office location of Frost & Sullivan Hong Kong is located in Phase II of the Hong Kong Exchange Building. 30 building 3006 The room is also located in the trading hall of the Hong Kong Stock Exchange. In addition, the trading plaza is situated at the premises of foreign embassies and consulates in Hong Kong, including the Polish Consulate General, Czech Consulate General, Japanese Consulate General, and Canadian Consulate General. since 1998 After entering China in 2019, Frost & Sullivan has established offices in Beijing, Shanghai, Hong Kong, Shenzhen, Nanjing, Chengdu and Taipei in the Greater China region. It fully covers the five major Chinese exchanges - namely, the Hong Kong Stock Exchange, the Shanghai Stock Exchange, the Shenzhen Stock Exchange, the Beijing Stock Exchange and the Taiwan Stock Exchange - enabling it to conveniently connect with domestic and international capital markets. At the same time, it connects with global resources to help clients accelerate their business growth, achieve growth, technological innovation and leading benchmarks within the industry.   Dr. Wang Xin, Global Partner and President of Frost & Sullivan Greater China, stated that Hong Kong's unique position as an international financial center is the result of long-term institutional development and evolution. Its core competitiveness lies in efficiently connecting the Chinese market with the global business network by providing world-class software and hardware infrastructure, as well as an open, rule-of-law-based, transparent, and secure business environment. Hong Kong is an important bridge for multinational companies to deeply penetrate the Chinese mainland market and an ideal platform for Chinese companies to 'go global' and explore international markets. This relocation marks a new beginning for Frost & Sullivan's Greater China region as it embarks on a new journey towards new milestones and goals. In the future, Frost & Sullivan's Greater China region will provide more efficient and high-quality services to enterprises, industries, and society with a brand-new look. New and existing clients are welcome to come and discuss cooperation opportunities.

Recently, Biden signed a new executive order, and the United States will have more than 20 A capital investment of hundreds of millions of US dollars has been made to promote the launch of its 'National Biotechnology and BioManufacturing Plan'. As a result, the domestic synthetic biology concept has received renewed market attention. The industry leader, Kaeser Bio (688065.SH) Huaheng Biology (699639.SH ) has risen for several consecutive days. What changes have synthetic biology made to current medicine? What is the recent 'hot topic' (facing market attention) reason for this?   Previously, what stage has the domestic synthetic biology industry developed to? Compared with foreign countries, what are China's strengths and weaknesses in synthetic biology?     Frost & Sullivan Frost & Sullivan Liu Weiqi, Executive Director of Frost & Sullivan Greater China, was interviewed by CBN to discuss the current development status of synthetic biology in China. Caijing.com   "Assembling life is like assembling a circuit," 2010 In [year], Craig Wente, the first scientist to create 'synthetic single cells' using synthetic biology technology, described synthetic biology in this way. As born from 21 A branch of science at the beginning of this century, synthetic biology has developed nearly 20 year. In the capital market, 2022 The year was a breakout year for the synthetic biology track. A research report by CFT Securities pointed out that against the backdrop of global carbon neutrality, synthetic biology has become a new frontier in the biopharmaceutical field. Recently, Biden signed a new executive order, and the United States will have more than 20 A capital investment of hundreds of millions of dollars has been made to advance the launch of its 'National Biotechnology and Bio-Manufacturing Plan'. As a result, the domestic synthetic biology concept has received renewed market attention. The industry leader, Kaeser Bio. (688065.SH) Huaheng Biology (699639.SH ) has risen for several consecutive days.   What is synthetic biology? The so-called 'synthetic biology' is the use of engineering methods by humans to design and combine a series of genetic components. It is like assembling cars, step by step constructing parts and then piecing them together to ultimately create organisms that meet human needs. Zhao Guoping, an academician of the Chinese Academy of Sciences, has also explained: 'The main task of synthetic biology is to design corresponding 'products' according to people's needs.'   Synthetic biology has a wide range of applications, including medicine, agriculture, chemicals and energy, food and consumer goods. It can reduce dependence on non-renewable resources such as oil and coal, solve high-energy consumption and pollution problems in chemical engineering, and significantly lower production costs. A report released by the McKinsey Global Institute points out that in global economic activities 60% Material products can be produced using biotechnology. Synthetic biology technology in the future 10 - 20 In mid-year, it will bring to the global 2 - 4 Trillion-dollar direct economic benefits. In the pharmaceutical field, the application of synthetic biology is mainly focused on drug intermediates. / The synthesis of active pharmaceutical ingredients and the artificial modification of living organisms for diagnosis and treatment are two major areas. Among them, in drug intermediates / In terms of bulk drugs, synthetic biology methods can reduce costs and alleviate the supply-demand imbalance caused by the scarcity of related plants. Among them, the biosynthesis of artemisinin is the most typical example. In addition to synthetic drug intermediates / In addition to bulk drugs, synthetic biology can also achieve diagnostic and therapeutic purposes by modifying bacteria, viruses, and human cells, but it is currently still in the research phase. In the agricultural field, synthetic biology can be applied to microbial nitrogen fixation, detection of soil harmful bacteria, etc., to increase crop yield and nutritional value, and reduce the use of chemical fertilizers. From the perspective of industry sub-markets, the healthcare sector has dominated the market application of synthetic biology. According to CB Insights It is estimated that the global synthetic biology market size will 2019 year 53 USD billion growth to 2024 year 189 billion US dollars CAGR 28.8% Among them, the market scale of synthetic biology in the healthcare field has grown from 2019 year 21 USD billion growth to 2024 year 50 billion US dollars CAGR 18.9% ), 2019 The proportion reached 40% , which is the largest application domain.   Synthetic biology is in the spotlight Since Biden 9 month 12 Since the signing of the executive order, domestic synthetic biology concept stocks have received renewed market attention, with the stock prices of Kaisai Biotechnology and Huaheng Biotechnology rising for several consecutive days. It is understood that Kaesai Biotechnology mainly engages in the research, development, production, and sales of new bio-based materials. Its main products include a series of bio-based long-chain dicarboxylic acids, bio-based pentanediols, and bio-based polyamide (nylon). 2022 In the first half of the year, the company achieved revenue 12.89 100 million yuan , Year-on-year growth 13.53% Net profit attributable to the parent company 3.365 Yuan, a year-on-year increase 7.71% . Regarding the impact of the United States' release of the 'National Biotechnology and Bioengineering Initiative', Kaisai Biosciences told CBN that 'it is good news for the global synthetic biology industry. Bioengineering, and even synthetic biotechnology, will receive more attention, leading to more opportunities in the industry and related fields. Naturally, countries will also place more emphasis and investment.' Huaheng Biotechnology is mainly engaged in the research, development, production, and sales of amino acids and their derivatives. Its representative product is alanine, which can be widely used in many fields such as daily chemicals, pharmaceuticals and health products, food additives, feed, etc. domain. 2022 In the first half of the year, the company achieved operating revenue 6.29 Yuan, a year-on-year increase 65.66% ; net profit attributable to the parent company is 1.29 Yuan, a year-on-year increase 107.60% . In addition to Kaikesai Biotech and Huaheng Biotech, A Several listed companies in the pharmaceutical, food, and chemical industries have also made investments in synthetic biology. For example, HuaXi Biologics, a leading medical aesthetics company, has its chairman and general manager, Zhao Yan, who has repeatedly stated in public that synthetic biology represents a new direction of future technology and is a key area of focus and deep cultivation for HuaXi Biologics. 2021 year 12 In the month, Huaxi Biotechnology & 'Shandong Key Laboratory of Synthetic Biology for Bioactive Compounds (under preparation)' was recognized by the Shandong Provincial Department of Science and Technology. Additionally, its 'International Innovation Industrial Base for Synthetic Biotechnology' has been established in the Beijing Daxing Biomedical Base and is about to be put into use. According to Huaxi Biotechnology, through synthetic biotechnology, the company's microbial fermentation technology has developed to the third generation, enabling the extraction of each liter of extract 73g Hyaluronic acid, the second-generation technology 16 - 17 g/L of 4 Multiple times more, production costs are significantly reduced, and efficiency is greatly improved. Huadong Medicine is also 2021 In 2015, the 'Industrial Microbiology' strategy was proposed. According to East China Pharmaceutical 2022 The semi-annual report for the year disclosed that it 2022 year 5 In January, the company established a wholly-owned subsidiary, Huiyi Biotechnology. By constructing and modifying the genes of highly efficient engineered strains such as yeast, Escherichia coli, and Bacillus subtilis, it has achieved widespread application of biotechnology in fields such as pharmaceutical engineering, fine chemicals, and new biomaterials. 2022 year 7 In January, the company's wholly-owned subsidiary Sino-US East China, the People's Government of Gongshu District, Hangzhou City, and Zhejiang University of Technology jointly established the East China Synthetic Biology Industry Technology Research Institute. In addition, companies such as Anqi Yeast, Plum Blossom Biology, Health Yuan, and Weiguang Biology also have layouts in synthetic biology. It is worth mentioning that in the secondary market, synthetic biology concept stocks are generally given a price-to-earnings ratio of six to seventy times. Caijing.com has noticed that in addition to listed companies, Yikelei, Chuaning Biology, JuZi Biology, and others are all making every effort to sprint towards the capital market. IPO listing The climax further set off a wave of investment enthusiasm in the primary market. 9 There are several cases where financing has been announced to be completed this month: Synthetic biology company BaiKuiRui has raised tens of millions. Pre-A+ Series financing; New synthetic biology technology company Sypeng Technology has completed tens of millions in angel investment; Microalgae synthesis factory Demeter, which focuses on algal biosynthesis technology, has raised nearly 100 million yuan Pre-A Series financing, etc. According to statistics from Xingkuang Data, 2021 Nearly 30 A domestic synthetic biology company has announced financing, with almost the entire leading domestic investment institutions entering the market: Hillhouse Capital has invested in BlueCrystal Microbiology and Yinguang Biotechnology; Sequoia Capital has invested in Yanwei Technology and Microstructure Factory; Matrix Partners has invested in Enhe Biotechnology and Microelement Synthesis.   Is the biotech boom hereabouts upon us? From industry analysis, the explosive popularity of synthetic biology in the capital market can be attributed to both policy and technological development. Policy-wise, 2018 In [year], the Ministry of Science and Technology launched a key special project on synthetic biology. Recently 10 During the year, the Chinese Academy of Sciences and several domestic universities took the lead in deploying efforts for the construction of synthetic biology disciplines. The National Health and Family Planning Commission is in 2020 year 8 In January, the 'Guiding Opinions on Expanding Investment in Strategic Emerging Industries to Cultivate New Growth Points and Polarities' were released, supporting various detailed rules including the construction of synthetic biology technology innovation centers, to promote the vigorous development of biotechnology. 2022 year 5 month 10 On the same day, the National Development and Reform Commission issued a more significant '14th Five-Year Plan' for the development of the bioeconomy, clearly stating that the bioeconomy, including synthetic biology, is a new driving force for China's economic transformation in the future.   The second is the cost reduction brought about by technological development.   Co-founder of Blue Crystal Microbiology and CEO Zhang Haokan once stated in an interview that the underlying technologies of synthetic biology mainly consist of gene sequencing, gene editing, and gene synthesis. These three parts have been present in the past 10 Costs decreased over the year 1000 Even more so. This means that R&D activities, which were previously only supported by large pharmaceutical companies, are beginning to 'enter ordinary households', giving startups in synthetic biology a chance. Liu Weiqi, Executive Director of the Healthcare Team at Frost & Sullivan Greater China, told CBN that synthetic biology can be described as a new technological revolution. In the future, it could replace many industrial synthetic products and meet various development concepts such as green production and carbon neutrality. In the context where capital has cooled down in other medical sub-sectors, synthetic biology naturally has attracted many institutions to enter the market early. Recently, brokerage firms have also shown a significant increase in their attention to synthetic biology. "Synthetic biology, as the underlying technology of biomanufacturing, has established its status with Biden's signing of a new executive order, indicating its broad prospects. The United States leads in front-end research and development, while China has an advantage in manufacturing. Chinese companies have the opportunity to overtake on this curve," pointed out Peng Yi, an analyst at Shanghai Securities. CICC Research Report believes that healthcare is an important application area of synthetic biology, with complete layouts in both the upstream and midstream industries. Application areas include drug synthesis, disease diagnosis, and medical aesthetics. With breakthroughs in enabling technologies such as gene sequencing and gene-editing synthesis, synthetic biology has entered a period of accelerated development, bringing about disruptive innovations in traditional pharmaceutical manufacturing and potentially leading the future of pharmaceutical manufacturing.   Domestic synthetic biology is still in its early stages From the perspective of the industrial chain, the synthetic biology industry can be divided into three parts: upstream, midstream, and downstream, representing tool-based, platform-based, and product-based categories respectively. Upstream tool companies mainly focus on DNA Research on basic technical tools such as synthesis; midstream platform companies focus on synthesizing plasmids and microorganisms or provide design plans for synthetic biology platforms; downstream product companies emphasize the practical application of synthetic biology technology. (The industrial chain division of synthetic biology in the biomedical field, source: Research Report by CICC) Domestic tool-based companies include BGI Genomics, XinGenomics, etc.; platform-based companies include Enhe Biotech, Yikele, EnzymeSai Biotech, etc.; product-based companies include Kaixie Biotech, Huaheng Biotech, etc. In comparison, product-based companies have integrated the entire industrial chain from biological transformation, fermentation purification to product modification, thus possessing greater profitability; platform-based companies aim to provide synthetic biology platforms such as organism design and software development. Due to their lack of practical products at the application level, their profitability is limited. However, Wang Haijiao, a partner at GaoTEC Investment Partners, believes that in the short term over the next three to five years, it is definitely product companies that can emerge victorious or develop very well, as they are easier to scale. In the long run, platform companies that continuously provide new offerings will go further and become companies with a larger market value. At present, what stage have domestic synthetic biology companies reached? The industry consensus is that they are 'still in the early stages'. Liu Weiqi told CBN that domestic synthetic biology companies are still in a relatively early stage. Apart from the leading enterprises that have already launched products for market sale, many other companies are in the early stages of trial production or research and development, and it will take some time to cultivate the market. Compared with foreign countries, domestic companies are not lagging behind technically, and their talent advantage, policy support, and upstream and downstream supporting systems are also very evident. However, there is still a significant gap compared to foreign countries in terms of capital investment and product commercialization. Chen Jia, an independent international strategy researcher at Finance Network, also stated that the synthetic biology industry has not yet taken shape. It has extremely high barriers in terms of technology, capital, and human resources, and it also requires relatively high levels of cross-border capital and technological exchanges. It is an emerging industry that requires careful planning and coordinated efforts from a large national market. Currently, in addition to Shenzhen, Beijing's Daxing Airport Economic Zone is building an international life and health port. In the future, China is likely to become an important global pole in biotechnology, especially in the field of synthetic biology.   * This article is reprinted from Caijing.com   Author: Fan Mengdi   ,    Original title:    Standing at the forefront of biomedicine, why should synthetic biology matter?    "> Q What changes have synthetic biology made to current medicine? What is the recent 'hot topic' (facing market attention) reason for this? A :   Synthetic biology has fundamentally changed the way of production by altering underlying technologies, allowing people to produce materials through biological synthesis by modifying known gene sequences. In the medical field, many companies have begun using synthetic biology techniques to develop new nucleic acid vaccines and cell therapies. Additionally, in the field of disease diagnosis, synthetic biology technology based on gene circuit construction and rapid iterative prototyping has also promoted improvements and innovations in diagnostic methods. It has been successfully applied to non-communicable diseases such as cancer and coronary artery disease, as well as infectious diseases like Ebola, AIDS, and COVID-19. The main reason for market attention lies in synthetic biology, which can be considered a new technological revolution. In the future, it is expected to replace many industrial synthesis products and align with various development concepts such as green production and carbon neutrality. In other medical sub-sectors where capital has cooled down, synthetic biology naturally attracted many institutions to enter the market early. Q Some believe that 'product selection and large-scale production are the two major pain points in the synthetic biology industry.' What is your opinion on this? A : I highly agree with this view. The ability to select products means the market space that can be captured in the future, while large-scale production and cost reduction mean the profit margin that can be achieved in the future. These two points are crucial for ensuring the stable development of an enterprise.

Although since 2015 Since the implementation of the comprehensive two-child policy in [year], it has been effectively implemented. However, the number of newborns has not seen the expected explosion as predicted; instead, it has been declining year by year. 2016 Year-end 2021 The annual compound growth rate of the birth population is -9.9% .    According to Frost & Sullivan, the annual decline in birth rates may remain relatively stable under effective government policy stimulus and 2026 Annual achievement 865 Tens of thousands. Therefore, how maternal and infant products can expand their influence and sales among the target demographic that is declining year by year has become an industry-wide issue.     Frost & Sullivan Frost & Sullivan, Jin Yue, a consulting analyst from Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), was invited to write an article for China Cosmetics magazine on the market format of infant and toddler cosmetics, to discuss together   Infant and toddler cosmetics   Market ecology. China Cosmetics Magazine Macro environment and its impact on the infant and toddler cosmetic market According to data from the National Bureau of Statistics of China, the Chinese government has adopted effective stimulus policies to maintain stable economic growth. at "Ten Key Industries Revitalization Plan "and "Belt and Road Driven by a series of economic stimulus policies such as the initiative, China's nominal GDP GDP ) in 2016 Year-end 2021 During the year 8.9% The annual compound growth rate achieved a relatively strong increase, from 2016 Renminbi in [year] 74.6 trillion yuan grew to 2021 Renminbi in [year] 114.4 trillion yuan. Looking ahead, the Chinese government will further maintain consistency and stability in macroeconomic policies to sustain macroeconomic stability. At the same time, it is expected that the Chinese government will vigorously promote economic restructuring to improve the quality and efficiency of economic development. The Chinese economy will shift from an investment-driven model to a consumption-driven model. Under this trend, the Chinese economy will maintain healthy and good development. Entering the '13th Five-Year Plan' period, amidst economic downturns and uncertainties brought about by external events such as Brexit and Sino-US trade wars, industrial restructuring and upgrading, balancing imports and exports, and expanding domestic demand will become key for China GDP The driving force for future growth. 2020 In [year], the outbreak of the COVID-19 pandemic led to a delay in resuming work and a suspension of economic activities in the first quarter, which 2020 Year in China GDP Growth has slowed down. According to the International Monetary Fund ( International Monetary Fund ) forecast, from 2021 Year-end 2026 Year, nominal in China GDP will be maintained 7.0% The annual compound growth rate, and will be 2026 The annual increase amounts to RMB 160.5 trillion yuan. although 2015 Since the implementation of the comprehensive two-child policy in [year], it has been effectively implemented. However, the number of newborns has not seen the expected explosion as predicted; instead, it has been declining year by year. 2016 Year to 2021 The annual compound growth rate of the annual birth population is -9.9% According to Frost & Sullivan, the annual decline in birth rates may remain relatively stable under effective government policy stimulation and 2026 Annual achievement 865 Ten thousand people. Therefore, how maternal and infant products can expand their influence and sales among the target demographic that is declining year by year has become an industry-wide issue. But is the declining birth rate having a negative impact solely on infant products? Frost & Sullivan believes the answer is no. per capita GDP The rapid growth and per capita disposable income from 2016 year 33,616 Increase by Yuan 2021 year 47,412 Under the upward trend of the yuan, the declining birth population does not mean that young people no longer value their children due to high work and life pressures. On the contrary, the cautious attitude towards childbearing among young people indicates an increasing emphasis on their children. This is both an opportunity and a challenge for the infant skincare industry. A larger market, higher requirements, stronger brand awareness, greater purchasing power and willingness will further intensify competition among brands. With a series of fertility support measures being implemented one after another, the comprehensive construction of a fertility-friendly society has entered an acceleration phase, which will also have a profound impact on the overall development of the maternal and infant industry. At the same time, with the decline in fertility GDP With the continuous rise, parents of newborns have shown a significant increase in their attention and time spent on baby products, and the trend of consumption upgrading is becoming more evident. This can be glimpsed in the rapid expansion of the maternal and infant market scale in China. The maternal and infant market has been 2016 Year-on-year surge 2021 year 4.9 RMB 1 trillion, Frost & Sullivan predicts that the market scale of the maternal and infant market will be 2026 reaching about 8.7 trillion yuan. Although the number of newborns is decreasing year by year, entering what is known as the 'existing market', how to extend the consumption cycle of maternal and infant products, how to further segment product categories and lines, how to refine and upscale products, and how to get closer to the shopping needs of young mothers including product aesthetics, natural ingredients, brand image, etc., have become issues that the vast majority of maternal and infant product manufacturers need to consider and clarify. The personal care industry in China has a stable market development. In terms of retail sales, the scale of the personal care industry market is from 2016 year 3,268 RMB billion growth to 2020 year 5,235 Yuan, with a compound average annual growth rate of 12.5% . With the improvement of people's living standards and the gradual enhancement of personal care awareness, it is expected that the retail sales scale of the personal care industry market will continue to grow in the future. 2025 Will reach in 8,308 yuan. In addition, China's per capita skincare expenditure has risen from 2016 year 212.8 Yuan growth to 2021 year 376.8 Yuan, compound annual growth rate 12.1% relative to the West 2021 annual per capita 2,006 There is still a significant gap in skincare expenditure per RMB. Therefore, we can conclude that as an intersection of the mother and baby market and the skincare market, the infant skincare market still holds considerable market potential despite facing challenges brought about by changing user demands.   Classification of Baby and Infant Cosmetics Market: Product Classification The infant and toddler cosmetics market is mainly divided into skincare products, sunscreen, hair care products, toiletries, laundry cleaning products, mosquito repellents, etc. Due to the special characteristics of its target population, namely infants and toddlers with delicate skin, low tolerance, and a low capacity to withstand external stimuli, manufacturers need to have higher standards for self-imposed requirements regarding the safety, professionalism, and specific efficacy of infant and toddler cosmetics. Meanwhile, based on the different ages of infants and children, infant and toddler cosmetics are divided into different product categories and core benefits according to the skin needs of different age groups. 0 - 3 Infants and young children at the age of 30% It is highly fragile and has low tolerance. Sweat glands are relatively dense, so water loss is more severe in this group than in adults, leading to issues such as dryness and sensitivity. Therefore, products with high moisturizing effects and sun protection functions are for 0 - 3 The demand for products targeting infants and young children is more specific. Under such product demands, moisturizers with anti-allergy effects, baby-specific sunscreens, and specialized skincare products with clear targets (such as eczema) are receiving increasing attention. 3 Although the skin structure of young children aged 1 year and above matures year by year, their sensitivity is relatively 0 - 3 Infants and toddlers have a lower tolerance, but they still possess characteristics such as a thinner stratum corneum. At the same time, how to cultivate children's correct skincare habits is also one of the focuses of young mothers. Therefore, infant and toddler cosmetics products that are relatively similar to the skincare routines and categories of adults have received more attention from young mothers. For example, low foam, low irritation, amino acid-based facial cleansers, hypoallergenic moisturizers with a certain level of oiliness, and sunscreens that take into account the special characteristics of young children's sebaceous glands and stratum corneum are popular.   Classification of Infant and Toddler Cosmetics Market: Channel Classification The sales channels for baby and toddler cosmetics can be roughly divided into online and offline channels. Among them, offline channels remain the main sales channel for the special segment of baby skincare products, especially with the highest proportion of sales coming from comprehensive mother and baby product stores. However, due to the impact of the pandemic, it has catalyzed a shift in the consumption habits of young mothers from offline to online purchases of baby and toddler cosmetics. It has also further segmented the online channels for baby and toddler skincare products. For example, live streaming e-commerce, community platforms like Rednote that come with their own shopping malls, and so on. The increasingly diversified sales channels and consumption scenarios are also, to a certain extent, the reason why the infant and toddler cosmetics market has been able to maintain relative prosperity despite the overall decline in consumer power due to the pandemic. by 2016 Year to 2021 In terms of the proportion of online channel sales for infant and toddler cosmetics, 2016 Year-end 2019 The year maintained a relatively stable growth rate, in 20% till 30% Between them, and then catalyzed by the pandemic, 2020 Year-end 2021 Online sales of infant and toddler cosmetics have seen rapid growth, accounting for half of the entire infant and toddler cosmetics market. This has led more and more manufacturers to prioritize the layout of online platform matrices. The sales model, which combines multiple scenarios, channels, and online/offline efforts, has further driven the steady growth of the infant skincare market. Among them, online purchases of infant cosmetics show a trend towards younger consumers: there is a clear inverse correlation between the mother's age and her preference for online infant cosmetics.   According to JD.com's 2022 The "Personal Care Trend Report" shows that consumers are clearly showing a trend towards purchasing high-end brands, with product sales year-on-year growth exceeding 90% The sales speed of the high-end line has even reached 114% Among them, after Kaisi opened its official flagship store on JD.com for one month, both its search traffic and recommended traffic from the self-operated store quickly ranked TOP Level. Analysis of the Industrial Chain in the Infant and Toddler Cosmetics Market The upstream of the infant and toddler cosmetics industry chain is mainly composed of several cosmetic manufacturers, primarily specialized in infant and toddler products as well as traditional cosmetics. Its characteristic is a relatively rapid growth rate in sales volume. Despite the relatively low concentration of the industry, its concentration has gradually increased. At the same time, there is also the rise of domestic brands and the competition between domestic brands and well-known overseas brands. The market pattern is relatively fragmented, and industry rankings are relatively volatile. In the midstream, it can be divided into online and offline channels: Online sales channels include comprehensive e-commerce platforms, vertical e-commerce platforms, direct-operated official websites, WeChat and other community platforms. Among them, comprehensive e-commerce platforms, which operate a full range of products, hold the largest market share. Leading platforms include Tmall, JD.com, Suning, VIP.com, Dangdang, etc. Vertical e-commerce platforms are those that specialize in the operation of baby and children's cosmetics. Offline sales channels mainly include mother and baby product chain retail stores, brand physical stores, large comprehensive supermarkets, etc. The geographical location of the store, service quality, and scale of the store all affect the customer flow of offline sales channels. Although e-commerce channels are becoming increasingly active and online sales are growing rapidly, the sales of the infant and toddler cosmetics industry still mainly rely on offline channels, with a relatively high proportion coming from comprehensive mother and baby stores. The downstream of the infant and toddler cosmetics industry chain is C End-users, due to the inherent characteristics of the era, group dynamics, and consumption patterns of young mothers, such as a relatively affluent growth environment, a more pronounced Westernized mindset, a pursuit of health and quality life far exceeding that of previous generations, and a greater focus on the quality of life during their children's infancy. We can summarize the following key characteristics related to the infant and toddler cosmetic market: relatively low price sensitivity, increasing attention to baby care products, high focus on ingredients and efficacy, and a reliance on experts. / The reliance on information such as communities is strong, and product requirements are becoming increasingly refined and quality-oriented.   Market scale of infant and toddler cosmetics With the rapid increase in income levels, 2021 The per capita disposable income of residents reached 35,128 Nowadays, with the younger generation generally having stronger purchasing power, 6 In contemporary urban families where parents often have only one or two children, and with a strong willingness to spend on their children, the Chinese infant and toddler cosmetics market has enormous potential. from 2016 year 170.8 RMB 10 billion to 2021 year 322.7 RMB 10 billion, with an annual compound growth rate of 13.6% According to Frost & Sullivan's forecast, infant and toddler cosmetics 2026 Annual sales will reach 492.7 RMB 10 billion, annual compound growth rate 7.7% . Among them, there are also efficacy skincare products made from natural ingredients and high-end skincare products with relatively strong potential in niche markets. Domestic brands of infant skincare products have seen a significant increase in sales under the growing national pride and recognition, no longer limited to the lower-tier market.   Market scale of infant and toddler toiletries Infant and toddler skincare products, as an important subcategory of infant and toddler skin care products, often receive significant attention from manufacturers. At the same time, with continuous consumption upgrades, young mothers have a relatively strong willingness to pay for infant and toddler skincare products, which has further driven the continuous rise in the average transaction value per customer for these products. especially 2020 After the Spring Festival, the continuous expansion of online sales channels further accelerated the influx of infant and toddler toiletries. 2016 Year to 2021 In China, the market for infant and toddler toiletries grew extremely rapidly in 2016 year 72.2 RMB 10 billion, an increase of 2021 year 162.3 RMB 20 billion is a relatively large-segment category within the broad category of infant and toddler skincare products. Frost & Sullivan prediction 2026 In [Year], the market scale of infant and toddler toiletries will reach 266.1 RMB 10 billion. Market competition landscape of infant and toddler cosmetics: A mixed battle between domestic brands and overseas ones China's infant and toddler cosmetics market is mainly composed of professional infant and toddler manufacturers and traditional cosmetic manufacturers. Its characteristic is a relatively rapid growth rate in sales volume, with the concentration gradually increasing despite the relatively low industry concentration. At the same time, there is also the rise of domestic brands and the interplay between domestic brands and well-known overseas brands. The market pattern is relatively fragmented and competitive, resulting in a relatively volatile industry ranking. There are currently no monopolistic enterprises that hold a dominant position. However, overall, the market share of some emerging state-owned brands is rapidly climbing, continuously diluting the market share of traditional infant and toddler cosmetics manufacturers led by Johnson & Johnson. For example, Red Little Elephant, which ranked fourth in Tmall's infant skincare category last year. with Aveeno Aiwénuo and Pigeon Overseas well-known infant and toddler cosmetic brands represented by Beiqin have captured the high-end market due to their brand recognition, focus on natural ingredients, and other characteristics. Further compare the competitive landscape of state-owned brands and overseas brands in the infant and toddler cosmetics market. Compared with domestic and overseas brands in Japan, South Korea, or the United States, they each account for approximately 50% In terms of competitive landscape, the number and turnover of domestic brands in China's infant and toddler cosmetics market are relatively lower compared to those in the US, Japan, and South Korea, accounting for only about 19.5% . The relative weakness of Chinese infant and toddler cosmetic brands in market competition has multiple reasons, including a comparative lack of advantage in R&D technology, starting later than other industries, and some historical legacy issues. For instance, most young mothers today generally complete their mother-to-child consumption education with overseas brands, and consumers have a lower trust in domestic brands. However, due to the continuous growth in R&D capabilities of domestic manufacturers in recent years, deeper research into the market and consumers, and the increasing recognition of domestic brands by the public, domestic infant and toddler cosmetic brands have been continuously challenging the high-end market and achieving quite impressive results. Frost & Sullivan believes that there is great potential for domestic infant and toddler cosmetic brands and they will further impact the turbulent competitive market for this segment. Opportunities and Challenges in the Infant and Toddler Skin Care Market   1 The demand for further product category refinement under the continuous differentiation of needs Due to the continuous reduction in the number of newborns and changes in population structure, the expansion of the infant skincare market cannot rely on an increase in user numbers. Instead, it should further tap into the existing market through consumption upgrades, product category segmentation, consumer education, and other methods. Among these, family structure 4-2-1 or 4-2-2 The standard urban family structure has also continuously fueled the consumption upgrade of infant skincare products. Frost & Sullivan believes that further differentiation of infants and young children, such as by age group, gender, or skin type, can assist in the refinement of infant skincare products and the brand positioning of manufacturers.     2 The dependence on channels and communities continues to grow. The popularization of social networks has made various information platforms an important source for exchanging parenting information. However, the uneven quality of platforms and the complexity of information sources have also left many young mothers confused. Therefore, some leading platforms have achieved astonishing retention rates and turnover of infant products due to their massive platform stickiness, relatively high-quality content, and complete consumer journey. For instance, the cumulative views of Douyin's infant-related topic videos have exceeded 680 Hundreds of millions, involving an extremely wide range of personnel and topics.   3 The potential for the sinking market is relatively large. Although capturing the high-end market has become a common goal and challenge for many infant skincare manufacturers, the Chinese market still has some particularities, such as the non-negligible importance of the lower-tier markets. Even in third- and fourth-tier cities, young mothers' consumption of mother and baby products is no longer limited to milk powder and diapers. The popularization of social networks has naturally taught these young mothers from third- and fourth-tier cities how to raise their children meticulously through communities like Rednote. There has also been increasing attention paid to non-rigid mother and baby consumer goods, such as infant skincare products. Meanwhile, third- and fourth-tier cities have higher birth rates and more births. The implementation of the three-child policy has been more effective in these cities than in first- and second-tier areas. Women of childbearing age have a stronger desire to have children and expect greater population growth. Finally, in third- and fourth-tier cities, the proportion of rigid consumption related to marriage and childbearing, such as housing prices and education costs, is relatively small, leading to a higher willingness to consume infant skincare products.   4 Challenge: How to extend the user consumption cycle under the downward population trend With the decline in population, the number of newborns has been decreasing year by year. Infant and toddler skincare manufacturers face a severe challenge of no incremental growth. How to extend users' consumption cycle has become another important solution besides consumption upgrading. By continuously segmenting, expanding the product matrix, and extending the applicable age range of infant and toddler skincare products, the market for these products can be broadened.   * This article is published in the magazine China Cosmetics   ,   author    Jinyue    ,    Original title:    The infant and toddler cosmetics market is expected to reach 500 Hundreds of millions    ">

In the golden autumn of September, a splendid event for changemakers came to a successful conclusion.   For startups, IPO listing It is not the endpoint of corporate development, but indeed an important milestone in the process of growth and expansion. However, since the beginning of this year, the secondary market has continued to fluctuate under the combined effects of the macroeconomic situation and market environment, leaving many pre-listed companies confused.   Against this backdrop, 36 The sixth session of Krypton's Entrepreneurs' Private Board Meeting, themed 'Post-Internationalization: Corporate Listing Strategies', was held A Answers to important questions such as market systems, listing strategies, and legal matters of stocks and Hong Kong stocks are provided.     Frost & Sullivan Frost & Sullivan Mr. Lu Jing, Partner and Managing Director of Frost & Sullivan's Greater China Region, was invited to attend the meeting.     Co-organized with Wang Yinan, Head of the Technology Committee at Deheng Law Firm, and Aneng CFO Lindy Stern, Li Yipeng, Chief Financial Officer of Ronglian Cloud, Leung Yu, General Manager of the Pharmaceutical Industry at HSBC China Commercial Banking, CEO & Senior Partner, CGL-MCG Wang Zhong, Associate Director of CGL Guests including Fan Yanli, Liu Sijia, a partner at Jindu Law Firm, Zhang Kewei, another partner at Jindu Law Firm, and Liu Yuanbo, a partner at PricewaterhouseCoopers Zhongtian Accounting Firm, shared and discussed together.    " A Differentiated listing strategies for A-shares and Hong Kong stocks   As several Chinese concept stocks are being delisted from the US SEC Included in the pre-list delisting list, and supported by the optimization of relevant systems A The attention and attractiveness of the two major capital markets, Hong Kong stocks and A-share markets, continue to rise.   And in terms of market systems, trading rules, and investor structure, A There are significant differences between stocks and Hong Kong stocks, so pre-listing companies should be particularly cautious when choosing a listing location. An appropriate listing path and strategy are crucial.   At this private board meeting, in response to the aforementioned issues, the participating guests conducted an in-depth analysis and discussion, continuously producing high-quality insights. " Regarding the main considerations for enterprises choosing a listing location, Lu Jing, Partner and Managing Director of Frost & Sullivan Greater China, pointed out that enterprises should combine their own circumstances and future development strategies, focusing on five dimensions: financial indicators and valuation, listing costs, secondary market financing capabilities and liquidity, market investment story acceptance, and cross-border listings within China.   At the same time, Lu Jing stated that financial performance, legal compliance, and investor stories are the three main drivers for listing. Finance and compliance are fundamental requirements, while market investment stories are the highlight. Investment stories provide a precise positioning of a company and play a core role in enhancing the company's valuation. The business and industry sections of the prospectus, as well as roadshow presentation materials, are the main materials for presenting market investment stories. Partner of Jindu Law Firm, Liu Sijia, introduced the registration-based system pilot on the Sci-tech Innovation Board A The positive changes and challenges faced by the equity capital market, from A From the perspectives of shareholder introduction before share listing, margin trading agreements, and ongoing compliance supervision, relevant legal risks were analyzed in detail, along with suggestions for countermeasures. Zhang Kewei then discussed the Hong Kong listing schedule, the regulatory authorities' focus on new economy enterprises, and the brewing 18C Zhang and other content were exchanged with the participating guests. Liu Sijia stated, A Under the share registration system, the issuance and listing review cycle has been significantly shortened. With information disclosure at its core, the requirements for the truthfulness, accuracy, and completeness of information disclosure content are becoming increasingly stringent. There should be no mentality of squeezing out time on related issues or solving problems during the review process. Thorough discussion and resolution before application can help to advance the schedule as quickly as possible.   Partner Liu Yuanbo from PwC Zhongtian Accounting Firm shared from the perspective of an auditor A A shares, Hong Kong stocks IPO listing Review case analysis and response-related content. Liu Yuanbo proposed that, given the current trend of increasingly convergence between Chinese accounting standards and international accounting standards, Hong Kong stocks and A share IPO listing The basic financial issues under review are already largely similar. The key non-financial issues that need to be resolved before a company goes public include the principle of independent operation, competition in the same industry, restructuring of legal structures, related-party transactions, and finance-related concerns such as revenue recognition, the continuity of performance for listed businesses, inventory, costs and expenses, taxation, research and development expenses, employee equity incentive plans, etc. At the same time, A For common issues such as revenue penetration verification in stocks, companies should also start preparing in advance according to the listing schedule and collect the supporting documents required for verification.   In addition, Liu Yuanbo further stated that regardless of which capital market the company chooses, a solid financial foundation is essential for success IPO listing The source of all books. The company should establish a complete financial system and internal control framework as soon as possible, and apply accounting policies in compliance with regulations and accurately according to different business models. Responding to all changes with constancy, for IPO listing While laying a solid foundation, it can also reduce operational risks and compliance costs, enabling the company to move forward steadily in the business world.    " From startup to IPO listing How should the talent strategy be transformed?   People are the most core element of an enterprise.   So, 'Is the core team built for going public or for the company's core business?' Associate Director of CGL Fan Yanli initiated this soul-searching question at the scene.   therefore CEO & Senior Partner, CGL-MCG Wang Zhong and Fan Yanli shared several key points of talent strategy at different stages of a company. In the startup phase, in terms of talent layout: stabilize core members with an entrepreneurial spirit, assign one key person to handle multiple responsibilities, use options to bind core talents for cash flow management, and conduct differentiated recruitment. Before going public, focus on business as the core, ensure financial reports are in place, and be willing to spend money on hiring professional managers. After going public, when the company is under the spotlight, scientific and brand-matching corporate operations become very important. During the talent recruitment process, build a strong employer brand, and some specialized functions must be split up and started to be deployed. At each stage, identifying and selecting talents is of utmost importance.    " How to clarify data security and compliance issues?   Data security and compliance have become a focus of current regulatory authorities in reviewing corporate listings.   In response, Lawyer Wang Yinan, the head of the Technology Committee at Deheng Law Firm, explained in detail the data security and compliance issues that pre-listed companies need to clarify. Lawyer Wang pointed out that rectifying data compliance requires time and suggested that companies start as early as possible, as 'last-minute efforts' may be more passive. After listing, companies will face data compliance risks across different dimensions, and it is recommended that they give sufficient attention to this.   Specifically, the compliance issues that securities regulatory authorities are concerned about mainly include compliance or penalties during the reporting period, the legality of data sources, whether important systems have undergone cybersecurity classification protection certification or filing, whether there is any data export, special regulatory requirements for the industry, compliance with relevant laws and regulations on cybersecurity and data protection in foreign jurisdictions, internal control measures for cybersecurity and data protection and external risks, cooperation with third parties and related risks, etc.   In addition, at this private board meeting, Liang Yu, General Manager of the Healthcare Industry at HSBC China Commercial Banking, also discussed with guests that under market fluctuations, SMEs need to pay attention to two changes: 1. At the current stage, equity financing is valued at a low cost but with high returns. Therefore, bond financing is more attractive to rapidly growing enterprises; 2. RMB exchange rate breaks 7 Subsequently, exchange rate risk management has once again become a key determinant for success for outbound and international financing enterprises.