11 month 16 day -18 day, 2022 The annual (ninth) Global Bio-Diesel Conference was held in Yangzhou, Jiangsu Province. The conference attracted participants from the bio-diesel, glycerin, UCO , UCOME , FAME The Global Bio-Diesel Industry Summit is a high-level conference for senior management personnel in the fields of animal fats and oils, plasticizers, sustainable aviation fuels, biodiesel waste oil, enzyme preparations, technology equipment providers, and raw material suppliers.   Frost & Sullivan Frost & Sullivan Xu Biao, Executive Director of Frost & Sullivan Greater China, was invited to attend the event and delivered a speech on the current status of China's biodiesel industry.   Executive Director, Greater China, Frost & Sullivan Xu Biao According to Xu Biao, the main raw materials for biodiesel production globally include vegetable oils, animal fats, waste fats, and microbial oils. Due to different resource endowments in different regions around the world, raw materials are diverse. Among the main raw materials for biodiesel, waste edible oils ( UCO Waste edible oil methyl ester produced UCOME The carbon emission reduction effect of ( ) is the most obvious. Therefore, countries around the world are increasingly emphasizing the use of biodiesel made from waste oils and fats due to considerations of food security, carbon emissions reduction, and environmental protection. China's biodiesel raw material is mainly waste oils and fats, and it is also a core supplier of such materials.   As a major consumer of catering, China has huge potential for waste grease supply. In the future, its output is expected to continue to increase, driving the growth of biodiesel production in China. It is estimated that China's biodiesel production will 2021 approximately 20 Yi Sheng, gradually upgraded to 2030 nearly 60 100 million liters. China's biodiesel exports are mainly to Europe, and it has become an important trading partner for biodiesel in the EU. The EU is the world's largest biodiesel consumer market, accounting for approximately 40% Biodiesel consumption. According to the EU in 2022 year 6 The latest document of the revised Renewable Energy Directive passed by the European Parliament in [month], which sets a new target for renewable energy's share of transport energy, replacing the original 14% Significantly increased to nearly 30% ,   To achieve the new renewable energy target share, EU biodiesel consumption is expected to continue growing at a high rate in the future. China's biodiesel export market will also continue to benefit, with exports expected to 2021 year 12.6 YilSheng, upgraded to 2030 Year-over-year 40 YiSheng, with an annual compound growth rate of 14.3% . Xu Biao said that at this stage, China's biodiesel domestic market is still in its cultivation phase. The relevant policies introduced do not have mandatory blending requirements. Compared with traditional petrochemical diesel, biodiesel lacks competitiveness in terms of cost and quality. In comparison with regions with high biodiesel consumption such as the EU, the US, Brazil, and Indonesia, China The country's incentive policies and related regulations still need to be improved urgently to further open up the domestic consumer market.   It is worth noting that, under the guidance of the long-term development goals of carbon peak and carbon neutrality, the biodiesel industry is expected to welcome new policy momentum during the '14th Five-Year Plan' period.     Biodiesel is mainly used as a power fuel and as a raw material or intermediate in the chemical industry. Globally, biodiesel is primarily used as a power fuel, while in China, it is mainly used for the production and processing of green chemicals.   According to a Frost & Sullivan study, in the current Chinese power fuel sector, the promotion of relevant policies is limited. As a result, the penetration rate of biodiesel as a fuel source is low, accounting for less than 30% It is expected that driven by the dual favorable factors of 'top-level design' and 'local pilots', the terminal sales channels for biodiesel for fuel use in China are likely to continue to improve, and the consumption of biodiesel for fuel use will rapidly increase.   Subsequently, Xu Biao introduced in detail the main downstream derivatives and by-products of biodiesel in China. He pointed out that biodiesel is essentially a mixture of lower esters of multiple fatty acids. In addition to being used directly as fuel, it can also be used to produce various derivatives, including bio-ester plasticizers, environmentally friendly alkyd resins, surfactants, etc. Compared with traditional chemical preparation processes of these traditional types, its derivatives have many advantages such as environmental friendliness, stability, and less corrosiveness to containers, and have broad application prospects. In addition, crude glycerol, a major by-product during the production of biodiesel, can also be further refined and applied in industrial fields such as cosmetics, food, and medicine. ·          Biodegradable ester plasticizer Plasticizers are widely used in industrial production, enhancing the properties of polymer materials and improving their plasticity and softness. They are mainly used in packaging materials, leather, toys, automotive parts, and other large quantities of plastic products. Traditional plasticizers have strong volatility and pose a risk of seeping into plastic products, which can disrupt the human endocrine system, reproductive system, etc. Bioester plasticizers are a new type of plasticizer that is non-toxic, environmentally friendly, and biodegradable, processed from bio-based materials. They can effectively reduce the harm of traditional plasticizers to humans and the environment and alleviate dependence on petroleum resources. The raw materials for bioester plasticizers are widely available and harmless to humans and the environment. In the future, with increased environmental supervision and continuous development of green and environmentally friendly plasticizer products, there is huge potential for growth in the consumption of bioester plasticizers.   2017 Year-end 2021 In the year, the consumption of bioester plasticizers 20.4 Ten thousand tons grew to 43.8 10,000 tons, with an annual compound growth rate during this period 21.0% , is expected to arrive 2030 Year-on-year growth 95.7 10,000 tons 2022 Year to 2030 The compound annual growth rate will reach 9.3% . ·          Environmentally friendly alkyd resin   Alkyd resin is one of the most widely used polyester resins in the coating industry. Its performance is related to the type of oil, molecular structure, and molecular weight. Alkyd resins can be divided into environmentally friendly alkyd resins and traditional alkyd resins.   Environmentally friendly alkyd resins use water or emulsifiers as solvents and are mainly used as film-forming bases in the coating industry. While retaining the advantages of traditional alkyd resins, they enhance the fast drying, water resistance, and corrosion resistance of coatings. Moreover, their low volatility significantly reduces the harm to humans and the environment. With the increasingly strict national environmental protection policies, reducing volatile organic compounds released into the atmosphere and protecting human health have become particularly important. The development of low-pollution alkyd resins is becoming increasingly crucial. The proportion of environmentally friendly alkyd resins such as water-based alkyd resins and solvent-free alkyd resins will continue to rise.   The consumption of environmentally friendly alkyd resins is expected to further decrease from 2022 year 58.2 Ten thousand tons grew to 2030 year 115.9 10,000 tons, with an annual compound growth rate during this period 9.0% . ·          Crude glycerol Industrial glycerin mainly includes refined glycerin obtained from the further processing of crude glycerin, a by-product in biodiesel production, as well as refined glycerin synthesized from petrochemical products. Produced during the biodiesel production process 10% The by-product crude glycerin, compared to the industrially synthesized industrial glycerin, is more environmentally friendly when further processed into industrial glycerin during biodiesel production. At the same time, the effective utilization of industrial glycerin can improve the raw material utilization rate of biodiesel, reduce resource waste, and further enhance the profitability of biodiesel production enterprises. Industrial glycerin falls under the category of refined glycerin. The main downstream application areas of refined glycerin in China include epichlorohydrin, polyether, pharmaceuticals and cosmetics, and others.   2017 - 2021 In China, the demand for refined glycerol in 39.9 Ten thousand tons grew to 75.2 10,000 tons, with an annual compound growth rate of 17.2% estimated 2030 Will reach in 203.3 10,000 tons 2021 - 2030 Annual compound growth rate for the year 11.7% .   "   China's biodiesel industry chain is still in the stage of continuous improvement. The production capacity of major manufacturers is steadily expanding, and at the same time, each link in the industry chain contains multiple development opportunities.     Xu Biao further explained that, from the perspective of the upstream industrial chain, the supply pattern of main raw materials such as waste grease is still relatively loose. With the acceleration of industry standardization in recent years, large-scale waste grease disposal and resource utilization enterprises are expected to achieve rapid development; looking at midstream producers, China's biodiesel industry has formed a competitive group including outstanding new energy companies like New Energy Biofuels, Hainan New Energy Science & Technology Co., Ltd., and Hebei Jingu, which are generally showing a stable growth phase. Enterprises at different ends of the industrial chain are also entering the biodiesel production sector with different strategies; from the perspective of downstream applications, the new generation of biofuels HVO , SAF As emerging demand surges rapidly, it drives the industrial chain to embrace new development opportunities.   Finally, Xu Biao said,   Comparing the revenue and profit growth of major listed companies in recent years, as well as their valuation levels, the biodiesel industry shows better business growth potential and future development prospects compared to the overall chemical industry.     Especially in terms of profit growth and price-to-earnings ratio, the average level of biodiesel companies is significantly better than the overall average of basic chemicals, fully reflecting the good growth momentum of the biodiesel sector and investors' strong recognition of the industry's future prospects and the development potential of enterprises.

Double Eleven Hainan Island-Free Shopping Tax Rebate Sales Exceed 3.4 Yi, doubling the average daily sales compared to National Day Golden Week. Companies such as China COSCO Group, Wangfujing Department Store, and HNA Group have intensified efforts in the field of tax-free shopping on remote islands in Hainan. Currently, several companies that have obtained tax exemption licenses are deploying their operations in Hainan's tax-free business sector. From a consumer perspective, what important opportunities can the operating entities seize?   The world's largest single-site duty-free complex, Haikou International Duty-Free City, has opened. It is significant for Hainan's tourism industry,    What are the impacts and significance of island tax exemption? During National Day, sales at Hainan's island tax-free areas rebounded. What is your view on the future trend of the island tax-free market in this region?    Frost & Sullivan Frost & Sullivan Executive Director, Greater China Region (hereinafter referred to as 'Frost & Sullivan')    Chen Chen    Accept an interview with Cailian News and discuss the above topics together. Cainiao Communications Q Currently, several companies that have obtained tax exemption licenses are deploying their operations in Hainan's tax-free business sector. CDF Haikou International Duty-Free City is located at 10 month 28 The store will open daily, and the Wangfujing International Duty-Free Port will be at 2023 year 1 The store is scheduled to open in October, with the Sanya Helin project under Zhuhai Duty-Free set to launch next 2023 Why are the opening dates chosen to be concentrated at the end of this year and early next year? From a consumption perspective, what important opportunities do you think business entities can seize? 2019 After the Spring Festival, the state increased its support for tax-exempt industries and gradually relaxed strict supervision over tax exemption licenses. The Hainan offshore duty-free market has seen new players such as Haida Control, Hailvtou, Zhongchushou, and Shenan Duty Free enter the market, vying to layout offshore duty-free businesses and build new duty-free stores.   After the opening of the newly established offshore island duty-free stores, the commercial facilities and environment for duty-free shopping on Hainan's offshore islands will be significantly improved, which will help attract more international high-end brands. At the same time, due to the enhanced passenger carrying capacity, it will also contribute to the development of Hainan's tourism market, playing a mutually reinforcing role. In addition, affected by the pandemic, China has adopted a relatively strict border opening policy, which is also conducive to the return of overseas consumption during the same period. This has laid a good foundation for the further development of Hainan's tourism and duty-free industries. Business entities within the industry can seize this opportunity to layout duty-free business on offshore islands and fully attract consumers through product brands, categories, prices, etc., reshaping consumer shopping habits for duty-free goods. This can enhance consumer loyalty and retain them to the greatest extent possible even in the event of future opening up. Q   The world's largest single-site duty-free complex, Haikou International Duty-Free City, has opened. It is significant for Hainan's tourism industry,    What are the impacts and significance of tax exemptions for offshore islands?   For the tourism industry in Hainan, Haikou International Duty-Free City is the world's largest single duty-free store after Sanya International Duty-Free City and one of the landmark projects for the construction of Hainan Free Trade Port. Haikou International Duty-Free City takes duty-free commerce as its traffic entry point, consisting of 'duty-free + Culture and tourism, driven by 'dual wheels', provide tourists with one-stop shopping, consumption, and entertainment tourism retail services.    The official opening of Haikou Duty-Free City is expected to attract more domestic and international tourists to Hainan, further driving tourism consumption in the province. At the same time, it also provides opportunities for the development of tourism and business enterprises.   Since the implementation of the offshore island duty-free policy, the proportion of offshore island duty-free sales in total tourism revenue and consumer goods has been continuously increasing. The duty-free industry has a significant impact on Hainan's tourism industry, consumer goods, and overall economy. For offshore duty-free shopping, as a major participant in the Hainan offshore duty-free market, the Haikou International Duty-Free City has officially opened, which will further enhance the brand awareness of COSCO Duty Free and consolidate and elevate its leading position in the tourism retail markets of Hainan, across China, and globally.   At the same time, the increase in the number of duty-free shops on Hainan's islands and the expansion of their operating areas have made the Hainan duty-free market more complete. This has further enhanced the passenger carrying capacity, providing consumers with better shopping options and experiences. Q In the third quarter, Hainan's off-island duty-free sales were hit. However, with the stabilization of the epidemic and the joint efforts to stimulate consumption from various parties, Hainan's off-island duty-free sales warmed up during National Day holidays. What are your views on the future trend of the off-island duty-free market in this region?   The number of duty-free stores in Hainan is constantly increasing, with continuously expanding operating areas and coverage cities. Numerous duty-free city construction projects are also advancing steadily. Many duty-free players, including the Wangfujing Group and Haizhijie Group, are intensifying efforts in the field of Hainan's offshore duty-free business, accelerating the formation of industrial cluster effects for offshore duty-free at the Hainan Free Trade Port, and driving the development of upstream and downstream industrial chains including brands, logistics warehousing, supply chain management, e-commerce retail, etc.   The offshore duty-free market enjoys favorable policy environment, and the development on the supply side is continuously improving, creating good conditions for the sustained growth of offshore duty-free sales.         From the perspective of market demand, against the backdrop of normalized prevention and control measures for the COVID-19 pandemic, most outbound tourism consumption capacity in China has remained domestically, providing an opportunity for domestic tourism and duty-free shopping on offshore islands.   In the long run, with the continuous improvement of Hainan's offshore tax-free shopping and supporting facilities, a comprehensive tourism consumption ecosystem that includes shopping, accommodation, catering, leisure vacations, and other industries formed around the tax-free industry will attract more global consumers to Hainan, promoting the further development of local offshore tax-free shopping, tourism retail, and tourism industries in Hainan. Q In your opinion, is there a possibility of further adjustment to the individual tax exemption limit within the island? How does this relate to the overall off-island tax exemption market?   The adjustment of the individual tax exemption quota for offshore islands highly depends on government policy guidance and requires comprehensive consideration of various aspects such as the development of the tax exemption market in Hainan Province, its carrying capacity, and supporting facilities. In the past decade, the individual tax exemption quota for islands has been continuously increased, demonstrating the government's support for the development of Hainan's island-based duty-free economy. The sales volume of Hainan's island-based duty-free products has grown rapidly. In an environment where the industry is developing well, increasing the individual tax exemption quota for islands will help unleash consumer potential in both domestic and international markets, stimulate consumers' enthusiasm for purchasing duty-free products, further expand the development space of the duty-free industry, and create more business opportunities for duty-free enterprises. Q Hainan Island Free Trade Zone Shopping Mall has its original location 10 Increase in home 12 Home, tax-exempt business area from 22 Ten thousand square meters increased 52 Ten thousand square meters. How do you view the competitive landscape of duty-free shopping on offshore islands? What impact does it have on the future development of the industry?   Previously, the players in the offshore duty-free market were mainly China COSCO Group International Limited (COCOF), with a high industry concentration. To stimulate overseas consumption return and economic development during the pandemic, stimulated by a series of favorable policies from the Hainan government, the offshore market in Hainan has grown rapidly in recent years. 2019 In the past year, the sales scale of duty-free shopping on Hainan's offshore islands has achieved a significant increase. 2020 After the state liberalized the issuance of tax-free licenses for Hainan's offshore islands in 2018, companies such as Haida Holdings, Hailvtou, China Merchants Service Group, and Shenzhen Duty-Free Shopping Co., Ltd. have entered the Hainan offshore market one after another. They have continuously expanded their business operations and store layout in the Hainan market, resulting in an increase in the tax-free operating area and number of stores in the offshore market.   In the future, as new entrants to the industry gradually increase, market concentration will decrease compared to before. However, in the long run, due to the mature supply chain and sales system already formed by the industry leader, China COSCO Group Co., Ltd., with its significant scale advantage, the industry will exhibit a competitive landscape of one dominant company over multiple strong competitors.   In addition, against the backdrop of a gradual increase in players in the offshore duty-free market, the competition in China's offshore duty-free market will not only feature price competition but also exhibit differentiated competitive patterns across multiple dimensions such as product brands, categories, regional layout, and target customer groups.   * This interview is published in Cailian News Agency. APP Reporter: Lu Tingting, original title    Selling More Than One Million on a Single Day 3.4 Yuan! Hainan's offshore tax-free shopping areas welcome peak consumption season Sales are expected to rebound in the fourth quarter | Industry Dynamics    (Clicking "Read the Original Article" at the end of the text will provide access to the full report).

2022 year 11 month 8 day -11 Today, with the theme of "Building a Cyberspace Community with a Shared Future", 2022 The annual World Internet Conference was held at the Wuzhen Exhibition Center in Zhejiang. The Wuzhen World Internet Conference has been held for eight consecutive years. How do you view the changes this year compared to previous years? What trends are worth noting at this year's conference? With the overall environment slowing down, the internet industry is also reducing costs and increasing efficiency this year. How do you view the current development direction of the industry?   Frost & Sullivan Frost & Sullivan Executive Director, Greater China Region (hereinafter referred to as 'Frost & Sullivan')    Cai Jinfeng    An interview with South China Morning Post was conducted to jointly discuss the highlights of this year's World Internet Conference and the development direction of the internet industry. Nanhua Morning Post Q The Wuzhen Internet Conference has been held for eight consecutive years. What are the changes this year compared to previous years? 2022 year 7 Month, China successfully held 8 Based on the Annual Wuzhou Summit, the World Internet Conference International Organization was established, which is of milestone significance in the international internet field. 2013 The ' prismgate' incident in which the United States demonstrated its 'hegemonic world' in cyberspace has caused countries around the world to re-emphasize the issue of cyber sovereignty. With profound changes in the international landscape and escalating cyber attack methods, countries around the world have elevated the maintenance of cyber sovereignty to a national strategy. 2019 Year to 2021 In [year], the World Internet Conference successively released the outcome document 'Cyber Sovereignty: Theory and Practice'. 1.0 Edition, 2.0 Edition and 3.0 Edition, appealing to all countries to respect cybers sovereignty and jointly build a new order in cyberspace. In the past, the World Internet Conference has been held consecutively 8 In [year], China shifted from being passive to active, gaining more say in reshaping the international order of cyberspace. The Wuzhen World Internet Conference, as an important platform advocated and hosted by China, is of great significance for eliminating the global internet's unipolar pattern. Q The overall environment has slowed down, and the internet industry has also been reducing costs and increasing efficiency this year. What is the current development direction of the industry? What trends are worth paying attention to at this year's exhibitions?   Web3 Trend:    The traditional digital economy primarily relies on traditional internet technology, with search engines, e-commerce, social networks, and other applications as its main scenarios; the new digital economy, on the other hand, is based on the next-generation internet (also known as Web3 ) as the main technology, and has extended to digital currencies and applications in terms of tools and scenarios. NFR And the metaverse.   Web3 The value internet, with assets as its core object, is characterized by the interaction between algorithms and assets. It uses algorithms to distribute digital assets, achieving a trend towards 'zero marginal cost' in asset circulation. The resulting property rights economy will change the development model of the digital economy. Web3 Infrastructure such as blockchain (decentralization), token The development of mechanisms (economic incentive systems), etc., is becoming increasingly perfect, but larger-scale growth depends on the development at the application ecosystem level.   At the application level, it mainly consists of Defi and NFT and GameFi The leading sub-sectors are growing rapidly. DeFi The development is relatively mature, capable of realizing functions such as trading, lending, and financing, making its exchange an industry traffic entrance; secondly NFT Market self 2020 Since [start year], the market has witnessed explosive growth in scale, with overseas markets benefiting from their trading / Speculative and social attributes, but domestic regulatory restrictions on secondary trading have stripped away its trading nature. Therefore, the future growth of the market mainly relies on collection value; finally, GameFi Rely on P2E Featured, already available Axie , infinity and STEPN Popular apps are expected to become the next trendsetter. At the same time, you can follow SocialFi Exploration results in advertising and search domain applications.   AI Artificial Intelligence Trends:   The latest progress in artificial intelligence mainly focuses on new AI technologies, new AI frameworks, and new AI applications. In the field of new AI technologies, large models (AI models trained with massive amounts of data, featuring extremely large parameter sizes, capable of handling multiple tasks) and multimodal learning (machine learning methods that process multi-modal information such as speech, images, text, etc.) have made significant breakthroughs; in the field of new AI frameworks, google and NVIDIA Companies are deploying AI architectures across various aspects, accelerating AI computing from software frameworks to hardware design, thereby liberating computing power. In new application areas of AI, deep learning (a machine learning algorithm based on multi-layer neural networks) and reinforcement learning have shone brightly in the fields of life sciences and energy development, respectively.   * This interview was published in Nanhua Morning Post, Reporter Tracy Qu , the original text is named    "The This year's quieter Internet Conference kept big tech executives away amidst a shift away from consumer technology >>    (Clicking "Read the Original Article" at the end of the text will provide access to the full report).

2022 year 11 month 7 day after tomorrow 9 Today, Huawei is addressing ICT Industry's annual flagship event - Huawei CONNECT 2022 Held in Shenzhen. With the theme of "Unlocking Digital Productivity", the conference invited ICT Industry leaders, experts, and partners discussed topics such as how to promote digital transformation in the industry, jointly build a digital industrial ecosystem, and share best practices.   Frost & Sullivan Frost & Sullivan Frost & Sullivan, referred to below as 'Frost & Sullivan', was invited to participate in this conference. Mr. Wang Chenhui, Managing Partner and Executive Vice President of Frost & Sullivan Greater China, along with experts from Huawei's various business units including Power, Finance, Coal, Oil & Gas, Road, and Port, engaged in an in-depth discussion on how to find technology for the industry and create value through deep engagement with specific scenarios. " Three major measures to drive digital transformation across all industries Huawei's rotating chairman Mr. Hu Houkang Hu Houkang, rotating chairman of Huawei, delivered a keynote speech titled "Unlocking Digital Productivity and Stimulating New Industry Growth." He believes that China's comprehensive digital infrastructure, the urgent need for digitization across various industries, and its rich ICT Talent reserve is accelerating the industry's digitalization into high gear. To help enterprises address common challenges in digital development, Hu Houkang has proposed three major initiatives: 1 ) Delve into scenarios to make technology easy to choose and use, ( 2 ) enables enterprises to 'build a good cloud foundation and make the best use of it', ( 3 Accelerate talent cultivation, ensure a continuous supply of digital talents, and help various industries unleash their digital productivity. " Find technologies for the industry and create value by delving into scenarios Huawei's President of Government and Enterprise Business in China, Wu Hui, introduced the methods for achieving digital transformation. He said: 'Digital transformation is about innovation and change. First, customers must have a strong willingness and establish a vision and strategy for digital transformation. They select suitable scenarios around their strategy, set goals, and jointly build joint innovation organizations with partners and Huawei, based on 4A The architecture matches the corresponding technology, and partners build applications close to business needs. Customers have digital transformation strategies, partners have years of industry experience, and Huawei has a full-stack capability. ICT Technology and security are fundamental technologies. By leveraging their respective strengths, we can jointly create business value and social value, and achieve sustainable development. Wu Hui also unveiled ten scenario-based solutions jointly created with partners at the event, including the bank's distributed new core, smart hospital full-light reading of films, and airport intelligent perimeter security. These solutions aim to increase corporate efficiency, improve social welfare, lay a solid foundation for development, and build an intelligent world interconnected by all things. " Build the industry cloud foundation, and everything is served. Huawei Cloud CEO Zhang Ping'an said: 'Huawei Cloud practices 'everything is a service', helping industry customers quickly acquire advanced technologies and successful experiences, and unleashing digital productivity.' In terms of Infrastructure as a Service, Huawei Cloud has built a unified architecture data center infrastructure globally. KooVerse Provides computing, storage, network, security and other infrastructure services for enterprises. In terms of technology as a service, Huawei Cloud accelerates the modernization of enterprise applications through full-stack innovation. In terms of experience as a service, Huawei Cloud has newly launched services for industries such as electric power and highways aPaaS , enabling customers to avoid reinventing the wheel and moving their industries to the cloud. Huawei Cloud released Huawei Cloud Astro Low-code platform, DevCloud Developed cloud, etc., exceeding 15 New services. " Frost & Sullivan's in-depth analyst engagement & Think Tank Roundtable Symposium Managing Partner and Executive Vice President, Greater China, Frost & Sullivan Mr. Wang Chenhui At the Huawei Roundtable, Mr. Wang Chenhui, Managing Partner and Executive Vice President of Frost & Sullivan Greater China, shared his thoughts on the challenges faced in talent, finance, and applications at three major levels after domestic industries have entered a deep-water phase of digital transformation. He also provided systematic suggestions on how all parties can carry out effective ecological cooperation for colleagues across Huawei's various business units.   Mr. Wang Chenhui said: 'Frost & Sullivan has served thousands of industry leaders across various segments in the Greater China region over the years. As a strong supporter for domestic enterprises in the domestic and international capital markets, we are very much looking forward to seeing Huawei's strength...' ICT Capabilities can further empower them to form a deeper industry understanding and accumulate more know-how in business It can also help them complete their digital transformation, thereby achieving significant cost reduction and efficiency improvement.

10 month 25 Today, Shanghai announced the launch of inhalation COVID-19 vaccination. The vaccine is a recombinant novel coronavirus vaccine for inhalation developed by CanSino Biologics, and 9 month 4 Rizatriptan has been included as an emergency use drug in a revised dosing regimen. 10 month 28 day, throughout A Amidst a chorus of wails, CanSino, with the posture of a single red dot amidst thousands of greens, led the vaccine sector to become almost the only one with positive gains. And in just 3 God, the entire market witnessed CanSino Biologics A The stock price soared 40% . What is the current market expectation for booster shots? Will COVID-19 booster vaccines be similar to influenza vaccines in the future?   What have vaccine companies gained from the COVID-19 dividend period? What changes have taken place in the vaccine industry?    After the COVID-19 dividend period, what other key areas of vaccine companies are worth paying attention to and looking forward to?     Frost & Sullivan Frost & Sullivan Zhu Yi, Executive Director of Frost & Sullivan Greater China, was interviewed by 'Shenzhen Blue Perspective' to discuss the current situation and future development trends of the COVID-19 vaccine market. Deep Blue View Q   What is the current market expectation for booster shots? Will COVID-19 booster vaccines be similar to influenza vaccines in the future? Should high-risk groups receive regular vaccinations or a nationwide mass rollout?   （ 1 The Omicron variant is still mutating, and we are not certain about its mutation direction or the risks it poses after mutation. At present, we do not have the ability to completely eradicate the virus. Therefore, it can be predicted that if the Omicron variant continues to mutate and spread on a large scale, the penetration rate of booster shots will continue to increase. Coupled with the need for annual re-vaccination, the market size is expected to expand continuously. （ 2 As for whether the COVID-19 booster vaccine will be similar to the flu vaccine, this will depend on the mutation rate and pattern of the novel coronavirus. If the virus continues to mutate rapidly and the protection provided by existing vaccines becomes ineffective, there may be a need in the future to receive regular booster shots like those for the flu vaccine. （ 3 The epidemic prevention and control work is carried out in an orderly manner. The 'booster shot' vaccination campaign was first launched among key populations, high-risk occupations, and key job positions, and then gradually extended to other groups.   Currently according to 7 month 23 According to a press conference by the Joint Prevention and Control Mechanism of the State Council, as of now, the cumulative first-dose vaccination coverage rate of COVID-19 vaccines in China is 92.1% , vaccination coverage rate for the entire process 89.7% , Strengthening immunization rates 71.7% . Q Some vaccine experts say that it doesn't make much sense to launch a COVID-19 vaccine for preventing severe illness now. Vaccines for preventing infection have more market opportunities. What's your opinion?   Currently, for most of the COVID-19 vaccines that have been launched and are under research, their effectiveness in preventing severe illness and death is generally higher than that in preventing symptomatic infection. For example, Sinovac ( Sinovac Biotech Second dose of vaccination 14 Postpartum, effective rate of symptomatic infection prevention: 58.49% and prevent death, ICU The effective rates are 86.38% , 89.68% ; Pfizer vaccine, second dose 14 Postpartum, the effective rate of symptomatic infection prevention is 87.69% and prevent death, ICU The effective rates are as follows: 100% , 98.29% .   Therefore, it is undeniable that improving the vaccine's effectiveness against infection can meet the current clinical unmet needs of the COVID-19 pandemic and has significant market potential. However, at the same time, COVID-19 vaccines for preventing severe illness also play an irreplaceable role, greatly reducing the disease burden and presenting certain market opportunities. Q Some vaccine R&D companies such as Watson and ZF Bio are also actively deploying second-generation vaccines targeting new strains. What are their motivations and expectations? Wason's second-generation vaccine, designed and developed against novel coronavirus variants, encoding the full-length S Protein chimera-based innovative broad-spectrum COVID-19 vaccine mRNA vaccine. Due to the current COVID-19 The virus is still mutating continuously, and there is a possibility that the protective effect provided by existing vaccines may become ineffective. Therefore, companies including Watson and ZF Bio will actively deploy second-generation vaccines targeting new strains in order to cover the main immune escape mutation sites of various variants and achieve better protection against COVID-19.   In the future, although the vaccination rate against COVID-19 will decline compared to last year, there is still a certain market for booster shots based on new technology routes targeting new strains, as deployed by companies such as Watson and ZhiFei. These booster shots also offer certain profit opportunities.   Q If a company develops a bivalent vaccine based on the existing monovalent vaccine, would its investment cost be relatively lower? Correspondingly, would there be a larger profit margin? If it is based on the same technology platform / The development of bivalent vaccines for routes, based on the existing monovalent vaccines, is understood to have relatively lower investment costs. This can reduce some initial research and development expenditures, production platform investments, and sales channel development. However, the production cost and research and development difficulty of bivalent vaccines are generally greater than those of monovalent vaccines, and their profit margin still depends on specific circumstances.   Q It is understood that among the companies that made early investments in COVID-19 vaccines, only Wantai Biotech has not continued its efforts in this area. What do you think of Wantai Biotech's decision?   Currently, as the pandemic continues and the virus mutates continuously with decreasing toxicity, people's demand for vaccines is showing a gradual decline trend. Therefore, the vaccine market has entered the second half, with new competitive directions mainly focusing on vaccines against variant strains, those with better efficacy, and those that are more convenient to use. The choice of Wantai Biotech is mainly based on the company's own strategic layout direction. However, recently, Wantai Biotech's nasal COVID-19 vaccine has completed the interim primary data analysis of Phase III clinical trials and obtained key data. This indicates that Wantai Biotech has not withdrawn from the COVID-19 vaccine market. Q What do you think vaccine companies have gained from the COVID-19 dividend period? What changes have taken place in the vaccine industry?   Looking at the overall vaccine industry, benefiting from the COVID-19 dividend period, the global vaccine market size has grown from 2016 year 275 Billion USD increased to 2020 year 365 billion dollars , accounts for the total global pharmaceutical market 2.8% The annual compound growth rate is 7.3% .   China is 2020 The world's second-largest vaccine market, accounting for a share of 31.7% Driven by the increased accessibility of innovative vaccines, favorable government policies, vaccine technology innovation, and enhanced vaccination awareness, the scale of the Chinese vaccine market has 2016 year 271 RMB 10 billion increased to 2020 year 753 100 billion RMB, with an annual compound growth rate of 29.10% .   From the perspective of vaccine companies, 1 ) Thanks to the COVID-19 dividend period, enterprises have accumulated huge cash flows, which is crucial for their development.   The financial report shows that the net operating cash flow of Kangtai Biology decreased compared with the same period last year 4922 Ten thousand has increased to 1.07 100 million, a year-on-year increase 118.98% The semi-annual report of Sinopharm also shows that Sinopharm has total cash flow 77.68 100 million yuan. 2 In addition,   COVID-19 pandemic The epidemic has promoted global demand for COVID-19 vaccines and, to some extent, accelerated the development of pharmaceutical companies in related innovative technologies.   such as mRNA Vaccine research and development, as well as technological breakthroughs. 3 ) At the same time, benefiting from the COVID-19 dividend period,   Domestic vaccine companies are also gradually entering the international market.   For example, recently, the novel coronavirus from Wuhan mRNA The vaccine has obtained an emergency use authorization from the Indonesian National Food and Drug Administration for 18 People aged one year and above can prevent COVID-19 through active immunization. This is Indonesia's first COVID-19 vaccine that will be locally produced. mRNA Vaccine, which is also the first COVID-19 vaccine independently developed in China and approved for overseas marketing mRNA vaccine. Q After the COVID-19 dividend period, what other key areas of vaccine companies are worth paying attention to and looking forward to? As the pandemic continues, the virus is constantly mutating and its toxicity is decreasing, leading to a gradual decline in demand for vaccines. Additionally, vaccination has gradually reached saturation, and the reduction in revenue from original vaccines is inevitable. However, there are also opportunities within the crisis. In the second half of the vaccine race, vaccines targeting variants, those with better efficacy, and those that are more convenient to use will be new competitive directions.   * This interview was published on the WeChat official account "Shenzhen Blue Observation". Reporter: Wu Ni. Original title:     "A Kangxieno, Can't Save the Future of COVID-19 Vaccines?"    （ 👈 Click to read the original text directly).

CITIC Construction Investment Greater Consumer Goods Chengdu Forum 2022 year 11 month 8 On the day, the CITIC Construction Investment Greater Consumer Chengdu Forum (hereinafter referred to as the 'Conference') hosted by CITIC Construction Investment Securities was successfully held. The Conference brought together many front-line experts and senior executives from listed companies within the industry to jointly offer suggestions for the development of China's consumer industry and facilitate investment discussions. 2023 China's major consumption trend in 2023, grasp the investment main line.   Frost & Sullivan Frost & Sullivan Ding Zhuowen, Executive Director of Frost & Sullivan Greater China and Dean of LeadLeo (Shanghai) Research Institute, was invited to attend the conference 11 month 8 The main forum held on the morning of the day delivered a keynote speech titled 'New Demographics, New Product Categories: A New Consumption Era Amidst Opportunities and Transformations'. Executive Director of Frost & Sullivan Greater China, Dean of LeadLeo (Shanghai) Research Institute Ding Zhuowen   Firstly, Ding Zhuowen pointed out that consumption is one of the most important drivers for the sustained and substantial development of the national economy. The report of the 20th National Congress of the Communist Party of China clearly states that it is necessary to adhere to promoting high-quality development as the theme, organically combine the implementation of the strategy to expand domestic demand with deepening supply-side structural reform, enhance the internal driving force and reliability of the domestic large cycle, and improve the quality and level of the international cycle. The total social demand consists of consumer demand, investment demand, and export demand. Among them, consumption and investment are domestic demands, while exports are external demands. Therefore, an important aspect of expanding domestic demand is to actively stabilize household consumption. The core of consumption is always the satisfaction of demand. So, what changes have taken place in the new era of consumption? Ding Zhuowen believes that these mainly focus on three levels: the generational transition of consumer groups, the upgrading of consumption methods and scenarios, and the reshaping of consumption order. What are the new consumer groups? Ding Zhuowen said, 15 - 50 The aging population is the most core consumer force in China, and its current size is approximately 7 Around hundreds of millions, they were born 1972 till 2007 Between years, from an intergenerational perspective, that is, 70 Later 00 The span thereafter. Based on basic attributes such as age, gender, and place of birth, as well as acquired characteristics like education level, occupation, income level, marital status, and fertility, categorizing these core consumer forces into corresponding consumer groups reveals:   Intergenerationally, it is mainly Z Generations and Y generation;    In terms of occupation and income level, both white-collar workers and middle-class individuals are included;    In terms of lifestyle, this is particularly evident among solo young people and new-generation mothers;    This is a summary of the six core consumer groups, their values, consumption preferences, and categories of purchases.   New consumer groups: Z generation Z Generations, simply defined by time, are born in 1995 - 2009 Groupings between the years. China Z Generational population exceeds 2.64 hundred million people, accounting for about the total national population 19% , where “ 95 The latter, accounting for nearly 40%, 00 after" and "“" 05 The latter accounts for about 60%. They are the original inhabitants of the internet and also lived through the most rapid period of our economic development. Their parents' economic accumulation helped them live a better life, so self-satisfaction has become Z The core of generational consumption.   Ding Zhuowen believes that the economic foundation of the original family, plus Z Generations have gradually entered the workforce, started earning income, and this group has gradually become the backbone of consumption. Z The strong consumer power across generations has spurred the development of new categories, with the beauty economy being at the forefront. 2022 Since the beginning of this year, Z Sales of high-value-for-money products have increased year-on-year across generations 166% . Secondly, the health preservation economy has broken out of its niche, starting from various beverages and expanding to multiple fields such as food and condiments. 2022 Since the beginning of this year, Z The sales volume of low-sugar products purchased by generations has increased year-on-year by more than 20 times. In addition, due to Z The concept of health preservation across generations, as well as the sales volume of health management products such as astaxanthin and seal oil-based health supplements, has also seen unprecedented high growth rates. At the same time, Ding Zhuowen also said that as an internet native, Z The consumption preferences of generations towards smart products are also self-evident; they generally love to buy smart home products. 3C Products, etc. If purchasing a car for commuting, people also prefer more intelligent new energy vehicles. New consumer groups: Y generation Y Generations refer to those born in 1980 till 1994 Annual population.   In terms of population size, Y The number of people in each generation has reached 3.15 hundred million, than Z The base of the population is even larger, and it remains the most core consumer force at present. The same is true in terms of consumption scale. Y The annual consumption expenditure per capita across generations is approximately Z generational 1.5 times. Ding Zhuowen believes that Y The generation that first enjoyed the reform and opening up and the progress of information technology is characterized by dual contradictions. It can be observed in them the coexistence of materialism and idealism, the combination of internationality and nationality, and the presence of both modern and traditional elements.   While enjoying material prosperity, we are also bearing the immense pressure brought about by striving for a better life. Due to such a growth background, as well as the current majority Y The lifestyle of successive generations has led them to spend more on quality and refined living, which can showcase personal taste while also embodying pragmatism in improving lifestyles. Therefore, smart homes that can greatly improve living standards are Y A favorite that has been passed down from generation to generation.   In addition to this, Y Generations are also the main force in medical beauty consumption. This is not only closely related to their consumer needs but also to their age group, as well as their relative wealth accumulation. New consumer group: Rising-middle-class professionals Ding Zhuowen further stated that in addition to looking at the core consumer group from an intergenerational perspective, it is also possible to better grasp this segment from the perspectives of occupation and income. Living in high-tier cities, with 85 later and 90 The new generation of white-collar workers, who are mainly in their careers and seeking advancement, generally have very high demands for convenience in consumption. They are still in a period of career struggle and work at a very fast pace. Therefore, they particularly favor online channels, such as O2O model Home platform. In addition to convenience, urban white-collar workers place great emphasis on a sense of ritual. Therefore, various festivals and shopping festivals are important times for them to place orders.   At the same time, they are very concerned about self-improvement, both externally and internally, hoping to always maintain their best state. Therefore, in addition to beauty care, skincare, and health preservation, they are also a major group that pays for knowledge. New consumer group: Senior middle class There are also senior middle-class individuals living in high-tier cities, 70 later, 80 Later generations are now the main focus. Compared to the younger generation, senior middle-income earners have relatively ample wealth accumulation and exhibit a more mature consumption outlook. Ding Zhuowen stated that most senior middle-class individuals hold the consumption philosophy of 'light price, heavy quality'. Online shopping emphasizes quality, with more choices for brand official flagship stores; offline shopping focuses on experience, and they are enthusiastic about new retail stores represented by Hema Fresh. In addition to being pushed to the forefront due to generational change Z Beyond generations, the two major consumer groups emerging due to lifestyle changes also have a profound impact on the development of the consumer industry. New consumer group: Single-person young people   Data from the National Bureau of Statistics show, 2015 Since [start year], compared with multi-person households, the proportion of one-person households has gradually increased. 2019 Annual achievement 18.5% More and more young people prefer to live alone. According to statistics from the Ministry of Civil Affairs, there are currently 7700 Wan Duojiu Youth.   Ding Zhuowen pointed out that living alone does not affect the quality of life. People who live alone are less influenced by others when making consumption decisions, and instead, they have a much higher desire for consumption upgrades in certain categories than non-single-person households. New consumer group: New-generation moms Another force that cannot be ignored is the new generation of mothers-to-be. According to Ding Zhuowen,   New-generation mothers in high-tier cities often hold multiple roles, being working professionals, caregivers for their children, and the omnipotent managers of their entire family. New-generation mothers are gradually transitioning from 80 Later, it became more youthful 90 The latter group accounts for more than 60%. 90 The postpartum mothers have become more independent and free. The improvement in their educational background, personal income, and social status has made them not only attach importance to the needs of the family and each individual but also pay more attention to self-improvement in their consumption structure.   Ding Zhuowen stated that in the face of parenting, new-generation mothers with a bachelor's degree or above place great emphasis on scientific parenting concepts. From various maternal and infant products to services, and then expanding to pre-school, in-class, and extracurricular education for their children, new-generation mothers pay close attention to scientific design, materials, systems, as well as the safety, quality, effectiveness, and other aspects they embody.   New consumer preference: pet economy According to Ding Zhuowen, recently 10 In recent years, the number of pet owners has been increasing continuously. The latest data shows that the number of pet owners in urban areas of China has reached 6,800 ten thousand people, this 6,800 The ten-thousand-strong pet-keeping army 90 Second most important, accounting for 46.3% , but at the same time 00 Later, it gradually joined in and became an important part.   The spending of these young pet owners on pets cannot be underestimated, with an average annual consumption per dog 2,634 Yuan, average annual consumption per single cat 1,826 yuan.   The number of pets is also increasing year by year. According to 2021 Data from the 'China's Pet Industry White Paper' for 2021 The total number of urban pet dogs and cats nationwide exceeded 1.12 Hundreds of millions, with urban pet owners per capita owning one pet 1.64 Only. Interestingly, the number of pet dogs is about 5,400 Ten thousand, the number of pet cats is about 5,800 Ten thousand, cats have surpassed dogs to become the largest pet category. Ding Zhuowen further pointed out that in addition to products and services, another new direction of the pet economy worth noting is:   More and more adorable pets are gradually entering KOL (Key Opinion Leader) In this field, he has become a blogger and a regular visitor to short video and live streaming sections.   Behind the numerous pet care bloggers taking to live streaming, it is not difficult to see that cute pet live streaming is in a blue ocean of development. The pet live streaming market is vast and thriving. IP address How to effectively monetize traffic remains an important issue that needs consideration in competing for this segment. Preferences of new consumer groups:   Smart Home Ding Zhuowen pointed out that in recent years, with the gradual maturity of artificial intelligence and Internet of Things technologies, supported by policies and regulations, the domestic smart home industry has entered a fast track. Various products have gained wider recognition from consumers and entered thousands of households. Y Generations and Z Generations have gradually gained control over the discourse on home improvement and interior design, due to Y Generations of pursuit for quality of life, Z Generations' pursuit of fashion trends has undoubtedly matched the needs of these two groups for this category in terms of home appliance consumption with highly technological, convenient, intelligent, and interactive home products. From purchasing products to services, from the implementation of basic functions to willingness to pay for high-end quality and cutting-edge technology, the demand for personalized and diversified smart home consumption is becoming increasingly prominent.   Ding Zhuowen believes that although some consumers still hold reservations about full-house intelligence, China's vast consumer market and industrial accumulation provide ample time and space for enterprises to continuously iterate and upgrade product solutions.   Preferences of new consumer groups:   Health preservation Returning to the body, health preservation and wellness, many young people have already embarked on this path. According to the 'China's Great Happiness Survey ( 2020 - 2021 )》shows, in 2021 Among the consumer expectations for next year, health care and wellness rank 18 till 25 The second place on the consumption list of young people, proportion 33.27% , only a fraction of the way behind the number one-ranked tourism sector 0.75% . Ding Zhuowen introduced that more and more young people are beginning to pay attention to health and wellness, with increased consumer spending accelerating the development of health and wellness products and related niche areas. The first sector hit hardest is the health supplement industry, ranging from traditional Chinese base products such as bird's nest, fish gelatin, and black sesame pills to Western supplements like collagen, probiotics, lutein, melatonin, etc. The scenarios mainly focus on enhancing immunity, regulating the gastrointestinal tract, improving sleep, etc., with increasingly refined efficacy and more diverse products. In addition to maintaining health, beauty products infused with medical aesthetics ingredients are also favored by a wide range of young female consumers. Currently, particularly popular medical aesthetics ingredients include hyaluronic acid, collagen peptides, glutathione, and various patented components. Product forms are also quite diverse, including tablets, powders, instant oral liquids, as well as drinking water, yogurt, compressed candies, and more. Other segments such as dietary therapy, fitness products, sleep products, and massage devices will also benefit from the dividends brought about by the development of the health economy.   Ding Zhuowen believes that young people becoming the main force in health and wellness consumption is an inevitable trend of the future, which will bring development opportunities to the health and wellness industry and related sectors. Preferences of new consumer groups:   Prefabricated dishes The pace of life and work in high-tier cities is quite fast. As family sizes tend to become smaller, working women strive for a balance between work and family, and the young consumer group spends less and less time cooking.   ,   Cooking skills are generally lacking, and considering the long-term impact of eating out and takeout on health, coupled with pandemic factors, the popularity of ready-made meals has almost become an inevitable trend. Compared to takeaways, pre-prepared foods that are frozen or refrigerated offer consumers a relatively healthier impression due to the precise control of seasoning usage during the pre-processing process. Moreover, the cooking process of prefabricated dishes is not complicated, allowing the younger consumer group to fully experience them and gain a greater sense of accomplishment. Therefore, they are highly regarded by this group. According to Ding Zhuowen, since 2011 Since the beginning of the year, the number of pre-packaged dish enterprises registered has increased rapidly, especially 2020 Year-end 2021 Between the years, the impact of the pandemic led to a surge in prefabricated dishes. 2021 The number of prefabricated food enterprises increased to 7.19 Wanjia, according to Tmall's data statistics, 2021 The sales volume of prefabricated dishes increased by nearly 16 Biped, becoming one of last year's 'Top Ten New Year's Products'.   Ding Zhuowen further pointed out that the explosive growth of this sector has attracted widespread capital attention, currently with approximately 29 The listed company has involved in and expanded the prefabricated dish business ,   It mainly includes professional prefabricated food enterprises (Weizhi Xiang, steamed, braised and boiled foods), agricultural and animal husbandry aquatic product enterprises (Shengnong Development), traditional frozen food enterprises (Sanquan Food), catering enterprises (Guangzhou Restaurant), etc.   The primary market is also bustling with activity. 2021 Year to 2022 In the first half of the year, there were a total of 40 Yuqi financing project. Preferences of new consumer groups:   Maternal and Infant Economy Regarding the maternal and infant market, Ding Zhuowen believes there are two aspects that are favorable and worthy of attention:   1. The dividend of the two-child policy has begun to show results.    With the gradual relaxation of China's two-child policy, although the total birth rate has declined, the number of births to second children has been steadily increasing. This can also be regarded as one of the important drivers supporting the growth of the maternal and infant consumer market in the future;   2. Consumption upgrading has replaced the demographic dividend as the main driver of industry growth.    With “ 90 after"“ 95 The new generation of parents, represented by 'postpartum', are becoming the main force in maternal and infant consumption. They advocate scientific parenting and have a high willingness and demand for refined maternal and infant products. Maternal and infant consumption is gradually showing trends towards high quality, greater segmentation, and a focus on appearance. Research data shows, 2021 year, 90 The postpartum mother spends more than 85 Post-moms. As a group who grew up under the internet, they advocate for scientific parenting, are more willing to spend money on their children, have stronger purchasing power and higher consumption intentions, and pay more attention to new trends in products. The main consumer group for infant travel products is pregnant women, new mothers, and 0 - 6 Infants and toddlers at this age, therefore, the development of the infant travel product industry is highly correlated with the number of infants and young children in our country. According to data from the National Bureau of Statistics, 2010 Year-end 2014 In [year], the number of newborns in our country continued to rise, bringing growth dividends to the travel consumption market for infants and young children. The reduction in the number of newborns has posed growth challenges to the infant travel product market. However, with consumption upgrades, improved product performance, and a richer product matrix, parents are spending more on each child ARPU The value is on the rise, and there is still incremental market in the industry.   Ding Zhuowen also pointed out, 90 later, 95 Post-new generation parents pay more attention to the consumption details and service experience of products, and also have a relatively high level of interest and acceptance in innovative technologies and products.   They are eager for scientific parenting knowledge, and recommendations from maternal and infant communities and industry experts have a significant impact on their consumption decisions.

20222 year 11 month 7 - 9 day 2022 IDC The YMT New Drug R&D Influence Conference was held in Shanghai. 7 day 2022 The 5th Biomedical Symposium of Guanke Biology kicked off first. This symposium focused on ADC Drug Differentiated R&D, from ADC The commercialization prospects analysis of the drug has begun, with a focus on discussion ADC Inviting R&D teams from innovative pharmaceutical companies to participate in core topics such as early drug research and development, clinical studies, product pipeline layout, and promotion, to jointly explore ADC The path of drug research and development innovation.   Frost & Sullivan Frost & Sullivan Liu Weiqi, Executive Director of Frost & Sullivan Greater China, was invited to attend the event and delivered a speech on the current market situation and development trends of antibody conjugate drugs.   Executive Director, Greater China, Frost & Sullivan Liu Weiqi Antibody conjugate drug Antibody-drug conjugates , ADC Antibodies conjugated with cytotoxic drugs form a drug that can deliver toxins precisely to the tumor site without affecting normal tissue, thereby increasing the patient's treatment window.   Liu Weiqi pointed out, successful development ADC The key factors of a drug include target antigen, antibody, linker, cytotoxic agent, and conjugation method.   Among them, the target antigen is the key factor determining its development, the antibody is the key factor determining its efficacy, the linker is the key factor determining its safety, cytotoxic drugs are the key factor determining their activity, and the conjugation method is the key factor determining their homogeneity.   According to Liu Weiqi, ADC Drugs are referred to as the 'biological missiles' in the field of tumor treatment. Compared to traditional chemotherapy drugs, antibody drugs, etc., ADC The drug possesses strong targeting properties as well as lethal effects. Compared with traditional drugs, ADC The drug has the following characteristics:   Overcoming drug resistance:   Optimization of monoclonal antibodies and payloads ADC Combination may help reduce or even overcome drug resistance;   Less off-target toxicity:   Due to ADC Neutralizing antibodies possess high specificity and controllable drug activation and release mechanisms, therefore ADCs The off-target toxicity of drugs is much lower than that of comparable small molecule therapeutics, as small molecule cytotoxic agents selectively attack tumor cells and normal cells;   Better efficacy:   Because cytotoxins are released and act within tumor cells, compared to antibody-drug conjugate therapies, ADC As long as a lower concentration of the drug can cause an equivalent therapeutic response, antibody-drug conjugate therapy mainly destroys the tumor surface or lacks specificity. ADC Drug research and development are currently mainly carried out through collaboration, with a surge in approvals in the past three years. ADC The pace of domain innovation has accelerated, sales have grown rapidly, and blockbuster products have been launched frequently. Data shows, domestically ADC Recent in the field of medicine 3 In the year, there were multiple large-scale financing events, such as Rongchang Biotech's 2020 The year marked the first time that Hong Kong's capital market was accessed through 32.24 RMB 10 billion in financing, and 2022 The number of users accessing the Sci-Tech Innovation Board in a year December 26 RMB 100 million in financing.   Liu Weiqi pointed out that the injection of capital has contributed to ADC The pharmaceutical industry is developing rapidly. 2021 Year, global ADC The market scale of drugs reaches 55 billions, expected to 2021 This number will grow to 167 billion dollars 2021 Year to 2025 The annual compound average growth rate is expected to reach 32% .   "globally ADC Under the general trend of rapid growth in the pharmaceutical market size and continuously climbing capital enthusiasm, China ADC "The pharmaceutical market has the potential to continue expanding and achieve rapid growth," said Liu Weiqi.   Expected China ADC The market size of the pharmaceutical industry will be 2025 Year-on-year growth to 11 billion US dollars 2021 Year-end 2025 The annual compound average growth rate will reach 116% . Data source: Analysis by Frost & Sullivan In the future, ADC The pharmaceutical market will exhibit the following three development trends: 1 Expansion of indications: Currently, ADC The indications for drugs are concentrated in the oncology field, with fierce competition in the development of oncology indications. Looking at ADC The proportion of hematological malignancies in early clinical trials at the field R&D release bureau has increased. 2 ) ADC Growth in drug sales: Already listed 14 model ADC The drug is expanding into global markets, and the Chinese market has just begun to embrace it ADC The craze for drugs, already 5 The product has been approved, and it is expected to see rapid sales growth in the future. 3 The capital market remains hot: With the continuous accumulation of enterprise technology, capital on ADC The domain's popularity is constantly climbing, recently 3 Domestic volume exceeded 10 Home layout ADC Enterprises obtaining financing, of which approximately 7 become C Previous company, expected future in China ADC Investment and financing events in the pharmaceutical sector will continue to be active.   According to a study by Frost & Sullivan, as of 2022 year 6 In the month, there were more than 200 In clinical development ADC Drug pipeline, which is currently still clinical. I Primarily early-stage projects; domestic ADC The current approach to drug research and development is 'in-house R&D'. + The number of cooperation ”combined models" is also increasing continuously. The number of R&D pipelines of Chinese enterprises Top 9 Among them, Hengrui Medicine has 7 Pipeline projects in progress, including Lepu Biotech, Duoxi Biotech, and Bio-Thera 5 pipeline under research. In addition, China ADC The main layout of the drug pipeline focuses on HER2 , CLDN-18.2 , TROP2 go up.   Liu Weiqi said, based on tradition ADC Novel conjugated drugs of the mode NDC ) emerging in droves, to PDC The new type of coupling system represented by it is expected to usher in the next generation ADC Technology upgrade. He further introduced that, for example PDC Peptide conjugated drug, RDC radioactive nuclide conjugated drug, SMDC small molecule conjugated drug, ISAC Antibody immunostimulatory conjugates, in addition to this, there are antibody oligonucleotide conjugates AOC Antibody cell conjugate drug ACC Antibody fragment conjugated drug FDC Antibody-degradable conjugated drug ADEC Antibody biopolymer conjugated drugs ABC and other types NDC There has also been development to varying degrees, and it is expected that with future technological progress, NDC Drug types will continue to undergo transformation and innovation.   In recent years, with ADC drug and NDC The continuous maturation of pharmaceutical technology, ADC The specificity and cytotoxicity of drugs have been gradually improved, enabling the rapid development of antibody conjugation technology.   Driven by factors such as the emergence of a large number of biotechnology companies, increased R&D investment, and the capital market's investment and financing boom, the future ADC Drug research and development show the following development trends: 1 ) dual target / dual table bit ADC : In the future, combined with bispecific antibodies ADC Advantageous dual antibodies ADC Medication, or it could become a new solution ADC Effective solutions to the existing issues of drug endocytosis, toxicity, and resistance; currently, several domestic companies have made arrangements for bispecific antibodies ADC R&D, including BeiGene, Biorad, Sichuan Bailing, CanSino Biologics, Xuanzhu Biology, etc., are all in clinical development. I Phase or preclinical state. 2 Expansion of treatment areas: The treatment field has expanded from solid tumors, hematological malignancies, and other disease areas to non-tumor areas such as ophthalmic diseases and inflammatory infections. 3 ) Use two different payloads: Dual payload using two different cytotoxins as the active payloads ADC Reducing drug resistance. Delivering two synergistic payloads into cancer cells in precise proportions can increase drug effectiveness, and with the application of payloads with different mechanisms, the incidence of resistance will be significantly reduced. 4 )Usage ADC Targeted mutant protein: ADC Endocytosis and intracellular transport pathways ADC The cytotoxic activity has a critical impact; compared to wild-type proteins, mutant proteins typically have higher levels of ubiquitination, making them more readily internalized and degraded. If used ADC Targeted mutant proteins may have significant clinical effects. 5 ) Novel conjugated drugs NDC ): Newly developed conjugated drugs globally NDC The R&D enthusiasm continues to rise, and there are currently multiple peptide conjugates PDC Product launch; a variety of novel drug conjugate combinations are actively being developed to explore new therapeutic possibilities. Group photo of seminar speakers

New Chinese Drugs CMC GREAT WALL Forum   2022 year 11 month 3 day -4 On the day, the third China New Drug CMC The Summit Forum was grandly held, 600 Several distinguished guests gathered at the Shanghai Marriott Hotel Yuyou to discuss major plans for new drugs and participate in an innovative event.   Frost & Sullivan Frost & Sullivan Mao Hua, Partner and Managing Director of Frost & Sullivan's Greater China Region, was invited to attend the conference and speak on Global and China CDMO company Deliver a speech on the current market situation and future development trends.   Partner and Managing Director of Frost & Sullivan Greater China Region fattening   According to Mao Hua,   entrustment CDMO has become an important path for pharmaceutical companies to conduct drug research, development, and production. Both large pharmaceutical enterprises and startups can CDMO company Benefited from the high-quality services provided.    For pharmaceutical companies, CDMO It can reduce enterprise costs, improve R&D production efficiency, and promote technology iteration. Mao Hua said,   Driven by factors such as global capacity shifting and the rise in demand for innovative drugs domestically, China CDMO The driving force for the industry's development is very strong, and the prospects for its development are broad:     1 ) Significant talent and cost advantages attract global production capacity shifts:   CDMO For technology-intensive industries, links such as optimizing drug production processes require professional technical talents. China provides an abundant source of talent for the industry with graduates from biomedical-related majors every year. On the other hand, China also has significant cost advantages in logistics, raw materials, and energy.   2 The continuous injection of pharmaceutical R&D expenses will drive the enthusiasm for new drug research and development and production:   In recent years, the scale of pharmaceutical R&D investment in China has shown a steady growth trend, which has shifted from 2017 year 143 USD billion to 2021 year 290 billion US dollars. It is expected to continue expanding at a rate higher than the global R&D investment in the future. The increasing R&D expenditure will provide more active and abundant financial resources for innovative drug research and development, thereby boosting CDMO Market development.     3 The technology platform is constantly innovating and iterating to empower users. CDMO company Enterprise:   In recent years, there has been an increasing number CMO Enterprises are gradually becoming more involved in drug research and development, with strategic transformation as CDMO Enterprises and industry participants are also continuously upgrading their industries through the innovation of technology platforms and R&D capabilities.   4 The promulgation of industry policies and the implementation of systems have created a favorable environment:   The implementation of the Drug Administration Law marks MAH With the formal establishment of the system, decoupling production from R&D is conducive to promoting R&D-oriented enterprises and CDMO Institutional cooperation; national drug regulatory authorities have introduced pharmaceutical review reform measures, prioritizing the review and approval process to accelerate the launch of innovative drugs; volume-based procurement and medical insurance negotiations have expanded the pharmaceutical market. At the same time, price pressure has led to demands for cost control and production capacity flexibility, prompting pharmaceutical companies to prefer to entrust domestic operations. CDMO Enterprises implement outsourcing services.     "Global CDMO The industry is in a trend of continuous expansion and development, maintaining a high market prosperity level. In China CDMO The market is leveraging its advantages in talent, capital, technology, etc., to go global CDMO The market is playing an increasingly important role." Mao Hua said. Subsequently, Maohua then CDMO A detailed analysis is conducted on the development characteristics of market segmentation areas. According to the drug type, currently CDMO Sub-sectors can be mainly divided into small molecules CDMO Biopharmaceutical CDMO (including peptides / antibody / protein / Vaccines, etc.) and cellular gene therapy CGT ) CDMO Three major categories.   He pointed out, small molecules CDMO company The company has developed relatively mature R&D technologies and production capabilities, currently occupying a major share of the global and Chinese markets. In terms of biopharmaceuticals CDMO The market has been growing at a relatively fast pace in recent years. However, from the perspective of market structure, biopharmaceuticals CDMO The industry concentration ratio is significantly higher for smaller firms. The success rate of developing new molecular entity drugs is low, and a product from clinical I The success rate from phase trials to market approval is only 5.7% Market competition is becoming increasingly fierce, and pharmaceutical companies tend to engage with CDMO company The company collaborates to improve efficiency or develop high-tech barrier pharmaceutical formulations. The research and production of new, high-end complex formulations also pose new challenges to chemical pharmaceutical processes, small molecules CDMO company In order to address these challenges, the industry has built a series of advanced process technology platforms and expanded its range of service capabilities. In addition, in recent years, with the deepening research into disease mechanisms, drug development has gradually entered an era of precision therapy targeting specific targets. Correspondingly, there have been relatively significant changes in the nature of new drugs: drugs now have more accurate and selective targeted effects, with an increase in highly active pharmaceutical components; drug molecular weights have significantly increased and structures have become more complex; water solubility and permeability of drugs have decreased. A series of changes in the properties of new drugs have driven a growth in demand for corresponding emerging synthetic and formulation technologies, small molecules CDMO company The market grew accordingly.   Chinese small molecule CDMO company Market scale has shifted from 2017 year 103 RMB 10 billion, an increase of 2021 year 314 RMB 10 billion, with an average annual compound growth rate of 32.3% , is expected to arrive 2025 This number will grow to 1,103 RMB 10 billion, with an average annual compound growth rate of 36.9% . The Chinese biopharmaceutical market is growing rapidly, and its share in the global pharmaceutical market continues to climb, driving up demand for outsourcing services for biopharmaceutical research and development and production. In addition, CDE at 2017 reach 2021 Biopharmaceutical innovation drugs accepted during the year IND The number has surged, and the enthusiasm for innovative biopharmaceutical research and development is on the rise, targeting CDMO The demand is growing.   According to a study by Frost & Sullivan, Chinese biopharmaceuticals CDMO Market scale is from 2017 year 29 RMB 10 billion, an increase of 2021 year 159 RMB 10 billion, with an average annual compound growth rate of 52.7% , is expected to arrive 2025 This number will grow to 468 RMB 10 billion, with an average annual compound growth rate of 31.0% . Cell gene therapy CGT It has become a new generation of breakthrough precision treatment method with significant therapeutic advantages, and related clinical translation and commercialization are accelerating.   Mao Hua pointed out, CGT Industry characteristics with a high outsourcing rate, such as CGT The R&D and production barriers of products are high, making them more dependent on outsourcing R&D process services to advance clinical progress than traditional drugs, as well as CGT R&D costs for product development are much higher than those for traditional drugs, making R&D companies more willing to cut costs and thus tend to outsource. CDMO Cooperate. china CGT It has entered the early commercialization stage, and R & D enterprises CDMO Grow together, drive CGT The clinical progress of the product, reduced R&D costs, improved CGT Product accessibility.   Data shows, China CGT CDMO Market scale is from 2017 year 7 RMB 10 billion, an increase of 2021 year 18 RMB 10 billion, with an average annual compound growth rate of 28.9% , is expected to arrive 2025 This number will grow to 96 RMB 10 billion, with an average annual compound growth rate of 50.8% .   Overall, CDMO The industry will exhibit the following three development trends in the future:   1 ) CDMO company Leading enterprises make fixed asset investments through capacity acquisition or self-construction to ensure capacity support and provide flexibility in capacity supply. At the same time, leading enterprises will accelerate their pace of globalization expansion, explore international market territories, and further attract orders from home and abroad. 2 The market potential in emerging fields is huge, and at the forefront CXO Enterprises and R&D companies flocked in CGT CDMO Compete on the track; 3 small and medium-sized CDMO Enterprises choose to deeply cultivate niche markets, committed to building distinctive and differentiated technological advantages. In terms of technological advantages The sector seeks development space.   Finally, Mao Huaing stated that the Frost & Sullivan healthcare team is at CDMO The team has rich project experience in the industry, having served clients such as WuXi AppTec, CHERATech, Biotronics, Heyuan Biotech, Dongyao Pharmaceutical, and Kingsun Biotechnology. In addition, Frost & Sullivan has been continuously monitoring the Chinese CDMO company Industry market research, released CDMO "Research Report on the Current Development Status and Future Trends of the Industry", putting forward its own industry insights and viewpoints, hoping to serve as CDMO Market observers provide an important perspective for reference.   Recommended Reading

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

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