From August 11th to 12th, the Symposium on the High-Quality Development of the Biopharmaceutical Industry in the Yangtze River Delta was held in Shanghai. The symposium was organized by the Office of National Brand Projects of Xinhua News Agency and undertaken by the Xinhua News Agency's Guangdong-Hong Kong-Macao Greater Bay Area Operation Center (Headquarters), Economic Information Daily (Xinhua Health), and Shenzhen Letu Life Science & Technology Investment Co., Ltd. Leaders from Xinhua News Agency, the National Health Commission, the Shanghai Municipal Government, the Shanghai Municipal Health Commission, the Shanghai Food and Drug Administration, the Shanghai Municipal Commission of Economy and Informatization, the Fengxian District Government of Shanghai, as well as industry experts and professionals from biopharmaceutical companies, financial investment institutions, and other sectors gathered together to discuss the path to high-quality development of the biopharmaceutical industry in the Yangtze River Delta, an "Bioeconomic Pilot Zone."   Frost & Sullivan frost  & Chen Zhenrong, the consulting director of Frost & Sullivan's healthcare team in Greater China, was invited to attend a seminar and participate in the fourth session of the Academician Forum at the Letu Watson Lecture Hall. Together with Jin Hui, a partner of Shanghai Guohong Zhizhen Venture Capital Investment Co., Ltd., Wei Dongbing, founder and CEO of Zhongbo Rui Kang (Beijing) Biotechnology Co., Ltd., and Jiang Weidong, CEO of Shanghai Kangkang Biomedical Co., Ltd., they discussed strategies for breaking through under centralized procurement policies for biopharmaceutical companies.   Frost & Sullivan Greater China Healthcare Team Consulting Director   Chen Zhenrong       Host:      Transformation is an important hurdle faced by generic pharmaceutical companies. Innovative drugs have their own R&D characteristics, and now, with the vigorous development of innovative drugs, the difficulty of developing first-in-class drugs has increased, making generic drug value increasingly low. Innovative drugs are walking on thin ice. How should pharmaceutical companies develop in this situation?     Chen Zhenrong:   Indeed, we have encountered many innovative pharmaceutical companies that are pioneering in the field of new drugs. There are many passionate entrepreneurs whose original intention is to introduce the best and latest treatment methods into China to benefit patients.   But as the host mentioned, the country now has a macro background of healthcare cost control through medical insurance, and there is also a demand to reduce patients' medication costs. From the patient's perspective, during the entire medical process, they often encounter situations where treatment costs are difficult to afford. Therefore, many companies, while innovating, also produce generic drugs. Overall, we have noticed that under the centralized procurement policy, many generic drugs have faced significant price discounts.   The development and innovation of new drugs has a long cycle and requires substantial capital investment, which can lead to shortages in research and development expenses for many pharmaceutical companies. In such circumstances, improved new drugs are a relatively good direction, and many enterprises are already developing in this area. There is a saying about the research and development cycle and capital investment of innovative drugs: "Ten billion in ten years," looking at generic drugs, the research and development cycle is about 3 years, with capital investment generally less than $10 million. Modified new drugs are just between these two, with a total research and development cycle of around 8 years, which is relatively shorter. The R&D investment is probably around $50 million, basically below $100 million. Because modified innovative drugs have a solid foundation, they are based on already approved drugs that have been clinically proven to be beneficial. Then, improvements are made to salt form, crystal form, dosage form, and route of administration to improve bioavailability or use smaller doses to reduce drug side effects.   There are some macromolecular drugs and antibody drugs that need to be administered by injection, such as insulin. Patients need to inject them for a long time, which is relatively inconvenient, not to mention some tumor drugs. From the patient's perspective, they hope to see the emergence of improved routes of administration. For example, can insulin be changed from an injection into an oral form? This improvement would be very beneficial to patients. There are also some oral preparations that are not very convenient for cancer patients. For instance, it is very troublesome for patients with digestive tract tumors to take oral medications. We know that if patients have undergone resection of digestive tract tumors, their drug absorption and utilization are very low. We have noticed that some manufacturers have started developing orally disintegrating film agents, which are all good research directions.     In summary, improved new drugs require much less time and money in R&D investment. For pharmaceutical companies, this is a good way to reduce R&D spending while increasing the success rate.    Secondly, improved new drugs have the independent right to set their own prices after launch, unlike generic drugs which must maintain the same pricing as the original drug. This means they are not at risk of facing centralized procurement in the near term or even upon launch. Generally speaking, the re-pricing of improved new drugs can be compared to that of generic drugs that have already been reduced in price or have entered the centralized procurement phase. About 5 to 10 times. Therefore, this is indeed a direction worthy of our attention for our enterprise.     On the other hand, improved new drugs place particular emphasis on production work throughout the entire R&D and production process. For companies like Letu Technology, this is especially true. For CDMO, it is very necessary to have closer cooperation. In the early research and development of CMC formulation processes, CDMOs need collaboration from the enterprise side, which allows for mutual assistance and can further bring better drug benefits to Chinese patients.     Host:    In addition to pharmaceutical companies that are solely focused on developing innovative drugs, many generic drug companies are also undergoing transformation. Which other niche markets are worth paying attention to?     Chen Zhenrong:   We often say that the next era, or a major direction, will definitely involve cell and gene therapies Application scenarios of CAR-T (Chimeric Antigen Receptor T-cell Therapy). In recent years, against the backdrop of continuous progress in medical technology and increasingly mature scientific supervision by national policies, the CAR-T industry has developed rapidly. In 2021, China welcomed two commercialized CAR-T products, making CAR-T one of the hottest areas in China's biomedical research and development field.     CGT has many application scenarios. At present, CGT has achieved significant results in the fields of rare diseases and malignant tumors, and is gradually expanding into various disease areas such as chronic diseases and infectious diseases. There are many unmet clinical needs in these disease areas, and the unique advantages of cell therapy are expected to bring long-term efficacy. It is believed that CGT can provide new treatment options for a larger patient population.     In addition, there are new targets and new pharmaceutical directions. The preclinical research of cytokines is also a very important area of focus. As other guests have mentioned, ultimately, the R&D of domestic pharmaceutical companies still depends on their own strength. If they cannot achieve true clinical benefits, whether they will be approved or commercialized in the end is a foreseeable process. This is why In the past two years, CDE has released new guidelines for clinical and non-clinical drug trials almost every month, aiming to assist our company in better conducting drug research and development.   There are many experiments that need to be conducted in the early stages of drug research and development.    The more experiments are conducted, the more reagents and enzymes are needed. Most of these are still imported, which are very expensive. Therefore, more funds are spent on them.    When enterprises carry out the final commercial production, they generally face more headaches because it largely involves "The problem of 'neck pinching'." I believe that this requires the country and its own enterprises to develop domestic kits or overall solutions, which are in great need.     Overall, in the early stages of research and development, target selection requires support from the industry from a commercialization perspective to help solve the problem of high production costs. If the production costs for early-stage research and development are reduced, then the pricing of the drug will also decrease. At the same time, as the prices of national drug centralized procurement tend to become more reasonable, companies are not afraid of facing price cuts or even insolvency after the drug is launched on the market. They are willing to invest more in research and development to bring more affordable good drugs to our country's patients.    

On August 9, 2022, the Hengtai Natural Safety Group's National Dairy Distributor Conference with the theme of 'Perseverance for Innovation' was successfully held.    Frost & Sullivan frost  & Mr. Zhang Jian, Partner and Managing Director of Frost & Sullivan's Greater China Region, was invited to attend the conference and delivered a speech on 'Risks and Opportunities in the Catering Industry in the Post-Pandemic Era'.       Zhang Jian first introduced the overall development overview of the catering industry to the guests present. He stated that in recent years, the Chinese catering market has shown significant volatility. From 2017 to 2019, the scale of China's catering market increased from 4 trillion yuan to 4.7 trillion yuan, with an increment of 700 billion yuan. After the outbreak of the pandemic in 2020, the overall market size plummeted to the level of 2017. Although there was a V-shaped rebound in 2021, this year, after the Spring Festival, the pandemic has seen nationwide multi-point outbreaks, causing a significant negative impact on the catering market.       At the same time, there are corresponding changes in the number of catering outlets nationwide. The data shows that In 2020, the number of catering stores decreased by 12.5% year-on-year, with a total reduction of over 1.1 million outlets. Although the overall market warmed up in 2021 and the first quarter of 2022, data from the second quarter showed that the number of catering stores mirrored the trend of 2020 and experienced a certain degree of decline.       From the perspective of sub-segmenting various catering formats, the impact of the pandemic on catering operations has become evident. The most noticeable change is the development of online channels in the catering industry. Sales of Chinese-style full meals and hot pot catering have seen the greatest growth, both exceeding A 14% increase was seen, with group meals and Chinese-style full-course dining showing the most active momentum in e-commerce channels, achieving growth rates of 4.4% and 3.9%, respectively. However, e-commerce channels account for the smallest proportion among all catering formats and have significant potential for future growth.     From a cost perspective, raw material costs, labor expenses, and rent are the three major burdens of the catering industry. The average proportion of these costs in the industry is as follows: raw materials 41.9%, labor 21.4%, rent and property management 11.9%, totaling over 75%.    "In a period of relative turmoil in the catering industry, cost reduction and efficiency improvement are propositions that every practitioner must consider," said Zhang Jianshe.       Zhang Jian pointed out that the reduction in passenger flow and the complexity of the catering supply chain are challenges that the entire industry needs to face.       Affected by the recurring pandemic, customer traffic at offline dining establishments has significantly decreased. Although the overall consumer market has recovered in the first quarter of this year, the stricter control over dine-in services in Beijing, Shanghai, and their surrounding cities starting from the second quarter has led to In the first half of 2022, catering consumption as a whole experienced a relatively significant decline.     The challenges of the supply chain stem from numerous links and complex functions, as well as a low coverage rate of cold chain logistics. Compared to mature markets, China's cold chain logistics industry started relatively late and is still in its growth phase. Currently, the infrastructure for cold chain logistics is still relatively weak, and there are certain gaps compared to developed countries such as Europe and America in terms of cold chain logistics facilities and equipment, refrigerated logistics technology and management levels, and overall planning of cold chain logistics.     In the future, the development opportunities for the catering industry are mainly reflected in the following aspects:       1) Empowering digitalization with multi-ring structures, integrating dine-in, takeout, and new retail for interactive development, thereby enhancing consumer loyalty.    According to a survey by Frost & Sullivan, In 2021, the survival rate of various catering stores with a membership system was above 80%, with the average survival rate for full-service, noodle, barbecue, tea, and hot pot restaurants reaching over 88%. Leading catering brands are at the forefront in digital services, achieving penetration rates of 86.3% and 77.5% in cashier and membership system digitization, respectively. Service links such as store visits, mini-programs, and supply chain have achieved a digital penetration rate exceeding 60%.   2) Leveraging the trend of prefabricated dishes, enterprises can provide more convenient meals and achieve cost reduction and efficiency improvement.    Based on the cost calculations before and after using prefabricated dishes according to data from the China Hotel Association, it can be seen that although the cost of raw materials has increased slightly after using prefabricated dishes, labor costs have decreased. 10%, which ultimately increases net profit margins by 7% after the convenience of meal delivery is achieved.   3) Grasp the Z generation and provide emotional sustenance to cater for 'vertical generativity'.    The current general trend is The Z generation is gradually becoming the main force in dining consumption, with a monthly per capita disposable income of 3,500 yuan, far higher than China's average of 2,682 yuan per month in 2020. The dining consumption of the Z generation prefers social-driven consumption, self-pleasing consumption, and self-improvement consumption. In the future, the development of the catering industry can cater to the needs and consumption characteristics of the Z generation and has great potential for growth.   Subsequently, Zhang Jianjian made brief analyses of the baking industry, new-style tea drinks, and the coffee industry respectively.        He said that with the upgrading of consumption and changes in consumption habits, China's baking market is currently in a stage of innovative development.    The market scale of the baking industry reached approximately 250 billion yuan in 2020 and about 280 billion yuan in 2021. With multiple driving factors such as increased per capita disposable income and purchasing power, urbanization rate, and parallel diversified baking channels, it is expected that the compound annual growth rate of the Chinese baking market will be 9.9% from 2020 to 2025.     Zhang Jian believes that in the post-pandemic era, the development of China's baking market faces challenges in five aspects: rising costs, breaking through online scenarios, supply chain and operations, homogenization of baked products, and cross-border competition among different business formats.       1) Rising costs:    It mainly includes two aspects: raw material costs and labor costs. On one hand, the rising prices of baking raw materials such as flour and dairy products have put pressure on the cost structure of the baking industry. In the future, baking enterprises may face the risk of continuous price increases in raw materials. How to adjust the cost structure and reduce costs while increasing efficiency is a challenge that needs to be addressed. On the other hand, due to the impact of the epidemic, there is high employee mobility and a shortage of market labor force. Therefore, how to reduce labor costs is also one of the challenges that enterprises need to cope with.     2) Online scenario-based breakthroughs:    The epidemic has restricted people's travel, so some offline-only stores are urgently facing transformation and engaging in multi-channel marketing online and offline. This transformation requires experienced leaders and professionals to complete, so how to effectively break through this online scenario-based situation is a problem that needs to be solved.     3) Supply Chain and Operations:    The emergence of the pandemic has increased the uncertainties faced by the baking industry. For example, travel restrictions may lead to different limitations and interruptions in raw material processing, production, packaging, transportation, etc. Residents are stockpiling goods frantically, and businesses will face a surge in orders. How to dynamically adjust business rhythms and how to accelerate production while ensuring product quality under supply-demand imbalances is a challenge that baking enterprises need to face.     4) Homogenization of baked products:    Due to the limited variety of baked products, when a market hit product becomes popular, other brands will also start to refer to it for research and development and conduct market promotion. As an emerging track, capital is avidly chasing it, and many brands are vying to enter the market, which poses higher demands on differentiated product research and development. How to explore new flavors, textures, and tastes, and create differentiated products is one of the main challenges that baked enterprises will face in the future.     5) Cross-border competition among different business formats:    Baking enterprises not only face competition within the industry but also competition from industries such as tea drinks, coffee, and catering. Currently, there has gradually formed a trend where baking products are paired with other food and beverages. In this context, traditional baking stores will be diverted by different business formats, leading to a decline in customer traffic. Therefore, how baking enterprises can still explore competitive paths amidst multiple pressures is one of the challenges for the future. "Although the baking industry faces the challenges mentioned above, opportunities and challenges coexist. There are mainly four major opportunities that support the innovative development of the baking industry," said Zhang Jian.     1) Digital Marketing:    After the pandemic, some companies specializing in offline stores began to layout their online digital transformation, launching online ordering services across platforms such as official accounts, mini-programs, social e-commerce, and comprehensive e-commerce. Although offline stores face a painful period of online transformation, with the rapid development of digitization, consumers have already developed online consumption habits. Therefore, achieving parallel development of both online and offline channels will become an opportunity for baking companies.     2) Baking + X Scene Fusion:    Under the current trend of consumer scenarios, it is inevitable that baking enterprises will face competition from other business formats. Baking enterprises need to proactively expand their consumer scenarios, tap into potential consumers, and integrate and innovate in product innovation, supply channels, brand operations, and more.     3) Innovative R&D:    Frost & Sullivan believes that baking companies that innovate and develop in line with market trends will see rapid development. As consumers' experience and demand for consumption continue to rise, diversification, healthiness, mini-packaging snacks, retailization, and fun are industry trends.     4) Milk Fat Upgrade:    The outbreak of the pandemic has made consumers pay more attention to health, prompting businesses to upgrade their dairy fats. For example, replacing plant or mixed fats with healthier animal fats, or increasing the proportion of milk fat in dairy fats, can all improve the taste of baked products.   According to Zhang Jian, 2016 was a breakout year for the development of new-style tea drinks. In 2017, the market scale of new-style tea drinks reached 422 billion yuan, rapidly climbing to around one hundred billion yuan by 2021, achieving an extremely high annual compound growth rate. Although the growth momentum of new-style tea drinks has slowed down at this stage, it can still maintain a double-digit growth rate. In 2020, freshly ground coffee took over from the rapid development of new-style tea drinks. That year, capital quickly completed investment layouts, and a number of well-known coffee brands emerged in the industry, such as Tims, Manner, Seesaw, Mstand, etc. The market scale also increased from 39 billion yuan in 2017 to 59 billion yuan in 2020. Zhang Jian pointed out that the new-style tea and coffee market also faces many challenges: 1) The sudden decline in offline store traffic poses a significant challenge to the profitability of large-area stores in business districts; (2) Operating costs continue to rise, forcing leading brands to adopt low-price strategies to capture the lower-tier market; (3) The rapid growth of new-style tea and coffee stores has led to a substantial increase in demand for tea/coffee beans, posing certain challenges to suppliers' stable supply of high-quality raw materials; (4) In the early stages, new-style tea stores expanded their channels by upgrading to use light cream + cream cheese + fresh fruits. However, as the industry matures and competitors continue to pour in, product homogenization is severe, and differentiated competition has weakened.   The development opportunities for the new-style tea and coffee industry mainly focus on digital empowerment and industrial chain integration.    Zhang Jian further explained that digital empowerment for the business operations of new-style tea beverage brands is the result of the integration of online and offline services in the context of big data era. Digital operations have become a key aspect for leading new-style tea beverage brands. "The new ace." And industrial chain integration allows new tea drink brand owners to continuously extend upstream in the supply chain, control upstream production, and standardize the quality and standards of the industrial chain; establish supply chain advantages to support the brand's scaled expansion and rapid product innovation; simplify the supply chain circulation path and reduce supply chain management costs.   In recent years, emerging channels have emerged. Emerging channels mainly refer to convenience stores, new retail, supermarkets, etc., and are being integrated. OMO (Online merge Offline: Digital marketing that integrates online and offline channels to create new retail formats. According to data from the China Chain Operation Association, despite the impact of the COVID-19 pandemic, the number of stores in the industry has still achieved relatively stable growth. In 2021, the total number of stores of the top 100 convenience store enterprises exceeded 160,000, a year-on-year increase of 16.1%; in 2021, the total number of stores of the top 100 supermarket enterprises was about 30,000, a year-on-year increase of 2.9%.    Emerging channel enterprises are characterized by a wider range of categories, a high proportion of fresh and medium- to short-term products, a high degree of digitization and intelligence, rapid new product research and iteration, and a high proportion of online sales.     The development of emerging channels faces three major challenges: inventory and supply chain management, high operating costs, and fierce regional competition.    In terms of inventory and supply chain management, the pandemic has had a significant impact on production and logistics. The epidemic has sounded an alarm for businesses, and how to identify and resolve potential risks in the supply chain in the post-pandemic era is something that enterprises need to pay attention to. In terms of operating costs, in addition to rising raw material and labor costs, emerging channels are also facing increases in marketing and advertising costs. Therefore, how to optimize the value chain and reduce costs is also a problem that emerging channels need to solve in the future. In terms of regional competition, emerging channels also face challenges of homogenization. It is difficult to develop new products, and creating hit products is even more challenging. Therefore, avoiding fierce regional competition and highlighting brand personalization are also challenges that enterprises need to face in the future.     In the future, emerging channel enterprises can focus on digital applications, self-developed products, and cross-border collaborations.    Digitalization and intelligentization are comprehensively deployed to empower customers with full lifecycle management, build user profiles, and ensure regionalized and personalized R&D and product promotion. On the basis of establishing its own brand, it has joined hands with leading brands such as baking, tea, and coffee. In addition, the leading effect in new retail and convenience stores has already taken shape. The explosive promotion of top enterprises drives imitation by mid-tier businesses in the market. Enterprises with a leading effect can embrace new development opportunities and lead market development.     In summary, the sudden decline in store traffic, imperfect supply chain, increased costs, and product homogenization are common problems faced by the entire catering industry. In the future, businesses can focus on multiple aspects: 1) Empowering through digitization, strengthening online operations to improve efficiency and customer experience; (2) Advancing both online and offline efforts, broadening consumption scenarios, and creating differentiated scenarios and brand cultural outputs; (3) Innovating product research and development to meet consumers' diverse, healthy, and retail-oriented needs.       "The data shows that in the first half of 2022, among new consumer financing transactions, large catering consumption accounted for more than 41%, indicating that consumer financing has returned to rationality, with catering and food still being the top sectors," said Zhang Jian.

August 8, 2022, HVIS   The 2nd China International Vaccine Innovation Summit 2022 grandly opened in Beijing on the 9th. On the same day, the results of the [BSA Future Star Award Selection], initiated and hosted by the 2nd China International Vaccine Innovation Summit, were announced. The 2022 BSA Future Star Awards Ceremony was held with great pomp.    Frost & Sullivan frost  & Mr. Mao Hua, Partner and Managing Director of Frost & Sullivan's Greater China Region, was invited to serve as an industry expert reviewer, attended the award ceremony as an award-giving guest, and presented awards to the winner of the 'BSA Future Star First Prize', Zhejiang Haichang Biomedical Technology Co., Ltd.   Mr. Mao Huaing presented awards to Zhejiang Haichang Biomedical Technology Co., Ltd. Group photo of award-winning enterprises and awarding guests   Best Startup The Awards (BSA) is a startup competition focused on the vaccine industry, initiated by the BoMaiSi & International Vaccine Innovation Summit in 2021 and open to the whole country. The BSA brings together the most authoritative experts, vaccine business dark horses, industry leaders, and senior media figures. It tracks and studies numerous startup cases in the vaccine industry field, conducts in-depth analysis, and emphasizes scientifically defining aspects such as business models, teams, technological trends, and investment potential in the vaccine sector. It establishes a framework evaluation system for start-up enterprises in the vaccine industry, comprehensively assessing the innovation capabilities, business models, teams, technical abilities, and development prospects of Chinese vaccine enterprises. The BSA aims to promote the best 'entrepreneurial innovation' model of Chinese vaccine startups, drive commercial innovation and scientific research achievement transformation of Chinese vaccine enterprises, and provide highly valuable investment guidance for domestic and international investors.   A total of The registration form for 33 companies, along with an online vote of approximately 800,000, received widespread attention from all sectors of society. Ultimately, after fierce competition among the ten shortlisted companies, the jury scored them based on eight dimensions: technology, model, solution, prospects, capital, profit model, resources and capabilities, as well as customer value proposition. The top three companies in terms of score ultimately won the [BSA Future Star Award], while the company that received the highest number of votes among the participating companies was awarded the [BSA Most Popular Company Award]. ★ List of winners   ★ [Star of the Future, First Place]   Zhejiang Haichang Biomedical Technology Co., Ltd.     [Star of the Future, 2nd Place]   Shanghai Herui Biomedical Technology Co., Ltd.     [Star of the Future, 3rd Place]   Hangzhou Jietai Pharmaceutical Technology Co., Ltd.     [Most Popular Enterprise Award]   Zhuhai Lifanda Biotechnology Co., Ltd.  

At 21:20 on August 8th, the special program ——The Battle for the Championship in the Tianjin Division of the Eighth China International 'Internet+' College Students' Innovation and Entrepreneurship Competition, hosted by Tianjin Satellite TV's 'Non-You Cannot Have Me', was broadcast live.   Frost & Sullivan frost  & Mr. Yang Xiaocheng, Partner and Managing Director of Frost & Sullivan's Greater China Region, Co-founder and CEO of LeadLeo, was invited to participate in the 'Champion Competition: 'Non-You Cannot Be Mine' Special Session of the 8th China International 'Internet+' College Students Innovation and Entrepreneurship Competition Tianjin Regional City Competition as a mentor on the topic of 'Innovation and Entrepreneurship'. Mr. Yang Xiaocheng (left 2) Invited to serve as a mentor for 'Innovation and Entrepreneurship' in the 'Nonstop with You' program   China International The 'Internet+' College Students' Innovation and Entrepreneurship Competition is currently the highest-level event in China, addressing the government's most profound concerns about college employment and youth innovation. The competition has become an important carrier and platform for deepening innovation and entrepreneurship education reform, as well as a global event where world students realize their dreams of innovation and entrepreneurship.   Tianjin Satellite TV is the only terrestrial broadcasting platform in Tianjin and an important window for Tianjin's external publicity. This event in the Tianjin region lasted for three months, bringing together people from across the city. Sixty-six schools, 26,000 projects, nearly 140,000 participants. After layers of selection through school competitions and city-level contests, five teams from Tianjin University, Nankai University, and Tianjin Polytechnic University stood out from a hundred shortlisted teams for the national competition, competing for the championship, runner-up, and third place in the Tianjin regional competition on the stage of "Non-You Cannot Have Me".   At the event site, based on his rich experience in capital markets and his innovative and entrepreneurial background, Mr. Yang Xiaocheng provided guiding review opinions from a professional and objective perspective for the contestants. Together with the expert judging panel and the contestants, he presented a competitive feast showcasing the innovation and entrepreneurship spirit of university students to global audiences. Mr. Yang Xiaocheng's speech and comments   Mr. Yang Xiaocheng (left 1) Scoring for participating teams   While winning trophies and certificates, the five teams have also received the accolades bestowed upon them by the 'Nonstop the Show' production team The title of 'Potential Enterprise of the Future'. Frost & Sullivan and LeadLeo will strengthen their cooperation with major universities and innovation competitions in the future, providing a broader platform for more college students. Mr. Yang Xiaocheng (left in the back row 7) Group photo with contestants and judging panel   Behind this innovation and entrepreneurship event,   As think tank institutions, Frost & Sullivan and LeadLeo provide   The participating teams provided a subsidy of 10,000 yuan for exclusive research travel student accounts.   , can be conveniently referenced and covered through online channels Over 5,000 research reports and millions of original data elements across over 2,000 specialized tracks, fully supporting athletes to complete projects.   "The Knowledge Tank" empowers future innovation and entrepreneurship talents to excel on the competitive field.   In recent years, Frost & Sullivan, in collaboration with LeadLeo, has been vigorously promoting education by cultivating and training university students and providing professional knowledge services. They have also entered university campuses.   Jointly launched practical research courses with universities such as Jiaotong University, Fudan University, and Sichuan University   Implementing the educational concept has yielded enthusiastic responses and support from teachers and students at universities, as well as from various sectors.   In the future, Frost & Sullivan and LeadLeo will continue to pay close attention to the development of China's education industry. They will work tirelessly with universities, industries, and institutions to fulfill their social responsibilities, cultivate, supply, and replenish future talents for various sectors, and actively empower solutions to industry pain points. Based on big data and cloud research as their technical foundation, they will continuously contribute to nurturing innovative and entrepreneurial Chinese talents by providing fertile ground.

Recently, massage instrument brands SKG Future Wearable Technology Co., Ltd., the parent company ( hereinafter referred to as Future Wear ) The prospectus has been officially submitted, and the company plans to list on the ChiNext of the Shenzhen Stock Exchange. This follows 2021 In [year], after Bairen became the 'first smart massage device company', another massage device company made a dash for success IPO listing .   What are the strengths and weaknesses of each of the two companies? How do you view them? SKG The phenomenon where product sales have been growing but profits have not? Future SKG How can this phenomenon be changed? SKG sprint IPO listing What are your views on the results?     Frost & Sullivan Frost & Sullivan, Lou Lei, Executive Director of Frost & Sullivan Greater China, was interviewed by China Power Grid to discuss the future development of leading companies in the massage instrument industry. State Grid of China   Health preservation has become a key word in the lives of contemporary people, especially young individuals. This lifestyle has also become the cradle for the growth and development of many industries, with massage devices being one of the most typical representatives. In recent years, driven by the combination of social media influencer partnerships, celebrity endorsements, and product recommendations, the massage device market has seen tremendous economic effectiveness. Recently, massage instrument brands SKG Future Wearable Technology Co., Ltd., the parent company ( hereinafter referred to as Future Wear ) The prospectus has been officially submitted, and the company plans to list on the ChiNext of the Shenzhen Stock Exchange. This follows 2021 In [year], after Bairen became the 'first smart massage device company', another massage device company made a dash for success IPO listing . Image source: State Grid of China   SKG VS Bai Liangjing, who is the king of massage instrument categories? ? As a leading brand in the smart massage device category, this Future Wearable Sprint IPO listing It inevitably makes people compare it with the previously successful launch of Beiliaoqiao. After all, they even chose Wang Yibo and Xiao Zhan, who became popular for the same movie, as their endorsers.   Lou Lei   Executive Director, Greater China, Frost & Sullivan " SKG As two leading companies in China's current market, Frost & Sullivan and Harmony Relaxation have both gained the favor of investors in the capital market. The products of these two enterprises also have their own advantages and disadvantages.' Lou Lei, Executive Director of Greater China at Frost & Sullivan, analyzed to a reporter from State Grid China, SKG Its advantage lies in its more lightweight and compact product, allowing consumers to easily carry the massager out for use. However, because SKG The product mainly uses pulsed current technology, so not all consumers can accept this relatively new massage method. The products of Bélibaby mainly use physical massage technology. The vast majority of consumers in the market have a higher acceptance level of physical massage devices, and their comfort level is also more easily accepted by the public. However, physical massage instruments are usually large in size and quite heavy, making it difficult for users to carry them around and use them frequently. And for those positioned as high-tech enterprises SKG For HarmonyOS, how strong its R&D capabilities are is of utmost importance in supporting its development. Data from the future wearable IPO prospectus shows that during the reporting period, their investment in research and development expenses was 2275.49 Ten thousand yuan, 4714.06 Ten thousand yuan and 7472.59 Ten thousand yuan, accounting for 2.87% , 4.76% and 7.05% At the same time, the prospectus also indicates that after deducting issuance expenses, the funds raised this time will be used for future construction projects of health digital factories, research on intelligent wearable artificial intelligence technology, and development of digital healthcare platforms. ; The proportion of R&D expenses to revenue for Beil relaxation in the past three years is 5.86% , 4.46% and 3.97% . In terms of patent applications, as of 2022 year 5 month 31 Today, the total number of shares held by Future Wearable and its holding subsidiaries 1376 Patents, among which, the invention patent with the highest gold content is 48 Item. And BiLiang relaxation as of 2021 year 12 month 31 Date, with invention patents at home and abroad 159 item. In comparison, in terms of R&D strength, SKG Harmonious Relaxation seems to be on par, and in the future, who can occupy the top spot as the massage device leader remains to be seen with its subsequent development. Revenue has increased, while net profit has decreased. SKG Where has all the money gone? ? Currently, SKG Harbin Relax, Aojiahua, and Rongtai Health together form the first tier of the massage instrument industry. Among them, in the online channel for portable massage instruments: SKG With a high market share, data from the Economic Research Institute of Guosen Securities shows that the market shares of their cervical massagers and eye massagers are 31% and 12% , and this also enables its parent company to sprint towards wearable devices in the future IPO listing It has a somewhat logical implication. The prospectus for the future wearable device IPO shows, 2019 year -2021 In [year], the company's main business revenue was 78995.03 Ten thousand yuan, 98707.37 Ten thousand yuan and 105670.72 Ten thousand yuan. The cervical massager, which has a high market share as mentioned above, constitutes the most important part of its revenue, accounting for a proportion of main business revenue that is 74.19% , 86.67% and 70.33% This also means that the dependence on a single core product is too high, increasing the risk of product iteration and updates being replaced. It can affect the company's overall revenue stability. In the future, wearable devices have clearly recognized this point as well. In their prospectus, 'high concentration of product revenue' is one of the main operational risks they have identified. In terms of net profit, during the reporting period, the net profit attributable to the shareholders of the parent company after deducting non-recurring gains and losses was 22453.68 Ten thousand yuan, 21214.6 Ten thousand yuan and 14902.23 Ten thousand yuan. Comparing its revenue data, it is not difficult to find that while the revenue from wearable devices has been increasing year by year, its net profit has been continuously declining. The fluctuation in gross profit margin is one of the reasons for the decline in net profit. During the reporting period, the gross profit margins of the company's main business were as follows: 55.81% , 58.31% and 52.38% Among them, the gross profit margin of wearable health products that contribute significantly to revenue has decreased significantly. 2020 year -2021 In [year], they decreased respectively 1.97% and 5.75% . The gross profit margin of future wearables has also made it onto the hot search list for a while. Compared to its three consecutive years of exceeding 50% The gross profit margin. Apple's latest quarter's gross profit margin was only 43.76% Therefore #SKG Gross profit margin far exceeds that of Apple # The topic sparked a heated discussion among the public. " SKG It is currently the leader in the massage instrument market, so SKG Having a relatively high say in the supply chain and upstream and downstream suppliers can bring about higher gross profit margins." Lou Lei said. In the Chinese market, there are far more well-known mobile phone manufacturers than well-known massage instrument companies, and since the development of mobile phones has a long history, the gross profit margin of products will remain at a relatively stable and low level. In contrast, massage instruments are still relatively new products in the Chinese consumer market, and there are also much fewer well-known manufacturing enterprises, so they have relatively high gross profit margins.   On the other hand, the increase in selling expenses has also squeezed the profit margin for future wearables. During the reporting period, their sales expenses were 10238.76 Ten thousand yuan, 21020.39 Ten thousand yuan and 21461.79 Ten thousand yuan, including market promotion and advertising expenses of 5583.35 Ten thousand yuan, 16,581.50 Ten thousand yuan and 16100.46 Ten thousand yuan. Regarding the surge in costs, the wearable device's explanation for this is: 2020 In [year], the company significantly increased its investment in market promotion and advertising, including an increase in advertising placements for main TV dramas and variety shows, celebrity endorsements, and new media; 2021 In [year], the company made structural adjustments to its cost allocation while maintaining market promotion and advertising expenses, reducing investments in online film and television dramas, variety shows, and new media platforms, and increasing investment in offline elevator advertisements.   Quality issues remain a major weakness in the massage instrument category As a product that comes into direct or indirect contact with human skin, the quality of massage devices has always been a focal point of public concern. SKG It has also been complained about by consumers multiple times due to issues such as product quality and after-sales service. As of 2022 year 8 month 3 On the Black Cat Complaint Platform, regarding SKG Complaints 272 In addition, some consumers have experienced neck burns after using their neck massagers. Image source: State Grid of China A leading enterprise in the domestic massage instrument field, SKG The recurring product issues not only expose the company's shortcomings in quality control but also reflect the uneven quality of products in the industry. Quality issues are a 'dilemma' for massage instrument companies facing development. 2022 year 4 Month, the State Administration for Market Regulation 10 provinces ( city )89 produced by enterprises 98 Random inspections were conducted on batch massage instrument products, and the unqualified rate was 37.6% , up from the previous spot check 5.9%; 2022 year 1 In the month, the Shanghai Market Supervision Administration inspected JD.com Mall, i Bailian, Oriental cj Tmall, Suning 5 Supervisory spot checks were conducted on massagers sold on an online platform, and there were 3 The batch of products is unqualified, with the main non-conforming items being markings and instructions, power supply connection, and external flexible cords. 2 National mandatory safety indicators ;2021 In [year], the Guangzhou Market Supervision and Administration Bureau conducted supervision and spot checks on the quality of massage instrument products, with a total of 19 Batch samples, upon inspection, there are 4 Batch products do not meet standard requirements ...... Back to this Future Wearable Sprint IPO listing Currently, the massage instrument market is a rapidly growing blue ocean industry. As the market continues to expand, more and more manufacturers will pour into this sector, and products are bound to be rapidly iterated under competitive market pressure and technological upgrades. In the fierce market competition, SKG Whether it can maintain its share of the leading brand, and whether its parent company's wearable business can make a sprint in the future IPO listing success ? Lou Lei from SKG An analysis of the advantages and disadvantages shows whether future wearables can make a dash for success IPO listing The possibility of success, he believes, lies in the current future wearable sprint IPO listing Stages, indeed come with many problems, such as high marketing and promotion costs, and product quality being questioned by some. However, he has taken a relatively leading position in the massage device market within a very short period of time, and there are indeed many commendable points to his credit, which have also played a certain role in promoting the healthy development of the industry. In the future, wearable devices also hope to achieve IPO listing Further expand its advantages in niche categories, and also hope that in the future wearable if IPO listing Success can lead to greater product refinement and R&D, driving the industry into a more   Developing in a virtuous cycle.   * This article is reprinted from State Grid of China.   ,   author    Wang Xiaoman    ,    Original title:    Revenue rises, net profit falls. Wang Yibo is the spokesperson. SKG sprint IPO listing How to break through?    "> Frost & Sullivan Insight & Extended Readings Q :   SKG The financial report data for the past three years show that product sales have been increasing, but profits have not. What is your view on this phenomenon? Future SKG And how can this phenomenon be changed? A :   SKG The massage instrument industry is still developing rapidly, with products in the market being updated quickly and new players constantly entering the market. SKG In order to increase their market share and visibility, companies will adopt strategies such as intensifying product promotion, accelerating product innovation and iteration, and reducing the profit margin of sold products. These measures aim to enhance the company's market presence and further develop into a stable industry leader. In the future, when SKG After stabilizing its market positioning, it can consider leveraging its good reputation and awareness for promotional efforts. By offering high-quality products, it can attract consumers, thereby reducing marketing expenses. With the growth in product sales, profits are also expected to recover accordingly.   Q:    On the Black Cat Complaint Platform and product reviews, there are many negative comments from users who have experienced skin redness, swelling, and a burning sensation after using these products. Is this a unique drawback of 'internet celebrity' massage instrument products? And how can this issue be improved?   A :    Pulse current massage devices are still a relatively new product experience for consumers. When consumers are not very proficient in using new products, they may occasionally experience some side effects during use. To improve this phenomenon, companies can increase education and guidance on how consumers should correctly use their products, ensuring that consumers can use them properly and enjoy the benefits they bring.

This year, listed companies have shown a high enthusiasm for repurchasing shares, mostly for employee stock ownership plans or equity incentives. As of 8 month 4 day, as of 8 month 4 Today, within the year 878 home A The number of listed companies repurchasing shares increased year-on-year 23% ; The total repurchase amount reached 678 Yuan billion, a decrease year-on-year. What are the main purposes of listed companies actively repurchasing shares? Why has the number of participants increased significantly this year? Why has the number of companies on the Sci-tech Innovation Board and strategic emerging industries that have started repurchasing surged this year? What are the reasons why companies on the main board that are repurchasing stocks mainly focus on major industries such as pharmaceuticals, biotechnology, electronics, and computers? Frost & Sullivan Frost & Sullivan, Lu Jing, Partner and Managing Director of Greater China at Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), was interviewed by Securities Daily to discuss the reasons behind the high enthusiasm of listed companies in the repurchase market for shares. Securities Daily Since the beginning of this year, A The enthusiasm for share repurchases among listed companies is high. 8 month 3 Yesterday, Kailaiying issued an announcement proposing to invest 4 Yuan to 8 The company has repurchased hundreds of millions of yuan worth of shares, which will mainly be used for subsequent equity incentives. According to wind Information data statistics, as of 8 month 4 Today, within the year 878 home A The number of listed companies repurchasing shares increased year-on-year 23% ; The total repurchase amount reached 678 Yuan billion (Note: The repurchase amounts mentioned in the text refer to the completed portion), which has decreased compared with the same period last year. The reporter from Securities Daily further sorted out and found that compared with previous years, this year's repurchase market has shown a new feature: strategic emerging industry companies have emerged in large numbers, with a year-on-year increase exceeding 7 Multiples. This reflects the accelerating expansion of companies listed on the Sci-tech Innovation Board and Beijing Stock Exchange, as well as the importance placed by these companies on a stable management team and core talents. Strategic emerging industry companies have a strong willingness to repurchase Same period last year 2021 year 1 month 1 day after tomorrow 8 month 4 On the same day, Gree Electric Appliance and Midea Group repurchased shares respectively for a total amount of 169 yuan, 123 Yuan billion, in total 292 yuan, accounting for the total current period 33% In comparison, this year's repurchases were mostly concentrated in the '1 billion yuan level'. wind Information data shows that this year's repurchase amount exceeded 10 Companies worth hundreds of millions 9 The total repurchase amount at home reached 145 Yuan, with year-on-year increases in both quantity and amount of 50% and 20% . "The reason for the significant increase in the number of companies implementing share repurchases this year is due to adjustments in stock prices in the secondary market. Affected by both internal and external environmental factors, A The overall performance of the stock market has been relatively weak. When companies are confident in their fundamentals and future development, and have sufficient cash, more enterprises are willing to send a positive signal to the market by repurchasing shares for equity incentives, thereby stabilizing stock prices. 'Frost & Sullivan's Greater China Partner and Managing Director Lu Jing told the Securities Daily reporter. Another notable feature of this year's stock repurchase market is the rapid rise of companies in strategic emerging industries. According to wind Information data shows that since the beginning of this year, there have been a total of 93 Home, compared with the same period last year 11 Home, with year-on-year growth reaching 745% Looking at industries, the new generation of information technology 39 home), biology 17 Home), high-end equipment manufacturing industry 15 The number of industrial companies in the home region ranks among the top; looking at sectors, as mentioned above 93 The company is mainly focused on the Sci-tech Innovation Board ( 63 Home) and Beijing Stock Exchange ( 18 Home), with the combined proportion 87% . Correspondingly, the number of companies on the Sci-tech Innovation Board and Beijing Stock Exchange implementing share repurchases has increased rapidly. Relevant data shows that the above 878 In the company, 63 The company is a STAR Market company, with year-on-year growth. 688% ; Last year 11 After the Beijing Stock Exchange opened on that month, there were also within-year transactions 18 A company listed on the Beijing Stock Exchange has put in real money to repurchase shares. Lu Jing analyzed that according to the new regulatory rules issued by the Shanghai Stock Exchange this year, listed companies are allowed to use excess funds raised through public offerings to repurchase shares, which has broadened the sources of funds for corporate share repurchases and has been favored by more companies on the Sci-Tech Innovation Board and strategic emerging industries. "The Sci-tech Innovation Board and the Beijing Stock Exchange represent more strategic emerging industries. Currently, sci-tech innovation companies are in a stage of rapid development, and having a stable management team and outstanding talents is crucial for the long-term and stable development of the enterprise. Therefore, most companies choose to retain talent through methods such as share buybacks for equity incentives." Wang Weijia, General Manager of Beijing Sunshine Tianhong Asset Management Company, told the Securities Daily reporter. Zhou Yunan, founder of Beijing Nanshan Investment, told reporters that repurchasing shares for the implementation of an equity incentive plan is conducive to improving the company's corporate governance structure, establishing and improving a long-term incentive and restraint mechanism, attracting and retaining outstanding talents, fully mobilizing the work enthusiasm of the core team, enhancing the company's core competitiveness, and increasing the overall value of the company. Mainboard companies remain the main force in repurchases Meanwhile, this year's repurchase market has continued the two main characteristics of previous years: Main board companies still serve as the main force, and the repurchasing companies are still highly concentrated in the three industries of pharmaceutical biology, electronics, and computers. wind Information data shows that since the beginning of this year, looking at different sectors 586 Amount of repurchase by the motherboard company 552 yuan, with the respective proportions of quantity and scale being 67% and 81% They occupy an absolute leading position; from an industry perspective, companies implementing share repurchases are mainly concentrated in the pharmaceutical and biotechnology sectors ( 108 Home), Electronics 98 home), computer 89 Three major industries in (home), totaling 295 Home, accounting for the total 34% . Lu Jing analyzed that listed companies usually consider two of the most important factors when deciding whether to initiate share repurchases: one is the performance of the company's stock price in the secondary market, and the other is whether the company has sufficient cash flow. Relatively lower stock price performance drives outstanding main board enterprises to initiate repurchases, thereby sending a signal to investors that they are confident about the company's future development. Lu Jing further stated that from the perspective of cash flow, main board enterprises are usually larger in scale and volume. Excellent companies are not affected by depressed stock prices and have sufficient cash flow to provide a basic condition for share repurchases. Therefore, main board enterprises remain the main force behind share repurchases. Wang Weijia stated that in the past year, there has been a significant decline in the pharmaceutical biotechnology, electronics, and computer sectors, with most companies' stock prices at low levels. At the same time, many sub-sectors within these industries possess high technical barriers and typically use equity incentives to maintain the stability of their core teams.   * This article is reprinted from "Securities Daily", reporter    Xing Meng  ,    Original title:    within the year 878 home A The joint-stock company has invested 678 100 million yuan share repurchase Strategic emerging industry companies have a strong willingness to repurchase    "> Frost & Sullivan Insight & Extended Readings   Q :   What are the main purposes for listed companies to actively repurchase shares? A :   Common reasons why listed companies actively repurchase shares include: 1 It conveys a signal to the market that current stock prices are undervalued, and to investors that the company has confidence in its future development, thereby stabilizing stock prices; 2 ) Improve the efficiency of capital use. When a company has sufficient cash and believes that current stock prices are undervalued by the market, it will repurchase outstanding shares through cash to increase earnings per share and return on net assets; 3 ) Implementing equity incentives allows the repurchased shares to serve as a source of shares for the equity incentive plan, granting shares to employees without affecting the rights and interests of the original shareholders; 4 To prevent hostile takeovers, repurchasing shares can reduce the number of shares that hostile acquirers can buy from the secondary market, thereby lowering the risk of a company being acquired maliciously. In addition to the above reasons, repurchasing shares can also serve other purposes, such as adjusting the company's financial leverage. Q Why has the number of companies on the Sci-tech Innovation Board and strategic emerging industries that have initiated repurchases this year surged? A :   The sharp increase in the number of companies on the Sci-tech Innovation Board and strategic emerging industries that have initiated repurchases can be attributed to two main reasons. On the one hand, there is also the stock price performance of the company mentioned earlier in the secondary market. With innovation and technology 50 Take the index as an example, up to this year 7 End of the month, technology innovation 50 The index has risen from the opening day at the beginning of this year 1110.92 How did it fall so much 1088.91 how, 7 The decline for the month exceeded 20% In addition, 2022 The year marks the third anniversary of the opening of the Sci-Tech Innovation Board. With the arrival of the third anniversary, many listed companies have also witnessed a new wave of lifting restrictions on share sales. Around and after this peak, stock prices can fall significantly due to shareholder reductions and negative impacts from internal and external macroeconomic environments. Therefore, in order to boost market confidence, many enterprises choose to repurchase shares. On the other hand, at the beginning of this year, the 'Self-regulatory Guidelines for Listed Companies on the Shanghai Stock Exchange No. 7 The approval for enterprises to use over-raised funds for share repurchase in 'Share Repurchase' has also become one of the important factors. In principle, the funds raised by a company should be used for its main business. For companies listed on the Sci-tech Innovation Board (STAR Market), the relevant raised funds should comply with national industrial policy regulations and be used for innovation in the technology field. However, with the promulgation of new policies allowing the use of over-raised funds for share repurchase, this new model has become more favored by STAR Market companies and strategic emerging industry companies. It helps to boost investor confidence while not significantly increasing the cost of share repurchase for these companies.

since 2020 At the beginning of the year, a sudden COVID-19 pandemic (COVID-19) Rapidly spreading across the country and even globally, businesses had to stop production and offline operations, while physical stores had to suspend their offline business. This had a certain impact on China's real economy, and the lack of offline consumer experience unexpectedly became a driving force for the rise of online 'interactive' live streaming e-commerce.   Frost & Sullivan Frost & Sullivan, He Xin, a consulting analyst at Frost & Sullivan's Greater China region and referred to below as 'Frost & Sullivan', wrote an article for China Cosmetics magazine on the topic of 'Live Streaming E-commerce'. They discussed the future development trends of the live streaming e-commerce industry in the post-pandemic era. China Cosmetics Magazine since 2020 At the beginning of the year, a sudden COVID-19 pandemic (COVID-19) The rapid spread across the country and even globally has forced businesses to suspend operations, physical stores to halt offline operations, and had a certain impact on China's real economy. During the pandemic, people actively responded to the national call for home quarantine, and many physical store merchants also adopted methods such as live streaming sales to bring products online, displaying physical goods in front of viewers through live streaming platforms, explaining product features, performance, and prices to guide potential customers into making purchases. The unexpected loss of offline consumer experience has inadvertently become a driving force behind the rise of online 'interactive' live streaming sales. Live streaming sales can stimulate consumers' latent needs, reduce their decision-making cycle, and significantly improve sales conversion rates compared to traditional e-commerce. If there had not been an outbreak of the pandemic, live streaming sales might still be in their early stages of exploration and growth.   01 Inventory the development history of live streaming e-commerce in the past three years   Taobao Live Broadcast on 2015 year 12 The trial operation started in January, and the format of 'anchor live shopping' was introduced for the first time. 2016 The year marked the beginning of "live e-commerce," and in this year, 4G The network has been completely replaced, supporting 4G Smartphones on the network have also achieved widespread popularization. 2016 year 3 In the month, Mushroom Street officially launched a live streaming entrance; 4 In January, Taobao Live officially went live; in the same year 9 In January, JD.com also followed suit by launching live streaming. Over the following two years, Suning, Douyin, and Amazon also joined the ranks of live streaming e-commerce. For a time, the new e-commerce model led by live streaming was unparalleled in its glory. Hundreds of online live streaming platforms emerged domestically, and the number of live streaming users also grew rapidly, sparking a nationwide craze for live streaming. 2018 Since [start year], live e-commerce has developed rapidly, with short-video giants such as Douyin and Kuaishou also joining the battle for live sales. 2019 Since the beginning of this year, live streaming e-commerce has truly entered a period of concentrated explosive growth. Take Taobao Live Shopping as an example. 2018 The total transaction volume of goods sold through Taobao Live Platform in the year exceeded 1000 Yuan, a nearly year-on-year increase 400% ; until 2019 In [year], the total transaction volume of Taobao live streaming products exceeded 2000 Yuan, with accumulated 4 1000 million users. The development history of live streaming e-commerce over the past three years shows an evolution from single-person live streaming to multi-person live streaming. + Brand E-commerce IP address The status of live streaming going offline. Specifically, it can be divided into three stages:   Phase 1 2019 Year to 2020 In [year], the main revenue source was single live broadcasts by influencers: 2016 A top anchor who entered Taobao Live in 2021 was one of the earliest to launch live shopping on Taobao. The number of viewers for his first live broadcast was minimal. 200 However, it quickly reached a transaction volume of 100 million within just four months with live-streamed sales. 2017 In [year], she even received support from official resources 2500 With a commission of tens of thousands, she has firmly established herself as the queen of Taobao live streaming. 2016 At the end of the year, I was just another leading anchor at the beauty consultant desk in L'Oréal Cosmetics. At L'Oréal Group and Meituan, ONE Outstanding in the jointly organized Taobao Live Project Competition, she became a signed beauty expert under the brand and officially started live streaming. 2018 year 9 Month, he successfully challenged “ 30 The Guinness World Record for "the largest number of people applying lipstick in seconds," has made him the holder of the world record for applying lipstick, and he has since been hailed as the "King of Lipsticks." In the same year during "Double Eleven," Taobao arranged a competition between Jack Ma and him to apply lipstick. Having core Alibaba figures partner with marketing shows how much Taobao values him. On that day, he 5 Sold in minutes 1.5 Ten thousand lipstick shades, instantly becoming a sensation. Subsequently, she gradually opened accounts on social platforms such as Douyin, Rednote, and Kuaishou, leveraging the phrase “ OMG "Rapidly accumulating over [X] million views across the entire network," 5,000 A fan base of tens of thousands. According to data from Southern Finance & Economics, these two leading anchors are in 2020 year 6 month, 12 The monthly sales amount was as high as 225.39 Yihé 139.31 1000 million, accounting for the same period before 10 The top two among the big anchors, compared to the third and fourth place finishers Ximba and Degg 76.13 Yihé 46.4 With a total sales volume of hundreds of millions, it has a leading advantage in the segment. The positions of Live E-commerce's 'sister' and 'brother' are very secure. 2020 The total transaction volume of live e-commerce products exceeded one trillion yuan in the year, with Douyin, Taobao, and Kuaishou standing in a tripartite confrontation.   Phase 2 2020 Year to 2021 year , Begin to form “TikTok Livecasts for Experts + Brand self-play ” dual matrix model: In the post-pandemic era, live e-commerce has developed rapidly. As the live shopping market gradually heats up and consumers develop a habit of watching live shopping, leading anchor accounts and Douyin e-commerce service providers have begun to emerge. DP ) etc.   At this time, brand live broadcasts are represented by domestic beauty products, with well-known brands including Perfect Diary and Hua Xi Zi. After market exploration, brand self-broadcast has become a major force in live streaming sales that competes with Douyin Live. According to 'Taobao Live 2021 Data from the Annual Report show, 2020 In [year], Taobao Live was born 1000 Among live streaming rooms with sales exceeding 100 million, the proportion of merchants' live streaming rooms exceeds 55% slightly higher than the live streaming room for experts. Data source: Taobao Live 2021 Annual Report   Released by Southern Finance & Economics All-media Group 2020 According to the data from the '2023 Annual Live Streaming E-commerce Trend Report', popular categories for live streaming e-commerce are currently concentrated in beauty, clothing, food, etc. The top five categories by sales amount are as follows: women's clothing / Women's Fragrances, Cosmetics / perfume / Cosmetic tools, beauty skincare / Beauty / Essential oils, snacks / nuts / Specialties, cleaning products / sanitary napkin / paper / Incense, total sales amounts are as follows: 233.89 hundred million, 157.91 hundred million, 59.97 hundred million, 37.84 Yihé 33.65 1000 million. Among them, the sales proportion of women's clothing, cosmetics, and beauty skincare products exceeds 72% . It is not difficult to find that the top three categories, whether it is beauty and skincare, women's clothing, or cosmetics, all target female customers as their main consumer group. Considering that female consumers usually also play the role of household spenders, Therefore, the entry of snack specialties and daily necessities for personal care into popular shopping categories is also driven by female consumers. The reason why beauty and fashion are popular is that they offer a high margin space, making them more favored during the live streaming anchor product selection process. Food and daily necessities, on the other hand, are standard products with low unit prices and high repurchase rates, which better adapt to the randomness and impulsive consumption characteristics of live streaming sales. The mainstreaming of live streaming beauty and skincare sales not only manifests in sales figures but also in total sales volume. The report data shows that, 2020 year 6 — 12 Among the top ten brands in terms of monthly total sales, Hua Xi Shi and Perfect Diary, which have already started their own brand live streaming e-commerce initiatives, rank at the top two, with total sales exceeding 1180 Ten Thousand Orders and 983 Ten thousand orders, the combined total sales of the two brands account for [X]% of the top ten brands' total sales 44.7% Seize the domestic beauty market first. Beauty and skincare brands such as New York New York, L'Oréal, Lancôme, and Shiseido have also made it into the top ten. The beauty and skincare category has truly accounted for a large portion of live streaming sales. Source: 2020 Annual Live Streaming E-commerce Trend Report Source: 2020 Annual Live Streaming E-commerce Trend Report In terms of consumers' preferences for live e-commerce shopping categories, according to the China Consumers Association 2020 Data from the 'Online Survey Report on Consumer Satisfaction with Live E-commerce Shopping' released annually show that respondents' preference for live beauty shopping also validates the dominant position of this category in live e-commerce. Consumer preferences for live e-commerce shopping categories Data source: "Online Survey Report on Consumer Satisfaction with Live E-commerce Shopping" Putting aside sales volume and sales amount, 2020 The year is also a critical turning point for new beauty brands to achieve overtaking on the curve by leveraging self-streaming sales. Hua Xiazi, Perfect Diary, and Herses are all leveraging 'Taobao Live' 2020 annual Top 20 Tmall New Brands rank in the top five, with new beauty (including skincare) brands accounting for a significant proportion 9 A seat. Beauty brands have seized the opportunity for growth by leveraging their own live streaming sales. Source Taobao Live 2021 Annual Report The live-streaming sellers participating in e-commerce also show a clear preference for selling beauty products. 'Taobao Live 2021 Data from the 'Annual Report' show that among Taobao live broadcasts, beauty and fashion anchors are the most numerous. 2019 The proportions of the two in the year were 14% and 12.9% . in 2020 In the same year, the number of anchors for both categories even saw multiple-fold growth. Source Taobao Live 2021 Annual Report   Phase III 2021 Year to 2022 In [year], "Renaissance Live" + Brand-owned Video Streaming + E-commerce IP address The diversified live streaming e-commerce model of 'Live Streaming ” has emerged, with leading e-commerce live streaming platforms IP address Birth:   Well-known live e-commerce platforms born during this period IP address I've made some friends and I'm on the radar with today's hot sensation, Oriental selection.   E-commerce IP address The initial growth of many seems inseparable from an explosive peak, namely the celebrity effect. Just past, “ 618 With Luo Yonghao's departure, the negative effect of 'making a friend' immediately became apparent. 2021 Top 10 Douyin Live Shopping Brands of the Year 3 The name dropped to this year's 5 Name. Founder Huang He emphasized that he does not value the daily transaction volume of individual products “making friends” is about achieving stable output. He said: “We rank first in terms of transaction volume for live streaming products on Douyin every week, month, and year, and are usually among the top three every day.” On the other side is a bustling “Oriental Selection”. 6 month 10 After the topic 'New Oriental teachers teach English while selling products' became popular, Dong Yuhui led 'Orient selection' to rise with the wind and quickly seize traffic. 618 ”Ranked among the top in sales during that period 50 Among the renowned talents, Oriental selection is 1583.2 Ranked second with a surge in fan base 1000 Ten thousand, reached 1884.8 ten thousand. The collective 'disappearance' of top talent anchors 2022 E-commerce IP address Live streaming may be able to help the industry form a more standardized live shopping model through its clearer organizational structure.   02 The super-trend anchor 'disappeared'. What should be done in the future?   This year“ 618 The reality of live streaming is that top-tier anchors are collectively absent. The uncertainty for brands relying on top live streamers has skyrocketed, and what should be done moving forward? Some data reflect the impact of top anchor 'disappearance' on the live e-commerce market. According to statistics from Xingtu Data, this year “ 618 "During that period ( 2022 year 5 month 31 day 20:00 — 6 month 18 day 24:00 Total online transaction volume is 6959 Yuan, a year-on-year increase 20.3% Among them, the total sales of comprehensive e-commerce platforms were 5826 Yuan, a year-on-year increase 0.7% The total live streaming sales volume reached 1445 Yuan, Taobao lags behind Douyin and Kuaishou, ranking only third. But overall, live streaming e-commerce sales this year “ 618 The total amount of '” has increased compared with the same period last year. 124.1% This inevitably makes people wonder, when the live streaming e-commerce industry is 'oligopoly gone', the transaction volume of products sold through both e-commerce platforms and live streaming has not shown a significant decline. This also seems to indicate that even without 'oligopolies', If anchors "are still selling the same products and consumers are still buying them, then is the e-commerce capability of these top anchors “overestimated"?" For brand owners, top anchors may only be icing on the cake, not a lifesaver. According to Feigua data, Perfect Diary, KuaDi, Vienne 2022 year 6 month 1 The proportion of self-play sales in daily sales reached 87 %, 81 %, 70 %; international brands such as L'Oréal, OLAY Lancôme's self-promotion content accounted for only 44 %, 24 %, 2 %. It is worth mentioning that this year's “ 618 "New faces have emerged in live streaming. Previously, New Oriental transformed from education and training to live streaming, followed by Southern Airlines' cross-border exploration in the beauty industry, where flight attendants turned into anchors. They wear delicate makeup and sell cosmetics with an air of familiarity akin to that of flight attendants. According to data from Chan Mama, as of 2022 year 6 month 17 On the same day, since the launch of two Douyin accounts of China Southern Airlines, the cumulative sales are expected to reach March 1957 Ten thousand yuan, and its liquidity can be said to be quite good. It can be seen that live streaming e-commerce, as a new consumer model, has brought new development opportunities to the beauty market. Building a professional live streaming team, how to seize the opportunities of the live streaming trend and capture consumers' minds has become a compulsory course for beauty brand owners. 2022 year 618 Comprehensive E-commerce Sales Source Star map data 2022 year 618 Live e-commerce sales Source Star map data With the rise of live e-commerce, a large number have emerged in the past two years MCN Institutions are responsible for incubating and operating influencers, from which they take a commission. However, this model carries certain risks, as there is often a dispute over interests due to the high dependence on 'anchor' influencers. Previously, the equity dispute between Li Ziqi and Weixin was quite publicized. Founder Huang He, in an interview with Phoenix Technology, replied: 'In the long run, relying on big anchors is unhealthy for institutional operations. In the early stages of entrepreneurship, big anchors can be used to drive traffic, but it's also necessary to cultivate an anchor system. From the perspective of institutions, they should provide enough opportunities and a large stage for influencers so that cooperation between both parties can be more enduring.' He also added: 'When we first started the Jiaojiao Friends live streaming room, we didn't emphasize individuals too much.' IP address "I don't want to just run a small workshop, but rather a systematic company that can be operated for the long term." There is no doubt that in the early stages of live streaming e-commerce, top influencers and anchors built large fan bases by relying on their personal charm, which in turn boosted the development of live streaming e-commerce based on this traffic. However, the survey report from the China Consumers Association also clearly shows today's consumers' strong demand for 'strengthening anchor quality management, raising entry thresholds,' 'establishing a supervision and regulation system, and strengthening market supervision.' In the current situation where top anchors are collectively 'disappearing,' the industry has entered the second half of its development cycle and requires more professional live streaming e-commerce teams to emerge. Suggestions on the Development of Live E-commerce Industry from Consumers Data source: "Online Survey Report on the Satisfaction of Live E-commerce Shopping Consumers"   Therefore, the 'disappearance' of super-trending anchors can be analyzed from three perspectives: user end, brand end, and influencer end. From the user perspective, after the disappearance of top-tier anchors, overall traffic was dispersed. Viewers who had only frequented a few top anchor live streaming rooms began to explore more live streaming venues. From the brand perspective, as most of the audience traffic previously gathered by top anchors has begun to disperse, brands can focus their efforts and regain more bargaining power over discounts; at the same time, brands are looking for more self-hosted content, influencer live broadcasts, and e-commerce. IP address Live room collaboration. From the perspective of the Creator Platform, it can be seen that after the concentrated audience traffic was split, the traffic to each Creator's live streaming room began to significantly increase. Moreover, as market leaders continue to emerge ( SS The (rank-based) mechanism has disappeared, and every expert's chance of promotion has been unprecedentedly enhanced.   03 "Decentralization" has become a development trend.   Currently, the current state of 'decentralization' is very clear. First and foremost, there are super-talented anchors. (SS level ) The collective exit of top anchors such as Luo Yonghao and Xinba, who controlled the vast majority of traffic across the network, has led to a traffic vacuum and dispersion period. Against this backdrop, top IP address Live streaming rooms are emerging, such as Liu Xinghong, Oriental Zhenxuan, Jiao Ge You, Big Wolf Dog Couple, etc. On this basis, the future trend of 'decentralization' development can be summarized into two points.   First, the traditional trend remains unchanged:   The live streaming anchor team will continue to seek higher-quality products and pricing mechanisms, develop more innovative sensory-based live streaming content, and build more innovative live streaming scenarios.   Secondly, the new trend in live streaming e-commerce is also the platform's preference:   In the future, public domain traffic platforms will favor live streaming e-commerce that can deliver longer live streaming durations. ( High live streaming frequency / Live broadcast duration ) This is achieved by extending the audience's live streaming duration (with high-quality content) to capture consumer time, and further launching live streams that meet the consumption needs of middle-class women. In the face of the instability brought about by the COVID-19 pandemic, all industries are undergoing periods of transformation and rectification. Enterprises need to continuously adjust their development models, manage operational risks, and autonomously upgrade for sustainable development. At this difficult time, to maintain the operation and optimization of enterprises, key positions and technical talents have become the most fundamental and core elements.   * This article is published in the journal 'China Cosmetics'.   ,   author    He Xin    ,    Original title:    Fengqi Live Streaming E-commerce Where is it blowing towards?    ">

Insights from Frost & Sullivan On July 25th, the National Medical Products Administration conditionally approved the registration application for Zanubrutinib tablets by Zhejiang Bio-Thera Biologics to add an indication for treating COVID-19 pneumonia. This is also the first domestically approved small molecule oral drug for COVID-19. What is the significance of the launch of China's first self-developed small molecule oral COVID-19 drug? What is the demand for small molecule oral drugs? How is the supply of small molecule drugs for COVID-19 in our country? Li Qian, Senior Consulting Director for Healthcare Industry in Greater China at Frost & Sullivan (hereinafter referred to as "Frost & Sullivan"), was interviewed by CBN to discuss the future direction of China's small molecule drug market after the approval of the first domestic COVID-19 oral drug. CBN On July 25th, the National Medical Products Administration conditionally approved the registration application for Zanubrutinib tablets by Zhejiang Bio-Thera Biologics to add an indication for treating COVID-19 pneumonia. This is also the first domestically approved small molecule oral drug for COVID-19.   Zhejiang Bio-Thera Biologics has not officially announced the manufacturer, but according to previously disclosed information by listed companies, including Aoxang Pharmaceutical, Tuoxin Pharmaceutical, and China Resources Shuanghe, they have all stated that they have signed framework agreements for entrusted production with Zhejiang Bio-Thera Biologics.   As of the close on July 26th, the stock prices of Aoxang Pharmaceutical (603229) and China Resources Shuanghe (600062) both fell by a full point, while the stock price of Tuoxin Pharmaceutical (301089) dropped by 6.3%.   On the evening of July 25th, Fosun Pharma announced a long-term strategic cooperation with Zhejiang Bio-Thera Biologics to exclusively commercialize Azvudine. CBN reporters learned that Fosun Pharma's upfront payment amount reached 100 million yuan. On July 26th, the stock prices of Fosun Pharma's A-share (600196) and Hong Kong stock (2196) both fell by about 3%.   The key is market demand Market analysis suggests that the market demand for Azvudine is still unclear, and the stock prices of related companies have been significantly pushed up earlier, which is also the reason for the significant market decline.   Since the beginning of this year, the cumulative increase in the stock price of China Resources Shuanghe has approached 80%, and that of Aoxang Pharmaceutical has exceeded two-thirds. Image source: CBN   Azvudine is a nucleoside analog that has broad-spectrum activity against viral RNA-dependent RNA polymerase (RdRp), and it can also specifically act on the RdRp of the novel coronavirus, thereby inhibiting virus replication. The drug has strong targeting properties. It was originally marketed as an anti-AIDS drug and shares the same mechanism of action as Remdesivir.   “Multiple companies can produce Azvudine; the key is how future demand will be, which depends on the development of the pandemic and the effectiveness of the drug in actual use,” said a pharmaceutical expert to CBN reporters.   According to the key Phase III registration clinical trials submitted by Zhejiang Bio-Thera Biologics earlier, the results showed that Azvudine has antiviral activity against the novel coronavirus, with a virus clearance time of about 5 days; among subjects who improved clinically symptoms on the 7th day after the first dose, the proportion in the Azvudine group was 40.43%, compared to 10.87% in the placebo group.   “From the current situation, if it cannot be proven that taking antiviral drugs can prevent severe cases, only reducing the time to turn negative for the virus, then even if the clinical trials are very strict, their importance would be greatly reduced,” said the above-mentioned pharmaceutical expert to CBN reporters.   Li Qian Senior Consulting Director for Healthcare Industry in Greater China at Frost & Sullivan   Compared to other COVID-19 therapies such as neutralizing antibodies, the advantage of small molecule oral COVID-19 drugs lies in their convenience of use, and they can tolerate mutations to a certain extent, offering significant advantages such as high patient compliance, convenient storage and transportation, and easy distribution. “As the pandemic becomes normalized, small molecule drugs can play a role in suppressing viral proliferation early in patients' infections, reducing the likelihood of developing into severe cases, and can be used for daily prevention, adding an important link to epidemic control measures,” said Li Qian, Senior Consulting Director for Healthcare Industry in Greater China at Frost & Sullivan, to CBN reporters.   Institutions significantly downgraded Pfizer's oral drug sales expectations Currently, the only small molecule drug for treating COVID-19 that has entered clinical use in China is Pfizer's antiviral drug Paxlovid. This drug is also currently leading the global COVID-19 treatment market. However, according to the latest research predictions from data analytics company Airfinity, Paxlovid's sales in the next six months are likely to fall short of market expectations.   Health data agency Airfinity said that the latest data confirm that the order volume and quotes recently signed by Pfizer have begun to gradually slow down. The agency expects that by the end of this year, there may be as many as 70 million courses of Paxlovid surplus in the global market.   Airfinity analysis says that this small molecule drug may interact with other drugs, which could limit its use. Airfinity analyst Harry Cheeld said that Pfizer may re-examine its bullish plans for the drug demand and deal with the supply surplus problem.   Earlier, Pfizer said it planned to provide 120 million courses of Paxlovid this year. Since the beginning of this year, Pfizer's stock price has fallen more than 12%. Pfizer is set to release its latest quarterly financial report on July 28th.   According to Airfinity's prediction, another company providing COVID-19 oral drugs, Merck, is expected to supply only 15 million courses this year.   Looking at overall sales, Airfinity predicts that Pfizer's total sales of Paxlovid this year will reach $232 billion, lower than the previous three-month forecast of $236 billion; Merck's total sales of oral drugs are estimated to be $58 billion, lower than the previous estimate of $64 billion; the sales of the COVID-19 oral drug approved by Japanese pharmaceutical company Ono Pharmaceutical, which was postponed, are estimated to be $500 million, lower than the previous forecast of $25 billion.   In China, in addition to Zhejiang Bio-Thera Biologics' Azvudine tablets, Junshi Biosciences' COVID-19 oral drug VV116 tablets have also entered Phase III clinical trials. On May 23rd this year, Junshi Biosciences announced that VV116 tablets had met the primary endpoint set in the protocol in a Phase III registration clinical study comparing them with Pfizer's PAXLOVID for the early treatment of mild to moderate COVID-19 pneumonia and stated that they would submit an application for marketing shortly.   *This article is reprinted from 'CBN', authored by Qian Tongxin, with the original title 'Why did manufacturers fall by a full point after the approval of the first domestic COVID-19 oral drug?'   Frost & Sullivan Insights · Extended Reading   Q: What does the launch of China's first self-developed small molecule COVID-19 oral drug indicate?   A: As of June this year, two small molecule drugs for COVID-19 have been approved for marketing and commercialization in multiple countries around the world, namely Pfizer's Paxlovid and Merck's Molnupiravir. Before the launch of the first self-developed drug, the only available small molecule oral drug in our country was Paxlovid, which was conditionally approved for import in February this year. As the officially approved first domestically developed small molecule oral drug for treating COVID-19, Azvudine further constructs China's comprehensive prevention and control system of "vaccines + neutralizing antibodies + small molecule drugs."   Q: Globally, is there currently an oversupply of Pfizer's small molecule drugs?   A: Paxlovid is used to prevent high-risk groups from developing into severe cases. Due to the ongoing spread of the real pandemic, the number of infections remains high, and the demand for medication is still there. Although the sales in the first quarter of this year were lower than market forecasts, overall sales are still considerable. In the global field of small molecule oral COVID-19 drugs, Pfizer's Paxlovid holds a dominant position.   Q: How is the supply of small molecule drugs for COVID-19 in our country?   A: In the announcement released on the evening of July 25th, Fosun Pharma disclosed that it has reached a strategic cooperation with Zhejiang Bio-Thera Biologics to jointly develop and exclusively commercialize Azvudine through Fosun Pharma's industry, and will carry out the commercial layout of Azvudine. After the full industrial chain is implemented in the future, mass production will be carried out to meet current clinical medication needs.   Q: Which other companies are expected to receive approval?   A: In China, in addition to Zhejiang Bio-Thera Biologics' Azvudine tablets, there are two other drugs that are progressing relatively rapidly in the research and development of COVID-19 oral drugs, including VV116 jointly developed by Junshi Biosciences and Wangshan Wangshui, and Puklumab developed by Kuaer Pharmaceutical, which are currently in Phase III clinical trials and are expected to be launched soon. The research progress is worthy of continuous attention.

According to what Kangtai Biology disclosed 2022 Annual and Semi-annual Performance Forecast, with expected operating revenue for the first half of this year 18.28 Yuan, a year-on-year increase 73.72% ; net profit attributable to the parent company is 1 100 million yuan 1.3 Yuan billion, a decrease compared with the same period last year 70.29% — 61.37% . Is the sluggish sales of Kangtai Biotech's COVID-19 vaccine an isolated phenomenon or a broader trend? Has the COVID-19 vaccine market become saturated?     Frost & Sullivan Frost & Sullivan, Li Qian, Senior Consulting Director for Healthcare in Greater China at Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), was interviewed by Blue Whale Finance to discuss the current development status and future prospects of the COVID-19 vaccine market. Blue Whale Finance 7 month 24 Today, Kangtai Biology, which mainly operates the vaccine business, released 2022 Annual and semi-annual performance forecast, with net profit expected to decline year-on-year 70.29% — 61.37% . After the release of Kangtai Biotech's semi-annual performance forecast, the stock also fell accordingly. 7 month 25 Today, Kangtai Biotech opened sharply lower, with a closing price 36.32 yuan / Shares, down 4.92% As of 7 month 27 At the close of trading on the day, Kangtai Biology continued its decline, closing at 35 yuan / share The announcement pointed out that the main reason for the decline in performance is the impairment provision for assets related to COVID-19 inactivated vaccines and the expensing of Phase III clinical expenses. The company stated that since the second quarter, there have been significant changes in the COVID-19 vaccination environment both domestically and internationally, leading to a rapid decline in demand for COVID-19 vaccines, which has resulted in a sharp drop in the company's sales volume of COVID-19 vaccines. Will the decline in COVID-19 vaccine sales become a trend? Image source: Internet The actual controller cashed out at a high level last year 1 hundred million It is worth mentioning that the stock price of Kangtai Biology has been incessantly discussed since last year; 2021 year 2 month 10 The company disclosed that its controlling shareholder and actual controller, Du Weimin, intends to reduce his holdings by no more than 200 10,000 shares (accounting for the total share capital of the company 0.29% ); according to 2021 year 9 month 11 Today, the announcement of Kangtai Biology, 2021 year 5 month 21 day -2021 year 5 month 25 During the period, Du Weimin with 180.84 yuan / Average share price reduction 516000 shares, successfully cashed out about 9300 More than 100,000. Although he personally cashed out at a high level, 9 month 17 On the same day, Du Weimin issued an initiative in his personal capacity, calling on employees of Kangtai Biotech to buy Kangtai Biotech's stocks on the stock market.   In the initiative, Du Weimin promised, “Anyone who’ 2021 year 9 month 22 day after tomorrow 2021 year 10 month 29 Net purchases of Kangtai Biotech stocks during the period, with continuous holding 12 Employees who have been employed for more than [X] months and have losses incurred due to purchasing Kangtai Biotech stocks during the aforementioned period, shall be compensated by Mr. Du Weimin. At that time, the stock price of Kangtai Biology was about 70 yuan / The shares, relative to the current stock price, resulted in a loss of about half for the employees who had increased their holdings at that time. According to what Kangtai Biology disclosed 2022 Annual and Semi-annual Performance Forecast, with expected operating revenue for the first half of this year 18.28 Yuan, a year-on-year increase 73.72% ; net profit attributable to the parent company is 1 100 million yuan -1.3 Yuan billion, a decrease compared with the same period last year 70.29% - 61.37% . The demand for COVID-19 vaccines has declined, and sales have fallen rapidly. Why has revenue not increased but profit decreased in the second quarter? Regarding the increase in revenue, Kangtai Biotech announced that the main product, Quadrivalent Vaccine (Note: No Cell-based DTP/IPV/ACYW), b Haemophilus influenzae type b conjugate vaccine, for use in 3 For infants and young children over 6 months old, prevention of pertussis bacillus, diphtheria bacillus, tetanus spirochetes, and b The sales revenue of vaccines for infectious diseases caused by Haemophilus influenzae type b increased by approximately 60.13% The sales revenue of the hepatitis B vaccine increased by approximately 20.76% , newly listed products of the company 13 The price of pneumococcal polysaccharide conjugate vaccine has gradually increased in supply. Regarding the decline in profits, Kangtai Biotech stated that the main reasons are the provision for impairment of assets related to COVID-19 inactivated vaccines and the expensing of Phase III clinical expenses. 'Since the second quarter, there have been significant changes in the COVID-19 vaccination environment both domestically and internationally, leading to a decrease in demand for COVID-19 vaccines and a rapid decline in the company's sales volume. The company's COVID-19 inactivated vaccine is still in Phase III clinical trials overseas. Due to the impact of the Russia-Ukraine war, the unblinding of Phase III clinical data in Ukraine has been delayed, which poses significant uncertainty for future sales.' Kangtai Biotech stated that the company has identified inventory goods, raw materials and auxiliary materials related to COVID-19 vaccines with signs of impairment, as well as self-made semi-finished products, as of 2022 year 3 Provision for asset impairment is made for COVID-19 vaccine development expenditures at the end of the month 4.15 100 million yuan. At the same time, the R & D expenditure on COVID-19 inactivated vaccines incurred in the second quarter was expensed, amounting to 1.40 Yuan. The above matters result in a total reduction of total profit 5.55 Yuan billion. Considering the impact of additional deductions, net profit is reduced. 4.52 100 million yuan. Kangtai Biotech was established in 1992 year 9 Yue, headquartered in Shenzhen and founded on vaccines, 2017 year 2 month 7 It was listed on the Growth Enterprise Market of the Shenzhen Stock Exchange, with a maximum market value exceeding one hundred billion. 2021 The annual report shows that the main products of Kangtai Biotech include recombinant hepatitis B vaccine. ( brewing yeast ) , 13 Pneumococcal polysaccharide conjugate vaccine, b Haemophilus influenzae type b conjugate vaccine, measles-rubella combined attenuated live vaccine, acellular pertussis and diphtheria vaccine b Haemophilus influenzae type b conjugate vaccine, 23 Pneumococcal polysaccharide vaccine, etc. The COVID-19 inactivated vaccine developed by Kangtai Biology is 2021 year 5 The drug has been approved for emergency use in China. 2021 year 6 The vaccine was launched for sale domestically, becoming the sixth COVID-19 vaccine in China to be approved for emergency use or marketing. According to the 'Prospectus for the Issuance of Convertible Corporate Bonds to the Public' disclosed by the company, the 'Baiwangxin Emergency Engineering Construction Project' is mainly used for the production of inactivated COVID-19 vaccines, with a total investment of 23.81 100 million yuan, project operation period 10 In [year], the designed production capacity is 2 100 million doses / year. In addition, the adenovirus vector COVID-19 vaccine co-developed by Kangtai Biotech and AstraZeneca is 2021 year 10 The product has obtained emergency use authorization from the Indonesian National Drug and Food Administration and is exported. 2021 In [year], Kangtai Biotech achieved revenue 36.52 Yuan, of which export revenue reached 9.57 Yuan, a significant year-on-year increase 39020.94% The company has not disclosed the specific sales situation of last year's COVID-19 vaccine. However, according to CITIC Construction Investment Securities' estimates, the COVID-19 vaccine for the company 2021 The proportion of annual revenue contribution exceeds 50% .   The future market for COVID-19 vaccines is trending towards saturation. Has the COVID-19 vaccine market become saturated?   Li Qian   Senior Healthcare Industry Consultant, Frost & Sullivan Greater China     On this, Frost & Sullivan's Senior Healthcare Industry Consultant for Greater China Li Qian pointed out that the sluggish sales of Kangtai Biotech's vaccines may not be an isolated phenomenon. The market space for basic immunization is gradually becoming saturated, and as demand decreases, the sales volume of COVID-19 vaccines has shown a certain downward trend. According to data from the National Health Commission, as of 2022 year 7 month 23 On _, the full-course basic immunization coverage rate in China was 89.7% , Strengthening immunization rates 71.7% Among them, 60 At least for the elderly over 1 Dose vaccination rate 89.6% , vaccination coverage rate for the entire process 84.7% , Strengthening immunization rates 67.3% . Currently, there are 7 The COVID-19 vaccines of domestic enterprises can be sold domestically. Except for the recombinant protein COVID-19 vaccine developed by ZF Bio and the adenovirus vector COVID-19 vaccine developed by CanSino Biologics, the rest are inactivated COVID-19 vaccines. Regarding the future of COVID-19 vaccine manufacturers, Li Qian pointed out that although the overall market space for COVID-19 vaccines is not as broad as it was at the beginning of the pandemic, the development and production of COVID-19 vaccines have brought about rapid technological progress. At the same time, they have greatly enhanced the clinical development capabilities of new vaccine platforms, promoted the process of large-scale production, and expanded the commercialization level. "In the long run, vaccine manufacturers can leverage their accumulated research and development experience and validated technology platforms to move into other disease areas, not just COVID-19 vaccines. In the future, manufacturers of COVID-19 vaccines can apply these newly developed capabilities to the development of other vaccines, drugs, and treatment methods," said Li Qian.   * This article is reprinted from Blue Whale Finance.   ,   Author: Tu Jun    Original title:    Kangtai Sheng Property's performance “changes face” and stock price plummet: COVID-19 vaccine market approaching saturation, founder cashing out at high levels    "> Frost & Sullivan Insight & Extended Readings Q : What is the market outlook for COVID-19 vaccines in the future, and has the market become saturated or oversupplied? Is the sluggish sales of Kangtai Biotech's COVID-19 vaccine an isolated phenomenon or a broader issue? A : The sluggish sales of Kangtai Biotech's vaccines may not be an isolated phenomenon. The market space for basic immunization is gradually becoming saturated, and as demand decreases, the sales volume of COVID-19 vaccines has shown a certain downward trend. Some manufacturers even face overcapacity. For those COVID-19 vaccines that are still in clinical trials, have a high degree of homogeneity with already launched products, and lack differentiated advantages, they may have missed the best entry point into the COVID-19 vaccine market and may find it difficult to regain a significant market share.   In the current situation where the COVID-19 pandemic is recurring and mutating rapidly, there is still a demand for people to receive third and fourth booster shots as well as new vaccines with better efficacy. The market potential of COVID-19 vaccines remains worth exploring.

Since this year, the securities regulatory system has supported listed companies' direct financing development by implementing a series of measures including waiving listing fees, supporting severely affected regions and industries to accelerate recovery and development, facilitating private enterprises to go public for financing and mergers and acquisitions in accordance with the law, and enabling private enterprises to recover and develop rapidly.   Data shows, this year A Newly listed stocks 198 Among companies, private enterprises are 165 Home, proportion 83% Looking at different sectors, the majority of private enterprises are located on the ChiNext and STAR Market boards. In terms of industry distribution, private companies in machinery and equipment, electronics, and pharmaceutical biotechnology have the largest number.   Why are newly listed private enterprises mainly concentrated in the three industries of machinery and equipment, electronics, and pharmaceuticals and biotechnology? How should private enterprises utilize both domestic and foreign resources to strengthen and grow themselves? Frost & Sullivan Frost & Sullivan, Dr. Wang Xin, Global Partner and President of Greater China at Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), was interviewed by Securities Daily to discuss the current development status and future prospects of private enterprises supported by policies. Securities Daily 2022 Since the beginning of this year, securities regulatory authorities have introduced a series of policy measures to strongly support private enterprises in direct financing. According to the sorting, in terms of equity financing, this year A More than 80% of newly listed companies are private enterprises, accounting for over half of the total fundraising amount. In terms of bond financing, special support plans for private enterprise bond financing, corporate bonds for technological innovation, and measures such as reduction in transaction fees have been gradually implemented. "Overall, the financing environment for private enterprises has improved. Supporting direct financing for private enterprises can not only solve the practical difficulties they face but also promote better financial services for the development of the real economy," said Gui Haoming, chief market expert at Shenwan Hongyuan, to the Securities Daily reporter. Private enterprises are an important entity in the capital market, and vigorously supporting the development of private enterprises has always been an important task for regulatory authorities. While the capital market continues to strongly support the reform of state-owned assets and enterprises, strengthening and optimizing state-owned capital, it also unswervingly supports the innovation, transformation, and healthy development of private enterprises. At present, the number of listed private companies has exceeded 3000 Home, accounting for approximately 2/3 "In recent years, private enterprises have accounted for more than 80% of newly listed companies." "This year 4 At the beginning of the month, Yi Huiman, Chairman of the China Securities Regulatory Commission (CSRC), stated at the Third Member Representative Conference of the Listed Companies Association. Tonghuashun iFinD Data shows that as of this year 7 month 26 day 198 Total funds raised from newly listed shares 3432 Yuan billion (including initial public offerings and listings on the Beijing Stock Exchange), of which, 165 Private enterprise fundraising 1961 Yuan, with the respective proportions of quantity and fundraising amount being 83% , 57% In addition, 165 Among the companies, those that have listed on the ChiNext board 64 The number of companies in (domestic) Shanghai is the largest, followed by the Sci-Tech Innovation Board ( 47 (Home) secondly, the combined proportion 67% ; Looking at different industries, private enterprises are mainly concentrated in mechanical equipment ( 26 Home), Electronics 25 Home), Medicine & Biology 19 The three major industries (home)   "   "In multi-level capital markets, the ChiNext and STAR Market are more suitable for small and medium-sized private enterprises. Both sectors are mainly positioned to serve technology innovation-driven and growing enterprises." Wang Xin, Global Partner at Frost & Sullivan and President of Greater China, told the Securities Daily reporter. In terms of overseas financing, regulatory authorities have also continuously broadened and optimized the financing channels for private enterprises. 2 In the month, the "Regulations on the Supervision of Interconnectivity Depository Receipts Business between Domestic and Overseas Stock Exchanges" were released and implemented. 13 home A Promotion of the joint-stock company GDR issuance, and this 13 All companies are private enterprises. "The financing difficulties for private enterprises still exist, especially in bond financing. Private enterprises default on bonds more frequently, and it is difficult for companies with average qualifications to issue bonds. Market confidence remains to be restored," said Gui Haoming. Recently, the China Securities Regulatory Commission (CSRC) and two other departments jointly issued the 'Notice on Promoting the Bond Market to Better Support the Reform and Development of Private Enterprises', aiming to enhance the quality and efficiency of the bond market's service for private enterprise reform and development by strengthening financial service guidance, market supervision and standardization, and departmental communication and collaboration. "With the implementation of a series of policies supporting private enterprise bond financing, the financing environment for private enterprises is gradually being restored and is expected to improve in the future." Wu Lina, Assistant General Manager of Federal Reserve Securities and General Manager of the Bond Business Division, told the Securities Daily reporter that the difficulty in private enterprise bond financing is the result of long-term accumulation of various complex factors. It requires the concerted efforts of the government, financial institutions, enterprises, and other parties to jointly promote its resolution.     * This article is reprinted from "Securities Daily", reporter    Xing Meng    ,    Original title:    within the year 165 The newly listed private enterprises raised a total of 1961 100 million yuan The direct financing environment for private enterprises continues to improve    ">   Frost & Sullivan Insight & Extended Readings   Q From the perspective of industry distribution, why are newly listed private enterprises mainly concentrated in the three major sectors of machinery and equipment, electronics, and pharmaceutical biology? A : In China's gradually improving multi-level capital market, the ChiNext and STAR Market have relatively relaxed conditions in terms of absolute scale of operating income and profits, making them more suitable for private enterprises. At the same time, the ChiNext and STAR Market are mainly positioned to serve technology innovation-oriented and growth-oriented enterprises. Major industry categories such as machinery and equipment, electronics, and pharmaceutical biotechnology, especially their sub-sectors like precision machinery, intelligent machinery, semiconductors, chips, innovative drugs, vaccines, etc., are representative fields of technological innovation and are also key industries supported by the state for technological innovation.   Q Some believe that, driven by a series of policies, the equity financing environment for private enterprises has been restored and developed. Not only is the proportion of new share fundraising high, but overseas financing channels have also been broadened. What is your view on this perspective? A : Solving the problems of difficult and expensive financing for private enterprises has long been a policy focus of China's financial regulatory authorities, with improving the equity financing environment for private enterprises being an important part of this effort. 2021 year 11 The establishment of the Beijing Stock Exchange in October is aimed at better supporting the development of all small and medium-sized enterprises, especially specialized, refined, characteristic and innovative ones, and effectively broadening financing channels for private enterprises. 2021 year 12 In the past month, the revision of the Shanghai-London Stock Connect rules has greatly expanded the scope of application and financing methods. It can be seen that in terms of policies and systems, the equity financing channels for private enterprises have been significantly broadened. Moreover, judging from the actual market operation, equity financing activities of private enterprises are becoming increasingly active. The fundamental improvement of the equity financing environment for private enterprises still depends on the long-term effect of relevant policies and systems as well as the improvement of the market environment.   Q How should private enterprises utilize both domestic and overseas resources to strengthen and grow themselves? A : Overall, domestic and international capital markets each have their own characteristics, advantages, and disadvantages. From the perspective of enterprises, listing domestically offers advantages such as higher issuance prices, lower listing costs, familiarity with cultural systems, and easier policy direction to grasp. On the other hand, listing overseas has advantages such as a higher success rate and more funding supply. For private enterprises, it is necessary to start from the development stage of their business, market coverage, capital needs, management level, etc., and combine these with the different characteristics and market environments of domestic and international capital markets, along with in-depth cooperation with corresponding professional institutions, to formulate appropriate capital market operation plans to better support the long-term development of the enterprise.