With the rapid evolution of gene and cell engineering technologies, gene and cell therapy has made significant progress and become one of the most promising treatment methods for many traditional incurable diseases. Cell and gene therapy are ushering in a new era of medicine. 2022 year 2 month 24 day -25 Date, hosted by MedMakers 2021 CSGCT The Gene and Cell Therapy Medicine Summit was successfully held at the Shanghai Longmeng Hotel. The theme of this conference is 'Ramping Up Efforts & Assisting in New Beginnings'. The summit focused on multiple industry perspectives such as cutting-edge innovative technologies, market development trends, regulatory review regulations for cell and gene therapy globally, safety of genetically modified products, innovative production processes for gene drugs, current clinical treatment status of solid tumors and rare diseases. Frost & Sullivan Frost & Sullivan Dr. Wang Xin, Global Partner and President of Greater China at Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), was invited to attend this summit and delivered a speech on the current global market situation and development trends of cell and gene therapy. With the development of medical technology and the increasing maturity of regulatory systems in various countries, globally CGT The treatment market has entered a golden age, with cell and gene therapy showing a trend towards development that combines traditional cell therapy with gene therapy.   Dr. Wang Xin pointed out that the limitations of traditional cellular immunotherapy have driven the combined development of cell therapy and gene therapy. The continuous progress in genetic engineering technology, expression vectors, and gene delivery methods CGT The development provides broad space for innovation.   1970 era, restriction enzyme, DNA The combined discovery of ligases and gel electrophoresis DNA Specific fragments can be moved from one environment to another, for example, by cutting a specific gene from a chromosome into a plasmid. 2019 In [year], the world reported for the first time the use of CRISPR Gene editing technology knocked out hematopoietic stem cells in patients CCR5 Gene therapy, followed by the successful reinfusion of cells into patients to treat those with AIDS complicated by acute lymphoblastic leukemia.   Dr. Wang Xin stated that breakthroughs in gene editing and vector delivery technologies in recent years have driven CGT rapid development. Currently, the United States FDA Approved for sale CGT Products in total 20 one, of which 8 A for gene therapy Products; Those approved for sale in Europe CGT Products in total 12 one, of which 6 A gene therapy product; although in China CGT The approved quantity of the product is still lower than that in Europe and America, but there is huge market development potential in the future.   since 2015 Starting from this year, China CGT The number of clinical trials for therapies has seen explosive growth. 2015 Year to 2020 Over the year, approximately 250 item CGT Clinical trials have become the second-largest region in terms of volume, with an annual compound growth rate exceeding 60% ranked first globally.   Currently, China is conducting CGT Clinical trial approximately 100 items, involving approximately 80 Home. A large number of gene therapy drug research and development projects have entered the clinical stage. It is expected that with increasingly clear regulatory systems, gradually increasing R&D investment, and the overall vigorous development of innovative industries, more cell and gene therapy products will enter the clinical research and development phase in China in the future. By clinical stage, globally 36% The ongoing clinical trials are in clinical I period 50% Conducting clinical II period 9% In clinical use III Phase. Approximately half of the globally ongoing clinical studies are at a critical II Phase, entering clinical III The success rate of post-hive gene therapy research and development will double.   Meanwhile, gene therapy clinical trials in progress in China are mainly at the clinical phase. I Percentage of the phase, approximately 52% , for CGT The research and development is still in its early stages, but clinical III The proportion of the period is higher than the global average, accounting for approximately 13% It is expected that the proportion of successful research and development and market launch in ongoing clinical trials will also be relatively high. In the future, it will be in China CGT A period of rapid development in research and development. According to the research results of Frost & Sullivan, as of now, FDA and EMA Approved in total 4 A gene therapy for hereditary rare diseases that is currently available.   In recent years, with continuous technological improvements, the safety and effectiveness of gene therapy have been enhanced. Breakthrough results have been achieved in the clinical treatment of various hereditary rare diseases such as hemophilia, leukodystrophy, Duchenne muscular dystrophy, and congenital amaurosis. In addition, CGT The application areas of clinical trials are gradually expanding, and their use in chronic diseases such as diabetes and cardiovascular disease, as well as infectious diseases like AIDS, is also increasing, bringing hope for the cure of these diseases. Subsequently, Dr. Wang Xin demonstrated the market scale of gene therapy globally and in China. The data shows that the global market scale of the gene therapy industry has been 2016 Since the beginning of the year, it has witnessed rapid growth. Against the backdrop of favorable policies and increasing R&D investment, the market scale of China's gene therapy industry has also shown a trend of rapid expansion. CAR-T The future market potential for therapies is enormous. 2016 Year to 2020 In the year, the global gene therapy market compound annual growth rate was 153% It is predicted that the market scale of future gene therapy will still maintain a rapid growth trend, estimated to 2025 The global overall market size will reach 305.4 billion dollars 2020 Year-end 2025 The annual compound annual growth rate reaches 71% .   and 2016 Year to 2020 In [year], the China gene therapy market grew from 0.02 USD billion growth to 0.03 billion US dollars, with a compound annual growth rate of 12% are expected to 2025 The overall market size in the year will rise to 25.9 billion dollars 2020 Year to 2025 The annual compound annual growth rate reaches 276% .   Globally, CGT The industry is widely favored by capital, with mainstream capital markets such as public offerings, private equity funds, and venture capital showing great enthusiasm for the cell and gene therapy industry. The total amount of investment and financing is from 2016 year 27.86 billion US dollars, increasing to 2020 year 105 billions, although private equity funds and venture capital are still the main entities in investment and financing, occupying the vast majority of market share, but public offerings IPO listing The method is gradually taking up a larger share, from 2016 year 5.94 Billion USD increased to 2020 year 37 billion US dollars, exceeding the scale 2016 year 6 times, highlighting the unprecedented enthusiasm of the secondary market for cell gene therapy. Additionally, in the field of mergers and acquisitions, large multinational corporations are also actively deploying in the cellular gene therapy sector through acquisition. Among them, Bayer, Eli Lilly, Sanofi, and Novartis are particularly typical. According to Dr. Wang Xin, the acquisition of Eli Lilly's gene therapy for neurodegenerative diseases has brought a series of pipelines related to these diseases, broadening its competitive options; Bayer's acquisition of Pompeii disease gene therapies and a full set of adeno-associated virus technologies has, on one hand, increased its stakes in the gene therapy field, and on the other hand, the acquisition has brought more than 500 A patent related to the development and production of adenovirus has made Bayer a global leader in viral vector technology. "Compared with European and American countries, China has a shorter development time for cell and gene therapy, which is still in its infancy. However, with continuous technological innovation and policy support, CGT The industry can achieve rapid development, helping China's biopharmaceutical industry enter a new era." said Dr. Wang Xin.    He introduced that China's cell and gene therapy in 20 century 90 There have been clinical studies for many years, up to 2005 There are two drugs targeting solid tumors each year CGT Products, but then the popularity faded in the following years, until 2010 After the Spring Festival, cell therapy has begun to attract the favor of major pharmaceutical companies and research institutions. To this day,    domestic CGT The industry has formed a relatively complete industrial chain, mostly focusing on the development of downstream treatment products. In the upstream field of key raw materials and production processes, imported brands still dominate, leaving significant room for domestic substitution.   Dr. Wang Xin pointed out that China's vast potential patient base CGT As demand continues to grow, coupled with the emergence of a large number of biotech companies adapting to various indications and the capital market's investment boom, China's future CGT The market will show the following development trends:   （ 1 Expansion of therapeutic areas, CGT , CDMO Rapid development and reduced R&D costs. 2 At the corporate valuation level, domestically CGT The overall level of enterprise performance is currently lower than that of overseas companies, indicating significant growth potential; 3 ) At the same time, domestically GCT Enterprises are paying more attention to relatively traditional hematology malignancies and related fields. The expansion of indications is not as diverse as that of overseas companies, and in the future, domestically CGT The market still has significant room for growth.     In addition, CGT The treatment cost of products is high, and patients have low accessibility. He believes that a diversified payment model is CGT A major driving force for product commercialization is the diversified medical insurance payment models in major European and American countries CGT Commercial development has provided support,   It is expected that China's diversified medical insurance system will also drive CGT Industrial development.   " Finally, Dr. Wang Xin said,   With policy, capital, and talent support, the Chinese pharmaceutical market is highly favored by the capital market, supporting biomedicine / Biotechnology has always been a hot investment area in China's healthcare industry, especially in recent years. CGT The field has gradually become a focus of investment attention.   According to China CGT The sector's financing transaction data shows that currently, private equity financing, IPO listing Various transaction forms such as mergers and acquisitions, cooperation, etc., are booming. Heavyweight trades keep emerging. 2020 annual CGT The total amount of field financing is about 126 billion dollars 2016 Year to 2020 The annual compound annual growth rate reaches 59.3% Looking at treatment modalities by investment segment, CAR-T Therapy is the most focused treatment method. "It is expected that the entire pharmaceutical investment and financing market will continue to be highly active in the future. CGT The continuous increase in capital investment in the field will also drive CGT Industrial development. China has a large population base and a high number of patients with rare diseases and tumors, resulting in a significant unmet clinical medical demand. R&D innovation is being carried out based on the current situation to introduce globally leading technologies. CGT technology, and utilize the current China CGT China, with a favorable policy and investment environment for the track industry CGT "The treatment market holds broad development opportunities and prospects," concluded Dr. Wang Xin.

Frost & Sullivan insights In April 2018, the Hong Kong Stock Exchange added Chapter 18A 'Biotechnology Companies' to its Main Board listing rules, allowing biotechnology companies that have no revenue or profit to submit listing applications. As a result, the Hong Kong Stock Exchange has become the preferred listing destination for an increasing number of biotechnology companies. Is the enterprise suitable for going public in Hong Kong? What will the 18A system bring to enterprises? Which tracks have more investment opportunities in the future? On January 24th, the 'Investment Activity Report on the Issuance of 18A Biotech Companies in Hong Kong' (hereinafter referred to as the 'Report'), co-authored by Frost & Sullivan (Frost & Sullivan, hereinafter referred to as 'Frost & Sullivan'), TradeGo, and LeadLeo, was officially released. It provides a reference guide for biotech companies that are already or intend to go public in Hong Kong. Daily Economic News The successful development of an innovative drug cannot be separated from the comprehensive support of policies, systems, and capital, and the '18A' system is the best illustration of this statement.   In April 2018, the Hong Kong Stock Exchange added Chapter 18A 'Biotechnology Companies' to its Main Board listing rules, allowing biotechnology companies that have no revenue or profit to submit listing applications. As a result, the Hong Kong Stock Exchange has become the preferred listing destination for an increasing number of biotechnology companies.   However, it cannot be ignored that the average fundraising amount has pulled back and market liquidity is low, which has raised concerns among companies and investors. Are enterprises suitable for going public in Hong Kong? What will the 18A system bring to enterprises? Which tracks have more investment opportunities in the future?   On January 24th, the 'Hong Kong Biotech Companies 18A IPO Investment Guide: A Report Co-written by Frost & Sullivan, TradeGo and LeadLeo' (hereinafter referred to as the 'Report') was officially released. It provides a reference guide for biotech companies that are already or intend to list on the Hong Kong stock market.   Financing Achievements: 48 companies have been listed, with capital heavily invested in biopharmaceuticals Since 2018, a total of 48 companies have gone public through the 18A rule, with 23 companies currently in the delisting (i.e., hearing stage) status.   In terms of pre-listing financing, 18A companies have a high frequency of fundraising before listing, with prominent valuation growth. Specifically, among the listed 18A companies, 39 have had between 2 to 6 rounds of fundraising before listing, accounting for as high as 84.78% of the total. Among them, the company with the most fundraising rounds before listing is Qiming Medical (02500.HK), which has undergone 12 financings.   Moreover, there were at most 16 companies whose pre-listing valuation increased by 10 to 50 times. The issued valuations of 18A companies all increased to varying degrees compared to their last round of financing. Among them, the highest increase was seen in CanSino Biologics (09966.HK), with the issued valuation increasing by as much as 66.26% compared to the last round.   In addition, the time taken for 18A companies to submit their filings to the issuance market is generally shorter than that of other companies. According to the 'Report', among the listed 18A companies (excluding Chinese concept stocks returning from overseas listings), the average filing cycle from the first submission date to the first day of public offering is about 127 days (natural days, the same below). The longest filing cycle is held by Yongtai Biotech (06978.HK), with a duration of 301 days, while the shortest is held by Oukangwei Vision Biotech (01477.HK), with a duration of 61 days. From the perspective of the own accumulation of listed companies, the average establishment duration is 8 years. The company with the longest establishment duration is China Antibody (03681.HK), which took 18 years to establish; the shortest duration is 3 years, including Yundeng Newray (01952.HK) and Ocumivir Biologics.   In terms of post-listing financing, 18A listed companies are particularly favored by investors. Among the 48 listed companies, the raised funds accounted for 9.16% of the total fundraising on the Hong Kong Stock Exchange during the same period. Among them, BeiGene (06160.HK) raised the most funds, amounting to HK$7 billion; the company with the lowest fundraising was Yasheng Medicine (06855.HK), about HK$417 million.   However, from the perspective of distribution ratio, the issuance of 18A companies generally fell below the new share issuance inertia of a 25.00% distribution ratio. Among them, the company with the highest distribution ratio was CanSino Biologics (06185.HK), with an issuance proportion of 26.24%, while the company with the lowest distribution ratio was MicroPort Robotics (02252.HK), with an issuance proportion of 3.80%.   One of the reasons for this phenomenon lies in the market's acceptance of 18A bonds. In the early stages of the 18A reform, issuers that had undergone several financings might reduce their issuance ratio to ensure a successful issue and balance the interests of various parties.   It cannot be ignored that in the new share issuance market of Hong Kong, China, cornerstone investors (large or professional institutional investors, etc.) have played an important role. Among them, there are 119, 63, and 8 cornerstone investors participating in the biopharmaceutical, medical device, and frontier medical technology sectors respectively, accounting for 82.64%, 43.75%, and 5.56% of the total number of cornerstone investors.   This means that among the 18 listed A-share companies, the biopharmaceutical sector is currently the main track for cornerstone investors to enter. Against the backdrop of the biotechnology industry, the Report predicts that the biopharmaceutical sector may be a battlefield for capital pursuit over the next three to five years. Three major tracks: The market value differentiation among enterprises is evident, and the pharmaceutical industry has started to peel off the “-B” tag. From an industry perspective, 71 biotech companies mainly focus on three tracks: medical devices, pharmaceuticals, and cutting-edge medical technologies. Among them, there are a total of 47 companies in the pharmaceutical track, which is the most numerous, accounting for 66.2% of all 18A companies; the number of companies in the cutting-edge medical technology track is the least, with only 4 companies, all of which are AI diagnostic and treatment device enterprises, accounting for 5.6%.   Among the listed biotech companies, there are 35 pharmaceuticals, 12 medical devices, and 1 cutting-edge healthcare technology company.   Some analysts believe that this is related to the development stages of various industries. Since the pharmaceutical policy reform in 2015, with the improvement of patients' affordability, the growth of the patient population, and the expansion of medical insurance coverage, the development of China's biopharmaceutical industry has been unprecedentedly rapid, and the variety of sub-industries has become relatively complex.   In 2020, the market scale of the domestic pharmaceutical industry was 1.6 trillion yuan. According to the 'Report', with an overall annual compound growth rate of 6.8%, the market scale is expected to expand to 2.3 trillion yuan by 2025.   Market value is the most direct reflection of market development expectations. In terms of market value, the total market value of the 35 listed companies in the biopharmaceutical subsector alone amounts to HK$737.43 billion, making it the sector with the largest total market value among the three major tracks. However, the August 28th effect is evident, as the market value of a single company, BeiGene, approaches 29.1% of the total market value of the 35 companies, which is close to the sum of the market values of all 27 18A biopharmaceutical companies ranked after the top 27.   However, the pharmaceutical industry still accounts for the largest proportion by weight, with chemical drugs accounting for 49% of the pharmaceutical market in 2020, amounting to 7945 billion yuan. Next is traditional Chinese medicine, which occupies a 30% share of the pharmaceutical market with 4880 billion yuan. But biopharmaceuticals had the fastest average annual compound growth rate from 2016 to 2020, and their market size accounted for 21% of the pharmaceutical market in 2020.   The development stage of the medical device sector is relatively mature. The Report predicts that the industry will maintain an average annual compound growth rate of 13.9% from 2020 to 2024E, a decrease of 5.4 percentage points compared to the 19.3% compound growth rate from 2015 to 2020. The compound growth rate of China's medical device market is 19.3%. In the future, the growth of China's medical device market will be mainly driven by factors such as increased domestic product penetration rates, technological progress, increasing penetration rates, and continuous policy support from the state. This also results in a relatively weaker market value. The total market value of the 12 listed medical device companies is HK$137.05 billion, less than 20% of that of the pharmaceutical industry.   The market capitalization differences are also significant. The number of companies with market capitalizations exceeding HK$5 billion, HK$10 billion, and HK$50 billion is 8, 3, and 1 respectively. Among them, MicroPort Robotics has the highest total market capitalization in this sector, accounting for as high as 41.0% of the market value.   Looking at sub-industries, these companies mainly focus on areas such as vascular intervention, neurosurgery, non-vascular intervention, diabetes, diagnostic and therapeutic equipment, and molecular diagnosis. Among them, 12 companies are involved in the largest number of vascular intervention projects; the main indications are distributed across heart and vascular diseases.   In the frontier medical technology sector, which has the fewest listed companies, the current focus is mainly on the AI diagnostic and treatment equipment industry. Not only did Eagle Eye Technology (02251.HK) achieve a zero breakthrough in listing as an 18A company in 2021, but the market is also in the early stages of sprinting forward.   The Report shows that from 2019 to 2020, the market scale of AI diagnostic and treatment equipment in China increased significantly from 124.7 million yuan to 291.8 million yuan, and it is expected to increase to 755.688 billion yuan by 2030. From 2021 to 2025, the annual compound growth rate is expected to be 152%, and from 2026 to 2030, it will be 26%. From the perspective of earnings-per-share capability, if a listed company has met the market value/earnings ratio test requirements under Rule 8.05(3), its management team has remained unchanged for at least the past three fiscal years, and the ownership and control rights in the most recent audited fiscal year have also remained unchanged, then its stock name may not carry the 'B' symbol.   Currently, the four companies that have removed the 'B' symbol are all biopharmaceutical companies, namely BeiGene, Sino Biologics (01801.HK), Junshi Biosciences (01877.SH), and Fosun Pharma (02696.HK).   Looking ahead: Fundraising may continue to be reduced, and the listing location varies by company As of December 31, 2021, there were a total of 23 companies classified as 18A that had submitted their listing applications but not yet been listed on the Hong Kong Stock Exchange.   According to the segmentation of tracks, compared with the 18 A-share listed companies where biopharmaceuticals and medical devices accounted for an absolute weight, among the 23 companies that have been delisted but not yet listed, biopharmaceuticals still account for more than 50%. The proportion of frontier healthcare and medical services has significantly increased, making the ratio more balanced.   In terms of the number of issuers, from 2018 to 2021, there were 5, 9, 14, and 20 listed companies on the 18A board of indexes respectively, showing a gradual increasing trend overall, with more IPOs in the second half of the year; however, in terms of average fundraising amount, it was slightly larger from 2020 to the first half of 2021, and then saw a slight correction in the second half of 2021.   The Report anticipates that in 2022, the number of listed companies on the market for 18A stocks will remain at around 20, with an average fundraising amount possibly continuing a downward trend.   "The 18A market has gone through three stages of development: exploration phase, frenzy phase, and adjustment phase," Liu Shoujian, Deputy Chief Executive Officer of CCB International, believes. "In the future, on one hand, more global high-quality biotech companies will choose to list on the 18A market, while on the other hand, the IPO enthusiasm and subsequent stock price performance of different companies will continue to diverge." Facing the future of the 18A market, Liu Shoujian said. " The Report shows that the issuance of 18A shares is affected by the new share market and the healthcare sector's performance. In the future, the probability of subscription orders being ten thousand times higher than the offering amount will decrease, but it remains a hot sector in the Hong Kong IPO market. It is worth noting that for pharmaceutical companies that have mastered certain R&D technologies but have raised large amounts of funds and have not yet achieved profitability, listing on the Sci-tech Innovation Board (STAR Market) is another option. However, the similarities and differences between it and the Hong Kong capital market in China are worthy of attention.   At the 6th China Pharmaceutical Innovation and Investment Conference, Dai Wen, Chief Analyst for the A+H Healthcare sector at Huatai Securities Research Institute, analyzed investors' preferences. She believes that "investors in the mainland and Hong Kong have some different preferences." Specifically, there are more traditional Chinese medicine companies listed on the Hong Kong Stock Exchange, but there are more medical device companies in the A-share market.   In addition, the choice of listing location is closely related to the company's needs and the background of its investors. For example, pharmaceutical companies that want to conduct global clinical trials may prefer to list on the Hong Kong stock market for dollar financing.   Bao Haijie, Managing Director of the Hong Kong Exchange and Co-Head of Market Development, believes that in addition to financing time and price, the difficulty, timing, and approval process for refinancing should also be considered within the company's listing considerations. 'What is important is not only the listing cost but also whether there are ongoing legal risks and litigation risks later on. The costs in this regard mainly include considering the possibility of class-action lawsuits, policy uncertainties, regulatory uncertainties, and whether a legal team needs to be hired for legal support.'   Wang Yinxiang, Chairman of Gaoke Science & Technology Group (01167.HK), stated that for biotech companies without revenue, the speed of financing is very important. The A-share market has a large trading volume, and it usually takes 6 months to 1 year to raise funds in the primary market; however, the Hong Kong market in China has a faster financing process, with most financings concluding within a week after listing. However, financing in the Hong Kong market is a test of the company's and its products' international market recognition, and liquidity is relatively lower.   It can be seen that companies have different opinions on the choice of listing locations. However, regarding the market development logic, more consensus will surely be reached within the industry.   Wang He, co-founder and CEO of Yongtai Biotech (06978.HK), believes that in the first two decades of the 21st century, the pharmaceutical industry has experienced a rapid development from small molecules to large molecules, and then to cell and gene therapy. In the next two decades, using more complex cell and gene therapies to treat refractory diseases has become the main direction for biopharmaceutical development.   *This article is reprinted from 'Daily Economic News', with reporter Lin Zichen. The original article was titled 'From 0 to 48 Companies, What Else Does the Hong Kong Stock Market's '18A' Biotech Company Listing Rules Bring?'

Frost & Sullivan insights In April 2018, the Hong Kong Stock Exchange added Chapter 18A 'Biotechnology Companies' to its Main Board listing rules, allowing biotechnology companies that are not profitable and have no revenue to submit listing applications. Recently, the 'Investment Activity Report on Hong Kong 18A Biotech Companies Issued by Frost & Sullivan and Other Institutions' (hereinafter referred to as the 'Report') released by institutions such as Frost & Sullivan stated that since the implementation of the new 18A rules on the Hong Kong Stock Exchange, 18A biotech companies have mainly concentrated in three areas: pharmaceuticals, medical devices, and cutting-edge medical technologies, accounting for 66.2%, 28.2%, and 5.6% of the total number of 18A enterprises respectively. The 'Report' may be of reference value for biotech companies planning to go public in Hong Kong. First Finance With the surge in biopharmaceutical companies going public in Hong Kong, which other tracks are worth paying attention to?   Recently, the 'Investment Activity Report on Hong Kong 18A Biotech Companies Issued by Institutions such as Frost & Sullivan' (hereinafter referred to as the 'Report') stated that since the implementation of the new 18A rules on the Hong Kong Stock Exchange, 18A biotech companies have mainly concentrated in three areas: pharmaceuticals, medical devices, and cutting-edge medical technologies, accounting for 66.2%, 28.2%, and 5.6% of the total number of 18A enterprises respectively. The 'Report' may be of reference value for biotech companies planning to go public in Hong Kong.   In fact, the support for the biopharmaceutical industry by top-level policies is continuously increasing. On December 30, 2021, the National Medical Products Administration and seven other departments jointly issued the '14th Five-Year Plan' for national drug safety and promoting high-quality development, which also proposed goals such as 'approving a batch of innovative drugs urgently needed in clinical practice', 'accelerating the market launch of clinically valuable innovative drugs', and 'bringing globally applied innovative drugs and medical devices to market in China as soon as possible'.   Biotechnology innovation continues The 18A mentioned in the Report refers to Chapter 18A of the 'Main Board Listing Rules' under the new Hong Kong Exchange's 'Listing Rules', which allows biotech companies that are not profitable or generate revenue to go public. This rule came into effect on April 30, 2018. As of December 31, 2021, a total of 48 companies, including Gilead Sciences-B, BeiGene-B, CanSino Biologics-B, Regeneron Biologics-SB, Clover Biotechnology-B, and MicroPort Robotics, were listed through the 18A rule, raising a total of HK$112.6 billion from IPOs.   From the tracks selected by Company 18A mentioned above, biopharmaceuticals mainly focus on liver cancer, lung cancer, gastric cancer, hemangioma, lymphoma, etc. Medical device companies primarily deal with heart valve diseases, vascular diseases, and AI medical imaging diagnosis. In addition, AI diagnostic and auxiliary diagnostic equipment is also an important sector.   For instance, in the biopharmaceutical sector, there are 35 listed companies with a total market value of HK$737.43 billion. Sixteen, nine, and three companies have market values exceeding HK$100 billion, HK$200 billion, and HK$500 billion respectively. Another example is the medical device sector, where there are 12 listed companies with an overall total market value of HK$137.05 billion. Among them, MicroPort Robotics ranks first on this sector with a total market value of HK$56.13 billion, accounting for as high as 41% of the total medical device market value.   From the data of the issuance stage, the Report shows that companies in the 18A category had a high frequency of financing before issuance. The majority of companies had 2 to 6 rounds of financing before listing, with Qiming Medical-B, Beihai Kangcheng-B, and Xinda Biotech-B all exceeding 10 rounds; in addition, the time from the submission of the prospectus to issuance for these 18A companies is generally shorter than that of other companies, ranging from 61 days to 301 days.   Li Zheng, the dean of LeadLeo (Shenzhen) Research Institute, said in an interview with CBN that against the backdrop of the country's encouragement for biotech innovation, the report makes comparisons between the valuation of listed companies during the issuance phase, intermediary institutions, and the popularity during the issuance period. It also lists the valuation growth rate of listed companies under their respective tracks and the amount of capital invested by cornerstone investors in these tracks. These are of certain reference value to investors.   Li Zheng also stated that regarding the company's issuance structure (an important information point rarely mentioned in the secondary market), the Report has analyzed the proportions of cornerstone investors, anchor investors, and public offering investors after the company went public, as well as made trend judgments on key indicators such as turnover rate.   New tracks in biotechnology In biopharmaceuticals, medical devices, and cutting-edge technology fields, what other tracks are worth paying attention to?   Hao Shichao, Chief Analyst of Healthcare at LeadLeo (Shenzhen) Research Institute, told reporters, "Firstly, attention should be paid to the cell immunotherapy track. This is because, against the backdrop of a steady increase in cancer incidence over the past few years and limited effective cancer treatment methods, once new treatment solutions such as CAR-T cell therapy demonstrate outstanding efficacy in treating solid tumors, it will drive the development of cell immunotherapy."   Data from Frost & Sullivan shows that in June 2021, China's first CAR-T therapy, axilelimab injection, was approved for marketing. With the approval of more cell immunotherapy products, the market size in this field is expected to reach 584 billion yuan by 2030, with a compound annual growth rate of 21.6% from 2026 to 2030.   "Secondly, we need to pay attention to cutting-edge medical technologies. For example, Yingpeng Technology, the first stock in the healthcare AI sector, went public on the Hong Kong Stock Exchange in November 2021. In the future, the AI + healthcare industry will accelerate its development," said Hao Shichao. "The potential applications of AI diagnostic and treatment devices include multiple fields such as cancer, infectious diseases, cardiovascular and cerebrovascular diseases, and trauma. After hospitals introduce AI medical devices, they can significantly improve the efficiency of clinical workflows and fill the gap in diagnostic resources."   The Report also shows that in the medical device sector, vascular intervention is currently the sub-industry with the most corporate layout, with a total of 12 listed companies involved in this area.   In this regard, Hao Shichao analyzed that 'from the perspective of China's major vascular interventional medical devices (coronary, peripheral and neurointerventional) market, its market size has increased from 6.72 billion yuan (RMB, the same below) in 2016 to 11.26 billion yuan in 2020, with a compound annual growth rate of 13.8%. It is expected that the compound annual growth rate from 2021 to 2025 will be 14.9%.'   He stated that, affected by factors such as the intensification of population aging, the improvement in residents' affordability, and the strengthening of domestic substitution, the demand for vascular interventional surgeries will continue to grow in the future. The market penetration of related medical devices in third- and fourth-tier cities is expected to continue to increase. *This article is reprinted from 'CBN Financial', authored by Zou Zhenjie, with the original title 'Hong Kong Stocks 18A Companies Raise Over HDB 100 Billion, What Other Potential Tracks are There in Biotechnology?'.

Professional support for development, working hand in hand to create the future 2022 year 1 month 21 Today, Zhenchuanghui “Professional Support for Development, Working Together to Create the Future” 2022 New Year's Special Salon on Biopharmaceutical Enterprise Financing and Intellectual Property Rights, held at Furonghua Road in the Shanghai International Medical College Area 500 make 2 Building No. 5 The Layer Conference Hall was successfully held. This event was hosted by Zhenyue Capital and co-hosted by Haining Juanhu Science and Technology City and Wanku Medical Technology Incubator.   Frost & Sullivan Frost & Sullivan Guo Jing, the consulting director of Frost & Sullivan's Greater China region, was invited to attend and participate in an interactive salon session. IDG Capital Medical Group Investment Manager Ouyang Yifan, Partner Dr. Qi Fang from Fanda Law Firm   Dr. Zhao Bing, Director of the Research Institute at Huaxing Securities and Chief Analyst for the Pharmaceutical Industry, joined forces with us to discuss a series of topics including current medical industry policies. Interactive Salon Session   The interactive salon session is at IDG The atmosphere was lively under the chairmanship of Ouyang Yifan, Investment Manager of Capital Medical Group. Dr. Qi Fang, a partner at Fangda Law Firm   Dr. Zhao Bing, Director of the Research Institute at Huaxing Securities and Chief Analyst for the Pharmaceutical Industry, and Guo Jing, Consulting Director for Greater China at Frost & Sullivan, participated in this session. The four guests engaged in discussions and exchanges around a series of topics, including the impact of current medical industry policies and capital environment on the financing and valuation of healthcare enterprises, whether domestic market innovative drug and medical device companies should adopt localization or internationalization strategies, how local enterprises can quickly break through European and American patent layouts to promote product launches, knowledge production areas that need attention for overseas development, and the impact of population aging on the future development of China's pharmaceutical industry. Representatives from enterprises and institutions attending the event also actively participated in interactive exchanges, expressing their views on how they view the future development of China's pharmaceutical industry. Topic Sharing Session   Topic 1: The Impact of Crafting Good Investment Stories on the Valuation of Pharmaceutical Companies Dr. Zhao Bing introduced the root causes of current differences in foreign investors' understanding of investment stories, and shared how to restructure investment stories from four aspects: financial systems, listing rules, investor backgrounds, and differences in the pharmaceutical industry between different countries, making the investment stories more suitable for overseas investors. Wonderful Insights: 1 The root cause of differences in valuation systems lies in financial systems, issuance systems, the economic development levels of various countries, and the stage of development of the healthcare industry. 2 Sort out investment stories with the perspective of industry panorama. 3 Starting from the investor's background, we respect the differences in their thinking and habits, and tell stories that investors can understand.   Topic 2: Examination and Analysis of Intellectual Property Rights in Pharmaceutical Enterprises Dr. Qi Fang emphasized the importance of intellectual property rights from the perspective of the development of China's legal framework for patent linkage systems, drug patent protection strategies, and common intellectual property issues faced by pharmaceutical companies. From a professional standpoint, he analyzed potential problems in the field of intellectual property rights for pharmaceutical companies, earning high recognition from entrepreneurs and institutions present. Wonderful Insights:   1 The patent link system allows generic drug companies to start manufacturing before the expiration of the original research drug's patent without worrying about their research and filing activities being deemed as patent infringement. It encourages generic drug companies to initiate patent challenges, promoting early resolution of pharmaceutical patent infringement disputes.   2 The main types of pharmaceutical patents include active ingredients, preparation methods, specific uses, prodrugs or metabolites, etc.   3 , freely implemented FTO Through retrieval, it is confirmed whether the product can be freely implemented after its market launch, that is, whether it may infringe upon others' intellectual property rights due to aspects such as manufacturing, use, promised sales, sale, import of products, etc.   4 Authorize the introduction ( License in progress ) Two aspects that require attention: down payment + milestone payment + Future sales commissions; licensing arrangements under different circumstances such as non-compete agreements, whether involving cross-border production and supply, and exclusive rights.

Major Release On January 24, 2022, Frost & Sullivan TradeGo LeadLeo Research Institute jointly authored the 'Investment Activity Report on the Issuance of 18A Biotech Companies in Hong Kong', which was officially released with Frost & Sullivan Frost & Sullivan (Shenzhen) Cloud Technology Co., Ltd.! Since the Hong Kong Exchange implemented listing reforms in 2018, Hong Kong has become Asia's largest and the world's second-largest biotech financing center. The Hong Kong government has identified biotechnology as one of the key areas for innovation technology to support the future development of the industry. The capital market plays a crucial role in the development of biotechnology and in transmitting positive social impacts. Hong Kong Stock Exchange 18A Biotech Companies' Issuance and Investment Activity Report Therefore, this report was born out of necessity. It is based on the analysis of 48 listed companies in Hong Kong and 23 biotech enterprises that have not yet issued their prospectuses but have submitted their filings. The report provides an in-depth discussion from various dimensions such as industry overview and pre- and post-capital market issuance data, making it highly valuable for shareholders, investors, and intermediary service institutions in the biotech sector.   Hong Kong Stock Exchange 18A Biotech Companies' Issuance and Investment Activity Report Table of Contents — Five Chapters in Total Chapter 1: A Panorama of 18A Biotech Companies Panorama - Total Panorama Panoramic view - by site of onset Panoramic view - by indication (pharmaceutical companies) Panoramic view - by indication (medical device companies)   Chapter 2: Industry Analysis of 18A Biotechnology Companies Pharmaceutical track Medical device track Frontier medical technology   Chapter 3: Issuance Data of 18A Biotech Company Pre-issue data Issued data Post-issue data intermediary agency cornerstone investor   Chapter 4: Indexes of Biotech Companies Listed on the NASDAQ 18A and Outlook for Listing Jielibio Technology Index Series Compilation Scheme Operation Performance of Jile Biology Technology Index Series Prospects for the Listing of BioTech Company 18A   Chapter 5: 18A Biotech Company Homepage Display the corporate pages of 18A48 companies, including company introductions, R&D pipelines, issuance data, stock price trends, etc.   Hong Kong Stock Exchange 18A Biotech Companies' Issuance and Investment Activity Report From planning, writing to finally printing into a book, the duration More than three months Time, nearly 300 pages Proofread and corrected Dozens of times The number of contributors involved in compilation is nearly 30 people Participated in nearly Forty . During the compilation process, it has received even more HSBC Global Banking Mr. Meng Yi, General Manager and Vice Chairman of China Region, Ping An Capital Mr. Zhou Yibang, a member of the Listing Committee of the Hong Kong Stock Exchange (Hong Kong) Limited, CMB International Mr Lau Shou-kin, Deputy Chief Executive Officer of (Holdings) Limited, Credit Suisse Securities Mr. Tu Lei, General Manager of (China) Co., Ltd., EY Global Greater China Accounting Firm Jingtian Gongcheng Law Firm , Frost & Sullivan Comments and messages from colleagues in the medical team and other professionals on revisions/supplements. The field of biotechnology is vast and knowledge is as endless as the sea, with new technologies and discoveries emerging daily. Humanity's demand for health is boundless, and the success of health research requires belief to be seen; biotechnology is related to the future of humanity. The motivation for writing, researching, and analyzing over more than 100 days and nights is to provide assistance to future issuers, investors in the pharmaceutical industry, and intermediary institutions. This aim is to enable them to better devote themselves to the tireless pursuit of life sciences, thereby seeking well-being for all mankind.   For the original report, please send an email to: livereport@sullivantelecloud.com   "18A Biotechnology Company's Issuance and Investment Activity Report" Editor's Introduction ▶ Frost & Sullivan（Shenzhen）Cloud Technology Co., Ltd. Founded jointly by the mainland subsidiaries of Frost & Sullivan Group and TradeGo. The cloud technology company provides one-stop full-cycle investor relations management and comprehensive investment and financing services for Hong Kong-listed companies planning to go public or those that are already listed, including precise promotional roadshows and public offerings. It is dedicated to the dissemination and realization of corporate value.   ▶ Frost & Sullivan Limited A global growth consulting firm, Frost & Sullivan specializes in the global capital markets and corporate consulting services. It provides a comprehensive range of investment and financing as well as various other professional consulting services for enterprises, including due diligence services, valuation services, assessment services, strategic consulting, management consulting, planning consulting, technical consulting, financial consulting, industry consulting, etc.   ▶ TradeGo Financial Technology Co., Ltd. TradeGo (08017.HK) provides an integrated terminal product for market and trading across over 140 Hong Kong brokers, serving more than 1.5 million Hong Kong stock trading users. TradeGo's proprietary APP has gathered over 60% of new investors in the IPO market and occupies an important position in assisting with public offerings on the Hong Kong capital market.   ▶ LeadLeo International Ltd. LeadLeo is a leading original corporate research content platform and new enterprise service provider in China. Leveraging its industry-leading corporate research content production capabilities, as well as experience in content operation and management, it has built a series of research products and solutions based on core technologies. With the core goal of helping enterprises accelerate the exploration, dissemination, and enhancement of capital value, LeadLeo comprehensively empowers over 50,000 professional users and is committed to becoming 'China's largest consulting cloud'.

2021 is the beginning year of the country's 14th Five-Year Plan and also marks a new starting point for the golden decade of the 'Healthy China 2030' strategy. Amid the ongoing two-year rampage of the COVID-19 pandemic, the pharmaceutical and healthcare industry has become a new high ground for global competition. Globally, the number of IPOs in the healthcare industry in 2021 was second only to the technology sector. Domestically, in 2021, a total of 38 pharmaceutical companies successfully listed on the A-share Sci-Tech Innovation Board, far exceeding the 28 companies in 2020 and the 16 companies in 2019. On the Hong Kong Stock Exchange, a total of 20 non-profit biotech companies successfully went public in Hong Kong in 2021, with over 20 healthcare industry companies having submitted IPO applications, more than 90% of which are from mainland China. Focusing on the key points and difficulties in analyzing the biopharmaceutical investment and financing market, January 20, 2022. Mr. Mao Hua, Partner and Managing Director of Frost & Sullivan Greater China Region, was invited by TBio to share with everyone a summary of the domestic and international biopharmaceutical investment and financing markets in 2021 and future prospects at the TBio's live medical course. During the live broadcast, Mao Hua first conducted a detailed analysis of the investment and financing status of the global and Chinese biopharmaceutical industries in 2021. He pointed out that the global equity financing scale increased steadily in 2021, with China consistently ranking second over the past two years. In the healthcare sector, between 2020 and 2021, the number of listed companies increased in all major global sectors, with A shares being particularly favored. With the full implementation of the A-share registration system and market policy reforms, the A-share market will have greater attractiveness compared to the Hong Kong stock market in the future, and it is foreseeable that more pharmaceutical companies will choose to raise funds on the A-share market. In the Chinese A-share market, the IPO financing scale and number of IPO companies in the healthcare industry rank third and fifth among all industries, respectively. Mao Hua said that in terms of the review process during the listing process, medical and health enterprises vary in procedures and timelines across different sectors. The average number of days for review on the A-share Sci-Tech Innovation Board and Growth Enterprise Market is 300 days and 374 days respectively, far higher than the 128 days on the Hong Kong stock market and the 31 days on the US stock market. Moreover, after the review phase is completed, A-share companies also need to pass a meeting of the Issuance Examination Committee/Listing Committee, making the process more complex. In terms of the valuation level after listing, A-share medical and health enterprises, especially those without profitability, are higher than those on the US and Hong Kong stock markets. Looking at the stock price on the listing day in the second half of the year, Hong Kong-listed unprofitable biotech companies have a high initial-day underpricing rate, accounting for 82% of all initial-day underpricing companies. A-share companies, affected by policies, have seen a reduction in initial-day underpricing; in terms of average daily trading volume after listing, in 2021, the trading activity of the A-share medical and health industry, both as a whole sector and among unprofitable biotech companies, far exceeded that of the Hong Kong stock market. According to a survey by Frost & Sullivan, the performance of the primary market in the biopharmaceutical sector is also remarkable both in China and globally. The COVID-19 pandemic has significantly driven investment and financing in the biopharmaceutical field. In 2021, there were a total of 1,273 investment and financing events in the global biopharmaceutical sector, involving a total amount of 369.91 billion yuan, an increase of 31.7% compared to 2020. 'Overall, the enthusiasm for investment and financing in the global biopharmaceutical sector remains at a high speed, with continuous growth in investment and financing amounts and an optimistic growth rate. It is expected that there will be further room for growth in 2022.' Mao Hua further added, 'In addition, within the biopharmaceutical industry chain, investment and financing in downstream pharmaceutical companies dominate, with small molecule and antibody drugs still accounting for the main proportion in China's primary investment and financing market for biopharmaceuticals. Investment and financing growth in innovative biotechnology fields is evident.' Mao Hua also shared the top cases of pharmaceutical investment and financing in China in 2021 - namely, the listing cases of Aibo Biotech and BeiGene. In August 2021, Aibo Biotech completed a $700 million Series C financing, setting a new record for primary market financing by Chinese pharmaceutical companies. On December 15, 2021, BeiGene was listed on the Sci-tech Innovation Board with a fundraising amount of 222 billion yuan, setting a new record for IPO fundraising by Chinese pharmaceutical companies. Subsequently, Mao Hua led the audience in a review of the key highlights of the biopharmaceutical market in 2021. Compared to 2020, there were not significant changes in the global top ten best-selling drugs for the first three quarters of 2021. However, affected by the COVID-19 pandemic, Pfizer's COVID mRNA vaccine made it onto the list and topped the chart, surpassing Humira, which had dominated the top spot for many years. Throughout 2021, biotech companies were active in financing, directly promoting R&D investment. Domestic biopharmaceutical companies also continued to increase their R&D investment to support innovation. BeiGene, the first star biotech company to go public on NASDAQ, Hong Kong stocks, and A shares, won the top spot for R&D innovation investment with the ample financial support brought by listing in three markets. At the same time, successful financing activities in both primary and secondary markets greatly fed back into the company's R&D layout, on one hand providing sufficient funds to introduce pipelines; on the other hand, more abundant funds also strengthened internal R&D, with self-developed products yielding results, and the total transaction volume of licensed-out products entering the 2 billion-dollar club. Data shows that in 2021, the National Medical Products Administration (NMPA) approved a total of 83 new drugs, reaching a new high since 2016, mainly including oncology and infectious disease drugs. Among them, there were 51 domestic new drugs and 32 imported ones; in terms of drug types, they included 38 chemical drugs, 33 biologics, and 12 traditional Chinese medicines, with a significant increase in the number of approvals for traditional Chinese medicines. In 2021, the US Food and Drug Administration (FDA) approved a total of 50 new drugs (excluding cell therapies and vaccines), including 36 new molecular entities and 14 new biological products. New drugs are still predominantly oncology drugs, accounting for 30%. A total of 34 new drugs were approved by the FDA for marketing under the 'Priority Review' program, including 27 new molecular entities and 7 new biological products. Twenty-six varieties have been granted the 'Orphan Drug' designation by the FDA, accounting for 52% of all approved new drugs. Finally, Mao Hua summarized that the COVID-19 pandemic has brought biopharmaceutical investment and financing to an unprecedented level of enthusiasm. The influx of hot money inevitably leads to crowded R&D and homogenized competition. However, a wave of homogenized innovation brought about by hot money has gradually shown signs of market decline, and only substantial innovation oriented towards clinical needs can become a new track for investment and financing. "Of course, we can all see that national policies are guiding Chinese pharmaceutical companies towards innovation. Under the policy dividend, the level of domestic innovative drugs is continuously improving, and the R&D level of innovative drugs is growing day by day. On the other hand, the development of COVID-19 vaccines is also driving rapid technological progress in the industry. It is believed that in 2022, China's biopharmaceutical industry will become increasingly integrated into the global innovation pulse," said Mao Hua.

Frost & Sullivan insights According to analysts, the growing technical expertise on China's Digital Silk Road is expected to become a benchmark for other regions around the world to emulate. The Belt and Road Initiative (BRI) in China has already embarked on the digital Silk Road before other parts of the world began discussing interconnected smart cities and technology-driven solutions. As China continues to expand its digital footprint in multiple fields such as cloud computing, 5G, surveillance technology, and virtual currencies, observers believe that China's technological leadership position in certain areas is gradually strengthening. How will China's dominant position in future technology fields such as artificial intelligence, 5G, fiber-optic infrastructure, satellite services, cloud computing, and blockchain affect the Belt and Road Initiative (BRI)? How can BRI member states leverage China's technological advantages in infrastructure construction? Is China willing to share these technological achievements with member states? As China achieves global hegemony in the digital domain and future technologies, will it also dominate the construction process and financing of future infrastructure projects? Is there a possibility for China to increase investment in the soft infrastructure of the Digital Silk Road? Wang Huaian, Consulting Director for Greater China at Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), was interviewed by Refinitiv, a global financial market data and infrastructure provider, to share a series of interpretations on China's BRI practices.   Luoxue Special   Analysts believe that China's growing technological expertise along its digital Silk Road is expected to set benchmarks for the rest of the world to follow.   According to analysts, the growing technical expertise on China's Digital Silk Road is expected to become a benchmark for other regions around the world to emulate.   President Xi's ambitious Belt and Road Initiative (BRI) has embarked on the digital Silk Road long before the rest of the world began discussing connected smart cities and technology-driven solutions.   Long before other parts of the world began discussing interconnected smart cities and technology-driven solutions, President Xi Jinping's grand "Belt and Road Initiative" (BRI) had already embarked on the digital Silk Road.   As China continues to expand its digital footprint across sectors such as cloud computing, 5G, surveillance technology, and virtual currency, observers see movement in some areas towards Chinese technological dominance.   As China continues to expand its digital footprint in multiple fields such as cloud computing, 5G, monitoring technology, and virtual currencies, observers believe that China's technological leadership position in certain areas is gradually strengthening.   Dale Aluf, Director of Research & Strategy at SIGNAL (Sino-Israel Global Network & Academic Leadership), said that China is already leading the world in artificial intelligence, blockchain, 5G, and quantum technology publications and patents. "Data fuels AI development, and thanks to its extensive surveillance apparatus, China has access to an immense amount of data, so China seems well-positioned to emerge as a leader in this field."   Dale Aluf, Research and Strategy Director at the China-Israel Academic Exchange Promotion Association (SIGNAL), said that China is already in a leading position in the publishing and patenting of artificial intelligence, blockchain, 5G, and quantum technology. "Data drives the development of artificial intelligence, and thanks to massive surveillance equipment, China can obtain vast amounts of data. Therefore, it is very likely that China will become a leader in this field."   China has already launched the world's largest blockchain ecosystem, connecting to over 100 city nodes, and was the first country to launch widespread pilots of a digital fiat currency - the Digital Currency Electronic Payment (DCEP) system.   China has launched the world's largest blockchain ecosystem, connecting to more than 100 urban nodes, and is the first country to pilot a large-scale digital legal tender - Digital Currency Electronic Payment (DCEP) system.   Analysts agree that China has made tremendous breakthroughs in some future technologies.   Analysts unanimously believe that China has made tremendous breakthroughs in some future technologies.     "These technological advancements enable China to more effectively promote the progress of Belt and Road Initiative (BRI), enhance the bond between China and BRI countries, and advance BRI's flagship projects," said Walter Wang, consulting director at research and consulting firm Frost & Sullivan, in Greater China.   Wang Huaaiyuan, consulting director for Frost & Sullivan Greater China, said, "These technological advancements enable China to more effectively promote the Belt and Road Initiative, enhance connectivity between China and Belt and Road countries, and facilitate difficult projects along the route."   Wang cited China's world-leading fiber optic industry, which is already helping BRIC countries transform from traditional to renewable energy supplies.   Wang Huaiyuan mentioned that China's optical fiber industry is world-leading and has been helping countries along the 'Belt and Road' transition from traditional energy to renewable energy supply.   Many countries aligning with the Belt and Road Initiative are rich in solar energy resources, but "lack the technologies and resources to construct renewable energy infrastructure," according to Wang.   Wang Huaiyuan stated that many countries allied with the 'Belt and Road' initiative possess abundant solar energy resources, but lack the technology and resources to build renewable energy infrastructure.   "Through the Belt and Road Initiative (BRI), China can export advanced renewable energy technologies to BRI countries, and Chinese fiber optic enterprises are able to enjoy local preferential policies, including tax incentives and preferential treatment for equipment imports," he added.   "Through the Belt and Road Initiative, China can export advanced renewable energy technologies to countries along the route, and Chinese fiber optic companies can also benefit from local preferential policies, including tax incentives and equipment import preferences," he added.   According to Frost & Sullivan research, in some infrastructure areas, such as high-speed railways, 5G networks, and ultra-high voltage power grids, China's standards have become international standards as other countries catch up.   According to research by Frost & Sullivan, in some infrastructure areas such as high-speed railways, 5G networks, and ultra-high voltage grids, Chinese standards have become international standards, while other countries are catching up.   "Thus, by collaborating with Chinese enterprises, BRIC partner countries can adopt technologies that meet the most advanced standards in their infrastructure projects," said Wang.   "Thus, by collaborating with Chinese enterprises, 'Belt and Road' member states can adopt technologies that meet the most advanced standards in their infrastructure projects," said Wang Huaiyuan.   Impact on BRI Impact on the Belt and Road Initiative   According to Aluf from SIGNAL, China's technological prowess gives it an edge to push forward on BRI's key projects such as renewable energy, transportation, infrastructure, power, and healthcare. In today's technology-driven world, where the digital realm is intricately intertwined with physical infrastructure, this is particularly important.   According to Aluf from SIGNAL, China's technological strength gives it an advantage in promoting hard projects under the Belt and Road initiative, such as renewable energy, transportation, infrastructure, electricity, and healthcare, because in today's technology-driven world, the digital domain is closely intertwined with hard infrastructure.   "Railways, ports, and power grids, for example, would not be able to operate effectively today without software, sensors, and cybersecurity," he noted.   "For example, without software, sensors, and cybersecurity, railways, ports, and power grids would not be able to operate effectively today," he pointed out.   Moreover, China also provides a useful reference for BRICS countries with its digital transformation and industrial digitalisation models.   In addition, China's digital transformation and industrial digitization models also provide useful references for countries along the 'Belt and Road'.   Wang said that most BRICS countries are developing economies and have limited experience in dealing with digital technology, but can benefit from China's digitalization experiences.   Wang Huaiyuan stated that most countries along the Belt and Road are developing economies with limited experience in dealing with digital technology, but they can benefit from China's digitalization experiences.   He cited the Silk Road E-commerce platform developed by China in 2016 with 22 BRICS countries as an example. During the COVID-19 pandemic, China and those aligned with the BRICS quickly adjusted their strategies, shifting focus from offline to an online market, while taking advantage of cross-border e-commerce platforms to create more new growth points for the economic development of BRICS countries.   He took the Silk Road E-commerce Platform jointly developed by China and 22 "Belt and Road" countries in 2016 as an example. During the COVID-19 pandemic, China and the countries along the "Belt and Road" swiftly adjusted their strategies, shifting their focus from offline markets to online ones, fully leveraging the advantages of cross-border e-commerce platforms to create more new growth points for the economic development of these countries.   In the future, Wang expects China to continue assisting BRICS countries in improving their 5G infrastructure, which is the foundation of future digital transformation, and to promote their digital economies, such as popularizing mobile payments to facilitate loan processes for small and medium-sized enterprises (SMEs), thereby alleviating the 'urgent need' for financing during the pandemic.   Wang Huaiyuan expects that China will continue to assist 'Belt and Road' member countries in improving their 5G infrastructure, which is the foundation for future digital transformation and promote their digital economy development. For example, mobile payment will be popularized to facilitate loan processes for small and medium-sized enterprises, thereby alleviating the 'urgent need' for financing during the pandemic.   According to Jia Hao Chan, a research associate at Lee Kuan Yew School of Public Policy, National University of Singapore, how technology will be integrated into BRI projects will largely depend on the nature of the projects.   Jia Hao Chan, a researcher at the Lee Kuan Yew School of Public Policy at the National University of Singapore, said that how technology is incorporated into 'Belt and Road' projects largely depends on the nature of the projects.   "And this will vary from region to region and country," he said.   "And this will vary by region and country," he said.   For example, in late 2017, Chinese company Huawei Marine partnered with the Pakistani authorities to start constructing the Pakistan East Africa Cable Express, which will connect Pakistan to Kenya and Djibouti, focusing on hard infrastructure interconnectivity.   For example, at the end of 2017, Huawei Marine, a Chinese company, began construction of the Pakistan East Africa Cable Express with Pakistani authorities. The express will connect Pakistan with Kenya and Djibouti, focusing on hard infrastructure connectivity.   "This is essentially different from the areas that China is focusing on in Southeast Asia (centered around IT services and soft infrastructure). In these regions, technology companies such as Alibaba and Didi Chuxing would collaborate with regional ride-hailing services like Grab through investment partnerships."   "This is fundamentally different from the areas China is seeking in Southeast Asia (focusing on IT services and soft infrastructure), as technology companies such as Alibaba and Didi Chuxing will cooperate with regional ride-hailing services like Grab through investment partnerships.   Technology exports Technology export   Given that the BRI is primarily a financing/investment mechanism, analysts at Fitch Solutions believe exporting technology simply adds a different dimension to the entire BRI assistance package.   Given that the 'Belt and Road' is primarily an investment and financing mechanism, analysts at Fitch Solutions believe that technology exports merely add a different dimension to the entire 'Belt and Road' aid program.   "Generally speaking, most BRI projects have already relied on using Chinese equipment and labor, so any technological advancement may simply mean higher quality or more efficient projects," said Daine Loh, Analyst, Infrastructure and Power & Renewables, Fitch Solutions.   "In a broad sense, most Belt and Road projects already rely on the use of Chinese equipment and labor, so any form of technological progress could mean higher quality or more efficient projects," said Daine Loh, infrastructure and power and renewable energy analyst at Fitch Solutions.   She pointed out that technologies such as 5G and AI are still in their early adoption phase in the broader infrastructure sector, adding, "We do not expect them to be widely used for some time to come."   She pointed out that technologies such as 5G and artificial intelligence are still in the early stages of adoption across a wider range of infrastructure areas, and added, 'We do not expect it to be widely used.'   Loh said that anything digital tends to also require a larger investment amount, and 'the financial capacity of BRI recipient markets will also be in question here, especially if these markets are prioritizing developing adequate infrastructure to meet their domestic needs first'.   Loh stated that any digital product will require more investment, and the 'Belt and Road' initiative's ability to attract market capital will also be questioned here, especially if these markets prioritize the development of sufficient infrastructure to meet their domestic needs.   Chris Devonshire Ellis, Chairman of Dezan Shira & Associates, believes that the best way for BRIC partner countries to benefit from China's technological prowess is to partner with Chinese operators.   Chris Devonshire Ellis, Chairman of KPMG's collaborative management consulting practice, said that the best way for 'Belt and Road' member states to benefit from China's technological strength is through cooperation with Chinese operators.   "In the West, the capitalist system has focused too much on profits and not enough on cashflow businesses and service lines. The Chinese are developing technologies to connect their services into supply chains to generate cash flow streams. This is a very sustainable business model," he said.   "In the West, the capitalist system pays too much attention to profits and does not pay enough attention to cash flow businesses and service lines. The Chinese are developing technology to link their services with supply chains to generate cash flow. This is a sustainable business model," he said.   LIMITS TO SHARING Sharing restrictions   Although China has achieved digital supremacy in some areas of future technology, how much of it will be shared with its BRICS partner countries remains to be seen.   Although China has achieved a digital hegemony in certain areas of future technology, it remains to be seen how much of this will be shared with the member states of the Belt and Road Initiative.   While developing countries should be able to take advantage of ICT infrastructure, China "will not share in the ownership of the technology that drives the infrastructure," according to Andre Wheeler.   Andrei Wheeler said that although developing countries should be able to utilize ICT infrastructure, China 'will not share the ownership of the technologies that drive the infrastructure'.   "The technology is owned by China under its national security legislative provisions. This may act as a barrier to future trade for these developing countries as they may be restricted in how they can conduct trade with the likes of the EU," said Wheeler, who is also the CEO of Asia Pacific Connex.   "According to China's national security legislation, this technology belongs to China. This could become an obstacle to future trade for these developing countries, as they may face restrictions in how they trade with EU countries and other regions," said Hui Le, CEO of Conex Asia-Pacific.   The Digital Silk Road, and the Belt and Road Initiative are supply-driven projects, noted researcher Chan. He added that China's technological offers do not guarantee the same level of adoption (demand) of technology goods and services across its partner countries.   The Digital Silk Road and the Belt and Road Initiative are supply-driven projects, noted researcher Jia Hao Chan. He added that the technology provided by China does not guarantee that its partner countries adopt (demand) the same level of technology products and services.   "Moreover, there could be a lag effect in technology exports, where certain technologies gain a foothold in the Chinese market before they are deployed elsewhere."   "In addition, technology exports may have a lag effect, with certain technologies first gaining a foothold in the Chinese market before being deployed elsewhere."   Therefore, Chan suggested that BRICS partner countries themselves should carefully consider 'what they really need' rather than simply 'taking whatever is put on the table'. 'They should also consider their own ability to adopt the technologies they want, and their rate of innovation if they are going to achieve competitive advantage in the long run.'   Therefore, Jia Hao Chan suggests that 'Belt and Road' member states should carefully consider 'what they truly need', rather than just 'taking whatever is on the table'. 'If they want to gain a long-term competitive advantage, they should also consider whether they have the ability to adopt the technologies they desire, as well as their innovation speed.'   According to Wheeler, the Digital Silk Road is the integrator of trade along the Belt and Road Initiative—something that is being developed to create an integrated and seamless trade platform with all BRI participants.   Heller believes that the Digital Silk Road is an integrator of 'Belt and Road' trade, aiming to create an integrated and seamless trading platform for all participants in the 'Belt and Road'.   "It is powerful because it targets the key merge points in transportation systems, particularly ports and rail."   "The strength of it lies in its targeting of key integration points within the transportation system, especially ports and railways."   However, he pointed out that the shortcomings in the DSR/BRI integration could limit China to BRI partner countries or a regional role.   However, he pointed out that the shortcomings of DSR/BRI integration could limit China's role to being a member or region within the 'Belt and Road' initiative.   While the EU-China Comprehensive Agreement on Investment (CAI) was hailed in January as a means of cooperation, Wheeler said there is also significant pushback from the EU regarding the recently introduced EU-Connectivity strategy, which has led to Huawei being banned as a network provider in EU digital connectivity initiatives.   Although in January this year, the EU and China reached an agreement on the Comprehensive Investment Agreement (CAI) as a means of cooperation in principle, Wheeler said that the EU also faces significant resistance. The recently launched EU connectivity strategy has led to companies such as Huawei being banned from becoming network providers for the EU's Digital Connectivity Initiative.   Making Inroads Marching into   However, many countries are already reaping the benefits of China's infrastructure expansion and technological advancement.   Many countries have already reaped the benefits brought about by China's infrastructure and technological enhancements.   Aluf of SIGNAL pointed out that several Middle Eastern countries are cooperating with China on smart city technology, and there is even a project designed to streamline the experiences of pilgrims traveling to Mecca and Medina.   Aluf from the China-Israel Academic Exchange and Promotion Association pointed out that some Middle Eastern countries are conducting technical cooperation with China on smart cities, and there is even a project aimed at simplifying the pilgrimage experience for pilgrims traveling to Mecca and Medina.   "China's 2Africa initiative, one of the largest submarine projects in the world, aims to connect 23 countries in Africa, the Middle East and Europe with an energy-efficient fiber optic cable that uses Spatial Division Multiplexing technology," he added.   "China's 2Africa project is one of the world's largest undersea projects, aiming to connect 23 countries in Africa, the Middle East, and Europe through resource-efficient fiber-optic cables using space division multiplexing technology," he added.   Meanwhile, its SeaMeWe-5 submarine cable is expected to carry telecommunications between Singapore and France.   On the other hand, China's Asia-Europe 5 international submarine cable transmits signals from Singapore to France.   According to Frost & Sullivan's Wang, most BRIC partner countries have outdated data infrastructures, which means operational efficiency is low and maintenance costs are relatively expensive.   According to Wang Huaian of Frost & Sullivan, the data infrastructure in most 'Belt and Road' member countries is outdated, which means low operational efficiency and relatively high maintenance costs.   For long-term development, these countries will need to upgrade their existing infrastructure as well as initiate new infrastructure projects.   For long-term development, these countries need to upgrade their existing infrastructure and initiate new infrastructure projects.   "China, as a pioneer, can provide these countries with the necessary technologies, financing, and more importantly, practical experience," said Wang.   "China, as a pioneer, can provide the necessary technology and funds to these countries, and more importantly, offer them practical experience," said Wang Huaiyuan.   For example, he said, China and the Republic of Belarus have jointly built industrial parks based on the industrial Internet. China also has transportation and internet infrastructure upgrading projects in Iran, Pakistan, Vietnam, Brazil, and Malaysia. "Therefore, with the support from China, BRI partner countries will accelerate their infrastructure upgrading process and build up their information systems," added Wang.   For example, China and Belarus have jointly built industrial parks based on the Industrial Internet, and there are also projects to upgrade transportation and internet infrastructure in Iran, Pakistan, Vietnam, Brazil, and Malaysia. "With the support of China, 'Belt and Road' member states will accelerate the process of infrastructure upgrading and strengthen information system construction," Wang Huaian added.   BEYOND TECH SUPREMACY Surpassing the status of a technological hegemon   China's dominance over future technologies will continue to grow, but Ellis points out that an overlooked aspect of the Belt and Road Initiative (BRI) is that it will transform China into a global supply chain middleman.   Ellis believes that China's dominant position in future technology will continue to strengthen, but one aspect overlooked by the 'Belt and Road' initiative is that it will make China an intermediary in the global supply chain.   "It's not just about making products and building infrastructure, it will also operate much of it," he said. "Everything someone buys in Paris or London will have a price component that has been charged by a Chinese business," he added.   "China is not only manufacturing products and building infrastructure, but it also operates most of these products. Everything people buy in Paris or London includes a portion charged by Chinese companies," he said.   While it seems that observers tend to focus on specific technologies and their impacts on a given technology or economic sector, Aluf insists that the true power of these technologies is unleashed through their augmentation.   Although observers seem to be inclined to focus on specific technologies and China's impact on particular sectors of technology or the economy, Aluf insists that the real power of these technologies lies in their potential for enhancement.   For example, by combining embedded sensors, metering devices, cameras, and other surveillance technology with big data processing and aggregated data analysis, he said China has emerged at the forefront of smart city development.   For instance, by combining embedded sensors, measuring devices, cameras, and other monitoring technologies with big data processing and aggregated data analysis, he stated that China has already been at the forefront of smart city development.   “ for its financial also is so， Huawei、 Tencent and Alibaba such company been in。”   “ same， China the carbon in and goals also it will strong input clean the development。”   Aluf said， with China in achieve and in the redouble input， expected China also will for clean technical and sustainable the development into large resources。   Aluf said， with China in achieve and in redouble input， expected China also will for clean technical and sustainable the development into large resources。   future investment future investment   in BRI under the investment in，Chan noted， China may Committee increase to digital the input， but not must Committee taken Government intergovernmental（G2G）、 Government to enterprises（G2B） industry coordination the way。   Jia Hao Chan said， in“ area” investment in， China may Committee increase to digital the investment， but not must Committee taken Government intergovernmental（G2G）、 Government with enterprises（G2B） industry coordination the way。   “ they can to company level the B2B forms emerging，” he said， and added road， China technology company has in many local/ regional technology company in conducted investment。   “ they can in company level to B2B the forms emerging，” he said，“ China technology company has investment the many native regional the technology company。”   in Government level， China Prime in3 in announced， China will in future within will development expenditure increase7% more， to promote advanced technical made。   Government level， China Prime in3 in announced， China will in future within will development expenditure increase7% more， to promote advanced technical made。   ， as outbreak after rescue plan the，Aluf said， China is increase in national scope within capacity-building digital grid the plan， including capacity-building5G network、（AI）、 publications networking（IoT）、 intercity high-speed and establishment development institutions。   ，Aluf said， as outbreak after rescue plan the， China is increase in national scope within capacity-building digital grid the plan， including capacity-building5G network、（AI）、 publications networking（IoT）、 intercity high-speed and establishment development institutions。   “ account to China in achieve background under international digital expansion the， I think China very may Committee in digital the flag under increase to digital the funds，” he added said。   “ account to China international digital expansion in its background under the， I think China very may Committee in digital the flag under increase to digital the funds。” he added said。   While COVID-19 big popular great to impact the world economic， but China to BRI Nations the such external direct investment still keep strong and positive，2020 in to 1780 ， than 2019 in growth 18.3%。   despite COVID-19 big popular serious impact the world economic， but China to“ area” the such external direct investment still keep positive、 the support，2020 in to 1780 ， than 2019 in growth 18.3%。   2021 in， China to“ area” the external direct investment continue growth to 96 ， for 8.6%。   2021 in， China to“ area” the external direct investment continue growth to 96 ， for 8.6%。   “ under， we think China to‘ area’ the expenditure will continue rise， and cooperation will more effective and comprehensive，” said。   “ from past data look， we think China to' area' the expenditure will continue rise， China and the between the cooperation will more effective and comprehensive。” said。   in sustainable foreseeable the future， he said communications and data level will extent on impact“ area” the development。“ therefore， China will continue raise soft the funds to ensure‘ area’ the success。”   he said， in sustainable foreseeable the future，“ area” the communications and data level will in extent on impact“ area” the development。“ therefore， China will continue raise soft the funds， to ensure‘ area’ the success。”   weaknesses weaknesses   but China in pursuit technical the road on not not challenges。 weaknesses is technical hardware， it allow future the technical work， example/ capacity， this to in individual micro chip on installed more more to effective with big/ information exchange。   but China in pursuit technical the road on not not challenges。 of the weaknesses is to allow future technical work the hardware， example、 capacity， this to in individual micro chip on installed more more to effective with big、 information exchange。   Wheeler noted， chip design by States and Korea leading， global the design Centre is States in have the， and taiwan and Korea total control the global75% the manufacturing capacity。   Wheeler noted， chip design by States and Korea leading， global the design Centre is States in have the， and taiwan and Korea total control the global75% the manufacturing capacity。   “ China currently is try change agenda， not on technical development， but claims the chip utility。 major issues， because and chip technical is UNDP and in publications networking、 such areas in the use core， also is China UNDP more advanced the6G network the major obstacles，” he explained said。   “ China currently change discussion the agenda， no is on technical development， but claims the chip utility。 major issues， because and chip technical is UNDP and in publications networking、 such areas in the use core， also is China UNDP more advanced the6G network the major obstacles。” he explained said。   Aluf noted， China for achieve technical hegemony and promote global standards the efforts caused the some people the concerns。   Aluf noted， China for achieve technical and promote global standards the efforts caused the some people the concerns。   “ in powers competition the situation reintegration outbreak the background under， Western， Special is States， determination in emerging technical the development and standards development in keep，” he said。   “ in powers competition the situation reintegration outbreak the background under， Western， particular is States， decision in emerging technical the development and standards development in peacekeeping own the。” he said。   he think， States《 reconstruction bill》（B3W） expected value7， may Committee become“ area” initiatives the balances power。   he think， expected value7 the States《 reconstruction bill》（B3W）， may Committee become“ area” initiatives the balances power。   “ if success， it may Committee diluted‘ area’ project the—— including those in digital areas the，” he said。   “ if success， it may Committee diluted‘ area’ project the， including digital areas。” he said。     * paperZAWYA Internet， author forSA Kader， editor forCharles Lavery，Anoop Menon， article original title for《BRI: Digital know-how along China's BRI will set future global tech standards》， Click reading original can View reported original。

2022 year 1 month 5 On the afternoon of the same day, the New Shanghai Businessmen's Health Research Society, co-hosted by the New Shanghai Businessmen Federation and Trace Capital, 10 period C9 China Medical Beauty Industry Venture Capital Forum ·No. 3 The roadshow was successfully held, bringing together healthcare innovation companies, investors in the medical industry, and consulting advisors to discuss innovations, investments, and asset securitization in consumer healthcare. They explored the 'appearance value' economic battlefield.   Frost & Sullivan Frost & Sullivan Mao Hua, Partner and Managing Director of Frost & Sullivan's Greater China Region, was invited to attend the event and delivered a speech on the market landscape and development trends in the consumer healthcare and medical aesthetics sector. First of all, Mao Huaibing introduced the overall overview of the medical aesthetics industry to the guests present. He pointed out that the medical aesthetics industry possesses both medical and consumer attributes, with strong regulatory medical aspects ensuring a continuous increase in consumer trust. Adding to this, it has enhanced consumer recognition and can effectively promote the development of formal medical beauty service institutions and R&D companies. With the rise in per capita disposable income of Chinese residents, the penetration rate of medical beauty in China will continue to increase. 2020 In [year], the per capita disposable income of Chinese residents reached 32,189.0 yuan 2016 Year to 2020 The compound annual growth rate for the year is 7.8% ;estimated 2025 In [year], the per capita disposable income of Chinese residents will further grow to 46,902.4 Yuan. According to a Frost & Sullivan survey, Chinese medical beauty consumers are mainly young women, and the penetration rate of medical beauty consumers is higher in first-tier cities. Currently 20 - 35 Consumers aged 25-34 are the main consumer group, and the Chinese medical beauty market as a whole is showing a trend towards younger demographics. Among various medical beauty projects, non-surgical injectable procedures are favored by consumers due to their low surgical risks, short recovery time, lower prices, and less mental burden. In recent years, the scale of China's medical beauty market has grown rapidly, with the proportion of non-surgical income continuously climbing. Subsequently, Mao Hua elaborated in detail on the overall market situation of medical beauty injection products. Common medical beauty injection products in China are divided into two categories: medical devices and non-medical devices. The main application items of medical devices include hyaluronic acid, Juvenile Beauty Needle, Youthful Beauty Needle, etc., while botulinum toxin belongs to the category of non-medical devices. Data shows that as the public's acceptance of light medical beauty projects continues to increase, the market for medical beauty injection products in China is growing at a high speed. 2020 In China, the total market scale of medical beauty injection services reached 399 RMB 10 billion, expected 2025 In [year], the market scale of cosmetic injection services in China will further grow to 1,038 RMB 10 billion 2020 Year to 2025 Annual Compound Annual Growth Rate 49.8% .   In addition, although ordinary consumers in China are still more willing to pay a premium for overseas brand products, domestically produced brands such as Huaxi Biotech are 500 - 1,000 Price segments have provided consumers with highly cost-effective products. Therefore, domestic injectable medical beauty products have also occupied a certain market share due to their lower prices compared to imported ones. Moreover, as domestic companies expand their product lines and highlight their cost-effectiveness advantages, the market share and reputation of domestic injectable medical beauty products continue to improve. It is expected that the degree of localization of China's medical beauty injectable product market will continue to increase in the future. Compared to other medical aesthetic procedures, hyaluronic acid injections have advantages such as a shorter recovery period and better results. The national consumer willingness is high, the industry ecosystem is healthy, and product quality is stable. In recent years, due to the introduction of strict regulatory policies, the number of approved hyaluronic acid injections has gradually stabilized. Under the situation of high terminal prices for hyaluronic acid injections, the profit margins of midstream and downstream service institutions are at a high level in the entire industrial chain. Mao Hua said that with the gradual formation of the concept of light medical aesthetics among Chinese women, the medical beauty market has further expanded, becoming more compliant, with continuous technological progress and price drops. More and more consumers choose hyaluronic acid injections instead of short-term skincare products, which will ensure the sustained growth of the future hyaluronic acid injection market. At the same time, the proportion of domestic sales in China's injectable hyaluronic acid market has increased significantly, mainly contributing to the price increase. With the advancement of domestic technology and the expansion of product lines, localization will become a trend in the future. The market share of Youthful Beauty Needle and Teenage Beauty Needle has shown a continuous and rapid increase with the launch of new products, and it is expected to replace some of the hyaluronic acid market share in the future. Among them, due to the high global recognition of Ellanse products, they have gained attention three months after their launch on the Chinese mainland as cost-effective products in the light medical aesthetics market. The market scale of 'Teenage Beauty Needle' has grown rapidly, with an estimated value reaching 660 million yuan by 2025. Before 2021, there were no 'Youthful Beauty Needle' products recognized by regulatory authorities in the Chinese market. With the introduction of new products, the market penetration rate of 'Youthful Beauty Needle' is expected to increase, reaching a market scale of 1.6 billion yuan by 2025. Both types of products belong to regenerative collagen products, and due to differences in composition and mechanism of action, there are differences between them in terms of injection depth, operation method, and onset time. Another category of non-instrumental medical beauty projects - represented by botulinum toxin (Botox) - is widely used in the field of medical aesthetics and has good customer acquisition attributes. For instance, it can be used not only on multiple body parts but also combined with other treatments. It is highly safe, with most common adverse reactions being reversible. Additionally, due to the need for multiple injections to maintain results, the repurchase rate is relatively high, indicating a huge market potential. However, due to the strict approval process for Botox, domestic companies generally adopt a licensing model to shorten product launch times. This model carries certain risks. On the other hand, the production of Botox requires strict standards, demanding transportation conditions, and strong regulatory policies, resulting in relatively high industry barriers. Although these factors have constrained the development of the entire domestic industry to some extent, 'with the increase in consumer penetration and new product approvals for market release, the market scale of Botox injection products in China will continue to maintain medium-high growth over the next five years,' said Mao Hua.

Innovation Growth & Economy 2021 year 12 month 30 Today, "Innovation-driven Growth & Economic Development" - CBN Little Lion 100 The index release event was successfully held at the Shanghai TV Tower in Shanghai Media Group's headquarters. Yang Yudong, the chief editor of CBN Financial News, delivered a speech on behalf of the organizers. Huang Yuncheng, former deputy director of the Policy Research Office of the China Securities Regulatory Commission, and Yin Yantai, director of the Hua'an Securities Research Institute, gave keynote speeches.   Frost & Sullivan Frost & Sullivan Mr. Xu Biao, Executive Director of Frost & Sullivan's Greater China Region, was invited to attend the event and host a roundtable discussion. He joined forces with guests such as Jiang Yuan, Chairman of Zhichun Technology, Fei Zhi, President of GCL Energy Science & Technology, Su Bin, General Manager of Feikai Materials, and Xue Lixin, President of Jingrui Electric Materials, to explore the core driving forces for the growth of small and medium-cap enterprises. Little lion 100 Indices are selected by CBN after quantitative screening, subjective research, and supplemented by first-hand field investigations. 100 home A Small and medium market value listed companies, aiming to reflect A Companies with healthy financials, steady growth, emphasis on R&D and innovation, and leading growth potential in niche industries 100 Market price performance of small-cap listed companies in China. Yang Yudong, Chief Editor of CBN Yang Yudong stated that CBN has always been practicing frontline tracking and research on microeconomic entities in its daily news coverage, deeply feeling the surging momentum of China's high-quality economic development. In this process, we have found that among many 'small but beautiful' listed companies, there are those dedicated to import substitution with hard technology, those leveraging their strengths in strengthening and supplementing chains, as well as tomorrow's stars under the trend of carbon peak. Therefore, CBN has fully launched the 'Little Lion Growth Potential Research Program' and the 'Little Lion Growth Potential Index Project' this year, focusing on these outstanding small and medium-cap listed companies with high growth potential. Huang Yuncheng, former deputy director of the Policy Research Office of the China Securities Regulatory Commission The theme shared by Huang Yuncheng is 'Listed Companies are an Important Force in Promoting China's Economic Development'. Huang Yuncheng believes that the most important indicator for evaluating listed companies is market value. Currently, market value is 100 Listed companies with less than 100 million yuan 3000 Home, accounting for 70% - 80% The transformation and upgrading of these listed companies will be the main focus of the entire listed company transformation and upgrading in the future. 100 Yuan to 1000 Yuan billion represents a significant growth potential. Little lion 100 The index mainly studies market capitalization at 50 hundred million ~800 A listed company worth hundreds of millions is currently within this range. Yin Yantai, Director of Research Institute at Hua'an Securities Yin Yanji stated in his speech that since the establishment of the Sci-tech Innovation Board, many technology companies have gone public, and in the future, many technology companies may grow into enterprises with market values exceeding one hundred billion. Many technology companies 2017 In [a certain year], the market value was only a few hundred billion, or even just a few hundred million. However, leading enterprises in artificial intelligence and industrial Internet have now steadily reached a market value of hundreds of billions, which started from that time. We are currently at a stage where the industrial era is transitioning into the information age, with new and old technologies replacing each other. The future will be the information age, and the core resource of the information age is data. In the past two years, the growth rate of the global digital economy has far exceeded GDP Growth rate, this is the general trend of the times.   What are the important factors for the growth of small and medium-cap listed companies? How are they different from large-cap enterprises like CATL and WuXi AppTec? By CBN Little Lion 100 At the index release event, Xu Biao, Executive Director of Frost & Sullivan China, discussed with Jiang Yuan, Chairman of Zhichun Technology, Fei Zhi, President of GCL Energy Science & Technology, Su Bin, General Manager of Feikai Materials, Xue Lixin, President of Jingrui Electric Materials, and others the core drivers for the growth of small and medium-cap enterprises. Roundtable Discussion: Observations on the Growth Potential of Small and Medium Market Cap Enterprises   Jiang Yuan, Chairman of Zhichun Technology, stated that throughout its journey, Zhichun Technology has been most concerned with strategic management and the construction of innovation capabilities. She mentioned that financial resources, core technology, and the ability to acquire high-end talents are the three core competencies that, alongside strategic management capabilities, are of utmost importance. Xue Lixin, President of Jingrui Electric Materials, believes that the development of Jingrui Electric Materials requires four elements. The first is a market capacity with high-speed development and scalability; the second is products with core competitiveness; the third is a team characterized by wolf-like traits; and the fourth is capital. Su Bin, General Manager of Feikai Materials, stated that for listed companies to achieve long-term growth, two major elements are needed. One is diversification from downstream industries and diversification of products within the same industry. As an advanced materials enterprise, this is a direction for future growth. Second, for a materials company, independent research and development should be carried out alongside external collaboration. Fei Zhi, President of GCL Energy Technology Group Co., Ltd., stated that for an enterprise to achieve higher-speed development, there are several characteristics: First and foremost, it is necessary to find the right track; a small track definitely cannot support large-scale operations. Secondly, innovation is essential. Currently, the degree of homogenization is also very high, so there must be a good business model and technological competitiveness. Thirdly, it comes down to the team and mechanisms. Talent is the primary resource, and the mechanism is the fundamental guarantee for leveraging talent's capabilities. The good wind favours the brave; now is the time to set sail. It is reported that Frost & Sullivan, in collaboration with its strategic partner LeadLeo,     Navigator /navigator Plan ”    at 2022 Upgrade annually and set off anew.   In addition to continuing to assist start-ups and small and medium-sized growing enterprises, the plan will further cover outstanding small and medium-cap listed companies with high growth potential. It will provide companies with the necessary professional knowledge and services for sustainable growth, empower them to upgrade their business models, improve internal efficiency and strategic development, and enable them to quickly establish value advantages. As of 2021 At the end of the year,   Navigator /navigator Plan ”   We have helped over a hundred enterprises complete in-depth research, uncover their investment value and growth potential, provide value dissemination services, grasp industry trend dividends, and assist them in achieving all-round growth, expansion, and strengthening.   Whether supporting 'Little Lions' or empowering 'Dream Chasers', Frost & Sullivan and LeadLeo always believe in and support the original driving force of the Chinese economy, persist in research-driven strategies, place a heavy emphasis on China, strive with Chinese entrepreneurs and grow together.

Frost & Sullivan insights In 2021, multiple tech giants such as Baidu and Huawei accelerated the construction of intelligent vehicle ecosystems. Recently, the China Intelligent Connected Vehicle Industry Innovation Alliance and the National Intelligent Connected Vehicle Innovation Center released the 'Guidelines for the Construction of a Group Standard System for Intelligent Connected Vehicles', promoting further progress in the industrialization and commercialization of intelligent connected vehicles. This also means that intelligent vehicles will enter a stage of highly networked mass application. Against this backdrop, how can the penetration rate of L2 new vehicles be improved? How will the integration of intelligent connected vehicle technologies develop? Where is the core of data security? Zhang Zhiwei, Executive Director of Frost & Sullivan Greater China, was interviewed by Securities Daily to analyze the development trend of intelligent connected vehicle technology integration. Securities Daily The rapid development of intelligent vehicles is attracting more and more attention.   In 2021, multiple tech giants such as Baidu and Huawei accelerated the construction of intelligent vehicle ecosystems. Recently, the China Intelligent Connected Vehicle Industry Innovation Alliance and the National Intelligent Connected Vehicle Innovation Center released the 'Guidelines for the Construction of a Group Standard System for Intelligent Connected Vehicles', promoting further progress in the industrialization and commercialization of intelligent connected vehicles. This also means that intelligent vehicles will enter a stage of highly networked mass application.   While the level of intelligence is improving, information security issues have also become a 'growth concern' for intelligent connected vehicles. Since the beginning of this year, incidents such as 'information leaks', 'system attacks that alter routes', and others have occurred frequently.   The development of intelligent connected vehicles cannot be separated from information and data. For this reason, it is very important to regulate the industry with laws and regulations and set 'traffic lights' for this hot track.   How can the penetration rate of new L2 vehicles be improved? What is an intelligent connected vehicle? Simply put, it is the organic combination of connected vehicles and intelligent cars.   At the 2021 World Intelligent Connected Vehicles Conference, Xiao Yaqing, Minister of Industry and Information Technology, stated that the penetration rate of new L2-level passenger vehicle markets has reached 20%, connected vehicle deployments are advancing in an orderly manner, over 3,500 kilometers of roads across the country have been intelligently upgraded, and more than 5 million vehicles are equipped with connected terminal devices.   Ma Tianyi, chief analyst of communications at Minsheng Securities, told the Securities Daily reporter that according to current statistical criteria, intelligent connected passenger vehicles must be equipped with L2-level or higher assisted driving capabilities, as well as features such as vehicle networking and OTA upgrades. Although the proportion of sales of intelligent connected passenger vehicles has fluctuated this year, it is still on an upward trend, with new energy vehicles accounting for more than 30%.   Since the beginning of this year, cities such as Beijing, Shanghai, Chongqing, Guangzhou, Wuxi, Changsha, and Wuhan have successively established intelligent connected vehicle demonstration zones to lead the development and implementation of automotive intelligent networking.   At the same time, the development of intelligent connected vehicles has also received more policy support. The 'Administrative Specifications for Road Testing and Demonstration Applications of Intelligent Connected Vehicles' released on July 27th state that industry institutions and enterprises are supported to conduct road tests on a larger scale and carry out demonstration applications in various scenarios, further promoting data sharing and mutual recognition of results, and encouraging exploration of commercial development models. On September 27th, the 'Three-Year Action Plan for the Construction of New IoT Infrastructure' was issued, which explicitly mentions the creation of a comprehensive monitoring platform for coordinated services of connected vehicles (intelligent connected vehicles) in the field of intelligent transportation, accelerating the construction of application scenarios such as smart parking management and autonomous driving, and promoting the networking and coordination development of urban transportation infrastructure, vehicles, and the environment.   Zhang Zhiwei, Executive Director of Frost & Sullivan Greater China, told the Securities Daily reporter that autonomous driving and intelligent connectivity have redefined automobiles, evolving them from traditional means of travel to a broader concept encompassing mobile spaces. Against the backdrop of automotive intelligence, automotive autonomous driving systems and intelligent cockpits are gradually becoming core elements. Currently, China's intelligent connected vehicle industry is transitioning from the technology research and development and testing verification phase to a new stage of demonstration applications and large-scale commercial promotion. There is an urgent need to introduce and improve relevant standards. The recently released 'Guidelines for the Construction of the Intelligent Connected Vehicle Group Standard System' further constructs the Chinese intelligent connected vehicle group standard system, increasing the number of group standard items to 212 and research projects to 13 based on the 2020 version.   Wang Zhao, Director of the Standardization Institute at China Automotive Technology and Research Center Co., Ltd., stated that standards are a double-edged sword. The industry should pay attention to technological progress, industrial development, and government management needs, fully considering the scope and urgency of standard demands driven by technological and industrial development, and determine through what form and level of standards to meet the diverse needs of intelligent connected vehicles.   Through the formulation and launch of standards, as well as capital and technological investments by automakers, the market penetration rate of new L2 passenger vehicles will steadily increase in 2022.   How to integrate intelligent technologies? New forces in the automotive industry are emerging with great momentum. With NIO, Li Auto, and Xpeng successively listing overseas, they have not only sparked a startup boom for new energy vehicles in China but also promoted the popularization of intelligent connected vehicles. Against this backdrop, traditional automakers are also accelerating their pace of upgrading vehicles towards intelligence.   "In the future, 'software' may be the key determinant of a car's productivity. Currently, new force automakers are taking the lead in electrification and intelligence, while traditional automakers have weaker software capabilities and temporarily need to rely on third-party technology companies to provide solutions," said Zhang Zhiwei. Behind the successive launches of intelligent connected cars by automakers such as BAIC, SAIC, and Changan are internet technology companies like Tencent, Alibaba, and Huawei collaborating with automakers using intelligent technologies and internet resources. Most new car-making forces have started from auxiliary systems and algorithms, continuously making breakthroughs in autonomous driving and human-machine interaction systems.   Xu Hui, secretary of the board of directors of Great Wall Motor, told the Securities Daily reporter that automakers have increasingly recognized the trend of 'software-defined vehicles.' The decoupling of software and hardware, as well as the standardization of parts, will reshape the automotive supply chain. Industry control points shift from manufacturing to software and services. 'Hardware redundancy design + software iteration capability' will become a watershed between technology mobility companies and traditional automobile manufacturers.   Xu Hui stated, 'The continuous charging of software within the automotive industry has already emerged. The value composition of intelligent connected vehicles will become hardware, software, and content/services. In the future, it is expected to generate sustainable revenue from the sold cars, re-opening up a new blue ocean market. Automakers need to build a global unified architecture big data platform, create an analysis closed loop around user data, vehicle data, and environmental data, deeply mine data value, and lay the foundation for exploring new business models.'   The development of intelligent connected vehicles is subverting the entire travel market. In terms of hardware, automakers need to control design technology routes and consider how to better carry out vertical integration upstream and downstream to provide a better travel service experience. In software, software has become a new competitive point, with the operating system being at the core of software capabilities, responsible for controlling and managing the hardware and software resources of an entire intelligent vehicle. Better integration of hardware and software, as well as enhancing automakers' own software R&D capabilities, have become new highlights for valuation premiums of automakers.   Electrification, connectivity, and automation have become the development directions for the future automotive industry, and a consensus has been reached within the industry. Digital technologies such as cloud computing, the Internet of Things, 5G, artificial intelligence, autonomous driving, and blockchain will bring new business models to automakers. Xu Hui stated that Great Wall Motor is using emerging technologies to accelerate its transformation from a traditional manufacturing enterprise into a technology-driven mobility company, providing users with a richer travel experience based on automotive software and services.   Under the trend of innovation, how can technology giants be overlooked? In 2021, internet companies flocked into the automotive manufacturing sector, with Baidu, Huawei, Didi Chuxing, Xiaomi, OPPO, and 360 among others entering the market either through cooperation or independent research and development to cross over into the field of vehicle manufacturing. The increasing number of internet technology enterprises has opened up a new situation for the development of intelligent connected vehicles.   Meanwhile, the intelligent connected vehicle industry chain is long, with software and hardware suppliers continuously expanding. These companies have benefited from the demand for intelligent upgrading in the automotive industry, enjoying market dividends and capital favor. Liu Qi, a senior analyst at LeadLeo Research Institute and a reporter from Securities Daily, said that compared to automakers and Tier 1 suppliers who are keen on internal R&D, technology companies focusing on intelligence can better grasp the evolving trends of the new four modernizations in automotive industry, make forward-looking technology research and development plans, and provide complete automotive electronic solutions for downstream automotive electronics manufacturers and OEMs by integrating upstream chip and other component supplies.   Where is the core of data security? With the integration of 'mobile internet services + in-vehicle technology', cars are expected to become the largest mobile consumer smart terminals, energy transmission tools, and data processing nodes. Service data related to people, vehicles, and parking lots is experiencing explosive growth.   Although data has become an important strategic resource for automakers' transformation in the next phase, a series of automotive safety issues that arise as a result cannot be ignored.   At the 2021 World Intelligent Connected Vehicles Conference, Chen Luping, Chief Engineer of the China Software Testing and Evaluation Center, released the latest results on intelligent vehicle information security testing: Among the 11 newly released models with security protection measures, wireless network security issues accounted for 73%, reverse engineering of vehicle and mobile terminal apps accounted for 64%, unauthorized access to sensitive data accounted for 45%, and unauthorized access to personal information accounted for 18%...   This result has drawn widespread attention. In fact, since the beginning of this year, various data security issues such as 'user privacy data breaches' have been continuously exposed, causing significant fluctuations in the stock prices of many companies.   Wang Yingmin, Chief Engineer of Datang Telecom Group, believes that 5G communication technology can accelerate the advancement of automotive intelligence and drive the development of application scenarios such as autonomous driving. However, this also poses higher requirements for information security.   Yan Jinghui, a member of the Expert Committee of the China Association of Automobile Circulation, told the Securities Daily reporter that the intelligent connected vehicle industry chain consists of many links, and enterprises have interconnectivity in terms of data. If any link is not properly protected, security issues in the communication field in the past may recur in the automotive sector, potentially even endangering driving safety.   "The so-called intelligent vehicles are currently only in the stage of assisted driving or semi-autonomous driving. The application of 5G in fields such as intelligent driving, intelligent transportation, and connected vehicles is still in the research and development and testing stages, with only a small number being commercially available. However, the intricate application scenarios increase the risk of information leakage," said Jia Xinguang, chief analyst at China Automotive Industry Consulting Development Company, to the Securities Daily reporter.   In terms of enhancing information security levels, enterprises related to the automotive industry chain still have a long way to go. Zhang Xiang, a researcher at the Automotive Industry Innovation Research Center of Northern Polytechnical University, suggests, "R&D personnel should analyze data to reduce potential hazards, appropriately lower the accuracy of data collected by in-vehicle cameras, try to process enterprise data locally after collection, and promptly delete and patch vulnerabilities. Unified management of scrapped vehicle data should be carried out to improve security. Relevant departments should establish unified standards for companies in the automotive, internet, travel, and other industry chains."   In fact, the management of data security for intelligent connected vehicles is being further strengthened. In May this year, the Cyberspace Administration of China issued a notice soliciting public opinions on the 'Several Provisions on the Security Management of Automotive Data (Draft for Soliciting Opinions)', further clarifying issues such as responsible entities, data scope, collection methods, privacy protection, and data export. In June, the Ministry of Industry and Information Technology issued the 'Notice on Strengthening Network Security Work for Connected Vehicles (Intelligent Connected Vehicles) (Draft for Soliciting Opinions)', proposing that relevant enterprises should take management and technical measures to strengthen the security protection of vehicles, networks, platforms, and data in accordance with the standards related to connected vehicle network security and data security.   "In the coming year, detailed specifications will also be introduced for information collection in intelligent connected vehicles. Issues such as how to define responsibility in case of accidents by autonomous vehicles led by machines are also expected to be resolved," Jia Xinguang believes.   *This article is reprinted from 'Securities Daily', with reporters Jia Li and Guo Jichuan. The original title was 'Intelligent Connected Vehicles: 'Technology Upgrade + Safety Assurance' Jointly Push the Industry into Fast Lane'.