Frost & Sullivan 60 th Anniversary On November 25th, the world-renowned growth consulting firm Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan') held its 60th anniversary celebration in Shanghai, China. On this grand occasion, Mr. David Frigstad, Chairman of Frost & Sullivan's Global Board of Directors, Mr. Aroop Zutshi, President of Frost & Sullivan globally, and Dr. Wang Xin, Partner of Frost & Sullivan and President of Greater China, delivered speeches respectively.   Mr. David Frigstad stated that it is more difficult to grow a company for 60 years than to establish over one million startups. He expressed gratitude to Frost & Sullivan's clients, partners, employees in China, and their collaboration with Frost & Sullivan that has led to today's success. At the same time, he acknowledged Dr. Wang Xin's dedication, which provided Frost & Sullivan with an outstanding customer relationship platform and jointly promoted the development of the firm.   Mr. Fudawa shared with the attendees the purpose of Frost & Sullivan's establishment 60 years ago: "Sixty years ago, our company was founded with the mission to identify growth opportunities before they were popularized by the media or discovered by the investment community. Today, this tradition continues as we leverage new tools such as AI, Big Data, and Natural Language Processing to identify growth opportunities before they even become marketed. These growth pipelines maximize the future growth potential of our clients, and that is what all about."   Taking this opportunity, Mr. Fu Dawei expressed his respect for the tremendous transformation taking place in the Chinese economy, as well as for all the Chinese people who have participated in this massive transformation of the Chinese economy. 'Now, the huge role and important role that Chinese companies are playing around the globe to make the world a better place. And what the future will bring in terms of making the world the better place, with better technologies, business models, companies, logistics systems, I am grateful to you all.'   Finally, Mr. Fuda said, 'What excites me the most is that we are looking at all growth opportunities stemming from megatrends, new business models, and disruptive technologies in the compression of the customer value chain. These new business models, these new opportunities are shaping a better economy, making the world a better place, and improving our environment and the economic equality that so many people around the globe face. We are all involved in this together, and I am very excited to be part of it with you.'   Mr. Aroop Zutshi first expressed his gratitude to Dr. Wang Xin and all the staff of Frost & Sullivan, then reviewed the company's 60-year journey. He stated that the world is experiencing subversion, collapse, and transformation, with rules evolving rapidly and new business models replacing traditional ones. Mr. Aroop believes that this is not only a challenge but also brings many opportunities. Frost & Sullivan is leveraging these opportunities to plan for significant changes in order to expand its ability to reshape the world through growth. "China is leading the economic growth agenda across the globe. More and more Chinese companies are going global and offering sustainable solutions. We see the trend to become stronger in the coming years." Mr. Aroop said.   The corporate mission of Frost & Sullivan is to make the world a better place through growth. Mr. Zou Yaru mentioned that someone asked why growth was necessary. He replied: "Without growth, we not only stand still but move backward. Seeking development in uncertainty is not only the key to survival but also for thriving."   Mr. Zou Yaru mentioned the ONEFrost project of Frost & Sullivan in his speech, "Our internal commitment is to work together to create a single source of information, insights, and growth opportunities for our customers. We will converge our services into a common platform aligned with our Growth Pipeline as a Service, making it easier for you to map your progress and identify new growth opportunities. This new digital platform will allow for collaboration, sharing, and just-in-time delivery of information."   At the end of his speech, Mr. Zu Yaru once again expressed his gratitude to all customers and partners, and also looked forward to continuing to work with everyone for mutual success in the years to come.   Dr. Wang Xin expressed his gratitude to the country, to the era, and to his partners in his speech, and stated that Frost & Sullivan sincerely looks forward to continuing its long-standing relationship with everyone, walking hand in hand, cooperating for mutual success, and creating new glories.   The full text of Dr. Wang Xin's speech is as follows:   Distinguished leaders, ladies, gentlemen, and friends, good evening! Ladies and Gentlemen, my fellow colleagues and friends, good evening to all of you!   I would like to express my deepest gratitude to all of you for taking the precious time out of your busy schedules to attend the Frost & Sullivan 60th anniversary celebration during this special period. Words cannot express how much appreciation we can have for pulling this event off. Thank you very much for taking the time out of your busy schedule to join us to celebrate Frost & Sullivan's 60 th Anniversary during such a special period.   Today is Thanksgiving Day. On behalf of Frost & Sullivan, I would like to express my heartfelt gratitude! Today is Thanksgiving Day. On behalf of Frost & Sullivan China, I would like to express my deepest gratitude to all of you.   China's favorable opening-up policies and inclusive business environment have provided a huge stage and dynamic impetus for the development of Frost & Sullivan. Riding on the success of an open economy and an inclusive and comprehensive business environment, it has indeed provided Frost & Sullivan with a broad stage for better performance and vigorous momentum for development.   2021 is the Year of the Ox, as well as Frost & Sullivan's birth year. "In Chinese culture, the ox symbolizes diligence, dedication, progress, and strength." Frost & Sullivan belongs to the Year of the Ox and is unwavering in learning the spirit of the "Three Oxen," striving to become a down-to-earth "old ox," a sincere servant "child ox," and an enterprising innovator "pioneer ox." 2021 is the Chinese horoscopic year of Ox and also the Chinese zodiac year of Frost & Sullivan. In Chinese culture, the ox is the symbol of diligence, dedication, endeavour and power. Frost & Sullivan has been unswervingly following the spirituality of 'Three Oxes', going out in pursuit of an old cattle that is down-to-earth and always hands-on, a sincere serving willing ox, and an enterprising and innovative pioneering ox.   Since entering the Chinese market 23 years ago, we have continuously helped Chinese enterprises go global and contributed to enabling domestic and international investment institutions to understand and invest in Chinese companies. Today, China's stock and bond markets rank second globally in size, with over 4,400 A-share listed companies and more than 2,500 Hong Kong-listed companies, increasing its international influence day by day. Over the past 23 years, we have been persistently working to help Chinese enterprises shine in foreign markets and expose them to international capital markets. We have also acted as an intermediary to bridge the gap between foreign and local buy-side and sell-side investors. Today, when we look at the China-listed equity and bond markets, they are both ranked the second largest in terms of market capitalization globally to date, with over 4,400 listed companies on mainland China's A-share market and over 2,500 companies listed on the Stock Exchange of Hong Kong, having a significant yet nationwide impact.   The great era has endowed us with responsibilities, motivation, and a direction for progress. We sincerely thank you and wish China's development to be as vigorous as a charging bull, and the capital market to thrive like a soaring steed! The great times have chosen us to be part of a major event, endowing us with responsibilities, momentum and direction for progress. We are sincerely grateful and wish the development of China and capital markets BULLISH!   Haruki Murakami said: 'You (should) remember those who held an umbrella for you in the heavy rain, those who shielded you from external objects, those who held you close in the darkness, and always those who put you first.' I remember that the world-renowned writer Haruki Murakami once said, "You must be grateful and remember those who have extended their warm hands at moments when you are suffering in difficulty and feeling helpless in dark times."   On this special day, I want to express my gratitude for the sincere help of leaders, mentors, and partners; for our customers who have stood by us through thick and thin, never leaving us; and for the team's unwavering unity, determination to forge ahead, and dedicated spirit. I would like to take this opportunity to express my deepest gratitude to all my friends and business partners for their sincere help; to our dearest clients for their full support, standing firm with us through storms and stresses, and never abandoning us; to our Frostie team, for coming together as one team, working extremely hard, forging ahead with full steam, and making great achievements and contributions with solidarity and dedication.   I have always believed that choosing with whom to collaborate and associate is a choice about who you want to become. In many cases, choice is more important than effort; if you walk the right path, even the farthest distance will be shortened. I am firmly convinced that the moment you choose with whom you would like to team up and with whom you would like to work, it is the moment when you decide who you want to be.   It is a blessing to be able to walk alongside everyone. "An individual can travel fast, but a group travels far." Frost & Sullivan's birthday wish for its 60th anniversary is with you: to continue our past partnership and achieve win-win results! It is fate that has brought us together. If you want to go fast, go alone; if you want to go far, you go together. In the name of the 60th anniversary of Frost & Sullivan, our wish is that we will all continue to be "Together for a Shared Bright Future!"   Sixty years, a lifetime. In the blink of an eye. In the blink of an eye, 60 years to date.   In 1961, Frost & Sullivan was founded in New York, dedicated to making the world a better place through growth. Frost & Sullivan was founded in New York in 1961, advocating 'growth' as a core corporate value proposition to make the world a better place.   For 60 years, the people at Frost & Sullivan have kept their 'original aspiration and mission' in mind, promoted 'self-revolution', empowered themselves with knowledge, and created social value. For the past 60 years, we have never forgotten our mission to 'self-grow' and 'client-grow'. It is our pleasure to help empower the community to create more value by leveraging what we have learned from our business leaders, our market experts, and our clients.   I sincerely look forward to continuing to work hand in hand with everyone in the next Jiazi decade towards common prosperity; not wasting our prime years, and creating new glories once more! My most sincere expectation is that in the next sixty years, we will continue to unite as always, sprinting for common prosperity, living up to our youth, and creating brilliant success and memories once again!   Thank you all! Once again, thank you for the pleasure and privilege of working with you all!

On the evening of November 25, 2021, Frost & Sullivan, a global growth consulting firm founded in 1961, successfully held its 60th anniversary celebration and thanksgiving dinner themed "Gathered Sand Builds an Island - Pursuing Dreams in Splendor" at the Shanghai Suning Bao Li Jia Hotel. The event site was packed with distinguished guests, including representatives from the government, academic associations, capital institutions, industry leaders, mainstream media, and higher education institutions, as well as employee representatives of Frost & Sullivan. Mr. David Frigstad, Chairman of Frost & Sullivan's Global Board of Directors, Mr. Aroop Zutshi, President of Frost & Sullivan's Global Operations, Ms. Zhao Yan, Chairman of Huaxi Biotechnology, Mr. Yang Guoping, Chairman of Shanghai Volkswagen Public Utilities Group, and Dr. Wang Xin, Partner of Frost & Sullivan's Global Practice and President of Greater China, delivered speeches at the event respectively.     The appointment ceremony for the Frost & Sullivan Growth Strategy Expert Committee was held at the celebration site. It is reported that the professionals appointed as members of the Frost & Sullivan Growth Strategy Expert Committee include more than 20 industry leaders and experts, including Mr. Yang Guoping, Chairman of Shanghai Volkswagen Public Utilities Group; Dr. Hu Jiguang, Managing Director of UBS Securities and Head of China's Investment Banking Department; Mr. Bi Shunjie, Partner in Charge of Ernst & Young Greater China Business; Ms. Wang Jie, Chairman of Guokong Chuangfu; Ms. Yu Xin, General Manager of New Fortune Group; Mr. Cheng Jie, Managing Director of CITIC Securities and Global Head of Healthcare at Global Investment Banking; Mr. Huang Yong, President of the Procter & Gamble Alumni Association and Founding Partner of the Porsche Innovation Consumer Fund; Mr. Fan Yin, Executive Vice President and Managing Director of Jindu Industrial Investment Fund Management Co., Ltd.; Mr. Xu Lei, Partner and Committee Member of Nanfeng Capital Co., Ltd.; Ms. Luo Xiaoqin, Deputy Director of the Organizing Committee for the Boao Forum on Global Health; Mr. Zhao Xiaoguang, Vice President of Tianfeng Securities and Director of the Tianfeng Securities Research Institute; Ms. Hong Yingli, Founder and Vice President of the Amrita Art Foundation; Dr. Shen Lifeng, External Director of Shenzhen Special Economic Zone Construction and Development Group and Deputy Secretary-General of the Hong Kong International Investment Council; Mr. Tang Zhenyi, Vice President of SenseTime Technology; Mr. Zhang Landing, CEO of Silya Investment; Mr. Liu Zhi, Founder of Dulongyi Catering Group; Mr. Wang Guangji, Academician of the Chinese Academy of Engineering; Mr. Liu Shaoqiang, Managing Director of Dzeng Capital; Professor Wang Yu from the Vanke School of Management at Tsinghua University and Expert Advisor to the Boao Forum on Global Health; Ms. Zhao Yan, Chairman of Huaxi Biology; Ms. Zhao Xinhong, Executive Partner of the China Management Committee of King & Wood LLP; Mr. Meng Yi, General Manager and Vice President of HSBC Global Banking in China.   Insight into global technology trends and foresight into the future development of China It is worth mentioning that Frost & Sullivan launched a series of heavyweight research findings at the event, including 'The 60 Technologies Driving Global Growth', 'Global Technology and Application Trends Outlook', released globally by Frost & Sullivan, as well as the 'White Paper on Insights into China's Industrial Trends for the Next 50 Years', jointly released by Frost & Sullivan in China with LeadLeo Research Institute.   Latest: "The 60 Technologies Driving Global Growth" Mr. Wang Chenhui, Partner-in-Chief and Managing Director of Frost & Sullivan Greater China, and Mr. Yang Xiaocheng, Partner-in-Chief and Managing Director of Frost & Sullivan Greater China, jointly released the 'Top 60 Technologies Driving Global Growth' on behalf of the firm.   It is reported that since 1962, Frost & Sullivan has been at the forefront of identifying, analyzing, and monitoring emerging technologies and markets. Subsequently, they have been tracking and understanding the world-changing top 50 technologies every year to drive sustainable growth for their enterprise clients. This year, Frost & Sullivan has particularly launched a map of "The 60 Global Leading Technologies," which covers core insights into the world's leading technologies in nine sectors: environment and sustainability, energy and public utilities, chemistry and new materials, information and communication technology, high-end manufacturing and automation, sensors and instrumentation, health, medical devices and impact, and microelectronics. The report aims to analyze overall industry trends, technical analysis and prospects in sub-sectors, and focus on market dynamics of advanced technologies within the rapidly developing technological environment.   Latest: "Global Technology and Application Trends: Prospects and Outlook" Mr. Lu Jing, Partner and Managing Director of Frost & Sullivan Greater China, and Mr. Jia Pang, Partner and Managing Director of Frost & Sullivan Greater China, jointly released the 'Global Technology and Application Trends Outlook'. The report conducts an in-depth research and interpretation on emerging technologies that promote work efficiency from 2020 to 2025, discussing trends in technology connectivity and integration, AI, automation and robotics, as well as cybersecurity trends. It provides strategic advice and predictions for each trend from 'macro to micro'.   The report concludes with an analysis and summary of industry application scenarios for each trend, leading to the following three major predictions: 1. AR will completely transform how people work in the past, and in the future, it will overlay virtual information onto the real world. The benefits include faster design and prototyping, more vivid dynamic demonstrations and marketing, as well as more convenient access to information; 2. Artificial intelligence will greatly accelerate the process of data analysis and improve the performance of robot software. These advancements will increase the level of automation in workplaces, allowing employees to spend more time engaging in activities that require more creativity and emotional skills; 3. As digital connectivity becomes a common communication method, network security represents the next important requirement for enterprises, and almost all businesses and workplaces must implement network security strategies.   Latest: "Insights into China's Industrial Trends for the Next 50 Years" 2021 is a milestone year, marking not only the centenary of the founding of the Communist Party of China and the completion of building a moderately prosperous society in all respects, but also the beginning of China's 14th Five-Year Plan. Against this backdrop of a new starting point and a new journey, amidst the critical historical period of a century-old transformation and the superposition of a century-long pandemic, facing an external economic and political environment that is complex and changeable, as well as the challenges of internal economic transformation and upgrading, how China will position itself at the new development stage, implement the new development concept, and construct a new development pattern has become an important factor driving changes in the global economic landscape and international relations.   "Among a hundred boats racing, the one that rows vigorously is the first," as an important witness and participant in the development of the global and Chinese economic landscape, Frost & Sullivan, in collaboration with LeadLeo Research Institute, jointly released the "White Paper on Industry Trends Insights for China's Next 50 Years." The report interprets the development trends and opportunities of five core industries in China over the next 50 years from an industry perspective. Starting from dimensions such as macro environment, current development status, industry pain points, supply and demand environment, and development trends, the report summarizes and analyzes the development opportunities and challenges of the five core industry sectors in China over the next 50 years through research and analysis of fields related to artificial intelligence, manufacturing, healthcare, mass consumption, and carbon neutrality in China. Focusing on hot industry issues, the report deeply analyzes China's value contributions in the fields of artificial intelligence, manufacturing, healthcare, mass consumption, and carbon neutrality in the future. Based on a review of the history of China's industry's intelligent upgrading and green transformation, it explores the development direction of China's core industries in the future. This white paper was jointly released by Ms. Ding Zhuowen, Managing Director of Frost & Sullivan Greater China, and Mr. Li Zheng, Dean of LeadLeo (Shenzhen) Research Institute, on the day of the celebration.   Deeply cultivating knowledge services to empower enterprises and steadily creating social value In 1998, Frost & Sullivan officially entered the Chinese market. This year marks the 60th anniversary of the global establishment of Frost & Sullivan and also the 23rd year of its service to the Chinese market. Dr. Wang Xin, when talking about the opportunity for Frost & Sullivan to enter China, recalled: 'In 1998, Frost & Sullivan officially entered China. At that time, China was in the midst of vigorous reform and opening up and was about to join the WTO. This was a once-in-a-lifetime historical opportunity. China was about to rapidly integrate into the global economy, and its economic development was about to enter a fast lane. Frost & Sullivan saw this once-in-a-lifetime good opportunity and chose to enter China at this time. The reason Frost & Sullivan is optimistic about China is that it has particularly strong comprehensive national strength.' China is at the forefront of various aspects such as sports, economy, innovation and technology, health, culture and education in the world. This has also brought great confidence, determination and courage to Frost & Sullivan to establish a long-term presence, take root in China and serve the Chinese market. " Regarding the next phase of development strategy for Frost & Sullivan China, Dr. Wang Xin stated, 'Over the past 23 years, the Frost & Sullivan Greater China region has leveraged its global linkage capabilities to help a large number of Chinese enterprises enter international capital markets and also to assist a large number of domestic and international investment and financing institutions in understanding and investing in Chinese enterprises. However, from an international comparison perspective, in 2020, China's service industry accounted for 54.5% of GDP, slightly lower than Russia (56.3%), while the United States had as high as 81.5%, with both the UK and France also exceeding 70%. In the long run, China's service industry has broad development potential, and its position in the economy will continue to rise in the future. The country advocates for the standardization and branding construction of the service industry, and Shanghai vigorously develops knowledge-intensive services. This represents an excellent historical opportunity for the Frost & Sullivan Greater China region.' We will base ourselves on China, provide long-term services, and delve into global capital markets and corporate consulting services. We offer a comprehensive range of investment and financing as well as various other professional consulting services for enterprises, including industry advisory, technology advisory, financial advisory, due diligence, strategic consulting, management consulting, planning consulting, evaluation services, valuation services, etc., empowering the economy, industries, sectors, and countries with our professional knowledge. "   When referring to a company's social responsibility, Dr. Wang Xin introduced: 'Since its establishment, Frost & Sullivan has always been focused on fulfilling our commitment to growth and giving back to society.' We hope that in the future, we can continue to provide comprehensive resource support to outstanding enterprises through the 'Pilot Program', accompanying them in their growth over the long term. We will also continue to pay attention to the learning and development of teenagers in remote areas, aiming to help more students from impoverished areas change their destiny with knowledge, create a better future, and jointly move towards a prosperous tomorrow. "   The 60th anniversary celebration has come to a successful conclusion, but the new journey of Frost & Sullivan has just begun. Taking this thanksgiving banquet as an opportunity, Frost & Sullivan expressed gratitude to all partners, customers, and employees, conveyed the intention to continue working together for mutual benefit, and looked forward to walking hand in hand in the future to create more brilliance!

Frost & Sullivan's 60th Anniversary On the evening of November 25, 2021, coinciding with Thanksgiving Day, Frost & Sullivan's sixtieth anniversary celebration and thanksgiving dinner was grandly held at the Shanghai Suning Bao Li Jia Hotel.   The event site was packed with distinguished guests. Representatives from various sectors including the government, academic associations, capital institutions, industry leaders, mainstream media, and higher education institutions celebrated the anniversary with Frost & Sullivan staff representatives, jointly witnessing this historic moment. As night fell by the banks of the Huangpu River, accompanied by the first drumbeat, Dr. Wang Xin, Global Partner and President of Frost & Sullivan Greater China, and Mr. Wang Chenhui, Managing Partner and Managing Director of Frost & Sullivan Greater China, stepped onto stage together to add the finishing touch to the auspicious lion dance. When cinnabar fell upon the lion's ambitious eyes, its vitality blossomed here, and the lion "awoke up." Together with the three lucky oxen representing the "Three Ox Spirits" (i.e., the down-to-earth "Old Yellow Ox," the sincere service-oriented "Child Ox," and the enterprising and innovative "Pioneer Ox"), they crossed mountains and rivers, headed towards the stars in the universe, presenting a magnificent, heart-stirring, and passionate lion and ox dance performance for the guests present, and sending their most sincere best wishes. From its birth in New York in 1961, to having offices spread across Europe in the 1970s, to becoming a global leader in industry database publishing with Frost & Sullivan in the 1980s, and finally entering the Chinese market in 1998, the sixty years of journey of Frost & Sullivan have been condensed into a brand film that deeply interprets "growth" and is presented to the audience here for the first time. This is also the first offline exhibition of this film. Subsequently, Mr. David Frigstad, Chairman of Frost & Sullivan's Global Board of Directors, Mr. Aroop Zutshi, President of Frost & Sullivan's Global Operations, Ms. Zhao Yan, Chairman of Huaxi Biotech, Mr. Yang Guoping, Chairman of Shanghai Volkswagen Public Utilities Group, and Dr. Wang Xin, Partner of Frost & Sullivan and President of Greater China, delivered speeches at the event respectively.   Mr. David Frigstad, Chairman of Frost & Sullivan's Global Board of Directors, expressed his gratitude to all Chinese clients, partners and Frost & Sullivan employees through video, and conveyed his respect for the tremendous transformation taking place in the Chinese economy, as well as his admiration for all those who have participated in this transformation. Mr. Fu Dawei stated that Chinese enterprises play a very important role globally, making the world a better place. In the future, the world will also possess better technology, business models, and enterprises because of the Chinese people. At the end of his speech, Mr. Fu Dawei once again shared his vision for the future with everyone, expressing his confidence and anticipation for the future of Frost & Sullivan. Mr. Fugawa, Chairman of the Global Board of Directors at Frost & Sullivan, delivered a speech.   Mr. Aroop Zutshi, President of Frost & Sullivan Global, also extended greetings to the attendees via video. Mr. Zutshi reviewed the 60-year development journey of Frost & Sullivan, stating that the world is experiencing subversion, collapse, and transformation. The rules are evolving rapidly, and new business models are replacing traditional ones. He believes this is not only a challenge but also brings many opportunities. Frost & Sullivan is leveraging these opportunities to plan for significant changes in its strategy to expand its ability to reshape the world through growth. Mr. Zou Yahou also reiterated the corporate mission of Frost & Sullivan—making the world a better place through growth—and fully expressed his expectations for the future development prospects of Frost & Sullivan over the next 60 years. Mr. Zou Yaru, President of Frost & Sullivan Global, delivered a speech.   As one of the VIP representatives at this celebration, Ms. Zhao Yan, Chairman of Huaxi Biotechnology Co., Ltd., sent her 60th anniversary blessings via video. She stated that Frost & Sullivan and Huaxi Biotechnology have been working closely together in recent years and are strategic partners growing together. She affirmed that Frost & Sullivan has provided professional and valuable services on the journey of Huaxi Biosciences becoming a benchmark leading enterprise in the industry, playing a significant role in empowering the company. She sincerely wishes Frost & Sullivan continued excellence and greater influence in the Chinese market. Meanwhile, Ms. Zhao Yan, on behalf of Huaxi Biology, expressed her expectation to continue working with Frost & Sullivan to explore more potential for sustainable growth in cooperation. Speech by Ms. Zhao Yan, Chairman of Huaxi Biology   Another distinguished guest representative, Mr. Yang Guoping, Chairman of Shanghai Volkswagen Public Utilities Group, extended his blessings to Frost & Sullivan on its 60th anniversary. Mr. Yang summarized the corporate characteristics of Frost & Sullivan into three words: 'Broad, Professional, and Practical'. He pointed out that 'broad' means both a wide geographical scope and a broad range of business areas; 'professional' refers to professional services and a dedicated attitude; 'practical' signifies the achievements and effectiveness of Frost & Sullivan, which truly empower enterprises and enhance their value. Mr. Yang Guoping stated that Frost & Sullivan's global perspective, professional capabilities, and pragmatic spirit provide an escalator for enterprises, enabling them to stand higher, see further, and enhance their value and creativity. Speech by Mr. Yang Guoping, Chairman of Shanghai Volkswagen Public Utilities Group   Subsequently, Dr. Xin Wang, Global Partner at Frost & Sullivan and President of the Greater China Region, took to the stage to deliver a speech. Dr. Xin Wang first expressed his gratitude to the country, to the times, and to his partners. He said: "Thank you to the country for its favorable opening-up policies and inclusive business environment, which have provided a huge stage and impetus for the development of Frost & Sullivan. Thank you to the times; since entering China 23 years ago, Frost & Sullivan has continuously helped Chinese enterprises go global and has assisted domestic and international investment and financing institutions in understanding and investing in Chinese companies." He pointed out that today, China's stock and bond markets rank second globally in size, with more than 4,400 listed companies and over 2,500 listed on the Hong Kong Stock Exchange. Its international influence is growing day by day. It is an extraordinary era that has endowed Frost & Sullivan with responsibility, motivation and direction for progress.   Dr. Wang Xin emphasized: "We are grateful for the sincere help of our leaders, mentors and partners; we are grateful to our customers who have stood by us through thick and thin with Frost & Sullivan; and we are grateful for the team's unity, dedication and hard work."   In addition, he said that over the past 60 years, Frost & Sullivan people have kept their 'original aspiration and mission' in mind, promoted 'self-revolution', empowered themselves with knowledge, and created social value. For the next 60 years, Frost & Sullivan also looks forward to continuing to work hand in hand with everyone to achieve win-win cooperation and create new glories! Dr. Wang Xin, Global Partner and President of Frost & Sullivan Greater China, delivered a speech.   After the speech, under the joint witness of Mr. Wang Chenhui, Partner and Managing Director of Frost & Sullivan Greater China, Mr. Lu Jing, Partner and Managing Director of Frost & Sullivan Greater China, Mr. Yang Xiaocheng, Mr. Mao Hua, Mr. Jia Pang, Ms. Wang Xiaojing and other representatives from Frost & Sullivan, Dr. Wang Xin, together with Mr. Yang Guoping, Chairman of Shanghai Volkswagen Public Utilities Group, Dr. Hu Jiguang, Managing Director of UBS Securities and Head of the China Investment Banking Department, Mr. Bi Shunjie, Partner in Charge of Business in Greater China at EY, Ms. Wang Jie, Chairman of Guokong Chuangfu, Ms. Yu Xin, General Manager of New Fortune Group, Mr. Cheng Jie, Managing Director of CITIC Securities and Head of Global Healthcare at Global Investment Banking, Mr. Zhao Xiaoguang, Vice President of Tianfeng Securities and Director of Research Institute, Ms. Luo Xiaoqin, Deputy Director of Organizing Committee for the Global Health Forum of Boao Forum for Asia, Ms. Hong Yingli, Founder and Vice Chairperson of the Amy Art Foundation, Mr. Fan Yin, Executive Vice President and Managing Director of Jinpu Industrial Investment Fund Management Co., Ltd., Dr. Shen Lifeng, External Director of Shenzhen Special Economic Zone Construction and Development Group and Deputy Secretary-General of the Hong Kong International Investment Council, Mr. Zhang Landing, CEO of Silicon Alpha Investment, Mr. Huang Yong, President of the Procter & Gamble Alumni Association and Founding Partner of the Porsche Innovation Consumer Fund, and Ms. Qiu Zhe, Vice President of Red Star Macallan, jointly lit up the launching ceremony device and announced the official start of the Frost & Sullivan 60th Anniversary Celebration Dinner. In addition, the appointment ceremony for the Frost & Sullivan Growth Strategy Expert Committee was also held during today's celebration activities. Dr. Wang Xin, Global Partner and President of Greater China at Frost & Sullivan, and Mr. Wang Chenhui, Managing Partner and Managing Director at Frost & Sullivan, presented appointment certificates to the committee members from various sectors. List of members of the Frost & Sullivan Growth Strategy Committee Mr. Yang Guoping, Chairman & CEO of Shanghai Volkswagen Public Utilities Group Dr. Hu Jiguang, Managing Director of BofA Securities and Head of China's Investment Banking Department EY Greater China Business Partner & Co-Head of EMEA - Mr. Bi Shunjie Chairman & MD of Guokong Chuangfu - Ms. Wang Jie General Manager of New Fortune Group - Ms. Yu Xin Mr. Cheng Jie, Managing Director of CITIC Securities and Head of Global Healthcare at the Global Investment Banking Group Mr. Huang Yong, President of Procter & Gamble Alumni Association and Founding Partner of Porsche's Innovation Consumer Fund Mr. Xu Lei, Partner and Member of the Investment Committee at Southwind Capital Ms. Luo Xiaoqin, Deputy Director of the Organizing Committee of the Boao Forum for Asia Global Health Mr. Zhao Xiaoguang, Vice President and Director of Research at Tianfeng Securities Mr. Fan Yin, Executive Vice President and Managing Director of Jinpu Industrial Investment Fund Management Co., Ltd. Ms. Hong Yingli, Founder and Vice President of the Amita Art Foundation Dr. Shen Lifeng, External Director of Shenzhen Special Economic Zone Construction and Development Group, Deputy Secretary-General of the Hong Kong International Investment Council Mr. Tang Zhenyi, Vice President of Shangtang Technology Mr. Zhang Landing, CEO & MD of Sily Asia Investment Founder —— Mr. Liu Zhi of Dalongyi Catering Group Academician of the Chinese Academy of Engineering - Mr. Wang Guangji Mr. Liu Shaoqiang, Managing Director & Co-Founder of Dazheng Capital Professor Wang Yu, Expert Advisor to the Global Health Forum of the Boao Forum for Asia and from the Vanke School of Management at Tsinghua University Chairman & MD of Huaxi Biology - Ms. Zhao Yan Ms. Zhao Xiaohong, Executive Partner & Managing Director of the China Management Committee at King & Wood LLP Mr. Meng Yi, Head of Global Banking China at HSBC and Vice Chairman At the celebration, witnessed by Mr. Wang Chenhui, Partner-in-Chief and Managing Director of Frost & Sullivan Greater China, and Mr. Yang Xiaocheng, Partner-in-Chief and Managing Director of Frost & Sullivan Greater China, Dr. Wang Xin, Global Partner and President of Frost & Sullivan Greater China, and Ms. Yu Xin, General Manager of New Fortune Group, signed cooperation agreements on behalf of LeadLeo Research Institute and New Fortune respectively. Both parties will sincerely join hands to contribute to the healthy and sustainable development of the Chinese market.   Also witnessed by Mr. Wang Chenhui and Mr. Yang Xiaocheng, Dr. Wang Xin then signed a cooperation agreement between the LeadLeo Research Institute and Mr. Zhao Xiaoguang, Vice President of Tianfeng Securities and Director of the Tianfeng Securities Research Institute, on behalf of LeadLeo. This comprehensive collaboration between two top research forces will complement each other's strengths, creating the strongest team in the field of in-depth domestic research. It aims to output more high-quality in-depth research products to the capital market, industry sector, regulatory authorities, and even the entire national economy and society, while realizing the value of in-depth research and empowering industrial development and economic takeoff.   Immediately afterwards, Mr. Yang Xiaocheng, Partner and Managing Director of Frost & Sullivan Greater China, and Mr. Yin Hui, President of the Alumni Association of Renmin University of China, signed strategic cooperation agreements on behalf of LeadLeo Research Institute and the Alumni Association of Renmin University of China respectively. The two parties will carry out in-depth cooperation to jointly build a Renmin University LeadLeo industry research platform and serve Renmin University and its alumni enterprises together. LeadLeo Research Institute signs a partnership with New Fortune LeadLeo Research Institute signs a partnership with Tianfeng Securities Research Institute LeadLeo Research Institute signs agreement with the Alumni Association of Renmin University of China   During the cultural performance segment, professional performers presented a splendid cultural audio-visual feast to the guests present.   The Western-style ballet 'Frost & Sullivan', interwoven with grace and strength, portrays water as the source of life. Dancers dancing with water symbolize Frost & Sullivan's win-win cooperation with clients and teams, working together to achieve collective success. The jazz dance performance 'Haitian Opera at Broadway', with its dazzling lights, colorful costumes, and enthusiastic, lively dancing, spreads joy. The traditional Chinese dance performance 'Tang Palace Night Banquet' features museum-revived Tang Dynasty ladies weaving through the ages of civilization, evoking a sense that nothing in the world is truly 'new' unless it is broken. Following it, the Fire Dance Illusion took the guests into a fantastical world of light and fire, with passionate flames symbolizing life and hope. The entire 60th anniversary celebration concluded amidst the melodious and graceful strings of music such as "Blue Danube," "Me and My Motherland," "Jasmine Flower," "Love in the Deep Autumn," "Flowers in Bloom and the Moon Full," and "See You Again."   For sixty years, through wind and rain, Frost & Sullivan has seen its work blossom in spring and bear fruit in autumn. Over these sixty years, Frost & Sullivan has closely followed the pace of global development, always adhering to the sustainable development philosophy of "innovation for change," striving for perfection, pursuing excellence, continuously delving into and deciphering the "codes" of industry development, and helping enterprises explore new possibilities for growth. The people at Frost & Sullivan have become self-reliant and progressive in development, excelling in competition, fulfilling all their visions with down-to-earth efforts, and practicing future ideals with collective strength.   For sixty years, the vigorous development of Frost & Sullivan has been inseparable from the recognition, support and assistance of all clients and partners, as well as the hard work and dedicated efforts of all employees. Frost & Sullivan sincerely looks forward to continuing its long-standing relationship with everyone and hopes to join hands with more friends to jointly move towards a brighter future. Sixty years is a leap in history, but also a brand-new beginning. In the next Jiazi year, Frost & Sullivan will remain true to its original aspiration, keep its focus on the mission of growth, create value through growth, and give back to society with responsibility!

Frost & Sullivan Insights China has established an "ambitious" carbon peak and neutrality goal, clarifying the need for deep adjustment of industrial structures and accelerating the construction of a clean, low-carbon, safe, and efficient energy system. Focusing on the opportunities presented by the "ambitious" goals, foreign companies in China are actively deploying efforts to transform their energy systems by focusing on management and technological energy conservation. China's ambitious carbon reduction strategy has completed its top-level design. As business owners, how should they understand China's carbon policy system? What opportunities can be unlocked for foreign companies in China through the process of achieving the carbon peak targets? What are the biggest difficulties and challenges currently facing China in achieving its carbon peak targets? Dr. Xin Wang, Global Partner at Frost & Sullivan and President of Greater China, was interviewed by Xinhua Finance to discuss the path of "energy transformation" for foreign companies in China under the carbon policy framework. Xinhua Finance November 19th, Shanghai (Reporter: Pan Qing) China has established an "ambitious" carbon peak and neutrality goal, clarifying the need for deep adjustment of industrial structures and accelerating the construction of a clean, low-carbon, safe, and efficient energy system. Focusing on the opportunities presented by the "ambitious" goals, foreign companies in China are actively deploying efforts to transform their energy systems by focusing on management and technological energy conservation.   As part of the top-level design of the "ambitious" strategy, the "Opinions on Comprehensively and Accurately Implementing the New Development Concept and Doing a Good Job in Carbon Peaking and Carbon Neutrality" released in October proposed carbon reduction paths and key tasks.   Dr. Xin Wang, Global Partner at Frost & Sullivan and President of Greater China, stated that from a specific quantitative perspective, energy transformation is the main path to achieving the "ambitious" carbon reduction goals. In areas such as structural, management, and technological energy conservation, there is tremendous potential for cooperation between multinational companies and Chinese enterprises. Including the application of comprehensive contract energy management solutions, foreign companies in China have started early on emphasizing the use of management energy conservation to control their own and project carbon emissions levels. In terms of providing management energy conservation solutions and services to help Chinese enterprises reduce carbon emissions, foreign companies in China already have some successful practice cases.   In 2021, Guoshen Company of the State Energy Group proposed an "integrated two wings" development strategy, namely "optimizing coal-fired power integration, specializing in circulating fluidized beds, and refining new energy," and has made digitalization an important empowerment approach.   Relying on the Pl System data infrastructure provided by AVEVA, a well-known global industrial software company, Guoshen Company has implemented a series of digital application scenarios suitable for coal-fired power integrated operation enterprises, including coal integrated monitoring, local turbine monitoring, flue gas system monitoring, steam-water system monitoring, coal mine safety monitoring and control, real-time environmental protection data monitoring, desulfurization and denitrification diagnosis, etc. Among them, the visual application of real-time environmental protection data monitoring has helped 31 out of 32 units of Guoshen Company complete ultra-low emission renovations.   Dr. Zhiming Huang, Vice President of Pacific and Greater China Channels at AVEVA, stated that digital technology plays a crucial role in energy conservation and emission reduction, reducing carbon footprints. Visualization, digital twins, machine learning, and artificial intelligence are all key digital technologies that help enterprises achieve carbon reduction goals. In industries such as energy and chemical engineering, power, shipbuilding, and railways, AVEVA has helped many global enterprises upgrade their technology by optimizing production processes, improving operational efficiency, and reducing operational risks through software applications. AVEVA will also assist Chinese industrial customers in reducing carbon emissions, promoting the sustainable development of projects and operations, and maximizing emission reduction benefits.   Under the "ambitious" carbon reduction strategy, technological energy conservation is also seen as an important opportunity for foreign companies in China.   Zhu Yaming, Co-Head of Energy Resources at EY Global Greater China, believes that achieving carbon peak and even carbon neutrality targets must start with a transformation of the energy structure. Under the background of the "ambitious" goals, the transformation path of China's energy industry should be reflected in technical assistance represented by clean substitution, electric power substitution, energy interconnection, energy efficiency improvement, and carbon reduction technologies.   Dr. Xin Wang, Global Partner at Frost & Sullivan and President of Greater China, gave an example analysis: Relying on a huge market and proactive government support, China has cultivated a large number of new energy vehicle enterprises with outstanding technical strength in recent years. Against the backdrop of the global trend towards developing new energy vehicles, strengthening cooperation with Chinese enterprises, including joint ventures to produce related raw materials and battery equipment, will become an inevitable choice for relevant foreign companies in China. In areas where new energy vehicles and fuel vehicles are relatively common, such as chips and control equipment, Chinese enterprises need technical support from foreign-funded enterprises in the traditional automotive supporting field. As a provider of next-generation mobility system products in automotive and industrial technology fields, CEP AppTec has been entering the Chinese market for 40 years. Currently, one-fourth of the group's sales come from the Asia-Pacific region, with China as the main body.   Dr. Haozhe Ke, Director of CEP AppTec Group, stated that electric drive, which can effectively reduce carbon emissions, is one of the core technical pillars of CEP AppTec. In China, CEP AppTec will provide fully localized electrified powertrain systems for complete vehicle manufacturers and has already established a complete R&D team and obtained sufficient orders. Two large electric drive factories located in Hangzhou and Shenyang will be put into use in 2022 and 2023 respectively. The 800V electric drive axles designed and manufactured by CEP AppTec for European and Chinese luxury brands will start mass production in China from the fourth quarter of 2023.   In the field of renewable resource power generation, CEP AppTec is also working with upstream and downstream partners to promote the popularization of green electricity. In 2021, the first batch of Vidar transmission systems produced by CEP (Tianjin) Wind Power Co., Ltd. have been successfully mass-produced.   “CEP AppTec is committed to supporting China's sustainable development goals of 'ambitious carbon reduction' by providing comprehensive technical solutions from software to hardware, and creating green, safe, comfortable, and affordable next-generation travel plans both in China and globally,” said Haozhe Ke.   A research report released by HSBC during the 4th CIIE showed that 76% of overseas companies believe that the green and low-carbon transformation has further enhanced the attractiveness of the Chinese market and are optimistic about the business opportunities brought about by the implementation of China's "ambitious" carbon reduction goals. More than half of the companies are planning to provide more environmentally friendly and sustainable products for the Chinese market, including green and low-carbon operations in business and energy conservation and emission reduction of production facilities.   Frost & Sullivan Insights · Extended Reading   Q: China's ambitious carbon reduction strategy has completed its top-level design. How do you understand China's carbon policy system? A: The "Opinions on Comprehensively and Accurately Implementing the New Development Concept and Doing a Good Job in Carbon Peaking and Carbon Neutrality" is the top-level design of China's ambitious carbon reduction strategy and also the "1" in China's "1+N" carbon peaking and neutrality policy system. The "Opinions" decompose the carbon peak targets into three time dimensions and propose ten carbon reduction paths and thirty-one key tasks. We believe that from specific quantitative targets and carbon reduction paths, it can be seen that energy transformation is the main path for China to achieve its carbon reduction goals, and the gradual substitution of non-fossil energy for fossil energy is an inevitable path in achieving the carbon peak goals. Therefore, we expect that the development of the new energy industry will be a key point for China to achieve its carbon reduction goals, giving rise to many emerging fields such as photovoltaic power generation, hydropower generation, and hydrogen energy generation.   The "N" in the "1+N" policy system for carbon peaking and neutrality refers to specific implementation plans for carbon peaking in different sectors and industries including energy, industry, transportation, urban and rural construction, etc. The "Plan" makes ten action guidelines and three support mechanisms for the ten carbon reduction paths proposed in the "Opinions." The ten actions cover several major industries such as energy, industry, transportation, construction, carbon trading, and carbon capture technology. It is not difficult to see from the carbon reduction paths and action plans that the ambitious carbon reduction strategy will involve changes ranging from national policy systems to people's daily lives: changing China's economic growth mode, changing the energy structure of industrial and transportation systems, including people's lifestyles. China is gradually reducing carbon emissions through two approaches: controlling carbon emissions and developing green and low-carbon technologies. On the basis of achieving the carbon reduction targets, it is also necessary to ensure the normal development of the economy.   The carbon peak goal is a long-term strategic goal that requires the joint efforts of the whole country. However, now we have decomposed the ultimate goals of carbon peaking by 2030 and carbon neutrality by 2060 into time, industry, and field aspects through the "1+N" policy system, pointed out the action paths, and formulated specific action plans, breaking down the long-term goals into specific and controllable phased goals. The "1+N" of the carbon policy system represents the relationship between macro and micro, roadmap and construction plan. The formation of the "1+N" policy system marks that China's carbon reduction actions have entered a substantive implementation stage.   Q: What opportunities do you think the process of China achieving its carbon peak goals can unlock for foreign companies in China? Including both management and technological energy conservation. A: Currently, relying on long-term development in new energy technologies such as new energy vehicles and photovoltaics, China has already stood at the first tier internationally. However, on the road to achieving the carbon peak goal, China still needs to further strengthen cooperation with foreign enterprises. Achieving the carbon peak goal is a long-term, complex, multi-link process, and it is not advisable to simply hope that a few single technologies can solve problems easily. It is necessary to solidly carry out each link, using various technical methods, including structural, management, and technological energy conservation, etc.   In terms of management energy conservation, leading foreign companies in the industrial automation sector, such as Siemens, ABB, and Bosch, have accumulated rich solutions and technologies in energy conservation management. Although China's energy conservation industry has currently undergone long-term development, there is still a significant gap compared to these foreign companies in terms of enterprise scale, industrial chain completeness, talent reserve, etc. Foreign companies in China have basically started early on emphasizing the use of management energy conservation to control their own and project carbon emissions levels. Most of these companies have a complete set of contract energy management solutions and have applied them well to their own projects. Under the grand goal of carbon neutrality, these management experiences will play a greater role. These foreign companies can provide relevant consulting services for Chinese enterprises.   In terms of technological energy conservation, we believe that foreign companies in China also have huge development opportunities. Taking the new energy vehicle industry as an example, relying on a huge market and proactive government support and encouragement, China has cultivated a large number of enterprises with outstanding technical strength. Similarly, foreign countries also need to vigorously develop the new energy vehicle industry in the future, strengthen cooperation with Chinese enterprises, combine the advantageous technologies and industries of both sides, which will become the focus in the next few years. For example, in the battery field, more and more foreign companies are building joint ventures with Chinese enterprises to produce related raw materials and battery equipment. Some relatively common equipment between new energy vehicles and fuel vehicles such as chips and control equipment also require technical support and cooperation from traditional automotive supporting enterprises such as Bosch. Mutual cooperation and win-win technology will become the mainstream of future development, and a large number of cooperative factories will bring specific investment and output.   Q: What do you think are the biggest difficulties and challenges for China to achieve its carbon peak goals? A: Currently, China consumes a relatively high amount of coal and oil. The timeframes for achieving the 2030 and 2060 carbon reduction targets are urgent, and the whole industry urgently needs to accelerate the implementation of decarbonization actions and accelerate the transformation of energy supply and consumption. How to reduce the impact on industries with high carbon emissions, ensure their continuous development vitality during the transformation process, and reduce their impact on economic growth are currently the main challenges and difficulties for China to achieve its carbon reduction goals.   [Challenges in Economic Development] Photovoltaics, wind power, energy storage, new energy vehicles, etc. are all current hot topics related to carbon reduction in the market. However, to achieve the carbon reduction goal, relying solely on these coverage areas is not enough. On the one hand, from the current situation, it is not realistic for China to completely abandon the traditional thermal power generation model within the carbon peak target time; on the other hand, some industries such as steel, non-ferrous metals, chemicals, and cement are typical industries that are difficult to reduce emissions. Currently, effective and economical emission reduction methods have not been completed. Unreasonable forced transformation will have a huge impact on industrial structure and economic development. This is the main difficulty for China to achieve its carbon reduction goals.   [Challenges in Emission Reduction Technologies] To solve the above difficulties, there is an urgent need for innovation in emission reduction technologies, especially CCUS technology (Carbon Capture, Utilization, Storage technology). However, China's CCUS technology level is still relatively backward, and its development and application are unbalanced. At the same time, the cost is also huge, and it is currently only in the demonstration project stage with a small scale. Under the condition of ensuring the achievement of carbon reduction goals without affecting the healthy and orderly development of the economy, CCUS is one of the necessary means. A report from the shows that by 2060, 1 to 1.8 billion tons of carbon dioxide emissions need to be reduced using CCUS to achieve a healthy carbon neutrality goal. Therefore, how to quickly and stably promote the research, development, and application of CCUS technology, improve the policy support and standard specification system for CCUS, and achieve large-scale development of CCUS is another difficult problem accompanying China's achievement of carbon reduction goals.   *This article is reprinted from "Xinhua Finance," with Reporter Pan Qing, and the original title is "Foreign Companies in China Are Actively Deploying Efforts to Transform Their Energy Systems in China."

2021 Cell Biology Industry (Shanghai) Conference   In recent years, the global pharmaceutical industry has developed strongly, especially in the post-pandemic era, with the strategic development of biopharmaceuticals as a national priority. As a key area of biopharmaceuticals, the cell industry has brought hope for the cure of various refractory diseases.   To further integrate high-quality cell biology industry resources across the country and promote exchanges, docking, and cooperative development within the cell biology industry, the "2021 Cell Biology Industry (Shanghai) Conference" was held in Shanghai from November 16th to 17th. Mao Hua, Partner and Managing Director of Frost & Sullivan's Greater China region, was invited to attend the conference and released the latest research findings from Frost & Sullivan— the "White Paper on the Development of China's Cell Therapy Industry."   In the third quarter of 2021, Frost & Sullivan conducted an analysis of the competitive landscape and driving forces for the development of China's cell therapy industry, reflecting past and future years' global and Chinese pharmaceutical R&D investment, cell therapy application areas, and industry development trends. Frost & Sullivan hereby releases the "White Paper on the Development of China's Cell Therapy Industry." This white paper aims to analyze the current status, characteristics, treatment areas, drivers, and development trends of China's cell therapy (Cell Therapy) industry, focusing on the market competition situation within the industry.   White Paper Abstract   Since 2003, China has continuously introduced relevant policies and regulations for cell therapy, gradually building a comprehensive regulatory system. After 2010, cell therapy began to attract the favor of major pharmaceutical companies and research institutions. The Wei Ze Xi incident in 2016 led to some delays in the development progress of cell therapy pipelines, but subsequent government regulation of technical guidelines and support for the development of the cell therapy industry have accelerated the rapid development of cell therapy, significantly increasing the number of clinical trials. In 2021, Fosun Kite's axicabtagene autoleucel injection and WuXi AppTec's regicelumab injection were successively approved, bringing two commercial CAR-T products to China. Biotechnology companies are competing to layout the cell therapy industry, and clinical research and development in stem cell therapy, TCR-T, etc., are also making continuous progress, with cell therapy about to embrace broad prospects.   Patient demand and technological innovation boost the growth of the cell therapy industry Cell therapy has achieved significant results in the field of malignant hematology, and other cell therapies bring hope to patients with solid tumors, cardiovascular, and neurological diseases. There are many unmet clinical needs in these disease areas, and the unique advantages of cell therapy are expected to bring long-term efficacy. Continuous iterative innovations in related technologies, including vector technology, gene editing technology, and scale-up, also contribute to the rapid development of the cell therapy industry. Source: Frost & Sullivan Report   Development of CXOs drives the growth of the cell therapy industry CXOs can provide necessary R&D facilities, GMP manufacturing plants, and related talent for small pharmaceutical companies, biotech startups, and virtual pharmaceutical companies. Their professional teams, rich production platforms, and strict quality inspection measures save costs, avoid risks, and shorten the R&D process for companies developing cell therapy products, promoting the enthusiasm of biotechnology companies for cell therapy R&D and facilitating the development of the cell therapy industry. Source: Frost & Sullivan Report   Diversified payment models promote the commercialization of cell therapy The diversified payment models in European and American countries have promoted the commercial development of cell therapy. From 2017 to 2020, the global CAR-T therapy market achieved a compound annual growth rate of 337%, and it is expected that China's diversified payment model will also pave the way for the commercialization of cell therapy. In the future, the scale of China's cell therapy market will maintain a rapid growth trend. Source: Frost & Sullivan Report   The future of China's cell therapy industry is promising Factors such as technological progress, R&D investment support, a large number of unmet clinical needs, and favorable government policies will effectively drive the development of China's cell therapy market: (1) Scientific and technological progress and innovation build momentum for the development of the cell therapy industry; (2) The government encourages R&D, with increasing R&D expenditures stimulating drug and therapy innovation; (3) Single treatment with cell therapy brings long-term efficacy and has unique advantages compared to traditional drugs; (4) There are many patients and many unmet clinical needs, providing new options for cell therapy; (5) China's marketed cell therapy products are CAR-T products, but the clinical trial treatment areas are extensive, and in the future, cell therapy will shine in more disease areas; (6) The gradual improvement of the government's regulatory system for the cell therapy industry brings more business opportunities. Source: Frost & Sullivan Report Click on the bottom left corner to read the original article , Read the full report now Previously, Frost & Sullivan has released several industry development white papers, including "White Paper on the Development of China's Medical CXO Industry," "2021 White Paper on the Promotion of Health Management by China's Health Insurance," "White Paper on the Development of China's Oncolytic Virus Industry," "White Paper on the Development of China's Cell and Gene Therapy Industry," covering many sub-fields of the healthcare industry.   In the future, Frost & Sullivan will continue to closely follow the latest developments within biopharmaceuticals and the healthcare industry, continuously outputting its own industry observations and views. Mao Hua revealed: "Currently, 'White Papers on the Development of Small Molecule Targeted Drugs,' 'IVD In Vitro Diagnostic Industry,' 'Neuro and Peripheral Intervention Industry,' 'Surgical Robot Industry,' 'Medical Imaging Industry,' etc., have all entered the preparation and writing stages, and will be gradually released to the market in the future. Everyone is welcome to keep an eye out for them."

Frost & Sullivan Insights On November 3, at the 2021 Tencent Digital Ecosystem Conference, Tencent officially disclosed its actions in chip development for the first time: the "Zixiao" chip for AI computing, the "Canghai" chip for video processing, and the "Xuanling" chip for high-performance networks have all made substantial progress. Among them, the "Zixiao" has now been successfully fabricated and successfully powered on. What kind of chips does Tencent want to build? Why does Tencent want to build chips? Li Qing, director of the Frost & Sullivan and LeadLeo research institute, was interviewed by The Economic Daily to discuss Tencent's "chip journey" with everyone.   The Economic Daily On November 3, at the 2021 Tencent Digital Ecosystem Conference, Tencent officially disclosed its actions in chip development for the first time: the "Zixiao" chip for AI computing, the "Canghai" chip for video processing, and the "Xuanling" chip for high-performance networks have all made substantial progress. Among them, the "Zixiao" has now been successfully fabricated and successfully powered on.   Tencent started from QQ and has been expanding around the software ecosystem since its establishment. Entering the chip industry, moving from "software" to "hardware," can be regarded as an important exploration in business layout. What kind of chips does Tencent want to build? Why does Tencent want to build chips?   What kind of chips to build Tencent's intention to build chips has long been evident.   In May 2018, Pony Ma, chairman and CEO of Tencent, revealed some ideas about chips during a forum speech.   He said at that time that when doing software and services, it seemed a bit distant from chips. But in fact, Tencent has built many data centers, including the cloud, and has a certain influence on many server-side needs, even including chips. The application services are massive, with a particularly large user base, which can force the chip design industry to make targeted designs. "If we can also get involved in supporting some chip research and development, it might be better."   Soon after, Tencent took the investment approach and initially entered the chip field: In August 2018, the AI chip startup SinoFoundry received 340 million yuan in Pre-A financing, led by Tencent.   In June or July this year, the outside world suddenly noticed that Tencent had posted multiple job openings for chip research and development on the Internet, involving chip architects, chip verification engineers, etc. So people speculated that Tencent's layout in the chip field had been strengthened.   On November 3, at the 2021 Tencent Digital Ecosystem Conference, the veil was lifted over Tencent's chips, and three types of chips all belong to dedicated chips. Among them, the "Zixiao" is mainly used for AI, the "Canghai" is mainly used for video, and the "Xuanling" is mainly used for intelligent networks. Regarding the characteristics of these chips, Tencent has made professional explanations, but it is still not easy for non-industry insiders to understand. In summary, the performance of these three types of chips has been significantly improved compared with similar products.   It is understood that in the future, Tencent's strategy in chip development will adopt a two-pronged approach, one is self-development and the other is cooperation. Tang Daosheng, senior executive vice president and CEO of the Cloud and Smart Industries Group, said that Tencent will always seek to maintain in-depth strategic cooperation with domestic and foreign chip companies through the model of ecological co-construction, combining the customization ability of chips with that of software. Why build chips Behind Tencent's chip-building efforts, there are two questions: one is why it wants to do it, and the other is why it can do it.   First, let's look at the question of "why it wants to do it".   Qiu Yuepeng, vice president of Tencent, COO of the Cloud and Smart Industries Group, and president of Tencent Cloud, introduced at the conference that with the development of the cloud computing industry, the trend of integrating software and hardware is becoming more and more obvious, and software-defined hardware is irresistible. Chips are the most core part of hardware. Tencent has been actively exploring in the chip field and has long-term investments. And AI computing, video processing, and high-performance networks are three scenarios with strong demand.   Tang Daosheng also responded during a media group interview. He said that Tencent's investment in this area is driven by demand, and it is also because some problems need to be solved, either to reduce costs or to use Tencent's infrastructure more efficiently.   “For example, the scale of AI services is very large. How to reduce energy consumption through self-developed chips, how to optimize costs, these are all areas that drive us to keep investing in this field. Another example is that as audio and video usage scenarios become more and more common, as an underlying technology and a more natural interactive mode for communication between people, it is applied in many scenarios of Tencent to meet needs such as healthcare, education, and live streaming, and it has also become an important place that consumes computing resources. We have also made a lot of investments in audio and video coding technology and hardware chips, hoping to achieve integrated software and hardware to support audio and video encoding and decoding more efficiently. Another example is the Xingxinghai server, which is built for the cloud and is a multi-core chip that meets the needs of cloud application scenarios.” Tang Daosheng said.   Li Qing, director of the Frost & Sullivan and LeadLeo research institute, told The Economic Daily reporter that integrating software and hardware is an AI trend. The support of algorithms must rely on the capabilities of underlying chips, and the existing ones are not sufficient to perfectly match the application of AI algorithm models. Not only Tencent, but Huawei and Alibaba are also building AI chips, which is the inevitable direction for enterprises building AI platforms.   Now let's look at the question of "why it can do it".   As we all know, the threshold for chips is very high. But compared with general-purpose chips, there are more opportunities for dedicated chips. Tencent's entry point is dedicated chips.   Li Qing believes that Tencent's choice is wise. This part of the chips is not meant to be open for all industries, but has specific uses. From the perspective of AI algorithm applications, it also tends to be in a professional direction. Video processing and audio and video technology are areas where Tencent is strong. Matching this ability with AI is very consistent with Tencent's current development strategy. R & D follows actual needs, not blindly following trends or hype concepts, which is very realistic.   Of course, Tencent's chip-building efforts are not without challenges. Li Qing said that after all, Tencent did not start from hardware. The key lies in the degree of self-development and cooperation with the outside world. Establishing an ecosystem has always been a principle that Tencent adheres to, and this part will definitely be opened up to partners in the future.   *This article is reprinted from The Economic Daily, with reporter Guo Rongcun. The original article is titled "A Detailed Explanation of Tencent's Chips: What Kind of Chips Are Being Built and Why".

From November 3rd to 4th, the 'Digital Realities Integration, Blossoming New Opportunities' 2021 Tencent Digital Ecosystem Conference was grandly held at Wuhan Optics Valley. Over 300 industry leaders, technology pioneers, economists, and other luminaries gathered together to discuss new opportunities for the integrated development of digital technology and the real economy. Yang Xiaocheng, Partner and Managing Director of Frost & Sullivan's Greater China region, as well as CEO of LeadLeo Research Institute, was invited to attend the conference and delivered a keynote speech titled 'Intelligent Creation of Intelligence - How AI Development Platforms Define Leaders'.   Scene: How does the AI development platform define a leader? At the meeting, Yang Xiaocheng shared from four aspects: AI development platform architecture, market space, competitive elements, and competitive landscape.   Firstly, Yang Xiaocheng started with the architecture of AI development platforms, pointing out that their key elements include infrastructure, training platforms, frameworks, and application technology services. Currently, the mainstream trend concepts surrounding these four elements include AI self-developed chips, cloud-native architecture, elastic computing, and DevOps (automated deployment).   In terms of infrastructure, enterprises have developed their own AI chips to adapt the chip circuit architecture to their algorithms, maximizing operational efficiency. Self-developed chips also show trends such as architectural innovation, morphological evolution, and integration of software and hardware. In terms of elastic and distributed training, cloud-native deep learning training platforms can achieve complete containerization deployment and use, and provide elastic scaling of resources based on Kubernetes, compatible with a variety of CPU and GPU processors. Distributed training can provide elastic configuration of underlying resources, improve system utilization, and enable users to achieve cost reduction and efficiency enhancement. At present, with the expansion of cluster scale, the probability of machine failures occurring at a given moment in the cluster is increasing. While the complexity of training models is rising, the fault tolerance of tasks is decreasing, and the demand for flexibility in cluster resource allocation is also constantly strengthening. Subsequently, Yang Xiaocheng led everyone to understand the current market situation and trends of AI development platforms. The report shows that the market size currently exceeds 20 billion yuan, with a stable growth in existing space. From the perspective of the development trend of application technology in the entire artificial intelligence industry, there have been the proposal of large models, the transformation from perceptual intelligence to cognitive intelligence, and the integration from single-modal to multi-modal. From an algorithmic perspective, the R&D investment in artificial intelligence algorithms accounted for 9.3%, exceeding 37 billion yuan. Computer vision, speech recognition/synthesis, and natural language processing accounted for 22.5%, 2.3%, and 7.1% respectively. In terms of computing power, China is accelerating the construction of a new generation of artificial intelligence computing infrastructure, with the 'implementation wave' of intelligent computing centers rapidly emerging across various regions. The AI industry in China invests about 50% of its costs in computing power construction, but development speed at the computing power level has not met expectations due to chip limitations, leading to an acceleration in the localization of AI chips. From the perspective of application needs, currently, it is still dominated by the government. Smart cities, which involve urban management, operation, intelligent analysis and security, account for 85% of the market share. On the ToB side, which focuses on energy, logistics, industry, consumption, etc., it is still mainly led by industry leaders. Currently, leading enterprises have already carried out large-scale applications in the field of artificial intelligence, and in the future, the artificial intelligence market will penetrate into small and medium-sized enterprise users. Data shows that from 2016 to 2020, the revenue scale of AI development platforms in China expanded rapidly, with the revenue of Chinese AI development platforms exceeding 20 billion yuan in 2020. At present, the revenue proportion of four businesses: computing power, data, model invocation, deployment, and maintenance is approximately 4:3:2:1. In the future, as AI applications deepen in various vertical scenarios, the revenue proportion of model invocation business is expected to increase. Yang Xiaocheng stated that the core competitive element of AI development platforms is how to create a platform that is more suitable for developers. He believes that efforts should be focused on two directions: enhancing the hard power of service supply capabilities and meeting customer needs through soft power.   In terms of hard power: First, intelligent annotation of data is a difficult leap from manual to intelligent methods. Second, machine learning frameworks need to gradually improve their defects, enhance user experience, and build an AI ecosystem. Third, pre-trained models should be made more flexible through compression and acceleration while scaling up in size. In terms of soft power: First is AutoML, one of the important trends in the field of artificial intelligence. It can help AI development platforms automatically complete tasks such as neural structure search, model selection, feature engineering, hyperparameter tuning, and model compression. Second is a developer-centric approach, which enhances platform service capabilities in multiple aspects including data preparation, model training, model management and deployment, and account management to build an ecosystem. Finally, Yang Xiaocheng mentioned that Frost & Sullivan and LeadLeo Research Institute released a frost radar chart on AI development platforms in September this year. They established two scoring dimensions: innovation index and growth index, to evaluate and analyze AI development platforms. The results showed that Tencent Cloud is positioned in the leader quadrant. According to its introduction, the innovation index consists of two primary indicators—technological innovation capability and business innovation capability. Among them, technological innovation capability has four sub-indicators that examine basic hardware, data collection and annotation, underlying architecture, and algorithm models. The growth index, on the other hand, starts from services and ecosystems. Looking at the overall performance, the AI development platform market in China is in a stage of technical maturity and platform improvement. Competitors have competitive advantages in terms of both innovation capability and growth capability for AI development platform products. "We can see that China's AI technology is still in the process of continuous development and improvement. I believe that in the future, AI development platforms will become more mature and affordable to implement earlier," said Yang Xiaocheng.

Frost & Sullivan insights On the evening of October 28th, Aolife Entertainment (002292.SZ) disclosed its third-quarter report for 2021 and information on the proposed investment amounts for adjusted private placement projects. Following a negative net profit growth in the second quarter, Aolife Entertainment's net profit continued to decline in the third quarter. Since the end of 2020, commodity prices have been continuously rising, along with continuous chatter about 'rising' shipping costs. As a listed company with overseas revenue accounting for half of its earnings and toy sales and baby products accounting for over 75% of its business, Aolife Entertainment has been greatly affected by this. Do the long-term strategic agreements between major shipping companies have corresponding thresholds for business volume or capital? What strategies can small and medium-sized enterprises use in the face of rising shipping costs? From the company's perspective, what are the advantages and disadvantages of signing long-term strategic agreements with shipping companies? Xiang Weili, Executive Director of Frost & Sullivan Greater China, was interviewed by a reporter from CCB News to answer questions related to long-term shipping agreements.   Cailian Social Cainiu News Agency (Guangzhou, Reporter Ren Chaoyu) On the evening of October 28th, Aoyou Entertainment (002292.SZ) disclosed its third-quarter report for 2021 and information on the proposed investment amount for the adjusted private placement project. Following a negative net profit growth in the second quarter, Aoyou Entertainment's net profit continued to decline in the third quarter. Affected by factors such as raw materials and maritime transportation, net profit dropped significantly by 2902.19%, turning from a profit to a loss year-on-year.   Data shows that although shipping prices have loosened, it is very likely that they will continue to fluctuate at a relatively high level in the future. A shipping industry analyst told reporters that shipping prices can still remain high in Q4 because the mismatch between supply and demand has not been completely resolved.   This may mean that the pressure on shipping costs for OPPO Entertainment's Q4 will continue.   In terms of operations, the trend gaming business, which is most concerned about by the capital market at OFG Entertainment, has just begun and requires certain necessary investments. Based on the judgment that industry barriers are low and there are many entrants, there are still many uncertainties regarding whether this business can succeed.   As the end of 2021 approaches, whether the goodwill brought about by the company's significant mergers and acquisitions in the early stages will be impaired on the balance sheet date has also attracted market attention.   No long-term contracts? The pressure on shipping costs in Q4 may remain Since the end of 2020, commodity prices have been continuously rising, accompanied by persistent reports of 'price increases' in shipping costs. The combined effect has eroded profits in multiple industries. As a listed company with overseas revenue accounting for half of its earnings and toy sales and baby products accounting for over 75%, Aovi Entertainment has been greatly affected by this.   The company's third-quarter report shows that in the first three quarters of 2021, operating revenue increased by 13.77% year-on-year to RMB 2 billion. The net loss amounted to RMB 81.2966 million, including a loss of RMB 94.4805 million in the third quarter, which became the main period of loss for the first nine months.   During the reporting period, the average sea freight rate for the company's baby products business and toy business increased by 207% and 477% year-on-year respectively. Specifically, in the third quarter, the average sea freight rate for baby products and toys was $12,000 per container and $15,000 per container, respectively. The impact of price increases further intensified, resulting in a year-on-year increase of over $40 million in sea freight costs for the third quarter. The prices of bulk raw materials continued to rise, with the procurement cost of plastic raw materials used in major products increasing by about 50%.   Judging from the continuously rising shipping costs of the company, it is unlikely that OFE Entertainment has the possibility of obtaining long-term contracts for shipping. In an interview with a reporter from Cailian News Agency, OFE Entertainment did not directly answer whether it holds long-term contracts. However, it stated that its products are mainly exported to countries such as North America, Central and South America, Europe, and Southeast Asia. In the long run, current shipping prices are expected to return to a reasonable level. In addition to actively maintaining communication with existing suppliers and shipping companies, the company is also developing new shipping companies. By booking space through multiple channels, it expands the guarantee of spare storage space to ensure timely shipment of goods and reduce gross profit losses.   Zhang Xiaofei, an expert from Whale Platform Think Tank and the director of Yumang International Logistics, told reporters that long-term agreements involve cargo space and prices. There must be a threshold for long-term contracts, but it varies among different routes and shipowners. " Xiang Weili, an expert from the Whale Platform Think Tank and Executive Director of Frost & Sullivan Greater China, told reporters that long-term agreement contracts are generally signed by large enterprises with relatively fixed goods and larger volumes. Small and medium-sized enterprises should actively negotiate prices with shipping companies, sign relevant long-term agreements, and hedge against pressure by establishing warehouses at the destination port, actively negotiating with destination port customers, and jointly bearing freight costs. According to incomplete statistics from CICC, Midea, Haier, LONGi, and TCL have all signed strategic cooperation agreements with COSCO Shipping & Logistics Holdings this year.   The growth rate of the Shanghai Shipping Exchange China Export Container Freight Index has slowed down significantly in the past two weeks. Data on October 22 showed that the composite index only rose by 0.5% compared to the previous period. However, this does not indicate that a turning point in shipping costs will occur in the short term.   The latest report from Zhongzhou Futures on October 18th indicates that the significant increase in global maritime shipping is mainly due to post-pandemic supply-demand mismatches, structural differences in maritime shipping, and fuel prices. As the traditional peak season of the fourth quarter gradually ends, there are signs of weakening in the forward charter market. Fourth-quarter freight rates may slightly decline, but due to the potential rise in crude oil prices, the cost impact is expected to keep freight rates fluctuating at a relatively high level.   Another maritime analyst told reporters that shipping prices can still remain high in Q4, as the mismatch between supply and demand has not been completely resolved.   Adjust the proposed investment amount for fundraising projects. The inherent advantages of online games still need to be developed through post-launch operations. TikTok collectibles are currently the most anticipated business of OFE Entertainment. Judging from the performance of related star companies, this business is characterized by high profit margins and strong growth potential. For OFE Entertainment, which specializes in toy development and sales with a focus on IPs, entering the TikTok collectibles industry undoubtedly has an inherent advantage.   The layout of the pop culture business started in the second half of 2020, and production lines began construction in the first half of 2021. In the second half of the year, the company raised its strategic positioning for the pop culture business again, establishing a Pop Culture Business Unit for independent management and continued resource support. Currently, the pop culture team has nearly 50 members.   It can be seen that OPPO Entertainment is making great efforts to build the trend gaming business into the company's second growth curve.   However, it cannot be ignored that entering a new industry requires certain investment. From the perspective of book value, the company's cash flow situation is not optimistic. Data from the third-quarter report shows that the company has 230 million yuan in monetary funds and 1.121 billion yuan in short-term loans, indicating a significant funding gap. The net operating cash flow was only 17.8715 million yuan, resulting in a net outflow of 338 million yuan in cash and cash equivalents, which raises concerns about its ability to generate revenue.   In terms of offline channels, OPPO Entertainment mainly collaborates with other companies. The company told the Financial News and Communications Agency that its offline channels cover over 10,000 stores including Ming Chuang Youpin, Lingli, KK Group, Sanfu, and FamilyMart convenience stores.   In comparison, Poplar Mart has chosen to build its own offline channels. According to statistics from Tianfeng Securities, in June 2021, it had a total of 212 offline stores in the Chinese mainland, covering 47 cities.   Perhaps based on the above circumstances, AOV Entertainment launched the 'Non-Public Offering of Shares' plan in May 2020, aiming to raise approximately 1.1 billion yuan. However, the final results showed that the private placement raised about 544 million yuan at a price of 4.48 yuan per share, which is quite different from the planned target. This also represents to some extent the capital market's preference for the company's fundraising projects.   The latest announcement shows that due to the decline in fundraising scale, the company has decided to adjust the proposed investment amount for the non-public offering of shares. A media industry analyst told reporters: 'I believe that trend toys have social attributes. After buying them, people can take photos and communicate with friends. Additionally, from an IP perspective, observing Popomart reveals that their own IPs are the main sales force, so operational capabilities are very important. Moreover, the barriers to entry in this industry are low, and anyone can participate.'   Public information shows that 52TOYS recently announced the completion of a $400 million Series C financing; AOF's partner MingChuang Youpin also entered the trend gaming business last year and launched the new brand TOPTOY. Tencent invested in the trend gaming company ViViCat, holding a 30% stake. Alibaba Pictures established a new trend gaming business brand 'Koi Joy'.   The industry is booming, and the trend of consolidation into a few tracks has become the most intuitive perception. Against this backdrop, there is significant uncertainty about whether OPPO Entertainment can break through.   Finally, it is worth noting that the past 'buying, buying, buying' M&A rhythm has brought a huge goodwill to OFE Entertainment. After years of impairment, there is still about 1.85 billion yuan in goodwill. Among them, the book value of Beijing April Sky's goodwill is 448 million yuan, and the book value of BabyTrend Inc.'s goodwill is 466 million yuan. However, according to the 2021 interim report, Beijing April Sky's net profit was a loss of 9.0975 billion yuan, while Baby Trend, Inc.'s net profit decreased by 55% compared to the same period last year.   It can be seen that the company faces significant pressure on goodwill impairment. If the aforementioned companies do not perform well in the future, it is very likely that Aofei Entertainment will continue to make provisions for goodwill impairment on its balance sheet date.   Frost & Sullivan Insight & Extended Readings   Q: Are there any corresponding business volume or capital requirement thresholds for the long-term strategic agreements of major shipping companies? What strategies can small and medium-sized enterprises use in the face of rising maritime costs? A: In the industry, large cargo owners and major shipping companies generally sign long-term strategic agreements to protect their interests. Both parties will agree on a business threshold. Therefore, those who sign long-term agreement contracts are usually large enterprises with relatively fixed goods and larger volumes, such as South Korea's Pan Ocean Shipping and global energy giant Shell, which have continuously signed long-term strategic agreements, and Maersk and Jingke Energy have signed strategic cooperation agreements. Long-term agreements typically set contract terms based on the shipping company's available space, customer volume, and current freight rates. A long-term agreement is usually just a foundation contract; in most cases, both parties will agree to sign separate transportation contracts for each shipment, clarifying and detailing their respective rights and responsibilities. In some contract negotiations, both parties may agree to set a range of freight rate fluctuations. Within this range, they share risks and benefits, which is more fair for both parties.   Currently, the industry encourages enterprises to sign long-term agreements with shipping companies. For small and medium-sized enterprises (SMEs), they can actively negotiate prices with shipping companies and sign relevant long-term agreements to lock in risks and costs. In addition, by establishing warehouses at the port of destination, SMEs can enhance their supply chain integration capabilities and actively expand their supply chains. Finally, SMEs can actively negotiate with customers at the port of destination, jointly bear freight costs, and complete order deliveries as soon as possible.   Q: It has been observed that some listed companies have not signed long-term agreements with shipping companies. From the company's perspective, what are the advantages and disadvantages of signing long-term strategic agreements with shipping companies? A: Signing long-term agreements can stabilize freight rates to a certain extent. In the current environment of rapidly rising freight prices, companies that sign long-term agreements can control costs, stabilize supply chains, and reduce operational risks to a certain extent.   The downside is that long-term agreements often fail to accurately predict future industry development trends, and the flexibility of clause settings is relatively low. This makes it more difficult to execute long-term agreements when there are changes in the shipping industry or when foreign trade conditions improve. For example, long-term agreements signed before 2020 had lower prices due to widespread market pessimism about future industry development. Therefore, after freight rates rose, most maritime companies reduced bookings, container supply, and postponed exports, causing goods not to be shipped normally.   *This article is reprinted from 'Cainiao Finance Union', with reporter Ren Chaoyu. The original title was 'AOF Entertainment's Q3 Profit Turns into Losses, Rising Shipping Costs May Continue to Erode Revenue, and the Gaming Business Still Needs a Breakthrough'.

Frost & Sullivan insights On October 13, at a policy briefing held by the State Council Information Office, Li Ming, Deputy Chief Engineer and Director of Marketing Department of State Grid Corporation of China, stated that it is expected that the maximum load this winter will reach 1 billion kilowatts, exceeding the historical level of 970 million kilowatts during the same period. After experiencing a period of power supply tension, with the arrival of winter's peak electricity consumption, will the tight power supply situation continue? How can the power grid make efforts this year to ensure power supply safety? The power grid has annual imbalances and gaps. When, and how can these be stabilized? Will the new power system dominated by renewable energy exacerbate this phenomenon in the future? Analysts from Frost & Sullivan were interviewed by China Energy News. Focus on ensuring power supply this winter, and we will provide you with a detailed interpretation. China Energy News On October 13, at a policy briefing held by the State Council Information Office, Li Ming, Deputy Chief Engineer and Director of Marketing Department of the State Grid Corporation of China, stated that it is expected that the maximum load this winter will reach 1 billion kilowatts, exceeding the historical level of 970 million kilowatts during the same period. The "triple convergence" of the peak electricity consumption period in the north, the dry season for hydropower, and the heating period for cogeneration units “will further increase power demand." Overall, the system will be in a state of tight balance, with local hard shortages and still significant pressure on the power grid to ensure power supply.   Under the pressure of ensuring supply, the transformation of the power system itself has received even more attention. After successfully constructing a new type of power system, will the grid be more adept at handling the pressure of ensuring power supply?   Facing the test of a maximum load of 1 billion kilowatts After experiencing a period of power supply strain some time ago, with the arrival of winter's peak electricity consumption, will the tight power situation continue under the maximum load of 1 billion kilowatts?   A relevant official from the Economic Operation Regulation Bureau of the National Development and Reform Commission recently stated that this winter, the total installed capacity across the country will reach about 24 billion kilowatts, an increase of about 200 million kilowatts year-on-year. The effective peak load will be increased by more than 60 million kilowatts, and the peak power generation capacity can exceed 12 billion kilowatts. The country's maximum power generation capacity can ensure the highest demand for electricity consumption, and there is confidence and capability to ensure winter power supply.   Jiangxing Smart CFO Shao Junsong believes that with the joint efforts of relevant national departments, there is basically no risk of power outages during the peak electricity consumption period this winter and next spring.   "In the current situation, there is an overall imbalance between electricity supply and demand. Although residential and general industrial and commercial electricity use will be guaranteed, large industrial users, especially those with high energy consumption, are likely to face relatively strict orderly electricity usage measures," said Shao Junsong.   Wang Gengye, consulting director of Frost & Sullivan's Energy Carbon Double Reduction Business Unit in Greater China, analyzed that one of the core reasons for this round of power rationing is supply-demand imbalance. On the supply side, the issue of rising coal prices remains an objective reality at present; on the electricity price side, although the electricity pricing mechanism has been announced to be more market-oriented after the reform was introduced on October 8th, there are still fundamental issues with the coal-fired power pricing mechanism that need to be resolved.   This forces all links of the power system to be more coordinated Shao Junsong told reporters that under the current market conditions, due to the special nature of electricity as a commodity, power supply safety depends on a strong grid structure, safe operation on the power generation side, and orderly consumption on the power consumption side.   He stated that although China's power grid network structure is relatively sound and strong, the risk of insufficient power generation capacity due to issues such as coal-fired power inversion and fluctuating power generation from new energy stations on the generation side could affect grid safety. At the same time, on the consumption side, if a large number of users cannot implement an orderly electricity use plan, it can also impact grid safety.   The relevant person in charge of the National Development and Reform Commission stated that it is necessary to coordinate and strengthen the construction of power supply capacity. Accelerate the progress of important power source grid projects, ensure that coal-fired and gas-fired power units are fully operational, promote the frequent and full generation of clean energy, and enhance power supply capacity through multiple channels.   Wang Gengye told reporters that currently, against the backdrop of insufficient stability and volume of new energy power generation, thermal power generation remains the main source of electricity in China. However, the price increase of coal far exceeds the affordability of electricity prices, coupled with carbon reduction constraints, makes it still a prominent pressure for power grids to ensure power supply.   Industry insiders told reporters that in this situation, on the one hand, the power grid needs to transform as soon as possible and accelerate the construction of a new power system, making the grid itself more flexible and resilient. This will better enable the adjustment of power supply and demand gaps, achieving balance between supply and demand through dispatching; on the other hand, it must also be recognized that achieving stable and high-quality power supply is not just the responsibility of the power grid alone. It requires joint efforts from both the power source side and the load side, and more importantly, policy guidance from an overall perspective and throughout the entire process.   Shao Junsong believes that to ensure power supply safety, multiple measures need to be taken: First, through digital and intelligent means, inspect and maintain power transmission, distribution, and transformation facilities to ensure the safety of the grid's structure and the normal operation of equipment; second, make good use of information systems to accurately predict power generation from power plants, especially new energy sources, ensuring the accuracy of prediction data. At the same time, coordinate and regulate energy storage stations on both the source and grid sides to ensure that the electricity fed into the grid meets expectations; finally, accelerate the advancement of virtual power plant services on the user side, transforming user-side orderly electricity consumption plans with mandatory enforcement characteristics into flexible electricity consumption plans regulated through market mechanisms, allowing a large number of users to spontaneously participate in actions to ensure power supply safety.   Developing new energy will not exacerbate the risk of power rationing Currently, the proportion of new energy is still low, leading to a phenomenon of power supply shortages. In the future, as the proportion of new energy continues to rise, will the volatility and intermittency of new energy pose greater challenges to electricity stability?   In response, Shao Junsong explained that due to the natural difficulty of storing electricity, under the circumstances where the proportion of new energy is gradually increasing and energy storage stations are not widely used, the power grid operation will always be in a state of tight balance. However, with the promotion and application of energy storage technology, through the function of energy storage buffer pools, it is possible to adjust the amount of electricity in both temporal and spatial dimensions.   In addition, the power grid itself still has room for improvement. By changing the dispatching and operating modes of the grid, it can gradually adapt to a power supply structure dominated by new energy sources.   "In the future, power market transactions in various regions will strictly implement a market-based price mechanism of 'benchmark price + floating range', allowing more electricity to enter the market. At the same time, after the completion of the new power system, due to the synchronous realization of coordinated regulation of sources, grids, loads, and storage, power supply will only be safer, and the grid's safe and stable operation margin will be greater," said Shao Junsong.   In Wang Gengye's view, the proportion of new energy power generation will continue to increase in the future. Building a new power system with new energy as the main body is gradually reducing China's dependence on thermal power, which can effectively alleviate the risk of power rationing caused by carbon emission control.   "Effectively improve the timeliness of source-grid-load storage coordinated control services, ensure the credibility and security of business data, enhance the flexible consumption of distributed power sources, precise control of power generation and load, and diversified coordination capabilities among source-grid-load storage. Ultimately, this can promote the consumption of clean energy, improve the safe and stable operation level of the power grid, and eliminate concerns about power rationing issues caused by a high proportion of new energy," said Wang Gengye. *This article is reprinted from 'China Energy News', authored by Han Yifei, with the original title 'Surpassing the 970 million kilowatt load level of the same period in history, the maximum power load this winter is expected to reach 1 billion kilowatts - Winter electricity peak, grid under test again'.

On October 28, 2021, PLESTY, in collaboration with Baidu Smart Cloud, successfully concluded the Physical Retail Digital Empowerment Summit Forum at the Shangri-La Shanghai Jing'an. Executives from leading consumer goods brands at home and abroad, industry experts, digital experts, management experts, and channel experts gathered together to share insights on innovative practices, build an industry exchange circle, and jointly explore the practical applications of digital technology empowering retail channels and the infinite potential for driving business development. Ding Zhuowen, Managing Director of Frost & Sullivan (abbreviated as: Frost & Sullivan), Senior Vice President of LeadLeo, and Dean of the LeadLeo Research Institute, was invited to attend this forum and delivered a keynote speech on the digital transformation of the consumer industry. Digital Lighting Path Ding Zhuowen stated that, relying on the upgrade of digital supply networks, China's retail, clothing, home appliances, catering, and tourism industries have achieved remarkable results. The leading enterprises in these industries have a relatively mature level of digitization and are leading the overall digital upgrading of the industry. The report shows that over 85% of Chinese consumer industry enterprises have initiated digital transformation strategies. Retail and home appliance industries lead in terms of digital penetration rates, with average profit margins in highly digitalized industries increasing by 2 to 3 times compared to those in less digitally advanced industries. Thanks to omnichannel, analytics-driven business models, as well as the incubation of the sharing economy, by 2030, the digital value creation of the consumer industry will account for about 25%-30% of the total industry value. Subsequently, Ding Zhuowen introduced that the main paths for enterprise digital transformation can be divided into five methods: self-establishment, acquisition, partnership, investment, and incubation. The primary objectives of consumer enterprises' digital business are mainly to revitalize existing assets, reduce costs and increase efficiency, develop new increments, and incubate variables. For example, JD.com acquired Wuxing Electric Appliance to improve home appliance logistics efficiency and expand customer base; iFlytek drones joined hands with Yonghui Supermarket to create the world's first 'drones delivering meals' demonstration store; Xiaomi has deployed pure rice technology and other businesses through angel investments, strategic investments, etc.; Starbucks has adopted targeted omnichannel marketing, achieving significantly higher single-point growth and per square foot efficiency than its peers. When discussing digital business models, Ding Zhuowen believes that the digital transformation of consumer enterprises can effectively promote business model changes. By establishing consumer-centric business models from dimensions such as brand websites, brand collaborations, and enterprise applications, companies can enhance their revenue potential. Research has found that 81% of consumer decisions come online. During the purchasing process, consumers use multiple channels, and digital enterprises provide various purchase channels based on consumers' unpredictable needs. In addition, over 30% of offline sales are influenced by online content. Companies can use social media to give consumers opportunities to express their views, use data analysis throughout the consumer marketing and sales cycle, and the online retailing and high coverage of e-commerce help to tap into corporate revenue potential. When discussing digital consumer experiences, Ding Zhuowen took retail enterprises such as Uniqlo and IKEA as examples to further elaborate on how these companies have launched AR products to assist in enhancing their brand advantages. Uniqlo placed the first Uniqlo Magic Mirror in its store in San Francisco, USA, and subsequently added more functions, gradually expanding it globally, increasing transaction conversion rates by 15%. IKEA launched an application called IKEA Place in 2017, covering over 2,000 products of various brands with an accuracy placement rate exceeding 98%, and combined with the popularity of AR Kits, introduced home AR, promoting IKEA's Future Lab Space10 products, with app monthly active users exceeding 150 million. Practice has proven that AR has a significant impact on the retail e-commerce market, mainly targeting traditional offline retailers and traditional advertising companies. It reduces consumers' waiting time by 70%, significantly improves their shopping experience, and also reduces retailers' labor costs and customer acquisition costs. Subsequently, Ding Zhuowen analyzed three carriers for the digital transformation of the consumer industry: consumer data, experiential economy, and omnichannel retail.   Consumer data can serve as an effective carrier for enterprises' digital transformation, helping them enhance customization in the production process, marketing precision, and consumer experience. It forms a transaction loop, improves the value chain of consumer enterprises, and allows them to build a digital business model centered around consumers. Tmall Home furnishing has redefined the design store experience through innovative design thinking and disruptive retail element restructuring. By using intelligent means and digital services, it has enhanced the effectiveness of backend operations, achieving a 60% increase in average order value. The experience economy model includes personalized product portfolios, retail experiences, product customization, and service experiences. Taking Midea as an example, digital production is tailored to customer needs, integrating production data for intelligent analysis, reducing rework costs by 50%-60%, and shortening the procurement process by 25%. Omni-channel retail provides a consistent, personalized, and interactive customer experience while reducing service costs. The user conversion rate is increased by 20% compared to multi-channel retail, and service costs are reduced by 32%. Omni-channel retail maximizes customer satisfaction, which effectively enhances customer stickiness and average order value (AOV). The AOV is increased by 35% compared to cross-channel retail, and by 55% compared to multi-channel retail. At the end of his speech, Ding Zhuowen summarized that among many industries, the retail industry has a relatively high penetration rate of digital transformation, but the average level of digital transformation is lower. The digital transformation achievements of startups in convenience stores, supermarkets, and specialty stores are more evident. Offline retail digital comprehensive service providers and offline digital sales SaaS platforms are powerful tools for consumer retail enterprises' digital transformation, enabling them to acquire digital operational capabilities, explore the depth of digital transformation, enhance the diversity of place-person-item-person, and Plesstech is an outstanding, representative, and rapidly growing company on this track, worthy of long-term tracking and research. In addition, Ting Zhuowen revealed that in December this year, PLS will jointly release the 2021 offline sales white paper with Frost & Sullivan and LeadLeo. Stay tuned. With the development of social economy, the digital penetration rate of the three major industries is increasing day by day, and traditional retail is also constantly evolving towards new retail. The application innovation of digital technology is of great significance for the future. The development process of digitization is being greatly accelerated, and the transformation and upgrading of digital technology, empowering the physical retail industry and its large-scale application, marks humanity's full entry into the data era. In the future, it is expected that more and more enterprises will embrace digitization, achieve digital transformation, and promote industry change.