Frost & Sullivan Insights China, as a global manufacturing powerhouse, contributes a high proportion of manufacturing output value but faces challenges such as a shortage of high-quality labor and rising labor costs. By investing in AI technology for production processes (such as quality inspection and patrol checks), replacing traditional manual labor with intelligent technology effectively solves the challenges faced during the transformation and development phase of manufacturing, achieving cost reduction and efficiency improvement while completing the digital and intelligent transformation of manufacturing. Thanks to factors such as algorithm upgrades, data volume growth, and reduced computing power costs, AI technology will gradually be commercialized and applied to various industries, bringing significant cost reduction and efficiency improvement opportunities to each sector.   With the intensive application of AI scenarios during the pandemic, increased implementation channels, and continuous maturation and openness of technology, China's AI industry is expected to enter a golden period of rapid growth. On July 20th, Cui Nan, consulting director for Frost & Sullivan Greater China, said in an interview with Securities Daily that thanks to factors such as algorithm upgrades, data volume growth, and reduced computing power costs, AI technology will gradually be commercialized and applied to various industries, bringing significant cost reduction and efficiency improvement opportunities to each sector. Multiple scenarios will see an explosive period of AI technology application.   Recently, Qixin Beacon Data Research Center under Hefei Hehe Information Technology Co., Ltd. and Shanghai Hecheng Chuangxin Enterprise Management Consulting Co., Ltd. released the "AI (2010-2021) Industry Development Research Report" (hereinafter referred to as the "Report").   The Report shows that the innovation and transformation capabilities of AI technology are improving year by year, with industrial invention patents accounting for 65% of the total industry; from 2010 to 2020, the total financing amount of AI enterprises reached 3 trillion yuan, indicating broad market prospects.   Looking at the regional development of AI enterprises, the Beijing-Tianjin-Hebei region has more basic layer enterprises represented by cloud computing and chips, ranking first among the four major economic circles. The Yangtze River Delta region focuses more on application layer development, including industrial, financial, medical, and other implementation scenarios.   Text and face recognition scenarios have significant growth potential in the future   The Report found through statistics of cumulative financing events for existing enterprises from 2018 to 2021 that the main financing events in the AI industry occurred in the intelligent application layer, with a total of 2,803 financings and an amount of 736 billion yuan obtained.   In AI application scenarios, general-purpose applications such as intelligent text recognition, face recognition, smart factories, and genetic testing are gradually being widely used by the public and are also applications with high growth potential in the future.   Since 2021, China's AI industry has focused on building open-source algorithm platforms and innovating in key areas such as learning, reasoning, and decision-making, as well as image and graphics.   Under the strategic deployment of an AI powerhouse, China's innovation and transformation capabilities in AI technology are gradually improving. As of April 30, 2021, industrial invention patents (including authorized and applied) accounted for 65% of the total industry patent count. The Report shows that there are a total of 930,000 invention patents under application in the AI industry, with 350,000 authorized invention patents.   According to the Report, from 2016 to 2020, the average annual new application growth rate of invention patents in the AI industry was 5.55%, and the average annual authorization growth rate was 16.56%. The technology innovation activity in the AI field has been relatively active in the past five years.   “Taking manufacturing as an example, China, as a global manufacturing powerhouse, contributes a high proportion of manufacturing output value but faces challenges such as a shortage of high-quality labor and rising labor costs. By investing in AI technology for production processes (such as quality inspection and patrol checks), replacing traditional manual labor with intelligent technology effectively solves the challenges faced during the transformation and development phase of manufacturing, achieving cost reduction and efficiency improvement while completing the digital and intelligent transformation of manufacturing.” Cui Nan, consulting director at Frost & Sullivan, told Securities Daily reporters.     The Yangtze River Delta region focuses on application layer development   Generally speaking, there are multiple sub-industries within the three major layers of AI. The basic layer includes sub-industries related to big data and cloud computing; the technology layer includes sub-industries such as machine learning, computer vision, smart voice, natural language understanding, etc.; the application layer includes AR/VR, autonomous driving, smart application devices, supercomputers, etc.   The Report points out that in terms of geographical distribution, from technological innovation to invention patents, the AI industry is mainly concentrated in the Yangtze River Delta and Beijing-Tianjin-Hebei regions, with Beijing and Shenzhen leading the country in innovation.   Due to the acceleration of the integration process between AI and the real economy, the innovation resources of the AI technology industry are gradually showing a trend of "northward" and "southward" migration, and the competitive pattern of various innovation application pilot areas begins to emerge.   From the perspective of the regional development focus of AI enterprises, the Beijing-Tianjin-Hebei region has more basic layer and technical layer enterprises represented by cloud computing and chips, as well as AI algorithms and machine learning, ranking first among the four major economic circles. The Yangtze River Delta region focuses more on application layer development, including industrial, financial, medical, and other implementation scenarios.   “In terms of implementation scenarios, industries with high levels of digitization and large data volumes, such as internet, finance, and healthcare, have deeper AI applications, driving cost reduction and efficiency improvement in the industry. The development prospects of AI lie in application, so the regional distribution of AI enterprises is also related to the local industrial ecosystem and talent structure. The Yangtze River Delta region focuses on application layer development mainly because the region's industrial, financial, and healthcare industries are developed and have rich implementation scenarios, making it the most mature.” Yu Baicheng, dean of Zero One Research Institute, analyzed for Securities Daily reporters.   “The Yangtze River Delta region has the highest level of economic development, providing the richest variety of application scenarios. Moreover, the rapidly developing economy urgently needs AI technology to improve efficiency, so the R&D motivation for AI at the application layer in the Yangtze River Delta region is stronger, which can directly generate economic benefits. In addition, the Yangtze River Delta has strong capital, with powerful momentum to promote various R&D and technological implementation at the application layer, showing regional characteristics.” Wang Yongyuan, vice president of research at Shanghai Yichang Investment Co., Ltd., told Securities Daily reporters.   With the intensive application of AI scenarios during the pandemic, increased implementation channels, and continuous maturation and openness of technology, the Report predicts that China's AI will experience another period of rapid growth from 2021 to 2025, entering a golden period.   “By 2025, the investment of national public departments and enterprises in AI technology will exceed one trillion yuan. Thanks to factors such as algorithm upgrades, data volume growth, and reduced computing power costs, AI technology will gradually be commercialized and applied to various industries, bringing significant cost reduction and efficiency improvement opportunities to each sector. The mature application scenarios of AI technology have also expanded from early urban management to industries such as manufacturing, finance, automotive, consumer electronics, healthcare, education, etc. Multiple scenarios will see an explosive period of AI technology application.” Cui Nan told Securities Daily reporters.   *This article is reprinted from Securities Daily, authored by Shi Lu, with the original title "AI Innovation and Transformation Capabilities Gradually Improve, with the Yangtze River Delta Region Focusing on Application Layer Development". Click below Read the original article to view the report.

From July 22nd to 23rd, the fifth Smart Home Asia Summit and Boutique Exhibition 2021, hosted by Taas Labs Tanshi Lab, was successfully concluded in Shanghai. At the invitation of the organizers, Mr. Liu Wenjun, Executive Director for Greater China at Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), attended the event and delivered a keynote speech titled 'Insights into the Global and Chinese Smart Home Market Ecosystem and Development Trends'. Mr. Liu Wenjun, Executive Director of Frost & Sullivan Greater China, delivered a keynote speech   Liu Wenjun mentioned that the global smart home market is entering a phase of hundreds of billions of US dollars in value. Before the global COVID-19 pandemic in 2020, it had been maintaining double-digit growth. The impact of the pandemic not only broke the continuity of market growth but also reshaped the market supply chain at the geopolitical level. Moreover, the rise of the Chinese market in the future has become an irresistible trend.   As the penetration of smart home solutions and related products in China deepens, the Chinese smart home market is becoming a major growth pole globally after the US market. Several trends emerging from the development of the Chinese market cannot be ignored, whether it is the latest dynamics on the demand side or supply side.   From the perspective of development stages, China's smart home industry has gradually evolved from the stage centered around single-item control to a preliminary stage of interconnection aimed at diversified scenarios and spatial intelligence. In the future, with the development of technologies such as artificial intelligence, the Internet of Things, and cloud computing, and the broadening of application fields, China's smart home industry is expected to further move towards a mature stage of interconnection, and even enter a comprehensive intelligent phase where it actively understands customer needs and spontaneously provides corresponding services.   With the Chinese smart home industry gradually entering the stage of full-house interconnection, traditional internet giants such as BAT, non-traditional connected enterprises like Xiaomi, and traditional home appliance companies have successively laid out their strategies in the smart home sector. Thanks to technological and financial advantages, large enterprises within the smart home industry are generally developing in a platform-based and ecological manner, thus leading to competition among smart home giants.   In contrast, small and medium-sized enterprises (SMEs) and some startups in the smart home industry tend to focus on tapping into value within specific smart home segments, deeply investing in intelligent technology to form differentiated competitive advantages. In the industrial chain, SMEs can seize the opportunity of intelligent manufacturing transformation, improve product quality and drive technological innovation, developing towards multi-functional integrated products; at the same time, SMEs cooperate with large giants, sharing platform resources and technology to achieve rapid growth for themselves.   "The overall smart home industry is highly competitive, but there are also opportunities for cooperation among companies. All types of enterprises have development prospects, and the overall landscape is not yet clear," he said.   On that day, dozens of top industry experts from home and abroad and more than 30 globally leading home appliance manufacturers focused on key topics such as the smart home market ecosystem and IoT network security practices. They discussed practical application solutions around the latest technological innovations in the industry.   Mr. Kuang Chao, Operation Officer of the Shanghai Branch of CSA Group, shared the topic of "Best Practices for Network Security in Smart Home Internet of Things".   Mr. Jiang Hong, Embedded Product Systems and Applications Director for the Semiconductor Business Unit of Texas Instruments China, delivered a wonderful presentation titled "TI's New Millimeter-Wave Sensor Technologies to Empower Home Automation".   Mr. Dong Yi, Founder and CEO of Yunqi, brought forward a keynote presentation titled "Smart Homes from the Perspective of Multi-modal Interaction".   Ms. Zhang Xiaofang, a senior IoT security compliance engineer at Xiaomi, brought us an engaging presentation on "Building Trust in Smart Homes".

On July 22, 2021, the China “AI+” Innovation and Entrepreneurship Competition - Smart Healthcare Innovation Competition kicked off at Hangzhou Liangzhu Life Science and Technology Town. Mr. Mao Hua, Partner and Managing Director of Frost & Sullivan's Greater China region, was invited to attend the event and deliver a keynote speech, sharing his professional insights on China's artificial intelligence healthcare industry.   This competition is organized by the Chinese Association for Artificial Intelligence and Hangzhou Science and Technology Bureau, undertaken by the Management Committee of Hangzhou Liangzhu New City and Yuhang District Science and Technology Bureau, and co-organized by Hangzhou Xingyun Digital Technology Group Co., Ltd., Xingyun Medical Health Industrial Park, Medroadshow, and Zhejiang Future Research Institute.   The competition focuses on artificial intelligence and biomedicine, aiming to build an 'industry capital circle' for high-quality projects through the sharing of innovative achievements, case analysis, and viewpoints collisions. It also aims to establish a 'capital exchange library' for the life health economy.   Mr. Mao Hua, Partner and Managing Director of Frost & Sullivan Greater China, delivered a keynote speech.   Mao Hua said that based on the development of technologies such as machine learning and natural language processing, AI has been applied in multiple scenarios including drug research and development, assisted diagnosis, and health management, and has a rich target market. Taking AI + drug research and development as an example, current AI technology has been applied throughout the entire process of drug discovery, preclinical, and clinical research. The application of AI in drug discovery and clinical trials helps to solve industry pain points, significantly shorten the R&D cycle, improve R&D efficiency, and enhance the safety of clinical research.   "Currently, well-known domestic and international companies have made corresponding arrangements in fields such as medical imaging, medical assistance, health management, drug research and development, and medical big data. The AI healthcare industry has broad prospects for development." He pointed out that in 2020, the total market size of AI healthcare in China reached 38 billion yuan, with a compound annual growth rate of 39.6% from 2016 to 2020. It is estimated that by 2025, the market size of AI healthcare in China will further grow to 544 billion yuan, with a compound annual growth rate of 70.2% from 2020 to 2025.   China's AI healthcare industry is developing rapidly, and the capital market continues to be optimistic. 'With the rapid development of internet, 5G, and AI technologies, China has seen investment peaks in AI + health management, AI + imaging, and AI + drug research and development one after another. The number of investments in the field of AI + medical robots has been increasing year by year, and it is expected to become a new hot investment area,' he said.   Currently, China has become a global leader in digital healthcare, and the deep integration of new technologies with the health industry has entered its best era. As an important application in the people's livelihood field within the strategic planning of smart cities, smart healthcare is also an industrial upgrading and economic growth point driven by the people's livelihood economy. The digital healthcare industry is developing vigorously and unstoppable.   The event organizer stated that they hope to gather domestic innovative enterprises, industry leaders, and active investors in the big health industry through this event, allowing them to exchange good experiences, technologies, and projects with each other, and promote the rapid development of China's digital healthcare industry.

From July 24th to 25th, 2021, the 2021 China Commercial Health Insurance Conference, hosted by CaiBailan and co-organized by WardHealth, Magnesium Health, Easy Group, Jumei Engine, HuaMeihaoLian, and Junling Health, was grandly held in Shanghai.   At the invitation of the organizers, Ms. Ding Zhuowen, Managing Director of Frost & Sullivan's Greater China Region (hereinafter referred to as 'Frost & Sullivan'), attended the conference and delivered a keynote speech titled 'Industry Development Models and Strategies in the Context of Health Insurance under the Perspective of Health Management', based on the '2021 White Paper on Promoting the Development of Health Management through Health Insurance jointly released by Frost & Sullivan and LeadLeo Research'. The main contents of the speech are as follows:     In the context of China's basic medical insurance system, a multi-level social and commercial integrated medical security system has been basically established. Since the Third Plenary Session of the 18th Central Committee in 2016, which elevated the construction of a 'Healthy China' to a national strategy for the first time, the development concept of the healthcare system has shifted from 'disease treatment-centered' to 'health promotion-centered', and clear requirements have been put forward for the reform of China's medical security system.   At present, China has formed a multi-level social medical security system that takes basic medical insurance as the main body, medical assistance as the foundation, and is supplemented by civil servant subsidies, enterprise supplementary insurance, special population insurance, commercial health insurance, etc. Health insurance has a protective nature and plays an important role in China's medical security system.     With the continuous rapid growth of premium income from health insurance, the depth and density of health insurance have also increased synchronously. The scale of health insurance premium income has been continuously expanding, with significant fluctuations in growth rates. From 2010 to 2020, the scale of China's health insurance premium income increased from 677 billion yuan to 8173 billion yuan, with an annual compound growth rate of 28.3%.   Affected by policy adjustments, the growth rate of premium income fluctuated significantly over the past decade. It showed a continuous rapid growth trend from 2012 to 2016. However, due to the regulation of medium and short-duration life insurance products and the restriction on fast-return products, the growth rate of health insurance premiums has slowed down.   The outbreak of the COVID-19 pandemic has promoted an increase in people's awareness of health protection, and health insurance premiums in 2020 were significantly higher than those for life insurance and other types of insurance.     The depth and density of health insurance continue to increase, and market maturity has been improved. From 2010 to 2020, China's health insurance density (calculated as the average insurance premium per resident within a defined statistical area) increased from 51 yuan per capita to 575 yuan, while the insurance penetration (measured as the proportion of premium income to the country's GDP) rose from 0.16% to 0.74%. During this period, China's health insurance depth and density maintained a relatively rapid growth rate.     Driven by multiple factors such as policies and the market, health insurance and health management are accelerating their integration. Driven by multiple factors such as policy orientation, market development, and technological progress, insurance companies have begun to explore health management services. They integrate health management services into health insurance products to improve the quality of insurance services and enhance user experience.   The government and insurance companies are the two main entities driving the integrated development of health insurance. Insurance companies establish health management institutions through equity investments, directly conducting health management, or by collaborating with pharmaceutical enterprises, biotechnology companies, and medical institutions to obtain health data and technical support. They combine health management services with health insurance products to enhance their health management service capabilities.   In addition, the government plays an important role in promoting the integrated development of health insurance and health management. By cooperating with insurance companies, it jointly launches inclusive health insurance products to create a 'people's livelihood project' that benefits the people.     Under the background of national health, three strategies for health insurance to promote the development of health management Ms. Ding pointed out that, based on the regulatory environment of health insurance, current market conditions, and the phased characteristics of the health management market, there are three major strategies for promoting the development of health management through health insurance:   Policy 1: Adopting the 'Health Insurance + Medical Healthcare' model, integrating medical resources such as physical examinations, screenings, and rehabilitation, to create a closed-loop health management system for the entire life cycle.   Policy 2: Drawing on the development experience of health insurance in the United States, adopting a mixed development model can boost the upgrading of the health management service industry with dual attributes.   Policy 3: Implement a differentiated positioning strategy to enable enterprises to obtain more market opportunities while effectively controlling costs.     The conference organizing committee conducted in-depth research and comprehensive evaluation of various stakeholders in the commercial health insurance sector. It highly recognized and commended Frost & Sullivan's relevant research and insights into the industry, believing that their studies play an important guiding role in the development of the industry and the growth of industry participants. The committee has decided to confer Frost & Sullivan 2021 Business Health Insurance Blue Diamond Award - Influential Service Provider.

Frost & Sullivan Insights Compared to consumer-grade chips, automotive-grade chips have higher requirements for safety and reliability, longer chip development and certification cycles, making it more difficult to meet the demand for automotive chips. Automotive-grade MCUs have higher process requirements, higher customer certification standards, and longer supply cycles, with a recovery period expected to be around 2 years; the recovery time required for driver chips is shorter than that of MCUs, about 1 year.   The "chip shortage" problem in the automotive industry continues, affecting many automakers with reduced production, tight supplies, and severe losses. However, crises breed new opportunities, and while they bring troubles to the automotive industry, the chip shortage has also shown capital investors more investment opportunities, driving a chip investment boom on the capital side. On July 12th, Chen Chen, consulting director at Frost & Sullivan, analyzed in an interview with Securities Daily: "In the current global chip shortage environment, domestic semiconductor manufacturers will have more development opportunities, and the localization process of automotive chips will accelerate." He also predicted that the "chip shortage wave" would start to improve in the second half of this year but will remain in a shortage state for the next 1 to 2 years.     Recently, relevant reports show that the "chip shortage" problem continues to affect the automotive industry. The report predicts that the semiconductor shortage in 2021 will reduce global automaker production by 3.9 million vehicles and cause industry revenue losses of up to $110 billion.   Behind the risks are also opportunities. The "chip shortage wave" commonly faced by semiconductor companies upstream of the industrial chain to vehicle manufacturers downstream has also driven a chip investment boom on the capital side. According to Tianyancha data, in the past 5 years, the number of registered enterprises related to chip research and development and manufacturing in China has been increasing year by year, with an annual growth rate of over 20%. Among them, the registered number increased by as much as 61% year-on-year in 2020, the highest in 5 years, with nearly 22,000 new enterprises added.   "In the global 'chip shortage wave', chips in the automotive and MCU (microcontroller unit) fields are in the most urgent need." Wu Quan, founding partner of Huaxin Jintong (Beijing) Investment Fund Management Co., Ltd., said in an interview with a Securities Daily reporter that this is mainly because the automotive industry is in a period of oil-electric conversion and upgrading. The degree of automotive intelligence, electrification, and networking is accelerating continuously, and the demand for new energy vehicles is also increasing, resulting in a doubling of the demand for MCU chips with conversion and upgrading functions.   Chen Chen, consulting director at Frost & Sullivan, told a Securities Daily reporter that compared to consumer-grade chips, automotive-grade chips have higher requirements for safety and reliability, longer chip development and certification cycles, making it more difficult to meet the demand for automotive chips.   Chip shortage restricts automotive production High-priced joint-venture models are greatly affected   On July 2nd, luxury car brand BMW issued a warning saying that there are no signs that chip supply has eased, and supply will remain tight in the second half of the year. So far, BMW has reduced production this year by about 30,000 vehicles due to "chip shortage."   At the beginning of July, Mr. Zhang, a car buyer, told a Securities Daily reporter that when purchasing the Chevrolet Traverse under SAIC-GM, the 4S store staff informed him that due to the current shortage of chips for SAIC-GM, the model's chips are preferentially supplied to Cadillac models. There are no additional discounts for the Chevrolet series, and the existing cars are very scarce.   It is not just SAIC-GM Chevrolet that is affected by the shortage of cars due to the chip shortage and delivery delays. Recently, a staff member from a popular domestic independent new energy car brand told reporters: "In the context of chip shortage, manufacturers will prefer to supply chips to mid- to high-end models. It takes at least one and a half months to pick up a low-premium model if you want it."   In response, the China Association of Automobile Circulation stated that the new car purchase demand in the fourth quarter of this year will not be released until 2022, which will affect the annual sales volume. The chip shortage problem is temporarily difficult to improve, and the hot-selling models of joint-venture brands and luxury brands are relatively more affected by the chip shortage, with production rhythms slowing down.   Currently, popular models on the sales side almost all require queuing up to pick up cars, with delivery cycles ranging from 3 weeks to 4 weeks at the shortest, and even exceeding 3 months at the longest. It can be seen that the chip shortage has already affected the automotive production and sales links. Joint-venture brand models priced over 200,000 yuan use more chips and are relatively more affected by the chip shortage.   Last year, China added nearly 22,000 chip-related enterprises   For the chip shortage problem, semiconductor manufacturers upstream of the automotive industrial chain seem to have more say.   "Previously, our chip department leaders would go out 'running orders' themselves, but since the second half of last year, it has become customers who come to us actively, asking us 'how many chips do you have, and we'll arrange them for you.' " A domestic automotive-grade chip supplier told a Securities Daily reporter that in the past, many car factories used Qualcomm chips and were reluctant to adjust. But now, as long as there are good-performing chips, they will use them because the chips are so scarce, and getting one is already a good thing.   As one of the main representative enterprises in China's automotive-grade chip industry, a relevant person in charge of Jiefa Technology said that the company is accelerating the research and development and mass production progress of new products, and the second-generation MCU chips have achieved large-scale mass production and shipment.   "In the face of capacity shortage, the company will coordinate with wafer factories in advance for subsequent chip production capacity." Another chip design company's person in charge also revealed to reporters: "In the context of chip shortage, the company coordinated with next year's production capacity at the beginning of this year. As we all know, we need to prepare several more foundries because supply problems will at least affect next year."   Where there is demand, there is naturally a market. While the chip shortage brings troubles to the automotive industry, it also shows capital investors more investment opportunities, and the enthusiasm of capital for chip investment is also heating up rapidly. Tianyancha data shows that in recent years, nearly 22,000 new chip-related enterprises were added in China in 2020. Among them, Guangdong Province has the largest number of chip-related enterprises, over 20,000, accounting for 32% of the total. Jiangsu Province comes second, with nearly 9,300 related enterprises, accounting for 15%. In addition, Zhejiang Province also has nearly 5,000 chip-related enterprises, accounting for 8%.   In the view of Ding Xiaoping, general manager of Beijing Baohu Investment Management Co., Ltd., there are several reasons for the booming chip investment. First is the policy support for the semiconductor industry; second is the significant domestic substitution space currently available for chips; third is the huge market demand for chips in China.   Semiconductor projects favored by social capital need to be "grabbed" when investing. Ding Xiaoping revealed to reporters that some investors, after seeing suitable projects, even don't need to make full inquiries and directly sign investment intention letters.   The supply-demand gap is difficult to fill in the short term Domestic semiconductors welcome development opportunities   Wu Quan believes that this round of chip shortage may lead to a realignment of the global semiconductor industry camps. "Domestic 28nm production lines are likely to achieve 100% localization in 2021, thus changing the global semiconductor industry pattern."   In recent years, China's chip industry has maintained a high growth momentum driven by factors such as improving self-sufficiency rates, specification upgrades, and innovative applications.   Chen Chen believes that previously, China's chips relied heavily on imports, and the domestic penetration rate was relatively low. In the current global chip shortage environment, domestic semiconductor manufacturers will have more development opportunities, and the localization process of automotive chips will accelerate.   Chen Chen predicts that the "chip shortage wave" will start to improve in the second half of this year but will remain in a shortage state for the next 1 to 2 years. "Automotive-grade MCUs have higher process requirements, higher customer certification standards, and longer supply cycles, with a recovery period expected to be around 2 years; the recovery time required for driver chips is shorter than that of MCUs, about 1 year."   Chen Hang, an analyst at Founder Securities, also believes that the chip supply-demand gap cannot be filled in the short term. The development of semiconductor manufacturing capacity takes a long time, and it takes at least one year from project approval to capacity realization.   *This article is reprinted from Securities Daily, authored by Gong Mengze, Shi Lu, and Xiang Yantao, click on the bottom To read the original article , you can view the report.

With the relaxation of the three-child policy, the industry chain related to the three-child policy has developed rapidly, bringing new development opportunities to maternity centers. Maternity centers have attracted more and more young customers with their high-quality professional services, comfortable and calm environment, and provision of parenting knowledge and health education. Driven by market demand, the Chinese maternity center industry has developed rapidly. However, due to low entry barriers and uneven quality in the market, maternity centers are facing challenges such as reputation differentiation and regulation.   On July 9th, CCTV's 'Point Finance' program conducted a survey and report on the current state of the Chinese maternity center market, inviting Zhu Yiming, Senior Consulting Director at Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), to interpret the current market development status and future trends of Chinese maternity centers.   Zhu Yiming stated that compared to mature markets like Taiwan, the Chinese mainland market has a relatively lower penetration rate due to its late start, with a market penetration rate of less than 10% . The main reason is the high cost, which discourages many Chinese women from choosing it as a place for postpartum recovery.   ‘The maternity center industry is a high-investment, high-return industry. The amount of initial capital depends on factors such as premises, operational models, facility procurement, and personnel. Most maternity centers target the mid-to-high-end consumer group, attracting customers through a professional image, so they usually incur significant expenses on luxurious interior decoration and professional staff training. To quickly get funds back, maternity centers often bundle different services and products and require customers to pay full fees in advance.’ he said.   Classification of the Chinese maternity center industry Source: Frost & Sullivan   On the other hand, the midwife industry in China has a long history and solid foundation. Therefore, most people (especially the middle and lower classes) still choose midwives to provide postpartum care.   In terms of distribution areas, maternity centers are currently mainly concentrated in first-tier cities such as Beijing, Shanghai, Guangzhou, and Shenzhen, and are gradually expanding to second- and third-tier cities. However, due to incomplete policy guidance and the high profit returns of the industry, many small enterprises have also joined the market, leading to low market concentration and service quality differentiation.   Source: Frost & Sullivan   ‘We currently observe that the entire market is relatively fragmented. The main reason for this fragmentation is the presence of a large number of small workshop-style institutions and a few branded chains, which differ greatly in standard operations, service quality, specialized teams, and user experience.’ Zhu Yiming said. In addition, Chinese maternity centers also face competition from professional hospitals, making overall industry competition very fierce.   As the number of market participants continues to increase, competition in this market will further intensify. Zhu Yiming believes that companies under pressure from peer competition will have to change their management models. In the future, the management model of maternity centers will shift from extensive to refined, accelerating market reshuffling. Some maternity centers with flexible management and high operational efficiency will stand out in market competition, affecting a regionally expanded scope to the whole country. At the same time, the market price system will tend to become standardized, achieving hierarchical development.   ‘Currently, the competitive differences in maternity centers mainly focus on hardware resources, such as the overall environment and supporting facilities. However, the homogenization of hardware resources will inevitably make price competition in maternity centers even more intense. Therefore, through innovation to diversify services and seek differentiated positioning will become an inevitable trend in the market. ‘He emphasized.’   Frost & Sullivan has long been concerned about the development of the maternal and infant track, having a profound understanding and in-depth research on the industry. According to Frost & Sullivan data, from 2016 to 2018, the market consumer population in China's maternal and infant health management industry increased from 2.745 million people per year to 2.92 million people per year. However, the entire maternal and infant health management market is still in a highly unsaturated state. For example, in 2018, the market consumer population was less than one-fourth of the potential market demand population.   Overall, the market space for China's maternal and infant health management industry is still huge, especially for institutional services such as maternity centers and physical examination centers. From 2019 to 2025, it is expected that the number of market consumers will steadily rise, from 2.992 million people per year to 3.300 million people per year. In terms of demand saturation, although the market consumer population has improved to some extent, the entire maternal and infant health management industry is still a blue ocean.   *The video for this article is provided by CCTV's 'Point Finance' program.

On June 25th, the Fourth China Biomedical Innovation Cooperation Conference came to a successful conclusion. Mr. Mao Hua, Partner and Managing Director of Frost & Sullivan's Greater China Region, was invited to attend the event and deliver a keynote speech, sharing his professional insights on the cell and gene therapy industries.   Mao Hua said that with the increasing maturity of medical technology and related regulations, the global CGT treatment market has entered a golden age. In contrast, China's CGT treatment market is still in its infancy. Recent continuous technological breakthroughs have brought prosperity to CGT. However, the number of approved CGT products in China is still lower than that in Europe and America, leaving significant room for exploration in the future.   "The globally ongoing CGT clinical trials have expanded into diverse disease areas, currently covering genetic diseases, malignant tumors, infectious diseases, and chronic diseases. Domestic clinical trials in China are more focused on tumor treatment, with significant potential for expanding indications in the future." He analyzed that under the global trend of rapid growth in the market size of gene therapy, the market size of gene therapy in China will also expand rapidly due to favorable policies and increased R&D investment. Among them, CAR-T therapy has huge market potential in the future.   At the meeting, Mao Hua also introduced to the attendees the latest research findings of Frost & Sullivan - the 'White Paper on the Development of China's Cell and Gene Therapy Industry'. Based on Frost & Sullivan's ongoing in-depth research into the Chinese CGT industry market, this white paper aims to provide important reference perspectives for CGT market investors. Previously, Frost & Sullivan has published several industry development white papers including the 'White Paper on the Development of China's Pharmaceutical CXO Industry' and the '2021 White Paper on the Promotion of Health Management through Health Insurance in China', covering many sub-fields of the healthcare industry.   In the future, Frost & Sullivan will continue to keep track of the latest developments in the biopharmaceutical and healthcare industries, continuously producing its own industry observations and perspectives. He revealed: 'Currently, white papers on the development of oncolytic virus industries, small molecule targeted drug industries, IVD in vitro diagnostic industries, neuro and peripheral interventional industries, and surgical robot industries are all in the preparation stage and will be released to the market gradually thereafter. We welcome everyone's continued attention.'

From June 22nd to 23rd, the APM 2021 Asia Pharmaceutical Industry Conference, hosted by SRI Consulting and supported by the China Chemical Pharmaceutical Industry Association, Shanghai Pharmaceutical Industry Association, and International Pharmaceutical Engineering Association, with CPharm as a strategic cooperation unit, was successfully held at the Renaissance Shanghai Hotel in Hongqiao, Shanghai. As an expert in the biopharmaceutical field, Mr. Mao Hua, Partner and Managing Director of Frost & Sullivan's Greater China region, was invited to attend this sub-forum event and deliver a keynote speech. He analyzed the current situation of China's biopharmaceutical industry and looked ahead to its future development.   Zhao Hui, Deputy Secretary-General of the Shanghai Pharmaceutical Industry Association, presides over the conference   Opening Remarks by Pan Guangcheng, Executive President of the Chinese Chemical Pharmaceutical Industry Association   Opening Remarks by Zhang Ping, President of the International Pharmaceutical Engineering Association China Region and Head of the Industrial Affairs Department for China at Sanofi   At the Biopharmaceutical Sub-forum, Mr. Mao Hua, Partner and Managing Director of Frost & Sullivan Greater China, delivered a keynote speech titled 'Analysis of the Transformation of China's Pharmaceutical Industry and Future Market Development'.   Mr. Mao Hua, Partner and Managing Director of Frost & Sullivan Greater China, delivered a keynote speech.   He pointed out that China is currently in an era of first-mover imitation and rapid follow-up by international innovative drugs, with the core competitiveness of the pharmaceutical industry undergoing a transformation from marketing to research and development innovation. Affected by the COVID-19 pandemic, the Chinese chemical drug market declined in 2020, while biopharmaceuticals continued to grow at a high rate. Currently, the market is mainly dominated by monoclonal antibody drugs, and in the future, more innovative types will expand the biopharmaceutical market together.   He said: 'In the next five years, with the development of China's innovative drug market, innovative biopharmaceuticals, including antibodies, gene and cell therapies, will be a hot topic in the development of China's pharmaceutical market.'     At the meeting, 47 expert representatives from the pharmaceutical industry, including Fosun Pharma, Shanghai Pharmaceutical, Yangtze River Pharmaceutical, Hengrui Medicine, Luye Pharma, Qilu Pharma, Shandong Xinhua Pharmaceutical, North China Pharmaceutical, Wuhan Tianjin Pharmaceutical, Chuangxiang Biotech, Yasheng Medicine, Fuxing Kait, and Zai Ding Medicine, discussed in depth under the theme of "Nourishing Life, Innovating for a New Journey, and Winning Together for the Future," the new trends, changes, and demands in the development of the pharmaceutical industry under healthcare reform, with the aim of jointly promoting the healthy and high-quality development of the pharmaceutical industry.

On June 15, 2021, the Finance and Banking Bureau of Yantai Development Zone, Shandong Province, in conjunction with Ernst & Young Audit, Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), SDIC Investment & Trade, and Mingshi Capital, held an event titled 'Corporate Listing Training and Capital Matching' in Yantai, Shandong. Mr. Jia Pang, Partner of Frost & Sullivan Greater China, attended the event and delivered a keynote speech, sharing how industry consultants can help companies tell investment stories effectively and enhance their performance in the capital market. The event was attended by leaders from the Economic Development and Innovation Bureau and Finance and Banking Bureau of Yantai Development Zone, Shandong Province, Yang Shujuan, former member of the Restructuring Committee of the China Securities Regulatory Commission and Beijing managing partner of EY Hua Ming Accounting Firm, Sun Haitao, tax partner of EY Hua Ming Accounting Firm, Song Heng, executive director of Guotou Investment Management Co., Ltd., Zeng Yingzhe, a partner of Beijing Mingshi Hexun Capital Management Co., Ltd., as well as the main responsible persons, secretaries of the board, and financial directors of dozens of listed companies, companies planning to go public, and outstanding manufacturing enterprises. Mr. Jia Pang, Partner of Frost & Sullivan Greater China, delivered a speech   Shandong Province is a major economic province in China, ranking third in GDP nationwide in 2020. Shandong has numerous outstanding listed companies, and Yantai ranks among the top in terms of both the number of listed enterprises and market value. It has seen the emergence of leading enterprises in various industries such as Wanhua Chemical, Rongchang Biology, Ruimao Tong, and Zhaojin Mining.   In recent years, enterprises in Shandong Province have actively embraced the international capital market. From 2018 to 2020, new overseas-listed Shandong enterprises accounted for about 20% of all newly listed companies in the province. In particular, a group of leading enterprises in various industries have gone global into the international capital market, establishing an internationalized capital operation platform and enhancing their competitiveness. At the event, Jia Pang stated that corporate listing is driven by three aspects: financial performance, investment story, and legal compliance. Among these, the investment story is both a highlight and a necessary factor. The presentation of an investment story during the listing process cannot be separated from professional industry analysis and related consulting work. The new political and economic environment, along with rapid industry changes, have put forward new requirements for telling good corporate investment stories.   "Authoritative industry consulting firms can fully assist companies by providing accurate industry analysis and corporate positioning to tell compelling investment stories and enhance company valuations," he said. Frost & Sullivan, as a global leader in capital market industry consulting, has assisted over a thousand companies in listing on domestic and international capital markets, including outstanding Shandong enterprises such as Haier Biomedical, Rongchang Biotechnology, and Shandong Gold. From 2014 to 2020, Frost & Sullivan maintained its leading position as the industry research consultant with the largest market share in both domestic and international IPO markets.

In recent years, China's healthcare industry has experienced overall rapid growth and has gradually become one of the important industries of the national economy. So, what are the future development hotspots in China's healthcare industry? Among them, what is the development trend of the highly sought-after IVD industry? Is it promising that the future integration of health insurance and health management will develop in a certain way, and what trends will there be? What are the growth drivers of healthcare enterprises reflected in? Recently, regarding the above issues, a reporter from Xinhua Finance interviewed Dr. Wang Xin, Global Partner and President of Greater China at Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan').   Q: What are your views on the development hotspots of China's big health industry in the coming years? Wang Xin: In recent years, China's healthcare industry has maintained overall stability and rapid growth. Driven by factors such as economic growth, policy support, technological progress, and capital assistance, the healthcare industry has gradually become a strategic pillar industry of China's national economy, entering a golden development period.   The global healthcare system is also accelerating its transformation into a digital healthcare system, entering a new normal of global digital healthcare. Under this influence, China's healthcare industry and its sub-sectors, such as pharmaceuticals, medical devices, and digital medicine, have entered a critical stage of industrial chain upgrading, transformation, integration, and reorganization. These areas will become several hotspots in investment over the next decade.   Q: What is the development trend of the in vitro diagnostic (IVD) industry in the coming years? Is it promising that health insurance and healthcare management will integrate their future development, and what trends are expected? Wang Xin: Health insurance and in vitro diagnostic (IVD) are two important sub-sectors within the broader healthcare sector, facing rapid growth opportunities. At the same time, the improvement of policies and regulations in our country has also led the health insurance and IVD industries to develop in a more standardized direction.   The in vitro diagnostic (IVD) industry is an important segment within the broader healthcare sector. It has developed rapidly in recent years, especially after the outbreak of the COVID-19 pandemic last year, becoming one of the hottest areas in the medical device industry. The entire upstream and downstream industrial chain is also gradually maturing during development.   In the future, the degree of localization in China's in vitro diagnostic industry will gradually increase. Domestic enterprises will gradually break the monopoly previously held by foreign companies, with domestic brands gradually replacing imported ones. The technological gap will further narrow, and their comprehensive competitiveness will significantly improve. In addition, the market share of immunodiagnostic products has gradually surpassed that of biochemical diagnostic products, and it is expected to become the largest in vitro diagnostic subcategory in terms of domestic market size.   In addition, we are very optimistic about the future space for the integrated development of health insurance and health management. According to Frost & Sullivan's observations and research, there are three major trends in integrated development: First, the combination of health insurance with healthcare, integrating medical resources such as physical examinations, screenings, and rehabilitation to create a closed-loop health management system throughout the life cycle; second, adopting a mixed development model that combines public and private sectors to promote the upgrading of the health management service industry; third, implementing product differentiation strategies based on different customers and needs to help health management enterprises gain more market opportunities.   ask For healthcare companies, what are the main indicators for measuring growth? Wang Xin: "Growth" should not be solely limited to numerical metrics such as business scale or revenue growth rate. It is more about whether enterprises can continuously seek breakthroughs and innovations in their respective fields and tracks, and whether they can create value for industrial development, people's livelihoods, and economic growth.   Taking the healthcare sector as an example, we believe that indicators of growth should be reflected in technological transformation, model innovation, product iteration, application expansion, and other aspects.   *This article is reprinted from Xinhua Finance and Economics, authored by Shen Yinfei. Click at the bottom Read the original text You can view the original news report by clicking