On September 16th, a special training session on overseas listing financing in Hunan Province, led by the Local Financial Supervision and Administration Bureau of Hunan Province and undertaken by the Changsha Branch of China Merchants Bank, was successfully held in Changsha, Hunan. The main purpose of this meeting was to guide and assist local enterprises in broadening their listing financing channels and accelerating the 'Zero-to-Doubling' plan. Mr. Mao Hua, Partner and Managing Director of Frost & Sullivan's Greater China region, an expert with deep expertise in investment and financing fields, was specially invited to attend this event and deliver a keynote speech. At the meeting, Mr. Mao Hua analyzed the importance of industry analysis in Hong Kong stocks and its focus areas. He not only introduced the specific work content and methodology of industry analysis during the listing process in Hong Kong but also emphasized the important role played by Frost & Sullivan in Hong Kong stock listings.   He introduced that the work process for listing on the Hong Kong stock market mainly consists of three lines: business, finance, and legal affairs. Industry analysis plays an important role in the business sector. The main responsibilities of industry consultants include writing industry reports, building sales forecast models based on company operations, reviewing and assisting with early-stage prospectus industry sections, answering questions related to industries at the Hong Kong Stock Exchange, and preparing investors' inquiries about company operations and industries. Throughout the entire Hong Kong stock listing cycle, industry analysis has played an important role in multiple stages from the initial phase to the middle and later stages.   Subsequently, Mr. Mao Hua further elaborated on the importance and methodology of industry analysis. In Hong Kong stock listings, although industry consultants are an objective third-party role, their analytical dimensions must always take into account the positions of the market, companies, and investors. Industry research analyzes and sorts out the hot topics in the industries where issuers operate from multiple dimensions such as market demand, policy environment, competitive environment, and stage of industry development. Based on industry analysis, industry consultants use a combination of quantitative and qualitative methods to showcase the company's highlights to investors to the greatest extent possible, making an objective and comprehensive analysis from aspects such as the scale and compound annual growth rate of the company's market, as well as the competitive advantages and market share at the business level.   In addition, he mentioned that when building predictive models for clients, the choice of valuation method needs to be combined with the company's life cycle and industry characteristics. Biotech companies applying for listing are usually in the early stages of their life cycle, characterized by high growth potential and a high proportion of intangible assets. Based on these features, the DCF (Discounted Cash Flow) valuation method can better reflect the value of such companies. In this process, industry consultants start from four major elements: disease burden, unmet clinical needs, policy benefits, and pipeline competition, to support and quantify the sales potential of the company's products to support the company valuation. For investors in biotech companies, focusing on products with high sales expectations is also the main investment logic in this sector.   Finally, he emphasized that as a company with over 20 years of experience in the capital market, Frost & Sullivan can mobilize its global office's senior research team to collaborate and provide professional and efficient consulting services to clients. The consulting services cover all industry sectors, including pharmaceuticals, medical devices, healthcare services, energy and power, financial services, consumer and entertainment, automotive travel, communication technology, education and training, and chemical materials. At the same time, Frost & Sullivan is also continuously transforming by integrating market and customer needs, providing one-stop consulting services for enterprises from media promotion, early valuation to IPO and post-listing stages, maintaining its leading position in the niche field of Hong Kong stock listed companies' consulting. As a globally renowned growth consulting firm, Frost & Sullivan integrates 60 years of global consulting experience. For the past 23 years, it has dedicated itself to serving the booming Chinese market and has made the health industry one of its core areas of focus. Over the past sixteen years, the Frost & Sullivan healthcare team has provided financing financial advisory, IPO industry advisory, technical advisory, strategic advisory, management advisory services for hundreds of outstanding domestic and international biopharmaceuticals, medical devices, healthcare services, and internet healthcare enterprises. It is a leader and witness in the development of China's pharmaceutical industry. In terms of the number of completed transaction projects, the Frost & Sullivan healthcare team maintains an absolute leading position in Hong Kong healthcare IPOs, continuously occupying more than 90% of the market share from 2018 to 2020. In the future, Frost & Sullivan will continue to explore cutting-edge industry opportunities and work hand in hand with enterprises to boost innovation and upgrading of China's health industry.

Frost & Sullivan insights In recent years, Chinese sports apparel companies have submitted outstanding results and gained more recognition and trust among consumers. Many Chinese brands are major sponsors of the 2020 Tokyo Olympics, earning a good reputation. In the next five years, it is expected that government policies will provide significant impetus for the development of the sports industry chain from upstream to downstream. At the same time, provinces and cities are likely to introduce more specific guidelines and incentives. The government hopes to improve the overall physical fitness level of residents and promote national fitness. Sports equipment manufacturers, gyms, and training venues may benefit from this trend in the coming years.   Although the event was postponed for a year, the 2020 Tokyo Olympics finally concluded successfully last month. The Chinese delegation achieved good results at this Olympics, and many Chinese brands were major sponsors of the event. Lou Lei, Executive Director of Frost & Sullivan Greater China, said in an interview with China Daily that over the next five years, it is expected that government policies will provide significant impetus to the development of the sports industry chain from upstream to downstream. Sports goods manufacturers, gyms, and training venues may benefit from this trend in the coming years.   Sports brand merchants are 'starting fast' to attract new business opportunities Sports brands quickly get off to a good start to attract new business   Chinese athletes excelled at the 2020 Tokyo Olympics, which ended early last month, despite competing in empty venues due to the COVID-19 pandemic.   Chinese athletes achieved outstanding results at the 2020 Tokyo Olympics, which concluded earlier last month, although many venues were empty due to the COVID-19 pandemic.   Despite the lack of spectators, the Games attracted a huge television and online audience in China, mainly due to the one-hour time difference between China and Japan, and people staying at home to avoid possible infection from new clusters of the virus on the Chinese mainland.   Despite the absence of spectators, the Olympics still attracted a large number of Chinese viewers through television and the internet, as China and Japan only have an hour's time difference, and people stayed at home to avoid contracting the virus.   Lou Lei, executive director at consultancy Frost & Sullivan China, said, "Chinese athletes performed well in different competitions at Tokyo 2020."   Lou Lei, Executive Director of Frost & Sullivan Greater China, said: 'Chinese athletes performed exceptionally well in all events at the 2020 Tokyo Olympics.'   "In recent years, Chinese sportswear companies have also delivered excellent results, winning increasing recognition and confidence among consumers," Lou said.   Lou Lei said that in recent years, Chinese sports apparel companies have also submitted outstanding reports card, gaining more recognition and trust among consumers.   "Several Chinese brands that were major sponsors of the Tokyo 2020 Olympics and provided sportswear and equipment have been very successful. It is only natural for consumers to associate sports brands with Chinese athletes, thereby giving the brands a good reputation when people buy their products," Lou added.   "Some very successful Chinese brands were the main sponsors of the 2020 Tokyo Olympics and provided sportswear and equipment. Naturally, consumers associate sports brands with Chinese athletes, so when they buy products from these brands, they have a good reputation," added Lou Lei. A Li-Ning store in Shanghai. CHEN YUYU/FOR CHINA DAILY Source: China Daily   However, Adam Zhang, founder of Key-Solution Sports Consulting, a sports marketing and consulting company based in Beijing, said that sponsorship for the Tokyo Olympics was not as active as that for previous Games in terms of promotion and integration of online and offline activities. This was due to the constantly changing situation caused by the pandemic.   Zhang Qing, founder of Beijing's Key-Solution Sports Consulting Company, said that the sponsorship for the Tokyo Olympics was less active in terms of promotional efforts and a combination of online and offline activities compared to previous editions. This is mainly due to the continuous changes caused by the pandemic.   Zhang said that with the widespread use of mobile devices to watch the Olympics, the relationship between consumers, athletes and sponsors has changed significantly.   Zhang Qing stated that due to the widespread use of mobile devices by viewers to watch competitions, there have been significant changes in the relationship between consumers, athletes, and sponsors.   "From athletes competing and spectators watching events, to audience participation and content creation, a new kind of collaboration requires more long-term engagement and quick real-time responses from sponsors," Zhang said.   Zhang Qing said: 'From athletes competing and spectators watching, to spectators participating in content creation, a new sense of collective effort has made sponsors need to increase long-term investment and be able to respond quickly and in real time.'   Chinese beverage producers including Nongfu Spring and leading sportswear brands such as Li-Ning, Anta and Peak were among the sponsors.   Sponsors include Chinese beverage manufacturers such as Nongfu Spring, and leading sports brands like Li Ning, Anta, and Pique. A worker finishes assembling a table tennis racket at a Shanghai DHS Group factory. PROVIDED TO CHINA DAILY Source: China Daily   Anta Sportswear Group, a sports apparel giant and an official partner of the Chinese Olympic Committee, designed the podium uniforms for Team China at the Tokyo Olympics.   Anta Sports, a sports apparel giant, is an official partner of the Chinese Olympic Committee and designed the podium uniforms for the Chinese team.   The results of an Olympic 'mindshare' brand marketing survey just released by a leading research institution show Anta taking the lead over other brands, with a 40% share among customers.   The results of a recent Olympic 'Thought Sharing' brand marketing survey by authoritative research institutions show that Anta leads other brands with a share of 40% among customers.   In the first half of this year, Anta launched a new brand concept inspired by the Olympics. The company said it has frequently interacted with consumers on national mainstream media and social network platforms, winning over 10 billion brand views.   In the first half of this year, Anta launched a new brand concept inspired by the Olympics. The company stated that it has been frequently interacting with consumers on mainstream national media and social networking platforms, earning over 10 billion brand views.   Having worked with the Chinese Olympic Committee for 16 years, Anta has invested over 30（4.6） in the research and development of sportswear technology and has vowed to add another 40 to this sector.   Cooperating with the Chinese Olympic Committee for 16 years, Anta has invested over RMB 3 billion (US$460 million) in the research and development of sports apparel technology and has committed to increasing investment by another RMB 4 billion in this field.   Based in Xiamen, Fujian Province, the company has provided sportswear products for 28 Chinese teams competing at Olympic Games. It has developed advanced technologies to manufacture equipment for 10 teams representing China, including shoes and a waist support system for weightlifters and super-light shoes for boxers.   The company's headquarters is located in Xiamen City, Fujian Province, and has provided sportswear products for 28 Chinese teams participating in the Olympic Games. It has developed advanced technology to manufacture equipment for 10 Chinese teams, including weightlifters' shoes and waist support systems, as well as ultra-lightweight shoes for boxers.   This year, it launched "Anta championship experience stores" in key shopping locations, attracting a wide range of consumers. Licensed products have been introduced for the 2022 Winter Olympics in Beijing and Zhangjiakou, Hebei province. The items featuring the Chinese national flag attract buyers with "medium and high consumption capacity", paving the way for the company to open more such stores.   According to the company, it opened 'Anta Champion Experience Stores' at major shopping locations this year, attracting a wide range of consumers. The Winter Olympics held in Beijing and Zhangjiakou, Hebei in 2022 introduced licensed products. These products featuring the Chinese national flag have attracted buyers with 'moderate to high consumption capabilities,' paving the way for the company to open more such stores. Products are displayed at a Peak store in Shanghai. PROVIDED TO CHINA DAILY Source: China Daily   Revenue growth Revenue increase   Ding Shizhong, Chairman of the Board of Directors and CEO of Anta Group, said that the company will continue to focus on sportswear, consolidate research and development, and continuously develop a multi-brand competitive edge to cater to sports-loving consumers in different market segments and fields.   Ding Shizhong, Chairman and CEO of Anta Group, stated that the company will continue to focus on sports apparel, consolidate R&D, continuously build competitive advantages across multiple brands, and cater to consumers who love sports in different market segments and fields.   The group can achieve this due to government policies promoting national fitness, as well as the Tokyo 2020 Olympics and the 2022 Beijing Winter Olympics, Ding said.   Ding said that the group was able to achieve this due to the government's policies promoting national fitness, as well as the Tokyo Olympics in 2020 and the Beijing Winter Olympics in 2022.   The Tokyo Olympics also boosted revenue and profits for sportswear manufacturer Li Ning Co. According to its interim report for this year, revenue soared by 65 percent in the first six months to 101, while net profits rose by 187 percent to 19.6. The brand sponsored the Chinese shooting, diving and table tennis teams.   The Tokyo Olympics also boosted the revenue and profits of sports apparel manufacturer Li Ning. According to this year's interim report, revenue surged by 65% to RMB 10.1 billion in the first six months, while net profit increased by 187% to RMB 1.96 billion. The brand has sponsored the Chinese shooting team, diving team, and table tennis team.   Zhang said that many Chinese sponsors have explored marketing innovation, for example by inviting gold medalists to participate in live-streaming sessions sponsored by brands.   Zhang Qing said that many Chinese sponsors have explored marketing innovations, such as inviting gold medal winners to participate in live events sponsored by the brand.   "The winners of the Olympics are 'nationals of the internet' - the athletes who participated and the internet users who volunteered to develop content based on real-time events at the Games," Zhang said.   Zhang Qing said that the winners of the Olympics are 'Internet natives' - athletes participating in the competition and internet users who voluntarily develop content based on real-time Olympic events.   Marketing major sporting events is now defined as 'emotional marketing', as young athletes and the events themselves create emotions that inspire the public and viewers, Zhang said.   Zhang Qing said that marketing of major sports events is now defined as 'emotional marketing', because young athletes and the events themselves create emotions that motivate the public and spectators.   He added that transforming emotions and traffic generated from such events into business and revenue opportunities requires brand teams to accurately locate the market and respond quickly.   He added that converting the emotions and traffic generated by such events into business and revenue requires the brand team to accurately position the market and respond quickly.   The strong momentum in China's sportswear industry is deeply rooted in government policies aimed at promoting national fitness and building a wholesome and healthy society.   The strong momentum in China's sports apparel industry is deeply rooted in the government's policies aimed at promoting national fitness and building a healthy society.   Last month, the State Council, China's Cabinet, unveiled a five-year blueprint for 2021 to 2025, designed to increase public participation in physical exercise. The guideline includes measures to increase the number of sports facilities in communities nationwide.   Earlier this month, the State Council of China announced a five-year blueprint for 2021 to 2025, aiming to increase public participation in physical exercise. The guide includes measures to increase the number of community sports facilities nationwide. Nongfu Spring was one of the Chinese sponsors at Tokyo 2020. ZHU XIAOMENG/FOR CHINA DAILY Source: China Daily   By 2025, the government aims for 38.5 percent of the population to participate regularly in physical exercise—last year, the proportion was 37.2 percent. According to the plan, the market scale of the sports sector in China is expected to reach 5 trillion yuan by 2025.   By 2025, the government's goal is to have 38.5% of the population regularly participate in physical exercise—last year, this proportion was 37.2%. According to the plan, by 2025, the market size of China's sports industry is expected to reach 5 trillion yuan.   The government also aims to set up more fitness facilities in counties, villages and communities, so that residents can access them within a 15-minute walking distance.   The government also plans to establish more fitness facilities in counties, villages, and communities, allowing residents to use these facilities within a 15-minute walk.   Lou, from Frost & Sullivan China, said: 'In the next five years, the plan seems set to give a huge boost to the development of the sports sector industry chain from upstream to downstream, as the level of support is unprecedented in China. Provinces and cities are expected to launch more-specific guidelines and encouragement measures in response to the blueprint.'   Lou Lei, Executive Director of Frost & Sullivan Greater China, said: 'In the next five years, this plan seems to offer tremendous impetus for the development of the sports industry chain from upstream to downstream, as the level of support is unprecedented in China. It is expected that provinces and cities will introduce more specific guidelines and incentives based on the blueprint.'   "China aims to improve the overall physical fitness levels of residents and promote fitness as a habit for the public, rather than just for a small group of professionals. Sports goods manufacturers, gyms and training venues are likely to benefit from this trend in the coming years," Lou said.   "The goal of China is to improve the overall physical fitness level of its residents and promote fitness as a habit for all, not just a small group of professionals," said Lou Lei. "Sports equipment manufacturers, gyms, and training venues may benefit from this trend in the coming years," he added.   *This article is reprinted from 'China Daily', authored by WANG ZHUOQIONG and ZHU WENQIAN, with the original title 'Chinese sponsors take the lead at Olympics'.

Frost & Sullivan insights As social media platforms and short-video platforms become increasingly popular among Chinese consumers, trending topics can easily lead to discussions and dissemination. The popularity of Olympic-related topics has led to a surge in online sales of items similar to those worn by athletes. Buyers said they want to pay tribute to the hard work and achievements of athletes.   During the Tokyo Olympics, Olympic-related products were also sold online. Lou Lei, Executive Director of Frost & Sullivan Greater China, said in an interview with China Daily that Chinese athletes achieved remarkable results in various competitions at the 2020 Tokyo Olympics. Popular sports among the public such as running, basketball, and football are always likely to be the focus of discussion. This has led to a surge in products related to the Olympics. In recent years, Chinese consumers have continuously increased their confidence and recognition of domestic products and brands.     Traders in Yiwu, Zhejiang Province, China's largest small commodities distribution center, have long prepared to sell small items related to the 2020 Tokyo Olympics.   Traders in Yiwu City, Zhejiang Province, the largest small commodity distribution center in China, have long been preparing to sell small commodities related to the 2020 Tokyo Olympics.   Their sales hopes were boosted when Yang Qian, the first Chinese gold medalist at the Games, became a big online hit after her victory in the women's 10-meter air rifle competition on July 24, the first day of competition.   On July 24th, the first day of the competition, Yang Qian, China's first Olympic gold medalist, caused a sensation online after winning the women's 10-meter air rifle event, greatly boosting their sales prospects.   Yang, a 21-year-old student athlete from Tsinghua University, enjoyed the moment by forming a heart shape with her hands as she celebrated her triumph on the podium.   As the 21-year-old Tsinghua University student athlete Yang celebrated her victory on the podium, she formed a heart shape with her hands to enjoy the moment.   Yang was wearing a hairpin with a yellow duck design, and following her triumph, such hairpins were in high demand among a large number of buyers.   Ms. Yang's yellow duck-shaped hairpin, which became a hit among many buyers with her victory, has become extremely popular.   Gold medalist Yang Qian celebrates on the podium in Tokyo, July 24, 2021. [Photo/IC] Source: China Daily   Traders in Yiwu, seeing the debate about Yang's hairpin on social media platforms, wasted no time making items in similar styles to capitalize on this business opportunity.   Yiwu traders, seeing the debates about hairpins on social media platforms, seized the opportunity to create similar products to capitalize on this business opportunity.   According to Taobao, an e-commerce platform of Alibaba Group, the average daily online search volume for "yellow duck hairpins" soared by more than 4,000 percent year-on-year in the week following July 24.   Data from Taobao, an e-commerce platform under Alibaba Group, shows that within a week after July 24th, the average daily online search volume for 'Yellow Duck Hairpin' soared by more than 4000% year-on-year.   In less than a month, one retailer on Taobao sold nearly 100,000 of these hairpins. The trader also created 22 styles and colors of hairpins similar to those worn by Yang. The prices for the items ranged from 3 yuan to 10 yuan (46 cents to $1.55).   In less than a month, a retailer on Taobao sold nearly 100,000 hairpins. The businessman has also developed 22 styles and colors of hairpins similar to the ones Yang wears. The prices for these items range from 3 yuan to 10 yuan (from 46 cents to $1.55).   Hairpins have also been sought by customers overseas. Another Alibaba Group e-commerce platform, Tmall, said that in July, more than 10,000 yellow duck hairpins were ready to complete safety checks at its warehouse in Shanghai for delivery to customers in Tokyo.   Hairpins are also popular among overseas customers. Another e-commerce platform of Alibaba Group, Tmall, stated that in July, more than 10,000 yellow duckbill hairpins were ready to undergo safety inspections at the Tmall Shanghai warehouse and be delivered to customers in Tokyo.   Lou Lei, executive director of consultancy Frost & Sullivan China, said: 'Chinese athletes achieved strong results in different competitions at the Tokyo 2020 Olympics. In the past few years, Chinese consumers have shown increased confidence and recognition of domestic products and brands.   Lou Lei, Executive Director of Frost & Sullivan Greater China, said: 'Chinese athletes competed in all events at the 2020 Tokyo Olympics Remarkable achievements have been made. In the past few years, Chinese consumers' confidence and recognition of domestic products and brands have been continuously increasing.   "Hot topics can easily generate discussion and go viral due to the increasing popularity of social media platforms and short-video platforms among Chinese consumers," Lou said.   "Since social media platforms and short-video platforms are becoming increasingly popular among Chinese consumers, hot topics can easily lead to discussion and dissemination," said Lou Lei.   Last month, among the items worn by gold medalists during the Tokyo Olympics, the yellow duck hairpin was the most popular among online buyers, according to Taobao.   According to Taobao, at the beginning of last month, among the items worn by gold medalists at the Tokyo Olympics, the yellow duckbill hairpin was the most popular among online shoppers.   Other items in high demand include necklaces similar to those worn by table tennis player Chen Meng during competition, an essential balm used by weightlifter Hou Zhihui at Tokyo 2020, and mobile phone cases like the one owned by basketball player Yang Shuyu.   Other items with high demand include necklaces similar to those worn by table tennis player Chen Meng during competitions, essential lotions used by weightlifter Hou Zhihui at the 2020 Tokyo Olympics, and phone cases owned by basketball player Yang Shuyu.   In addition to small items, other products related to the Tokyo Olympics are also selling online.   In addition to small items, other products related to the Tokyo Olympics are also sold online.   Damoson, an online store selling men's wear on Tmall, launched a new black-and-white T-shirt during the Games with "Go China" printed in Chinese characters on the front. The store said it noticed the potential business opportunities resulting from the Games and decided to launch the T-shirt immediately to attract more customers.   Tmall men's clothing online store Damoson launched a brand-new black and white T-shirt during the Olympics, with the Chinese characters 'Set Off for China' printed on it. The store stated that it noticed the potential business opportunities brought about by the Olympics and decided to immediately launch this T-shirt to attract more customers.   In online messages posted, buyers said they wanted to pay tribute to athletes' hard work and achievements.   In the messages posted online, buyers stated that they wanted to pay tribute to the athletes' hard work and achievements.   However, the popularity of small items related to the Olympics is nothing new.   However, the popularity of small Olympic-related items is nothing new.   During the London Olympics in 2012, and at the Rio de Janeiro Games four years later, online sales of items similar to those worn by athletes surged.   During the 2012 London Olympics and four years later at the Rio de Janeiro Olympics, online sales of items similar to those worn by athletes surged.   Lou said, 'The popularity of certain topics related to the Olympic Games is unlikely to last online for a long time, as users tend to constantly discover new issues to discuss. After the Tokyo Olympics, there is expected to be less discussion about some relatively niche sports.'   Lou Lei said, 'Some topics related to the Olympics are unlikely to last online for too long because users tend to keep looking for new topics to discuss. After the Tokyo Olympics, it is expected that discussions about some relatively niche sports will decrease.'   "However, sports such as running, basketball and soccer, which are widely popular among the public, are always likely to feature in discussions."   "However, popular sports among the public such as running, basketball, and football are always likely to be a focus of discussion."   *This article is reprinted from China Daily, authored by ZHU WENQIAN, with the original title 'Small items in high demand as Zhejiang traders seize sporting opportunity'.

Wang Chenhui, Partner-in-Chief of Frost & Sullivan Greater China, attended the Master Kong PET press conference   On August 31, 2021, Master Kong held a press conference for the PET project at Shanghai Disney Resort. Mr. Wang Chenhui, Partner-in-Chief and Managing Director of Frost & Sullivan's Greater China region, was invited to attend the event and released the '2021 PET Bottle Sustainability Report under the Background of Carbon Neutrality'. The report was jointly produced by Frost & Sullivan, Cailian Communications, and LeadLeo Research Institute.   Under the global trend of carbon neutrality, jointly build a sustainable development ecosystem for PET bottles   01. Overview of the 'carbon neutrality' background, overview of the 'plastic restriction' background, sustainable development path for PET bottles, and the impact of sustainable development of PET bottles on carbon neutrality Last century, industrialization developed in countries around the world, significantly accelerating the rate of carbon dioxide emissions. The greenhouse effect intensified, and climate change led to frequent extreme natural disasters.   Since the beginning of the 21st century, in order to mitigate the greenhouse effect and improve the natural environment, carbon emission governance has become one of the important international issues actively discussed by various countries. The concept of 'carbon neutrality' has gradually gained popularity globally, and many countries have reached a consensus on carbon neutrality issues, setting target times for achieving their own carbon neutrality goals and making relevant commitments.   Among them, the Chinese government also proposed at the 75th session of the United Nations General Assembly in September 2020: to strive to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060. Under the backdrop of carbon neutrality, China, as the world's largest producer and consumer of plastics, has been committed to increasing its national contribution. It has formulated detailed laws and regulations for the production, use, and recycling of plastics. By adopting more robust 'plastic restriction' policies and measures, it strengthens the management of plastic use and minimizes the environmental impact caused by plastics as much as possible. As a type of plastic, PET is made from petroleum through refining and polymerization. Both its production and processing processes lead to the emission of greenhouse gases such as carbon dioxide. Therefore, "Plastic restriction" is an effective way to achieve carbon neutrality. From the perspective of development's ultimate goal, reducing plastic usage in PET bottles involves consumer acceptance of lightweight PET bottles, production-side reduction in PET plastic consumption, consumer recycling of PET bottles, and the recovery and regeneration treatment of PET bottles. These are all effective measures to implement "plastic restriction." , Therefore, it can also be considered a sustainable development approach that helps with carbon emission reduction. How much impact can the sustainable development of PET bottles have on carbon neutrality?   According to the American Plastics Recycling Association, producing 1 kilogram of virgin PET plastic resin requires approximately 2.23 kilograms of carbon dioxide emissions, while producing 1 kilogram of recycled PET plastic resin only emits 0.91 kilograms of carbon dioxide. If calculated through the sustainable development path of recycling PET bottles, assuming that all 24.11 million tons of PET bottles consumed globally in 2019 are recycled for the production of recycled textiles, it can reduce carbon emissions by 31.83 million tons compared to using virgin PET resin to produce textiles, which is equivalent to the annual carbon emissions of about 6.1 million vehicles.   It can be seen that by adopting a sustainable development path for PET bottle recycling, carbon dioxide greenhouse gas emissions can be significantly reduced, which will make a significant contribution to achieving the global 'carbon neutrality' goal.   02. China's PET bottle consumption, plastic reduction in PET bottles, recycling of PET bottles, and regeneration of PET bottles   In terms of consumption volume, the consumption of PET bottles in China has continued to grow, increasing from 6.33 million tons in 2016 to 9.49 million tons in 2020. Looking at the distribution of downstream consumer sectors for PET bottles in China, bottled water and beverages are the main consumption areas, accounting for a total of up to 75%.   Among them, bottled water consumption accounts for 41%, making it the primary consumer segment for PET bottles. Due to the characteristics of PET bottle materials such as being non-toxic, odorless, tasteless, and capable of direct contact with food-grade products, PET bottles have become the preferred packaging material in the beverage industry. Lightweight bottles, as an important plastic reduction method in the sustainable development of PET bottles, can effectively reduce the consumption of PET materials and energy. At the same time, they can improve the production efficiency of related enterprises and lower their production costs. Currently, the global lightweight bottle technology has become quite mature.   From 1990 to 2019, taking 500 milliliter bottled water as an example, through technological innovation, food packaging supplier Sidel has reduced the weight of the bottle body by 66%. This can save 1,485 tons of PET per year and reduce energy consumption by 335,000 kilowatts. PET bottles are also a type of plastic packaging material with high recyclability, capable of being 100% recycled. According to the United Nations Environment Programme, among all signatories of packaging goods and retail sectors, the beverage sector accounts for 88% of the total weight of plastic packaging, making its recyclability far exceed that of other sectors' plastic packaging. This is due to the widespread use of PET materials in beverage packaging. Looking at the global recycling rate of PET bottles, there are significant differences between countries. China leads the world with a recycling rate of 94%, which benefits from having an efficient PET bottle recycling system driven by economic interests and adapted to the country's national conditions, fully demonstrating its flexibility and uniqueness. Currently, recycled PET bottles are cleaned and broken down into recycled PET flakes, which are supplied to chemical fiber factories. These flakes are then reprocessed into recycled PET pellets, which can be used to make clothes or bags. In China, from PET bottles to recycled PET, the consumption of chemical fiber-based recycled PET products accounts for as high as 81% in the downstream consumption of the entire PET recycling industry chain, making it the highest consumer sector for recycled PET at present.   Globally, the recycling industry, including China, is continuously moving towards the recycling end. Building a complete and mature plastic recycling system and packaging stations helps improve the quality of PET bottle recycling, thereby increasing the recycling rate of PET bottles. This is also an effort towards achieving sustainable development of PET bottles.   03 Development Challenges: The awareness of recycling and environmental protection is weak among the general public, consumers have low acceptance of lightweight bottles and recycled PET, and the commercial application of new biobased PET materials needs continuous exploration.   Challenge One: Through comparison, the recycling rate of PET plastic bottles in China is now at a relatively high international level. It can be said that sustainable development of PET bottle production in China has achieved good results. However, there is still room for improvement in public education on PET bottle environmental protection.   Compared to countries like Norway, Germany, and Japan, which also have high recycling rates, China's challenge lies in the fact that the public's awareness of active and correct PET bottle recycling is still relatively weak. China's solid waste recycling work, such as plastic bottles, relies more on 'scavengers' and 'traders' to complete. However, with the gradual establishment of new solid waste laws, if these roles gradually withdraw from the market, the future trend of PET plastic bottle recycling rates may require continuous attention. Moreover, public environmental education efforts need the joint efforts of the government, enterprises, and relevant organizations. Challenge two: Consumers have low acceptance of lightweight bottles and recycled PET. With economic development, Chinese consumers have put forward higher quality requirements for products, gradually reducing their acceptance of lightweight bottles that are lighter in weight and softer to the touch. Consumers even mistakenly regard the use of lightweight bottles and recycled PET products as counterfeit goods, leading to a misunderstanding that 'businesses are cutting corners,' which is not conducive to the industry's progress in 'plastic reduction.'   Due to acceptance issues, even in a technically favorable environment, the recycled PET market has not been as good as expected. Affected by the consumer side, production capacity on the supply side has not significantly increased. From 2016 to 2020, China's recycled PET operating rate continued to decline, falling from 50% to 33%. Challenge 3: The commercial application of bio-based PET materials needs continuous exploration. Bio-based PET is a more environmentally friendly new material, with all or part of its production raw materials coming from biomass. Its production, recycling, and reuse processes can effectively reduce carbon emissions and fossil fuel consumption.   Although the environmental benefits of biobased PET are prominent, its cost is about 1.25 to 1.5 times that of fossil-based PET. To achieve mass production of biobased PET, it is still necessary to overcome large-scale manufacturing technology and further reduce the process costs of producing biobased PET materials. This is also the direction where China needs to continue working hard on the path to sustainable development of PET bottles in the future.   Practice Cases and Future Prospects   Currently, whether globally or in China, some related enterprises have begun to actively practice sustainable development of plastics. By the end of 2020, 126 corporate institutions had signed the 'New Plastics Economy Global Commitment.' Among them, packaging product companies, packaging manufacturers, and retailers are the largest signatories. This includes PepsiCo in the beverage industry and Unilever in the personal care industry, with a total of 89 signatories. The environmental social responsibility of these enterprises is of significant importance for the global sustainable development of plastics.   Case 1: Persisting in the Recycling and Reuse of PET Bottles In the practice case of PET bottle recycling and reuse, in response to the national call for environmental protection and resource recycling, Master Kong Beverage actively promotes its 'recycling and reuse' PET sustainable development concept. It encourages factories at the production end to recycle discarded PET bottles to produce recycled PET products. At the same time, it encourages employees to use recycled PET-related products, such as clothing made from recycled PET. Master Kong Beverage has reached a brand partnership with Veolia, and subsequently, each supply chain department of Master Kong Beverage plans to fully implement a PET recycling and reuse plan, recycling about 6,000 tons of waste PET per year, which can achieve a reduction of 16.8 tons of greenhouse gas emissions.   Case 2: Becoming a force in 'plastic reduction' In the 'plastic reduction' initiative, various beverage companies are also actively formulating plans to reduce the use of plastic packaging, optimizing processes and reducing the weight of beverage packaging materials. Among them, both Master Kong's beverages and Pepsi-Cola's beverage business lines have carried out various 'plastic reduction' practices and achieved corresponding energy conservation and emission reduction results.   Case 3: Public Environmental Protection Education and Promotion At the same time, in order to disseminate correct environmental protection concepts and methods to the public, some beverage brands have participated in environmental education public welfare activities related to PET bottles. For example, Master Kong Beverages has organized science popularization parent-child activities with the theme of PET bottle recycling, a water education public welfare activity themed 'Know Water, Love Water, Save Water', and a Pepsi Zero Waste Public Education Project, all of which actively convey the sustainable development concept of PET bottles to the public and have received positive social responses.   Future Outlook: China has achieved certain results in the sustainable development of PET bottles, but there are also some problems and challenges.   We advocate that all sectors of society, including government agencies, related enterprises, organizations, consumers, and other entities, jointly participate in creating a sustainable PET bottle ecosystem. Government agencies have introduced policies and regulations conducive to the recycling of empty bottles based on China's national conditions; relevant enterprises and organizations can strengthen environmental protection cooperation and exchanges; consumers should actively accept public education to enhance their awareness of active recycling. It is reported that the PET project released this time is part of Master Kong's sustainable development vision for PET. It aims to call on and support the government in developing the PET recycling processing industry chain, and actively educate and promote public participation in PET bottle sorting and recycling.

On August 30, 2021, the global trend of 'carbon peak and carbon neutrality' has become mainstream. To assist operators around the world in achieving their green network 'dual carbon' action plans, Huawei held its first Wireless Media Salon and Mobile Broadband Forum BMBBF2021 Pre-Communication Meeting in Shanghai. Dr. Wang Xin, Global Partner and President of Greater China at Frost & Sullivan (Frost & Sullivan, abbreviated as: Frost & Sullivan), was invited to attend this event and delivered a keynote speech titled 'Practicing Dual Carbon Commitments, Building a New Era of Green Networks'. Dr. Wang Xin, Global Partner and President of Frost & Sullivan Greater China, delivered a keynote speech     Dr. Wang Xin said: "Thanks to policy promotion, the explosion of new 5G scenarios, the opening up of carbon emission trading, and the rise of ESG, green networks will become an inevitable path for the future development of the ICT industry, bringing immeasurable economic and social value to society as a whole." In addition, he also solemnly called for the joint construction of green networks and green 5G, which is an important practice in fulfilling the dual carbon commitment. "Hopefully, colleagues from various industries will join hands as soon as possible to contribute their part to the cause of carbon neutrality."   The realization of "carbon peak and carbon neutrality" has four major significances. 1. Promote the rapid and sustainable development of new energy sources, reduce the proportion of fossil energy in China's energy consumption, facilitate the transformation of the energy structure, and ensure our country's energy security.   2. It is closely related to everyone's life; it will significantly improve the ecological environment and enhance our quality of life.   3. It forces China's industrial upgrading and changes the existing economic pattern; in order to achieve carbon neutrality, many industries with significant scale will undergo a complete reshuffle from raw materials, production manufacturing to the consumer end. For example, the rise of new energy electric vehicles in recent years has reshaped the traditional automotive industry chain and pattern.   4. Green technology in China and even globally will accelerate development and empower the entire society towards low-carbonization. Dr. Wang Xin believes that in the future process of low-carbonization across various industries, the most core part is the greening and decarbonization of communication networks. Green networks can not only significantly reduce the energy consumption and carbon emissions of the ICT industry itself, but more importantly, they can be widely applied to all sectors of society to help them reduce costs, increase efficiency, and achieve the dual carbon goals at an early date.   The green network is the inevitable path for the future development of the ICT industry.   The future development of the green network mainly benefits from four major driving forces:   First, Governments of major countries around the world have introduced clear timelines and corresponding support policies for carbon neutrality.   For example, Europe is at the forefront of global climate policy. In 2020, the EU passed the 'European Green Deal' and the 'European Climate Law', setting the goal for the EU to achieve carbon neutrality by 2050, and has been working on designing a carbon tariff system to force industrial upgrading within the EU. After China proposed its dual carbon goals, both central and local governments have successively introduced a series of supportive policies. In addition, an overall timeline and roadmap for carbon peak and carbon neutrality are about to be announced, as well as implementation plans for different fields and industries before 2030, constructing a 1+N policy system and improving fiscal, tax, price, and other incentive economic measures.   Second, The large-scale deployment of 5G networks, as well as the surge in data volume for new 5G application scenarios.   As of June this year, the total number of 5G base stations in China has reached 961,000, accounting for more than 70% of the global total. Although the energy consumption per bit of data transmitted over a 5G network is only one-tenth that of a 4G network.   However, as 5G networks rapidly expand into emerging application areas such as VRAR, autonomous driving, intelligent manufacturing, and smart cities, the amount of network data transmission across society will increase significantly by dozens or even hundreds of times in the future. This objectively creates a huge demand for energy conservation and emission reduction.   Third, With the official launch of the national unified carbon emission trading market this year, it is expected that in addition to electricity, high-energy-consuming industries such as metallurgy, manufacturing, chemical engineering, and computing will also be gradually incorporated into the carbon emission trading system. Energy-saving enterprises can obtain substantial economic benefits, which also promotes the implementation of green networks.   Finally, In recent years, ESG standards have risen in popularity: On one hand, current regulatory authorities require all listed companies to disclose their ESG status and strategies; on the other hand, more and more entrepreneurs are placing greater emphasis on their corporate social responsibility and brand image, and are willing to proactively adopt green communication networks.   Green networks can help enterprises realize economic value at three levels The first level is aimed at the ICT industry itself.   Operators, equipment manufacturers, and other ecosystem partners are continuously iterating green network technologies and products together, which will significantly reduce the electricity costs and carbon emissions across the entire industrial chain.   For example, Huawei has collaborated with the three major operators to carry out low-carbon renovations of wireless networks from the perspectives of 'components, sites, and networks'. New products such as new MIMO power supplies, a new generation of AAU products, AI site management systems, and cloud-based intelligent network management have greatly improved operational efficiency. For instance, after China Mobile carried out low-carbon renovations of its network, it saved over 1 billion kWh of electricity in 2020 alone, while also saving a significant amount on electricity costs.   The second level is the collaboration between 5G and other industries.   All industries can save a significant amount of energy through new technologies and applications based on 5G networks. Currently, the most widespread and common application is 5G combined with the energy and power industry.   For example, Jiangxi State Grid has established an integrated management platform for smart power, supporting various smart power-related application scenarios, including: 5G intelligent distributed energy, 5G+ distribution automation with remote sensing, 5G+ intelligent inspection, 5G+ energy consumption monitoring, and so on.   At a deeper level, the popularization of green networks has made emerging services with large bandwidth, low latency, and wide connectivity economically viable in the 5G era.   For example, in the future, a 5G smart factory that realizes the interconnection of all things will require an enormous amount of data transmission every day, reaching the TB or even EB level. This means extremely high electricity and data flow costs. In manufacturing industries where cost is very sensitive, this high-cost model cannot be sustained in the long term. The continuous energy-saving and cost-reduction efforts of green 5G make this emerging manufacturing model possible. Similar economic logic applies equally to VR/AR, autonomous driving, smart cities, and other fields with high future data consumption.   In addition to its economic value, the widespread adoption of green networks will also bring immeasurable social value.   Firstly, the most direct social value of green networks is to reduce carbon emissions.   Currently, the carbon footprint of the ICT industry accounts for only about 2% of total emissions, but ICT technology can help reduce global total emissions by 20%.   For example, since last year, Shanghai's natural gas company has started using 5G drones for pipeline inspections. This new approach has replaced the traditional practice of fuel vehicles with inspectors. According to calculations, in terms of working time per inspection, the efficiency of 5G drone inspections is six times that of manual inspections. Moreover, the greenhouse gas emissions reduction achieved by the 5G drone scheme is about 40% compared to manual inspections.   The second major social value is green 5G, which makes new applications that will emerge in the 5G era ecologically sustainable.   It is well known that the data scale of new applications in the 5G era is growing exponentially. According to a study by Frost & Sullivan, under equivalent conditions, the amount of data for an 8K VR video is about 160 times that of current high-definition mobile videos. For instance, if all the video data generated by public cameras in Shenzhen throughout 2020 were connected to a 5G smart city, the amount of data required for transmission could reach 7.5 EB. In traditional communication scenarios, these new services will generate dozens or even hundreds of times more carbon emissions. By deploying green networks, these new services can become ecologically sustainable.     Thirdly, the implementation of green 5G networks can help users in backward and power-deficient areas enjoy more modern technological advancements.   Most emerging markets in Asia, Africa, and Latin America face difficulties such as inadequate infrastructure, lack of stable power supply and reliable feedback, and high difficulty in facility installation and maintenance. Green 5G solutions have a low overall power consumption and significantly simplified device structures, reducing the requirements for supporting infrastructure, allowing local people to access affordable and stable networks.   Finally, the energy conservation and emission reduction of green 5G networks require the support of a large amount of AI, new equipment, and new materials. These new technologies and products are highly replicable and can be applied across various industries to help them achieve carbon neutrality goals.   Three exploration directions for green 5G network modes   First is the co-construction and sharing of 5G base stations.   The most typical example is the base station cooperation project between China Telecom and China Unicom. It is understood that as of June 2021, China Unicom and China Telecom have jointly built and shared a total of 460,000 5G base stations, saving both parties over a hundred billion yuan in infrastructure investment. This project can save more than 11.7 billion kWh of electricity annually. Calculated at an industrial electricity rate of 0.07 yuan per kWh, it can save at least 8 billion yuan or more in electricity costs, achieving significant energy conservation and emission reduction effects.   Secondly, there is the integration of 5G with new energy power generation and battery energy storage industries.   Setting up solar power stations near 5G base stations can greatly supplement the consumption of electricity. For example, Hunan Mobile has launched an integrated operation plan of 'MIMO power supply + solar energy', which uses solar resources to power and charge the base station batteries, saving on direct municipal power usage for the base station; by introducing MIMO power supply technology, it enables the connection of multiple energy sources such as solar, municipal, and generator sets, ensuring secure and stable network operations.   Finally, there is the integration of 5G and intelligent platforms.   There are two sub-topics involved here. The first is how to leverage the powerful analysis, judgment, and prediction capabilities provided by AI algorithms to empower network elements, networks, and business systems. The second is how to integrate AI with the planning, construction, maintenance, operation, and optimization of telecommunications networks.   For example, Shanghai alone currently has nearly 60,000 5G base stations. If resource allocation, operation and maintenance, and network effect optimization rely on manual labor, it is inevitable that there will be a huge waste of resources.   It is reported that the industry has made many explorations into these challenges. Operators in Guangxi, Henan, and Inner Mongolia have respectively adopted AI intelligent platforms to achieve energy-saving effects of over 12% across the entire network.   There are four major challenges to the future development of green networks Key trend   Firstly, unify standards.   At the beginning of 2020, the International Telecommunication Union (ITU) organized the release of the global 5G Power international standard (among which Chinese manufacturers are also among the main standard-setting participants). As of last year, more than 80 countries around the world have adopted solutions that comply with the 5G Power standard. In the future, to enable better carbon peak and carbon neutrality in the global communication industry chain upstream and downstream, accelerating the construction of standardization is a crucial link.   Second, ecological coordination.   Due to the long communication industry chain, which involves a large number of technical departments, from different component suppliers to equipment manufacturers, operators, and end-users, everyone is deeply involved in this chain. Therefore, strengthening the integration and coordination of the entire industry chain in the future is also very important for the overall energy conservation and emission reduction of the industry.   Thirdly, the large-scale use of AI+big data across the entire industrial chain is an important method in achieving the dual carbon goals through a green network.   Fourth, the technologies and models for achieving the dual carbon goals through green networks will be replicated on a large scale across various industries such as grid energy, intelligent manufacturing, and healthcare. On the one hand, it can achieve energy conservation and emission reduction. On the other hand, it can also serve as a product to realize commercial value, achieving a win-win outcome.   Subsequently, Ma Hongbo, President of Huawei's Wireless Network SRAN Product Line, delivered a keynote speech titled 'Green 5G: E2 Four Modernizations and Eight Directions for Win-Win Carbon Neutral Future', and released the 'Green 5G White Paper'. This white paper is the first in the industry to publish an energy efficiency evaluation system for green 5G networks—E2 (Energy Efficiency), and it also took the lead in defining the technical trends of green 5G networks—four modernizations and eight directions. Gan Bin, Chief Marketing Officer of Huawei Wireless, delivered a keynote speech titled 'Huawei Continues to Lead, Opening up a New Green Track for Massive MIMO in 5G', sharing the next breakthrough innovation direction of Massive MIMO and leading the construction of green 5G networks. Dr. Wang Xin, photographed with Ma Hongbo (right), President of Huawei's Wireless Network SRAN Product Line, and Gan Bin (left), Chief Marketing Officer of Huawei Wireless

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.