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

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

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

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

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

From May 11th to 12th, 2021, the 5th China Pharmaceutical Distribution Industry Supply-Side Structural Reform and Innovation Forum in 2021 was grandly held in Shanghai. Centering on the theme of 'Innovation Transcends, Stability Leads to Long-Term Success', this conference took deepening supply-side structural reform as its main line and reform and innovation as its driving force. It gathered domestic and international experts, scholars, regional leading enterprises within the national pharmaceutical distribution industry, and conducted in-depth interpretations of issues such as 'China's economic development trend', 'relevant policies for the traditional Chinese medicine industry', and 'the construction of a dual circulation system'. The forum discussed the opportunities and challenges faced by enterprises, development paths, and the future development trends of the pharmaceutical distribution industry.   Mr. Mao Hua, Partner and Managing Director of Frost & Sullivan Greater China, was invited to attend this event and deliver a keynote speech, sharing industry insights on digital health and healthcare big data.   Mao Hua, Partner and Managing Director of Frost & Sullivan Greater China, delivered a keynote speech titled 'The Evolution and Trend Insights of Digital Health and Medical Big Data Content'.   Mao Hua pointed out that China's digital health industry mainly consists of seven sectors: digital medicine, digital diagnosis and treatment, digital enterprise services, digital insurance, digital health management, digital health infrastructure, and digital consumer healthcare. It has broken the traditional system structure, making information communication among major participants in the healthcare system more close-knit, expanding the coverage and utilization rate of medical resources, improving the pharmaceutical supply chain and big data system for medication, and thus making medical insurance usage more efficient and easier to supervise. Among these, digital medicine, digital diagnosis and treatment, and digital insurance are the core sectors of the digital health industry.   The digital healthcare market in China has broad prospects. He stated that in recent years, with the introduction and implementation of policies such as '4+7' volume-based procurement, 'two-invoice system', and 'Healthy China 2030', the prices of pharmaceuticals and medical devices have become clearer and more transparent. The compression of the drug distribution chain has led to a transformation in the pharmaceutical distribution model, with sales channels showing a continuous downward trend. The concept of 'Internet + healthcare' is becoming increasingly ingrained, and retail channels for pharmaceuticals and medical devices are gradually shifting online. In 2019, digital transaction volumes reached 104.7 billion yuan. With the continuous standardization and improvement of policies, the market scale of digital medicine will continue to grow.   The epidemic has boosted the development of the digital diagnosis and treatment market. China has long faced serious imbalances between medical resources and demand, as well as limited effective consultation time during the healthcare process. The emergence of digital healthcare can effectively optimize resource allocation, assist in hierarchical diagnosis and treatment, make medical processes more reasonable, and facilitate patients' access to medical services and purchasing medications. "Especially against the backdrop of the sudden COVID-19 pandemic, the advantages of digital diagnosis and treatment have become prominent, with online consultations becoming mainstream. In 2020, the volume of digital diagnoses and treatments reached 1.1 billion times." He analyzed that driven by factors such as changes in residents' consumption habits and favorable policies, digital diagnosis and treatment are expected to accelerate their development in the future.   The digital health insurance industry in China has prominent advantages, and the market prospects are also promising. In terms of premium income, the Chinese insurance market ranks second only to the United States as the world's second-largest insurance market, but its insurance depth and density are significantly lower than the global average. He believes that compared with developed countries, the Chinese insurance market is still in its early stages of development and has great potential for growth. Digital health insurance can address some pain points of traditional insurance companies, provide precise user traffic, reduce customer acquisition costs, improve underwriting and claims efficiency and accuracy, and reduce the risk of insurance fraud. At the same time, the diversified business capabilities developed by the digital health insurance industry can offer more products that meet market demands, helping to promote the vigorous development of China's digital health insurance market. According to Frost & Sullivan data, the digital health insurance market grew from 5 billion yuan in 2015 to 16 billion yuan in 2019, with a compound annual growth rate of 29.9%. It is estimated that the market size will reach 103.3 billion and 640.5 billion yuan respectively in 2024 and 2030.   As a globally renowned growth consulting firm, Frost & Sullivan integrates nearly 60 years of consulting experience from around the world. Over the past 23 years, it has dedicated itself to serving the booming Chinese market and has made the health industry one of its core research areas. The Frost & Sullivan healthcare team possesses strong capabilities and extensive experience in the field of life sciences. It has a wide range of healthcare enterprise clients in China and has established a vast customer network and patent database over the past 20 years, covering sales information on innovative drugs in China and financial information from multiple manufacturers. It has established good or deep cooperative relationships with experts across the entire industrial chain, ranging from KOLs to industry experts and government officials.   Frost & Sullivan has a team of senior technical consultants, many of whom have decades of clinical development experience in innovative drugs and medical devices both within and outside the enterprise sector. Over the past sixteen years, the Frost & Sullivan healthcare team has provided financing financial advisory, IPO industry advisory, technical advisory, strategic advisory, management advisory, and other services to hundreds of outstanding domestic and international biopharmaceuticals, medical devices, healthcare services, and internet healthcare companies. It is a leader and witness to the development of China's pharmaceutical industry. In terms of the number of filings, 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.

On April 10, 2021, the first SAIF Banker Practice Course of the year, themed Healthcare: Biopharmaceuticals, was successfully held at the Xuhui Campus of Shanghai Jiao Tong University. Mr. Mao Hua, Partner and Managing Director of Frost & Sullivan's Greater China region, was invited to participate in the roundtable discussion session focusing on the development and investment opportunities of the biopharmaceutical industry. SAIF Banker Live Broadcast Special Session on Biomedicine in the Healthcare Big Health Series The global outbreak of the COVID-19 pandemic has made biomedicine, especially the field of innovative drug research and development, a focal point of attention for all sectors. Although the market share of domestic innovative drugs is still relatively small at this stage, with the government gradually introducing policies to support the development of domestic innovative drugs and the continuous increase in R&D investment by pharmaceutical companies, a large number of local innovative biopharmaceutical enterprises have emerged. The innovative development of China's biopharmaceutical industry will accelerate. At the same time, due to the characteristics of the biopharmaceutical industry such as high innovation costs, significant investment risks, and long R&D cycles, capital has also become an indispensable force in helping biopharmaceutical enterprises develop.   Against this backdrop, the first lecture of SAIF Banker's Practice Course focuses on the biopharmaceutical industry. It invites several experts from academia and industry to gain insights into industry trends from different perspectives, analyze industry policies, and discuss future investment opportunities.   Professor Wang Honglin delivered a keynote speech   Professor Wang Honglin, a doctoral supervisor at the School of Medicine of Shanghai Jiao Tong University, a specially-appointed professor at Shanghai Jiao Tong University, the director of the Translational Medicine Center at Shanghai First People's Hospital, and an outstanding academic leader in Shanghai, delivered a keynote speech titled 'The Journey of New Drug R&D with Independent Intellectual Property Rights'.   Professor Wang Honglin has presided over several national-level research projects, including a key research and development project funded by the Ministry of Science and Technology as the chief scientist, and has received the National Science Fund for Distinguished Young Scholars. He has made a series of innovative research achievements in the fields of skin immune diseases, skin stem cell biology, and basic and translational medicine research on psoriasis. In his keynote speech, Professor Wang combined his many years of research experience to use the development process of a small molecule innovative drug for psoriasis treatment as an example. From perspectives such as "the value and significance of choosing psoriasis as the research direction for new drugs," "the operation mode of the human immune system," "the relationship between the nervous system and diseases," and "the definition and current status of First-in-Class in new drug research," he explained in simple terms to the audience present the process of domestic innovative drug research and exploration.   The roundtable discussion focused on the development and practice of biopharmaceutical investment in China. Professor Jiang Zhan, a professor at Shanghai Advanced Finance Institute, academic director and executive director of the EED project, Mr. Mao Hua, partner and managing director of Frost & Sullivan Greater China, Mr. Xiao Li, an alumnus of the Gaojin Finance MBA program and executive director of Honghui Capital, as well as Professor Wang Honglin participated in the discussion. Mr. Yang Shujun, vice president of Junlian Capital, presided over the roundtable session.   After a brief self-introduction, the guests present engaged in an in-depth discussion based on their years of experience and research, starting with topics such as 'changes in the biopharmaceutical industry over the past five to ten years', 'future IPOs and mergers and acquisitions trends in the healthcare sector', and other related issues. They took into account aspects such as talent in the pharmaceutical industry, scientific research environment, market demand, top-level design of industrial policies, capital markets, and the impact brought about by COVID-19. They also answered questions from the audience present.   Mao Hua, Partner and Managing Director of Frost & Sullivan Greater China Region   Professor Jiang Zhan, Professor at Shanghai Advanced Finance Institute, Academic Director and Executive Director of the EED Project   Xiao Li, Executive Director of Honghui Capital and Alumni of SAIF Financial MBA   Yang Shujun, Vice President of Junlian Capital

From April 7th to 8th, 2021, the CHC · CITIC Securities Healthcare Conference and the 10th China Healthcare Industry Investment & M&A CEO Summit were grandly held in Shanghai. Dr. Wang Xin, Global Partner and President of Greater China at Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), was invited to attend this summit, deliver a keynote speech at the investment forum, and serve as an awarding guest.   The healthcare industry has undergone significant changes over time, driven by national policy guidance and capital favor. It has developed rapidly with the trend of 'technological innovation.' In recent years, it has made great industrial breakthroughs in various sub-sectors such as biomedicine, medical devices, and healthcare services. Leading enterprises continue to leverage their scale advantages, while innovative companies are accelerating growth. The resulting product iterations and technological innovations have invigorated the entire healthcare industry chain. Over the past year, the COVID-19 pandemic stimulated the 'highlighted' development of the healthcare industry, making it one of the hottest investment and financing tracks. In 2020, the total financing amount for the healthcare track increased by 43% year-on-year. At the same time, the implementation of the high-value consumables volume-based procurement policy has forced enterprises to transform and innovate, accelerating the reshuffle in the field of new drug research and development, and capital is concentrating on more innovative value-added enterprises.   Against this backdrop, the 2021 CHC & CITIC Securities Healthcare Conference and the Tenth China Healthcare Industry Investment & M&A CEO Summit, co-hosted by CHC Medical Consulting and CITIC Securities, were held in Shanghai. With the theme of 'Ten Years of Perseverance Witnessing a Golden Age of Healthcare, Accumulating Strength to Rekindle Capital's Glory', the summit featured three sub-venues for medical devices, biomedicine, and healthcare services. It covered policy discussions, hot topic analyses, and strategic thinking on breaking through in the 13 major sub-sectors including management forums, imaging diagnosis and treatment equipment forums, IVD forums, intelligent diagnosis and treatment forums, and innovative drug forums. On the morning of April 8th, Dr. Wang Xin delivered a keynote speech at the Summit Investment Forum. Focusing on three major aspects: the current situation of China's biopharmaceutical market, prospects for potential development directions in the biopharmaceutical field, and capital market performance, he engaged in an in-depth discussion with the participating guests on the development trends of China's biopharmaceutical industry.   01 He pointed out that currently, the R&D and commercialization centers of the biopharmaceutical industry internationally are still located in Europe and America. China's biopharmaceutical sales volume still accounted for only 17% of the global total in 2020. However, the relatively early state of the Chinese biopharmaceutical market also implies more opportunities. China is in an era where first-mover generic drugs and international innovative drugs are rapidly following each other's footsteps, and the core competitiveness of the pharmaceutical industry is undergoing a transformation from marketing to R&D innovation. Biopharmaceutical companies with competitiveness and R&D strength will emerge faster in the Chinese biopharmaceutical market and gain a head start. In the future, there will be more types of innovation that will jointly expand the biopharmaceutical market. "With the development of China's innovative drug market, in the next five years, innovative biopharmaceuticals, including antibodies, gene and cell therapies, will be a hot topic in the development of China's pharmaceutical market." 02 Taking antibodies as an example, he further analyzed that the current biopharmaceutical market in China is mainly monoclonal antibodies, but their market penetration rate remains low, concentrated in two major therapeutic areas: oncology and immune system diseases, with a serious phenomenon of duplicate targets. The future market is more optimistic about bispecific antibodies. "The potential number of tumor patients in China who could benefit from dual anti-cancer drugs is vast, with a huge unmet clinical need. In 2019, the number of potential tumor patients in China who could be treated with dual anti-cancer drugs reached 3.04 million, accounting for about 30% of the global total." Currently, in the field of dual anti-cancer drugs, only two drugs, Hemlibra and Blincyto, have been approved by the FDA for marketing globally. The research and development of dual anti-cancer drugs in China is catching up. With the development of antibody drugs, the requirements for antibody engineering technology and R&D platforms are becoming increasingly stringent. Miniature antibodies with stronger lesion penetration capabilities will officially make their debut on the historical stage.   03 In the past decade, the investment environment for innovative biopharmaceuticals in China has undergone significant changes, and many people are no longer 'turning pale at the mention' of new drug investments. He said: 'Before 2010, when many investors mentioned new drugs, they would say 'new drug investment is a pitfall.' At that time, everyone believed that innovative drug investments had long cycles, high costs, low success rates, and great risks.' However, as regulatory authorities began to carry out bold reforms and align with international standards, such as the gradual introduction of policies to accelerate the review and approval of innovative drugs, and the addition of the National Medical Products Administration to ICH (International Council for Harmonization of Technical Requirements for Human Medicinal Products), it greatly inspired investors' confidence in Chinese innovative drugs. With the inclination of relevant national policies and the continuous improvement of R&D capabilities of local pharmaceutical enterprises, China's biomedical investment environment has been greatly improved.   04 In terms of the performance of the capital market in China's biopharmaceutical sector, IPOs by pharmaceutical companies from the mainland, Hong Kong, and the United States are showing varying results. The role played by the biopharmaceutical sector in China's capital market is gradually increasing. In 2020, the number of IPOs by US pharmaceutical companies soared compared to the previous year, with total fundraising doubling, indicating a high enthusiasm among overseas investors for the pharmaceutical industry. With the development of the Science and Technology Innovation Board (STAR Market) and the acceleration of IPO review speed, the role played by the pharmaceutical and biotechnology sectors in China's capital market is gradually increasing. In 2020, the number of IPO-listed pharmaceutical companies on the mainland STAR Market doubled compared to 2019, and the attractiveness of the STAR Market to domestic and international investors is continuously strengthening. At the same time, the number of pharmaceutical companies listed in Hong Kong remains stable, with total fundraising also rising continuously. After experiencing rapid changes in policies, market, and investment environment over the past few years, China's independent R&D capabilities in the biopharmaceutical industry have rapidly improved, greatly promoting the high-quality development of this sector. He said: 'The next decade will be a golden period for the development of biopharmaceuticals.' During the same period of this conference, the "2020 China Healthcare Industry Investment and Financing Honor Roll" was released, revealing the selection results for 17 awards including the "2020 Most Promising Investment Institution in Healthcare," the "2020 Best Newcomer Award in the Healthcare Industry," and the "2020 Best Listed Medical Device and Diagnostic Company." Dr. Wang Xin attended the award ceremony on April 7th as an honorary guest and presented trophies to the companies that were awarded the top 10 spots on the "2020 Most Investable Healthcare Enterprise & High-Value Consumables List." Dr. Wang Xin presented awards to the representatives of the winning enterprises   "The Top 10 Most Investment-worthy Healthcare Companies of 2020 — High-Value Consumables List" with the awarding guests

From March 19th to 20th, 2021, the CGT Asia 2021 Asia Cell and Gene Therapy Innovation Summit, hosted by Taas Labs, was successfully held in Shanghai. Over 30 industry leaders from home and abroad gathered here to discuss hot topics across multiple sectors such as new ideas for solid tumor treatment TCR-T therapy market prospects and development trends, technological innovation in manufacturing cell therapy products, the application of stem cell therapy in neurodegenerative diseases, and more. Mr. Mao Hua, Partner and Managing Director of Frost & Sullivan's Greater China region, who is also an expert in the biopharmaceutical field, was invited to attend this event and delivered a keynote speech. Mr. Mao Hua, Partner and Managing Director of Frost & Sullivan Greater China, delivered a speech   At the meeting, Mao Hua delivered a keynote speech titled 'Market Opportunities and Challenges in Cell and Gene Therapy Industries'. He pointed out that the global cell and gene therapy (CGT) market began in the 1960s and has gone through four development stages. The foundation of CGT clinical research is becoming increasingly mature. Currently, China ranks second globally in terms of the total number of CGT clinical studies, and in categories such as CAR-T, China is the largest clinical research initiator in the world. In recent years, continuous technological breakthroughs have brought about another boom in CGT, subverting the entire pharmaceutical ecosystem and also changing the way humans treat genetic diseases and complex conditions.   He further explained: 'Rare diseases affect the health of nearly 350 million people worldwide. Most causes are due to gene mutations or inheritance, including single-gene genetic diseases such as hemophilia, as well as polygenic diseases like cancer, neurodegenerative diseases, eye diseases, and cardiovascular diseases. More than 95% of these genetic diseases have no effective treatment methods. The use of traditional drug therapies such as small molecules or enzymes can alleviate patients' pain to a certain extent, but this treatment requires continuous medication, which is extremely costly for most patients, increasing their economic and socio-psychological burden. At the same time, drugs not only fail to cure genetic diseases fundamentally but also cause serious complications.'   CGT therapy has become the ultimate weapon on the path to conquering rare genetic diseases, bringing survival possibilities and hope to patients. He cited an example: in the case of typical rare disease hemophilia A, gene therapy offers greater clinical benefits compared to other treatment methods. CAR-T therapy also shows significant therapeutic advantages for advanced or relapsed B-cell leukemia and lymphoma that are otherwise untreatable. "Currently, most of the marketed products for gene therapy are for treating rare diseases, with original research manufacturers being mostly innovative companies focusing on cell and gene therapies. However, over decades of gene therapy research and development, several barriers have been introduced, including R&D technology, cost, production, safety, commercialization, and legal regulation, which have restricted the rapid approval process for products."   Currently, multinational biotech companies are accelerating their cooperation with local firms through licensing and joint ventures to ensure the registration speed of CGT products and acquire localized production and commercial capabilities. Local biotech companies actively cooperate with industry associations to jointly formulate product quality and production process standards to guide industry development. At the same time, local governments have established alliances with industry leaders to jointly promote regional infrastructure construction. With the first wave of commercialization of cell therapy approaching, reagent and equipment suppliers such as Thermo Fisher and General Electric are closely collaborating with CGT companies to advance the automation and industrialization of cell therapy processes.   Frost & Sullivan, integrating nearly 60 years of global consulting experience, has been serving the booming Chinese market with dedication for 23 years. With a global perspective, it helps clients accelerate their business growth and achieve industry-leading benchmarks in terms of growth, innovation, and technology. Over the past sixteen years, the Frost & Sullivan healthcare team has provided financing financial advisory, IPO industry advisory, technical advisory, strategic advisory, management advisory, and other services to hundreds of outstanding domestic and international biopharmaceuticals, medical devices, healthcare services, and internet healthcare companies. It has accumulated rich experience and insights in the biomedical field and is considered one of the most powerful, professional, and influential industry research institutions in the industry. In terms of the number of completed reporting projects, the Frost & Sullivan healthcare team maintains an absolute leading position in Hong Kong's healthcare IPO market, continuously occupying over 90% of the market share from 2018 to 2020.

People's Daily With the continuous innovation and in-depth application of digital technologies such as artificial intelligence, blockchain, and big data, digital transformation has become a development consensus across all industries. On March 2nd, People's Daily wrote an article discussing the opportunities and paths for the aviation industry to achieve digital transformation, believing that it naturally possesses digital characteristics. Airlines should undergo deeper and more systematic digital transformations to achieve full coverage in various aspects such as corporate operations, customer experience, and talent cultivation, creating more value growth points. In demonstrating the impact of digital transformation on the profit growth space of the aviation industry, they directly cited data from Frost & Sullivan.   # Frost & Sullivan's Insights Frost & Sullivan research shows that digital transformation in the aviation industry can generate an additional value of $5 to $10 per passenger annually.   Currently, exploring new development opportunities through digital transformation has become a focus for many airlines. Digital transformation in the aviation industry refers to using digital technologies such as artificial intelligence, blockchain, and big data to provide innovative opportunities and revenue growth dividends in areas such as operations, passenger services, marketing, and safety. Research by international consulting firm Frost & Sullivan indicates that digital transformation in the aviation industry can generate an additional value of $5 to $10 per passenger annually.   As early as the 1960s, the aviation industry used digital technology to automate the ticket booking process. In recent years, with economic development and improved information technology levels, passengers' personalized needs have become increasingly strong, leading to intensified competition among airlines. Some airlines have begun to seek breakthroughs through digital transformation. For example, Airbus launched the 'Smart Sky' big data platform, reducing costs through 'predictive maintenance' and reasonably arranging flight operations; Tokyo Haneda Airport in Japan introduced multiple robots that interact with passengers, providing services such as cleaning, guiding, and luggage handling to meet passengers' personalized needs; China's first high-speed satellite internet aircraft achieved a high-speed network connection of over 100 megabits at an altitude of ten thousand meters, allowing passengers not only to enjoy air entertainment, air e-commerce retail, and other services on mobile devices but also to live-stream and share aerial images.   During the epidemic prevention and control period, the process of digital transformation in the aviation industry accelerated, especially with the rapid development of contactless technology. For instance, Emirates Airline began adopting multi-mode contactless technology, including voice recognition, contactless control, and contactless identity scanning, greatly reducing the risk of passengers transmitting viruses due to contact with the same device. This technology can also measure passengers' body temperature, breathing, and heart rate, identify potential sick passengers, and play a certain role in warning and preventing disease transmission. Japan Airlines recently announced a collaboration with American drone company Maternity Drone to use drones to open up a new service for delivering medical supplies via express delivery. In addition, mobile office and remote communication are becoming more popular, meaning that airlines that can provide better in-flight digital connectivity services will win more customer favor.   In fact, the aviation industry naturally possesses digital characteristics. A modern aircraft engine generates hundreds of sensor signals every 10 milliseconds, producing about 1TB of data per flight, providing necessary conditions for the digital transformation of the aviation industry. However, the current digital transformation of the aviation industry is still in its infancy, only partially applying digital technology, and the investment in digitization is also limited. In the future, by undergoing deeper and more systematic digital transformations to achieve full coverage in various aspects such as corporate operations, customer experience, and talent cultivation, airlines will create more value growth points.   *This article is reprinted from 'People's Daily', authored by Zhu Yueying.