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

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

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

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

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

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

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

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