Core Viewpoint - The article discusses the evolution and growth of the Japanese whisky industry, drawing parallels to the emerging whisky market in China, emphasizing the need for local adaptation and innovation to establish a mature industry [2]. Chapter 1: Development and Rise of Whisky - Japanese whisky has seen a steady rise in international status over more than a century, inheriting and localizing Scottish whisky craftsmanship to cater to Eastern consumer preferences [2]. - The development phases of Japanese whisky include: - Initial phase (1923-1952) - High growth phase (1953-1983) - Decline phase (1984-2008) - Resurgence phase (2009-present) [2]. - Key lessons for China's whisky industry from Japan's early development include: - Accelerating the establishment of local flavor evaluation and aging certification systems - Adapting raw materials and iterating processes to create differentiated styles - Innovating consumption scenarios to cater to diverse taste preferences and generational engagement [2]. Chapter 2: Evolution of China's Whisky Market Structure Trend 1: Import Substitution and Penetration Rate Increase - The domestic whisky market in China has experienced explosive growth, with the market size reaching approximately 5.5 billion yuan in 2023, a 10% year-on-year increase, and a compound annual growth rate (CAGR) of 15.6% from 2013 [3]. - In 2023, domestic whisky production reached 50 million liters, a 127% increase year-on-year, surpassing imports of 32.62 million liters for the first time [3]. Trend 2: Price Band Differentiation and Consumption Scenario Expansion - The Chinese whisky market shows price band differentiation, with sales in the 0-500 yuan and 500-1000 yuan segments increasing from 36% and 24% in 2022 to 45% and 25% in 2024, respectively [6]. - The high-end whisky segment (1500 yuan and above) has seen a decline in sales share from 28% in 2022 to 20% in 2024, attributed to global economic fluctuations and previous overvaluation [6]. Trend 3: Flourishing Distilleries and Prominent Brand Advantages - Despite rapid capacity expansion, the Chinese whisky industry is still in its early stages, with a significant portion of domestic whisky aged less than two years [7]. - The concentration of distilleries is notable in regions like Zhejiang, Yunnan, Sichuan, and Fujian, which may enhance local tourism and cultural integration [7].

Group 1 - The article discusses Japan's declining marriage and birth rates since the 1970s, with a significant increase in lifelong singlehood rates in the 1990s. The introduction of the "Angel Plan" in 1994 marked the government's recognition of the population issue [3][4]. - Japan's policies aimed at addressing fertility behavior include the establishment of childcare facilities for children from 0 years old, as there is a lack of sufficient childcare resources and traditional family support [4]. - Parental leave policies allow both male and female employees to apply for up to one year of leave before their child turns one, reflecting the government's efforts to support working parents [4][7]. Group 2 - The article is based on a research report by Nomura Orient International Securities, published on November 7, 2024, titled "Can the Angel Plan Turn the Tide? - Japan's Policies and Effectiveness in Addressing Declining Birth Rates" [7].

Core Viewpoint - The newly revised Anti-Money Laundering Law of the People's Republic of China will take effect on January 1, 2025, establishing clear rights and obligations for financial institutions and the public, requiring active participation and cooperation from all parties involved in financial services [1]. Group 1: Relationships and Cooperation - The program "Anti-Money Laundering Talks" focuses on balancing three key relationships: the relationship between financial institutions and customers, the management of money laundering risks versus the optimization of financial services, and the balance between risk prevention and transaction freedom [1]. - The program employs an innovative format of "scenario reenactment + theoretical discussion" through three short films, exploring how various participants in anti-money laundering efforts can cooperate to protect the legitimate rights and interests of all parties [1]. Group 2: Program Significance - Over six years, "Anti-Money Laundering Talks" has served as a vital resource for financial practitioners and the public, conveying industry value and fostering consensus on anti-money laundering efforts, thereby bridging communication between compliant financial operations and public understanding [3].

Group 1: Industry Growth Potential - The global agricultural machinery market is expected to continue its moderate growth, driven by the mechanization of agriculture in the Asia-Pacific region, particularly in China [2] - The Asia-Pacific region holds the largest share of the global agricultural machinery market, with significant development potential due to its large population and expanding agricultural mechanization needs [2] - China's agricultural machinery market is projected to reach 585.7 billion yuan in 2023, reflecting a year-on-year growth of 4%, with a compound annual growth rate (CAGR) of 7.0% from 2018 to 2022, outpacing the global CAGR by 1.5 percentage points [2] Group 2: Mechanization Rate and Labor Dynamics - China's comprehensive mechanization rate for farming has steadily increased to 74% in 2023, up from 31% in 2000, although the mechanization rates for sowing and harvesting remain significantly lower [3][7] - The mechanization rates for major crops like wheat are high, but economic crops such as rapeseed and potatoes have much lower mechanization rates of 66% and 53%, respectively [3][7] - Labor shortages and rising labor costs are accelerating the shift towards mechanization, as the aging population and urban migration lead to a decrease in rural labor availability [7] Group 3: Policy and Subsidy Impact - Government subsidies have significantly stimulated demand for agricultural machinery, with a notable increase in financial support from 0.8 million yuan in 2004 to 23.8 billion yuan in 2014 [13] - The transition to the "National IV" emission standards has increased production costs and affected market demand, but this impact is expected to diminish in the coming years [14] - The introduction of new policies to support equipment upgrades and replacements is anticipated to further boost the agricultural machinery market [17] Group 4: Price Correlation and Export Growth - There is a strong positive correlation between grain prices and agricultural machinery sales, as rising grain prices enhance farmers' purchasing power [15][18] - Agricultural machinery exports have rebounded significantly in 2024, with a year-on-year growth of 38% in Q1 2025, driven by stabilizing international grain prices and increased competitiveness [19][24] - The average export price of tractors has been on the rise, reflecting a growing share of high-powered tractors in exports, indicating improvements in the industry’s competitive position [24]

Group 1 - The core event was a basketball friendly match held in Shanghai between Nomura Information Technology (Shanghai) and Nomura Orient International Securities, aimed at enriching employees' cultural life [1] - The match showcased the players' competitive spirit and teamwork, with an intense and exciting atmosphere that garnered applause and cheers from the audience [3] - The event not only provided a platform for employees to improve their basketball skills but also fostered understanding and camaraderie among staff in a relaxed environment, creating a harmonious atmosphere for collaboration [9]

Core Viewpoint - The article discusses the new regulations regarding the investor suitability requirements for participating in the Sci-Tech Innovation Board's Growth Layer, emphasizing that there are no new trading thresholds for individual investors [2][3]. Summary by Sections - **Investor Participation Requirements** Individual investors can participate in the trading of stocks or depositary receipts in the Sci-Tech Innovation Board's Growth Layer without additional trading thresholds, provided they meet the basic suitability requirements, which include having an average daily asset of no less than RMB 500,000 in their securities and funds accounts over the past 20 trading days, excluding funds and securities borrowed through margin trading, and having at least 24 months of trading experience [3]. - **Risk Disclosure for New Unprofitable Tech Companies** Ordinary investors must sign a specific risk disclosure document before investing in newly registered unprofitable tech companies within the Growth Layer. This includes signing the "Sci-Tech Innovation Board Stock Investor Risk Disclosure" for first-time applicants and the "Growth Layer Investment Risk Disclosure" for those wishing to trade stocks of newly registered companies [5][6]. - **Existing Investors and Risk Disclosure** Existing investors who have already opened trading permissions for the Sci-Tech Innovation Board must sign the "Growth Layer Risk Disclosure" before participating in the trading of newly registered stocks in the Growth Layer [6]. - **Investment in Existing Unprofitable Companies** Investors looking to invest in existing unprofitable companies listed on the Sci-Tech Innovation Board prior to the issuance of the Growth Layer guidelines do not need to sign the "Growth Layer Risk Disclosure." However, they must have opened trading permissions for the Sci-Tech Innovation Board [8].

Core Viewpoint - The Japanese beverage industry is experiencing a phase of simultaneous growth in both volume and price, with a compound annual growth rate (CAGR) of 1.8% from 2010 to 2023 according to the Japan Soft Drink Association [1]. Production Side: Diversified Iterative Development - The Japanese beverage industry has undergone three distinct phases: - Rapid development period (1945-1979) focused on carbonated drinks and juices - Maturity period (1980-1999) marked by the rapid growth of tea and coffee - Current phase (2000-present) dominated by tea and mineral water [1]. Consumption Side: Stage-wise Evolution of Consumer Characteristics - The consumption characteristics in the Japanese beverage market have evolved in stages, reflecting changing consumer preferences and trends [1].

Core Insights - The Japanese active equity fund market is experiencing growth, with its share in the public equity fund market at 58.1% as of the end of 2024, despite the rapid rise of passive funds [3][5][4]. Group 1: Market Trends - The Japanese ETF market has grown significantly since 2010, reaching 89.4 trillion yen by the end of 2024, accounting for 38.8% of the public equity fund market [4][5]. - Active equity funds have shown a compound annual growth rate of 5.3% from 2013 to 2024, indicating a sustained increase in their scale [5][3]. - The proportion of passive index funds in the public equity fund market has surged from 8.3% to 32.1% between 2013 and 2024, reflecting a shift in investor preference [4][5]. Group 2: Challenges Facing Active Funds - The active equity fund market faces challenges such as a dominant presence of foreign capital and products, high outsourcing costs, and a decline in the perceived value of local fund managers [3][7][10]. - The profitability of asset management companies is under pressure due to price competition in the passive fund sector and high costs associated with outsourced management in the active fund sector [10][9]. - The demand for Japanese stocks is low, leading to a reliance on foreign investment strategies, which further complicates the landscape for domestic active funds [8][9]. Group 3: Opportunities for Active Funds - There is potential for growth in the active fund market, particularly in emerging markets where active funds have historically outperformed [11]. - Independent asset management firms in Japan are showing superior performance compared to those under financial groups, indicating a potential shift in market dynamics [15][14]. - The focus on alternative investments is becoming a new trend among asset management firms in both Japan and the US, which could enhance the sources of excess returns [3][11]. Group 4: Fee Structures and Market Dynamics - The average management fee for active funds in Japan has decreased to 1.10%, while passive funds average 0.35%, highlighting the competitive pricing environment [24][23]. - The structure of fees in Japan is designed to encourage long-term holding of funds, which places higher demands on the capabilities of active fund managers [23][22]. - The transparency of product management is a significant issue, with many funds not disclosing the names of their managers, which can impact investor trust and fund performance [20][19].

Core Viewpoint - The article discusses the newly released "Self-Regulatory Guidelines for the Science and Technology Innovation Board Listed Companies - Guideline No. 5: Science and Technology Innovation Growth Tier," which aims to support technology companies that are in the pre-profit stage but have significant technological breakthroughs and commercial potential [3]. Summary by Sections Definition of Science and Technology Innovation Growth Tier - The Science and Technology Innovation Growth Tier is designed for technology companies that have made significant technological breakthroughs, possess broad commercial prospects, and have substantial ongoing R&D investments, while still being in a pre-profit stage at the time of listing [4]. Applicability of Growth Tier Companies - The guidelines apply to both existing listed companies that have not yet turned a profit (referred to as "existing companies") and newly registered companies that are also unprofitable at the time of listing (referred to as "incremental companies"). Existing companies will be included in the growth tier from the date of the guideline's release, while incremental companies will be included from their listing date [5]. Criteria for Removal from Growth Tier - The removal criteria for companies from the growth tier are based on a "new and old distinction." To encourage incremental companies to accelerate technological development and market expansion, the removal conditions are aligned with the first set of listing standards for the Science and Technology Innovation Board. Companies will be removed if they meet one of the following conditions: (1) both net profits in the last two years are positive and cumulative net profit is not less than 50 million yuan, or (2) net profit is positive in the last year and operating revenue is not less than 100 million yuan [6]. Investor Awareness of Removal from Growth Tier - Investors can monitor company annual reports, which will disclose any companies that meet the criteria for removal from the growth tier. The Shanghai Stock Exchange will promptly announce the removal of companies from the growth tier. Additionally, investors can check if the stock or depositary receipt's name has removed the special identifier "U," which indicates its growth tier status [10][11]. Participation Considerations for Investors - Investors participating in trading of newly registered growth tier stocks must sign a special risk disclosure document. However, existing stocks or depositary receipts on the Science and Technology Innovation Board prior to the reform are not affected [13]. Information Disclosure Requirements - Companies in the growth tier are subject to stricter information disclosure requirements compared to other listed companies on the Science and Technology Innovation Board. They must adequately disclose the reasons for not being profitable and the impact on the company in their annual reports, along with a risk warning prominently displayed [15]. Additionally, the sponsoring institutions responsible for ongoing supervision must fulfill their duties as per the listing rules and report any significant adverse impacts on the company's technological innovation, R&D capabilities, growth prospects, or profit improvement [16].

Group 1 - The article is a reprint from the Shenzhen Stock Exchange Interactive Easy WeChat video account [1] - The content does not constitute any investment advice or promotion from Nomura Orient International Securities [2] - Nomura Orient International Securities has not independently verified the content of the reprinted article [2]