Investment Rating - The report indicates a cautious investment outlook for the MedTech industry, highlighting challenges in the innovation-to-growth business model during the 2023-24 period [4]. Core Insights - MedTech companies are facing profitability challenges due to rising input costs and a decline in R&D spending growth, which has impacted their ability to accelerate growth through traditional means such as R&D and M&A [4][14]. - The industry is witnessing a shift towards direct-to-consumer offerings, driven by consumer demand for greater control over health outcomes, which presents both opportunities and challenges for traditional MedTech companies [63][64]. - The integration of AI technologies is rapidly expanding within the MedTech sector, with a significant increase in FDA approvals for AI devices, indicating a growing trend towards digital health solutions [31][34]. Summary by Sections Financial Performance - The therapeutic device segment saw a 12% increase in revenue, driven by strong performances from companies like Stryker and Boston Scientific, which added over US$1 billion in year-on-year revenue growth [101]. - The overall market capitalization for the pure-play MedTech industry grew by 9% in 2023, recovering from a significant decline in 2022 [104]. - However, the financing environment has become more challenging, with total fundraising for MedTech falling 16% compared to the previous year, indicating a shift in investment dynamics [105][110]. Market Trends - The imaging segment led industry growth in 2023, with major players like Siemens, Philips, and GE HealthCare benefiting from strong demand and technological advancements [72]. - The report notes a decline in venture capital investment rounds, with a 34% drop year-on-year, reflecting a tightening investment climate for smaller innovative companies [80][111]. - Direct-to-consumer strategies are becoming increasingly important, as MedTech companies seek to engage health-conscious consumers who are willing to pay out-of-pocket for devices [63][66]. Innovation and Technology - The report highlights the significant role of AI in transforming the MedTech landscape, with a 43% year-on-year increase in FDA approvals for AI technologies in 2023 [31][34]. - Companies are encouraged to adopt consumer-centric approaches and explore new sales channels to meet the demands of a changing market [64][93]. - The integration of AI and digital health technologies is expected to enhance diagnostic capabilities and improve patient outcomes, driving future growth in the sector [34][94].

BYD数据管理与信息化建设高阶诊断 ——经营管理数字化专题 EY 1. 诊断任务背景理解 2. 数据管理与信息化建设现状诊断 3. 数据管理与信息化建设提升高阶建议 诊断任务背景理解 | --- | --- | --- | --- | --- | --- | --- | --- | |----------|------------------------------------------|----------------------|----------|----------------------------------------------------------|-------|-----------------------------------------------------------------------------------------------------------|---------------------------------------------------------------| | | 业务无纸化 | 615项目 \n全面信息化 | | 业务在线化 | | 财 ...

Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The insurance industry is transitioning towards a high-quality development model, emphasizing value and efficiency over mere scale growth. This shift is driven by regulatory changes and the need for companies to adapt to a new development environment [19][25][36] - The concept of "customer lifetime value" (CLV) is introduced as a new metric for guiding insurance companies in their transformation and operational strategies, focusing on long-term customer relationships and value creation [26][124] Summary by Sections 1. New Development Environment - The insurance industry must shift from a focus on speed and scale to one centered on value and efficiency, necessitating a refined approach to customer management and service delivery [25][36] - The regulatory framework is evolving, with a focus on strong supervision, risk prevention, and high-quality development as central tasks for the industry [19][36] 2. Service System as a New Capability - The report emphasizes the importance of developing a comprehensive "service system" that integrates various service elements to enhance customer experience and operational efficiency [22][61] - The service system should encompass four categories: policy services, ecosystem/value-added services, brand services, and product features, each playing a distinct role in the customer journey [48][75] 3. Application of Customer Lifetime Value - The report advocates for the application of CLV to refine the value presentation of insurance companies, focusing on understanding and meeting diverse customer needs [102][124] - Companies are encouraged to update their performance metrics based on CLV, assessing factors such as demand coverage and customer trust to enhance customer asset quality [129][130] 4. Becoming a "Good Company" in the New Environment - The report outlines the characteristics of a "good company" in the insurance sector, highlighting the importance of high operational efficiency and alignment with national development trends [134][135] - Companies should leverage their service systems to create marketing scenarios that effectively integrate service resources, products, and customer engagement strategies [138]

Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The report highlights significant investment trends and opportunities for Chinese companies in the Arab League countries, particularly in the consumer goods sector, driven by local market demands and strategic partnerships [3][6][49] Summary by Sections E-commerce Regulations - Saudi Arabia has established clear regulatory requirements for foreign companies engaging in e-commerce, including penalties for non-compliance, which can reach up to 1 million Saudi Riyals [1] - The UAE has introduced a federal decree aimed at regulating and promoting sustainable development in the e-commerce sector, enhancing consumer protection and ensuring transparency [1] Investment Trends of Chinese Companies - Chinese companies are forming joint ventures with local firms to facilitate market entry and expansion [4] - Localization and customization of products are being prioritized, with examples such as the partnership between a Chinese tea brand and a local food group to cater to regional tastes [4] - Competitive pricing strategies are being employed to penetrate the market quickly, as seen with a Chinese coffee manufacturer offering affordable products in the UAE and Qatar [4] - R&D investments are being made to enhance innovation and meet local demands, exemplified by Lenovo's partnership with a Saudi company to establish a research center [4] - Supply chain expansion is evident, with companies like Haier establishing production bases in Egypt to meet local market needs [4] Key Investment Opportunities - The beverage market in the Arab League countries is projected to grow at a CAGR of 3.1% from 2024 to 2028, influenced by health-oriented policies like sugar taxes [7] - The organic and sustainable food market is valued at $32.4 billion, with a CAGR of 4.9% expected, driven by government support and demographic factors [7] - The consumer electronics sector is valued at $25.2 billion, with a CAGR of 4.5%, fueled by a young, tech-savvy population [7] - The tobacco alternatives market is shifting towards e-cigarettes and heated tobacco products, particularly in the UAE [7] - The high-end beauty and personal care market is expected to grow at a CAGR of 5.15%, supported by an increasing female workforce [7] - E-commerce is rapidly expanding, with increasing internet penetration and supportive regulations, creating opportunities for international brands [7] - The alcohol and gourmet food market is also expected to grow, particularly in the UAE, where regulations are becoming more favorable [7] Challenges and Strategies - Chinese companies face geopolitical and macroeconomic instability, necessitating comprehensive risk management strategies [16] - The complex regulatory environment in the Arab League countries requires companies to understand local laws and establish compliance management systems [18][19] - Labor localization policies present challenges, particularly in sectors like construction, where local talent is scarce [21] - Cultural and religious sensitivities impact business operations, requiring companies to adapt marketing strategies and product offerings accordingly [23][24]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The global artificial intelligence (AI) industry is experiencing exponential growth, particularly after the emergence of applications like ChatGPT, leading to increased government and corporate investment in AI technologies [2][3] - China is advancing rapidly in AI, focusing on industrial applications and integrating AI into various sectors such as manufacturing, healthcare, and education, supported by a comprehensive policy framework [4][5] - The AI industry can be segmented into four layers: application, algorithm, computing power, and data, with data and computing power being critical for AI development [5][6] Summary by Sections 1. Current Status and Trends in the AI Industry - The AI industry has evolved significantly since its inception in 1956, with major advancements in algorithms and applications, particularly in the last two decades [2][3] - The competition in AI is intense among major countries, with the US leading in research and hardware, while China excels in industrial application and integration [3][4] 2. Current Status and Trends in the Computing Power Industry - China's computing power sector is rapidly developing, with significant government investment and initiatives aimed at enhancing infrastructure and capabilities [11][12] - The report highlights the importance of computing power as a core driver of the digital economy, with a target to exceed 300 EFLOPS by 2025 [11] 3. AI Transformation and Computing Power Demand in Wuxi's Quality Industrial Clusters - Wuxi's industrial sectors, including software information, IoT, and biomedicine, are actively pursuing AI transformation, driven by the need for efficiency and innovation [27][29] - The report identifies specific industries in Wuxi that are at different stages of AI transformation, with a focus on enhancing operational efficiency and developing new business models [29][30] 4. Development of Wuxi's Intelligent Computing Centers - Wuxi has established several intelligent computing centers, with a total computing power target of at least 2000P by 2025, focusing on various applications including biomedicine and smart manufacturing [19][20] - The Wuxi Artificial Intelligence Collaborative Innovation Base is noted for its rapid development and high performance, utilizing Huawei's self-developed chips [24][25] 5. Industry-Specific AI Transformation and Computing Power Needs - The IoT sector in Wuxi is a key area for AI transformation, with a significant number of companies and a market size of 450 billion yuan [34] - The automotive and industrial internet sectors are also highlighted for their AI transformation efforts, focusing on enhancing safety and operational efficiency through advanced technologies [35][39]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The China Securities Regulatory Commission (CSRC) has issued opinions to deepen the reform of the merger and acquisition (M&A) market, emphasizing its importance in supporting economic transformation and achieving high-quality development [3] - The guidelines encourage listed companies to enhance industrial integration and improve regulatory inclusiveness, transaction efficiency, and intermediary service quality [3] - The Shanghai Stock Exchange has introduced guidelines for identifying "light asset, high R&D investment" companies to promote increased R&D investment among companies listed on the Sci-Tech Innovation Board [4] - The Shenzhen Stock Exchange has implemented a simplified information disclosure guide for corporate bond issuance to enhance the efficiency of bond financing for quality market entities [5] Summary by Sections Section: M&A Market Reform - The CSRC's opinions focus on supporting the transformation of listed companies towards new productive forces and enhancing the vitality of the M&A market [3] - Key measures include encouraging industrial integration and improving regulatory frameworks [3] Section: R&D Investment Guidelines - The Shanghai Stock Exchange's guidelines detail the criteria for recognizing "light asset, high R&D investment" companies, including applicable scope, specific standards, and disclosure requirements [4] Section: Corporate Bond Issuance - The Shenzhen Stock Exchange's guide aims to streamline the disclosure process for corporate bond issuers, emphasizing the importance of targeted and relevant information for investors [5]

Industry Investment Rating - The report highlights the mining and metals sector as facing significant challenges and opportunities, particularly in the context of the energy transition and the need for sustainable practices [2][3] Core Viewpoints - The energy transition is disrupting the mining and metals sector, requiring significant transformation through innovation, collaboration, and agility [2] - Capital discipline remains a top priority, with miners needing to balance growth and returns while navigating tough financing conditions [3][12] - Strategic risks such as resource depletion and new project development are becoming more prominent, with long lead times and declining ore grades posing challenges [4][33] - Environmental stewardship is increasingly critical, with miners focusing on nature-positive initiatives and sustainability performance [22][23] - Geopolitical uncertainty is rising, with governments prioritizing self-sufficiency in strategic minerals and metals, leading to complex supply chain dynamics [26][27] Key Risks and Opportunities Capital - Capital is the number one risk, with miners needing to shift focus beyond yield to invest in future value [3][12] - M&A and portfolio repositioning are accelerating, with companies divesting noncore assets and spinning off high-growth assets [13][14] - Miners are exploring alternative sources of capital, including commodity traders, supplier funding, and export credit finance [18][19] Environmental Stewardship - Miners are elevating environmental stewardship, with 46% of respondents confident in meeting nature-positive obligations [22][23] - Waste management and recycling are gaining attention, with progressive miners capturing value from waste through improved mining performance and closed-loop systems [24] Geopolitics - Governments are prioritizing self-sufficiency in strategic minerals, with Japan and Saudi Arabia offering subsidies and incentives for new projects [26][27] - Resource nationalism is affecting tax rules, with governments needing to balance national revenue goals and long-term investment returns [28] Resource and Reserve Depletion - A supply shortfall is likely if investment in exploration and mine development does not increase, with declining ore grades and long lead times exacerbating the issue [33][34] - Exploration budgets are up 37% compared to 2019, with a shift towards copper, lithium, and nickel exploration [34] License to Operate - Miners must enhance community impact and Indigenous trust to build long-term value and secure their license to operate [42][43] - Mine closure strategies are critical, with only 35% of legacy assets and 50% of operating assets having closure plans [44] Rising Costs and Productivity - Structural costs are high due to sticky inflation, particularly in labor and energy, impacting productivity [47][48] - ESG priorities are competing with productivity, with 33% of respondents agreeing that ESG focus is distracting from productivity [48] Climate Change - Miners are under pressure to improve transparency in emissions reporting, with Scope 1 and 2 emissions intensity declining by 10% since 2020 [56][57] - Integrating renewable energy into mining operations is challenging due to high capital costs and technological limitations [58] New Projects - Regulatory issues and higher taxes are prolonging the time from discovery to production, with the US taking 29 years to develop a mine [65][66] - Capital intensity of projects is increasing due to inflation, lower ore grades, and infrastructural issues [66] Changing Business Models - Miners are repositioning portfolios for growth, with vertical integration into advanced materials and diversification into the clean energy value chain [70][71] - Recycling and circular economy initiatives are gaining traction, with 42% of respondents considering integrating recycling into their business models [71] Innovation - Innovation is critical for sustainable mining, with 54% of respondents anticipating greater investment in innovation over the next 12 months [75][76] - Collaboration is essential for driving innovation, with 50% of respondents stating there is not enough collaboration in the sector [76][77]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The report emphasizes the importance of "China Opportunity" in global economic development, highlighting the role of innovative technologies and green industries [2] - It discusses the significance of sustainable development and the construction of a green tax system as essential components for low-carbon growth [4] - The report outlines the need for companies to enhance their capabilities in internationalization, risk management, and local adaptation to succeed in overseas markets [33] Summary by Sections Green Taxation and Sustainable Development - The report presents a white paper on strengthening green tax system construction, contributing to sustainable development [4] - It highlights the integration of ESG (Environmental, Social, and Governance) principles into corporate strategies to promote high-quality and sustainable growth [42][43] New Quality Productivity - The report focuses on the development of new quality productivity, emphasizing the role of advanced technologies and services in driving regional coordinated development [16] - It discusses the opportunities presented by data asset management and the importance of data in enhancing business operations [18][29] Internationalization and Outbound Investment - The report outlines the challenges faced by Chinese companies in international markets, including compliance risks and the need for effective local management [34] - It emphasizes the importance of a comprehensive service approach to support Chinese enterprises in their outbound investment strategies [33] AI and Digital Transformation - The report explores the role of AI in economic transformation and high-quality development, detailing how AI technologies can enhance compliance and risk management [22][25] - It discusses the potential of generative AI in various sectors, including robotics, drug development, and autonomous driving [32] Industry Collaboration and Innovation - The report highlights the collaboration between EY and various stakeholders to promote innovation in the comprehensive bonded zones, aiming to create new platforms for international cooperation [19] - It emphasizes the need for companies to adapt to the evolving landscape of ESG regulations and the importance of integrating these considerations into their business models [34][42]

| --- | --- | |-------|-------| | | | | | | | | | Written by 北京国家会计学院 安永研究院 联合编制 二零二四年九月 北京国家会计学院 财税政策与应用研究所 课题主持人： 李旭红 课题组成员： 段小龙、曹跃、孙谷、唐磊、 王晨阳、柯徐雨珩 | --- | --- | |----------------------------|-----------------------------------------------------------------| | | | | | 安永研究院 | | 课题主持人： | | | 张明益、兰东武、李菁、岳蕾 | | | 课题组成员： | 梁斯尔、张国瑜、李芳、裴培、 张生柱、黄怡怡、李香潼、王冬婷、 | | | 周义博、于若凡、许健波、王昕卓 | 1,001 2 加强绿色税制建设 践行可持续发展 0101 0110 01700 1001 0101 0100 1,001 0101 0140 就双方共同撰写的研究成果白皮书， 其著作权归双方共同拥有。双方需要 协商一致共同行使著作权中的人身权， 包括发表权、署名权 ...

Industry Investment Rating - The report does not explicitly provide an investment rating for the telecommunications industry [1][2] Core Viewpoints - The telecommunications industry is navigating a complex and shifting risk landscape, with risks constantly evolving in nature and impact [2] - The industry faces a diverse range of risks affecting every aspect of its business, driven by technological change, geopolitical strains, economic shifts, and societal development [2] - The report identifies the top 10 risks facing telcos globally in 2024 and suggests three key actions for leaders to mitigate these risks [2] Risk Domains and Top 10 Risks Risk Domains - Compliance threats: Originating from politics, regulations, or corporate governance [3] - Operational threats: Impacting processes, systems, people, and the overall value chain [3] - Strategic threats: Related to customers, competitors, and investors [3] - Financial threats: Stemming from volatility in markets, ecosystems, and investments [3] Top 10 Risks 1. Underestimating changing imperatives in privacy, security, and trust [3][6] 2. Insufficient response to customers during the cost-of-living crisis [3][11] 3. Inadequate talent and skills management [3][15] 4. Poor management of the sustainability agenda [3][18] 5. Failure to take advantage of new business models [3][21] 6. Inadequate network quality and value proposition [3][24] 7. Failure to improve workforce culture and ways of working [3][27] 8. Ineffective engagement with external ecosystems [3][33] 9. Inability to adapt to the changing regulatory landscape [3][37] 10. Failure to maximize the value of infrastructure assets [3][40] Key Data and Insights Cybersecurity - 53% of telcos believe the total cost of cybersecurity breaches will exceed US$3m in 2023, up from 40% in 2022 [7] - 52% of telcos cite a failure among non-IT workforce to adhere to best practices as a top internal issue undermining cybersecurity efforts [7] Customer Response to Cost-of-Living Crisis - Only one-third of consumers think telcos have been supportive during the cost-of-living crisis, while 75% believe broadband providers should do more to offer fixed price guarantees [12] - 60% of consumers agree the cost-of-living crisis has made them more likely to shop around for the best deals [14] Talent Management - 55% of telecoms employers are freezing hiring in response to financial pressures, almost double the proportion across all sectors (28%) [15] - The leading 20 telcos worldwide have reportedly cut their workforces by a combined 20% in the past seven years [15] Sustainability - 46% of telcos consider sustainability when allocating capital but do not give it sufficient weighting to secure necessary funding [18] - 43% of telecoms and technology companies do not disclose a specific net-zero strategy, transition plan, or decarbonization strategy [19] Network Quality and Value Proposition - 26% of households experience an unreliable home broadband connection "often" or "very often," while 29% say the same about their mobile data signal inside the home [24] - Fiber-to-the-home coverage in Europe stands at 62% of households, but adoption of packages is at just 50% [25] Workforce Culture and Ways of Working - 30% of telecoms employees prefer fully remote working, compared to 23% across all sectors [28] - 47% of telco employees cite access to learning and skills as a top factor for thriving as remote or hybrid workers [29] External Ecosystems - 71% of large enterprises prioritize technology and 5G suppliers with ecosystem relationships [34] - 50% of corporate customers value a supplier more highly if it can articulate its role in the evolving industry ecosystem, up from 47% in 2022 [34] Regulatory Landscape - 61% of telco leaders believe regulatory risks will significantly impact their business's performance over the coming 12 months [37] - Policymakers are developing guidelines for AI, with concerns that the EU's comprehensive approach could stifle innovation and limit international competitiveness [38] Infrastructure Assets - 41% of telco CEOs plan to pursue divestments, spin-offs, and IPOs in the next 12 months, while 61% aim to form joint ventures or strategic alliances [40] - 48% of telecoms leaders agree that splitting into netcos and servcos is a likely future scenario to accelerate investment and returns [42] Recommended Actions for Risk Mitigation 1. Improve governance across the organization, particularly around data governance and decision-making on fast-evolving topics [45] 2. Engage in new ways of working with employees, focusing on learning, upskilling, and re-skilling to accommodate remote working [46] 3. Rearticulate the value proposition to customers, simplifying value propositions and sustaining relevance to unlock long-term value [47]