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]

Investment Rating - The report does not explicitly provide an investment rating for the e-mobility industry. Core Insights - The future of e-mobility relies heavily on data interoperability and information sharing among stakeholders to enhance the overall EV experience and unlock new opportunities [3][4][8]. - A fully connected and integrated digital e-mobility ecosystem is anticipated, where EVs, manufacturers, charging stations, service providers, and energy systems communicate seamlessly [8][10]. - The report identifies six essentials for accelerating EV adoption, emphasizing the need for digitalization and data transfer to unite transport, energy, and the built environment [7][10]. Summary by Sections Current State of E-Mobility - In 2023, global EV sales accounted for 16% of all vehicles sold, with over 14.1 million new EVs on the roads, indicating a significant growth trajectory [10]. - In Europe, battery EVs (BEVs) and plug-in hybrid EVs (PHEVs) made up over 20% of new car sales, with a 25% increase in sales from 2022 [10][11]. Infrastructure Development - The number of non-residential charging points in Europe rose from approximately 530,000 in 2022 to 744,000 in 2023, with fast and ultrafast chargers increasing by 77% [15][16]. - The Alternative Fuels Infrastructure Regulations (AFIR) mandate the installation of fast public charging stations every 60 kilometers along major transport corridors, ensuring adequate infrastructure for EVs [16][17]. Data Interoperability - Data interoperability is crucial for optimizing charging station locations, enhancing grid integration, and improving the overall charging experience for users [58][61]. - The report highlights the importance of standardization in communication protocols to facilitate seamless data exchange among EV drivers, charging point operators (CPOs), and energy providers [39][40]. Future Opportunities - By 2030, it is projected that there will be over 75 million EVs in Europe, necessitating improved interoperability among ecosystem stakeholders to enhance user experience and infrastructure reliability [22][23]. - New services emerging from data sharing could save the global EV industry over US$4 billion by 2030 through reduced costs and increased efficiencies [24][25]. Challenges - The report identifies challenges such as the need for better coordination in handling network connection requests, disparities in charging infrastructure across regions, and the necessity for robust cybersecurity measures to protect user data [30][54][46]. - The absence of standardized protocols for smart charging and vehicle-to-grid (V2G) communications poses significant barriers to the widespread adoption of advanced charging solutions [45][46].

Global IPO Market Overview - Global IPO activity declined by 15% in H1 2024, with 532 companies raising $51.7 billion, a 17% decrease in proceeds compared to the same period last year [3] - The US and India performed relatively better, with the New York Stock Exchange leading in proceeds at $10.8 billion, followed by Nasdaq at $7.1 billion [5] - Only one Chinese company made it to the global top 10 IPOs in H1 2024 [8] China A-Share IPO Market - A-share IPO activity contracted significantly, with only 44 companies raising RMB 32.9 billion, representing a 75% and 84% YoY decline in number and proceeds respectively [14] - The average IPO size dropped to RMB 748 million, down 38% YoY, with no IPOs exceeding RMB 5 billion [16] - STAR Market IPOs hit a record low, with only 7 listings, while ChiNext and Shanghai Main Board led in IPO count and proceeds respectively [17] - Specialized and sophisticated SMEs accounted for 48% of A-share IPOs, up from previous years [21] - The top 10 A-share IPOs raised RMB 16.6 billion, dominated by technology companies [25] - Industrial, technology, and materials sectors accounted for 89% of IPO count and 88% of proceeds [26] - Yangtze River Delta and Pearl River Delta regions dominated A-share IPOs, contributing 70% of total listings [28] Hong Kong IPO Market - Hong Kong saw 28 IPOs raising HK$12.1 billion in H1 2024, down 3% and 32% YoY in count and proceeds respectively [34] - Average IPO size reached a historical low of HK$431 million, with only one IPO exceeding HK$2 billion [36] - Mainland Chinese companies dominated, accounting for 89% of IPO count and 95% of proceeds [39] - IPO first-day performance improved, with only 25% of IPOs breaking issue price, the lowest in five years [40] - The top 10 Hong Kong IPOs raised HK$8.73 billion, down 33% YoY, with technology companies leading [46] - Technology sector dominated Hong Kong IPOs, raising HK$4.975 billion, followed by retail and consumer goods at HK$2.847 billion [49] US IPO Market for Chinese Companies - 24 Chinese companies listed in the US in H1 2024, raising $2.235 billion, up 26% and 274% YoY in count and proceeds respectively [51] - Two large IPOs significantly boosted the total proceeds [51] - 25 Chinese companies are currently in the US IPO filing process, with 53 having completed filings but not yet listed [53] Market Outlook - A-share IPO market is expected to gradually recover but remain tight, with a focus on high-quality technology companies [56] - Hong Kong IPO market shows signs of recovery, with favorable factors accumulating and a potential turning point [58] - More mainland industry leaders are expected to list in Hong Kong, with traditional and high-growth companies in the pipeline [58]