Industry Overview - The CDMO industry in China has a compound annual growth rate (CAGR) of 39.9% from 2018 to 2023, growing from 16 billion RMB to 85.9 billion RMB[6] - By 2028, the market is expected to reach 208.4 billion RMB, and by 2033, it is projected to reach 536.9 billion RMB[6] Competitive Advantages - China has over 220 million talent resources, providing a strong competitive edge for the CDMO industry[1] - The industry is entering a new phase characterized by technological deepening, global expansion, and ecological integration, despite facing challenges such as geopolitical tensions and overcapacity[7] Investment Trends - From 2020 to 2024, 63.2% of investment events in the CDMO sector were in early-stage projects, indicating a trend towards supporting emerging enterprises[7] - Active mergers and acquisitions from 2020 to 2025 show companies are enhancing their market competitiveness through vertical integration across the supply chain[7] Market Performance - In the week of June 9-13, 2025, the medical device sector led with a gain of 1.67%, while traditional Chinese medicine followed with a 1.52% increase[8] - The highest valuation levels were observed in chemical pharmaceuticals (78.81 times) and biological products (61.33 times) during the same period[8] Risks - Key risks include potential underperformance in technology development, changes in macro demand, and geopolitical impacts[22]