On September 2022, 9, the "23 (2022nd) China Venture Capital Forum" was grandly held online in Nansha, Guangzhou, with a dazzling array of stars and heavy guests! Among them, the theme forum B1 invited Dr. Jia Junxin, Chairman of New Henglida Capital, as the special chairman.

Theme Forum B1: Healthy China

Under the epidemic, medical resources have become the top priority, and medical investment is timely, what insights and policies will the guests give for the medical investment track?

Moderator: Distinguished guests, good afternoon. Welcome to the 2022 (<>nd) China Venture Capital Forum co-hosted by the Central Committee of China Democratic Construction Association, the People's Government of Guangdong Province, the People's Government of Guangzhou Municipality and the People's Government of Shenzhen Municipality. At the opening ceremony in the morning, we made wonderful speeches on the theme of gathering venture capital to promote the new economic growth of the Bay Area. In this afternoon's parallel thematic forum, we will listen to the peak dialogue from the three aspects of healthy China, science and technology finance, and digital economy.

First, we want to enter the Healthy China: Healthcare Investment Now Theme Forum. The guests included Mr. Jia Junxin, Chairman of New Henglida Capital, Mr. Ouyang Yunlong, Senior Partner of Visionview Capital, Mr. Shi Zhengzheng, Partner of Pacific Century Capital, Tang Yimen, Managing Director of Yuanyi Capital, Mr. Xu Qian, Partner of Danlu Capital, and Mr. Yu Jianlin, Managing Partner of Gaotejia Investment Group. Next, let us hand over the time to Mr. Jia Junxin, the chairman of the special session, and everyone applauds!

Jia Junxin: Hello everyone, online guests, friends, good afternoon, I am very happy to watch Forum B of the China Venture Capital Forum online, the theme of our forum is "Medical Investment is Time". The main guests who are doing the forum with me online today are several guests:

Pacific Century Capital Partner Shi Zhengzheng

Qian Xu, Partner of Danlu Capital

Partner of Yuanyi Capital Yinan Tang

Gao Tejia Investment Capital Partner Yu Jianlin

Xiantong Capital Ouyang Yunlong

In recent years, domestic biomedical and biomedical enterprises have intensively landed in the capital market, which is mainly due to the new regulations for the listing of Hong Kong stocks in 2018 and the launch of the Science and Technology Innovation Board of the Shanghai Stock Exchange in 18, which has opened a wave of IPO financing for unprofitable biopharmaceutical companies, and also benefited from the continuous reform of the national new drug approval and review system since 2019, which has injected strong impetus into the innovation and development of China's biopharmaceutical industry. So we have seen China's contribution to global pharmaceutical R&D in 2015 enter the second echelon. Among them, we see that China's contribution to the global pharmaceutical research and development, the number of pipeline products is now the second in the world, accounting for about 2020%, currently second only to the United States. Similarly, we can also see that even at the moment of the epidemic, the State Food and Drug Administration approved a total of 14 new drugs in 2021, excluding new indications and vaccines, exceeding 76, of which 2020 innovative drugs were approved by the National Medical Products Administration, which did not include vaccines and innovative traditional Chinese medicines, and the data created a new high in three years. The National Bureau of Statistics also has a data that by 26, the scale of China's biomedical industry reached 2020.3 trillion, an increase of 57.0 trillion over the previous year, and we know that the epidemic began in March 28, which is a year-on-year increase of 2020.3%. In 8, the market size of China's biomedical industry should break through to more than 5 trillion yuan, and we see that although this industry is affected by the epidemic, the development speed of this industry is still steadily rising.

Today, our theme is mainly around the current domestic and foreign economic situation and economic environment, including biomedicine, biomedical facing this macro environment, let's discuss the issue of medical investment.

First of all, we invite all the guests to make a brief self-introduction, each guest is about 1 minute. First of all, I would like to ask Xu Qian, partner of Danlu Capital, to give us an introduction:

Xu Qian: Hello everyone, thank you for the invitation, let me introduce to you Danlu Capital and myself. Danlu Capital is a fund founded in 2018 to invest in the medical and health track, and then we are a new team of veterans, one of our partners is Mr. Lu, the medical partner in charge of Sequoia Capital, and the other is Mr. Shi. Our Danlu Capital investment stage is only invested in angel round and AB round projects, investing in VC investment institutions that invest early and small investment. I myself have invested for almost 20 years, and then I have worked in Fosun Pharma, DT Capital, Chinese Academy of Sciences Holdings Co., Ltd. and Tsinghua Investment Company, and in the past ten years, I have mainly focused on the direction of medical and health care.

Jia Junxin: Thank you, Mr. Xu, next we have asked Mr. Gao Tejia to give you a brief introduction to the organization.

Yu Jianlin: Hello everyone, I am Yu Jianlin of Gao Tejia Investment, Gao Tejia Investment is an investment institution focusing on biomedicine, we have formed 100 biomedical projects over the years, forming our own pharmaceutical ecosystem. In the investment stage, from angel to VC to PE, to mergers and acquisitions, and even to the secondary market PACK will do some project layout, I will briefly introduce it here.

Jia Junxin: Thank you, Mr. Yu, next we have asked Mr. Tang of Yuanyi Capital to give you a brief introduction.

Tang Yinan: Thanks to Mr. Jia, Yuanyi Capital is a fund focusing on the early stage of the medical field, and the stage introduced by Mr. Xu just now is similar, there may be 80% of the projects before the A round and A round, there are a small number of B and C round projects. We are focusing on the entire digitalization in the medical field, and upgrading the upstream and downstream industry chain of the entire industry, which is currently systematically laid out. So we are actually three major investment directions, we are talking about efficiency improvement, efficient reach and innovative payment, so it may be slightly different from many institutions in the whole investment strategy. I myself am an industry + investment background, before I did R&D in a device company, did marketing, and then entered the investment field about seven years ago. Yuanyi Capital has about 60 companies in our entire portfolio, many of which are invested in angel rounds, and many companies have grown into industry unicorns, I will introduce these.

Jia Junxin: Thank you, Mr. Tang, next we invite Mr. Ouyang from Xiantong Capital to give you an introduction.

Ouyang Yunlong: Hello everyone, I am Ouyang Yunlong of Xiantong, we Xiantong itself is a professional investment institution focusing on the field of biomedical care, the whole is more than 10 years, our core team is basically in the academic, industrial and financial background, headquartered in Shenzhen, Beijing, Suzhou, Chicago has branches and teams. At present, we are mainly engaged in early incubation and angel investment, and the last 3 to 5 years involve VC and PE, which is actually our early incubation project, and after these years of development to this stage, the entire investment in more than 60 biomedical projects. I myself am responsible for the overall operation of the entire fund, including some RMB and US dollar funds, including the pre- and post-investment work and there are two or three funds I am responsible for fundraising, investment, management and withdrawal, and I will discuss some stories in the industry with you later, thank you.

Jia Junxin: Thank you, and I would like to ask Mr. Shi of Pacific Century Capital to give you an institutional introduction.

Shi Zhengzheng: Hello everyone, I am Shi Zhengzheng of Pacific Century Capital, which is a large-scale comprehensive PE institution that focuses on three industries, biomedicine, new energy and hard technology. Biopharmaceuticals account for more than half of our Pacific Century Capital. The layout is wide. From medicine, vaccines, devices, IBD, CICD, CXO, these are all over nearly 100 projects. I myself have a comprehensive background, graduated from medical school, and have been an academic student in the United States for more than 20 years, have my own laboratory, and have also worked in pharmaceutical companies in the United States. I have been back to China for 6 years, and I also worked as a pharmaceutical company first, so I have about 10 years of experience in the company, so I have experience in comprehensive production, learning, and research in investment, so I will introduce it here.

Jia Junxin: Thank you, Mr. Shi, I would like to make a brief institutional introduction to you, I am the chairman of New Henglida Capital, and I am also participating in the China Venture Capital Forum for the ninth yearNew Henglida is focused on investing in the fields of biomedicine and hard technology. Biomedicine will mainly focus on some innovative drugs, and the other is medical devices and medical equipment. In the field of hard technology, we will pay attention to semiconductor materials, equipment, as well as advanced manufacturing, intelligent equipment, AIOT, industrial interconnection, so far the total investment of New Henglida should be close to 50 enterprises. In the middle, we account for about half of the proportion of biomedical enterprises, so far we are still mainly based on the investment direction of biomedicine, of course, including biomedicine, but also medical devices and medical equipment.

We are very grateful to several guests for their brief institutional introductions, all of whom are more professional venture capital institutions focusing on the field of biomedicine. We have noted that the pandemic has led to changes in the investment market, especially in the biomedical sector. The heads of investment institutions have also paid attention to whether it is Hong Kong stocks or A-shares, in the recent period, the adjustment of biopharmaceutical stocks is very large, and IPOs have repeatedly broken, which has caused a certain impact on our confidence in investment in the primary market. We would like to ask the participants to talk about how your institution judges the bottlenecks or dilemmas faced by the current environmental biomedicine and biomedical fields, and how can we make breakthroughs in this environment and truly sustainable development? First of all, please ask Mr. Tang of Yuanyi Capital to talk to you.

Tang Yinan: Thank you for your question, indeed the entire industry has changed a lot in the past two years, there are macro changes and micro changes. Macro one, in fact, this policy has brought some underlying subversive changes to many logics and many investment opportunities in the medical industry, and at the same time, many new technologies and new business models may bring a lot of living water to the industry, and the collision of these two pieces actually brings a lot of challenges to our entire as an investment institution how to make forward-looking judgments, how to weigh the risks and innovation points in the middle.

Because Yuanyi has been following companies that not only invest in products, we are very concerned about some changes in the whole payment, especially the medical insurance policy, and we began to study the reform of the entire medical insurance in 18, when the medical insurance bureau was not yet established. So in the past 5 or 6 years, we have witnessed the gradual implementation of a lot of our previous logic. We actually feel that in this industry chain, there are so many pain points in the industrial chain, and there are many opportunities for innovation behind it. Maybe now because of the challenges of the secondary market, everyone feels that many things cannot be invested, but back to the essence of innovation, in fact, there are pain points to have opportunities for innovation. So in fact, we are full of confidence in the innovation of the entire future, because now we see many problems that need to be solved at all levels of the industrial chain.

So from this point of view, we feel that investment opportunities, especially innovation opportunities, may accelerate the emergence, this area around the starting from payment, and then to a series of cross-border technologies to bring new products, including the entire circulation, the entire channel reshaping of the three themes, we are actually carrying out some systematic layout. I'll just say so much and leave the time for other guests to share.

Jia Junxin: Thank you, Mr. Tang, she talked more about looking for some new opportunities from the perspective of payment to cross-border technology to channel change. We have asked Mr. Ouyang to share your views on this change.

Ouyang Yunlong: In fact, because everyone is on the front line this year, you can see that the situation this year is indeed very bad, and yesterday there was a landmark event that was Nuocheng Jianhua, which is a star project in our industry, and then fell a lot in the science and technology listing. The problem is whether its market value can reflect the current value, because the performance of the secondary market will now be projected into the primary market, in the past, because we said that the liquidity of Hong Kong stocks is not good, so there are some more high-quality, because we are more focused on innovative drugs, many innovative drug projects do not meet the expected valuation, but now it is also passed to A shares, to the science and technology innovation board. From there, it passed on to the primary market. Today there is a particularly obvious change, because we have been investing in innovative drugs since 14 years, I myself have been watching this for so many years, from the beginning of the entire market there are few institutions or peers to do this, to 2020 after the epidemic, the year before last and last year can be said to be particularly stormy, any project may be a large number of peer institutions in the rush. To this year's entire valuation change, now many times is actually not a valuation problem, is a problem of financing can get money, for innovative drugs need a lot of resources to invest, is this resource premise is that we have enough money in hand, the current status quo is like this.

But I think the theme of today's conference is particularly good, that is, the investment in medical care is timely, just when I think it is a portrayal of the present, if it starts this or two years like 2020, I think it is very abnormal, because the bubble of the entire primary market is actually very large, and everyone is clear about investment. Many times we are not optimistic about a project, but not optimistic about its valuation at that time, that is, the stage of your project does not match your valuation. So now is actually a secondary market point of view, what things, what projects we have to enter from the low, so this year's project I think gives people a particularly big feeling that a good project is getting more and more difficult to come out, because sometimes good projects may not be able to grab. Another is that its valuation is now more and more rational, that is, we can control the valuation, the founder team is a little deeper, which is my biggest feeling. Overall, I am expressing a degree of optimism.

Jia Junxin: Very good, Tang always talks about how to deal with the current environment from the perspective of innovative drugs and valuation flexibility, and we have asked Mr. Shi of Yingke to talk about your views.

Shi Zhengzheng: Everyone has fully accepted these challenges and seen opportunities. I look at it because a lot of my background is in industry, and my friends are under a lot of pressure in this harsh winter, and I feel the same way. We welcome this challenge. But we see that there may be some changes under this pressure, and I think the solution boils down to three. One is internationalization, one is differentiation, and the third is the diversification of monetization methods. So everyone sees that because of the changes in medical policy, policy changes now seem to have a very big blow to the medical industry, and may also be very stimulating. These schemes of the Medical Insurance Bureau are actually called soul bargaining, obviously let the entire industry, if in the mainland, the sales of domestic drugs can not be returned according to calculations, research and development costs can not be returned, the longer the innovation cycle, the greater the investment, is not able to return the cost, just like PD1's 1 billion market hit about <> billion market, so many are contending. That's still a class <> innovative drug. That cracking method, we also see to go to sea, international direction or stage license out, many companies have also done well, this is called internationalization.

So differentiated, everyone often mentions, maybe this winter will promote the subsidence of me too, me better and the explosive growth of first in class, best in class. But I still emphasize differentiation, differentiation is very important, not necessarily best in class, best in class is a black swan event, first in class is also very difficult to do, differentiation this has also been recognized.

The first is the diversification of the realization mechanism, which is very related to our investment, we want to exit early, in this case, it is very difficult for everyone to capitalize this exit, so this is an exit mechanism, is capitalization.

The second is commercial sales, and sales will be profitable. The overemphasis on commercialization has led many biotechs to build commercialization teams, and this direction may also have a lot of reflection now.

The third thing to emphasize is mergers and acquisitions, merger and acquisition, which is the main way out of foreign biotech, and China is less developed in this regard. I think now might be a time to think, the wave of mergers and acquisitions could happen, wait until our pharma accumulates enough cash flow may happen, and the huddle between biotechs is a must, in this case merger and acquisition. I invest in emphasizing this mentality, in fact, early projects can go in, you can accompany it for a while, if its asset is Merger and Acquisition, this asset will happen quickly. So we're in now, if it's going to happen in the next few years, if it's Merger and Acquisition, we're going to get out, and that's an outlet for a startup Biotech, and a lot of founders are now looking at MNC in a short period of time, or the entire pipeline is being Merger and Acquisition. This raises new requirements. The new requirement is that you have to set up the project well, and the data must be done well, so we must look at the project now with such a mentality, from the international project is promising, the prospect is MNC likes, and the data quality of each step must be very high. If the quality is high, imagine MNC to do due diligence for two months, and show them all your data, they will like it. In this case, one is the need for talents, MNC over, their style habits, as well as our team's original working habits, rigorous attitude, these must be brought into play. I emphasize a little bit that I want to post a conference summary, or post and oral and big articles. In general, a big presentation will definitely lead to a good BD. There is also a big article, there are some companies that may have nature, this will definitely have international influence, will lead the company in that direction to be noticed by Merger and Acquisition or license out. I will talk about these three modernizations and emphasize the diversified introduction mechanism, and I will stop here.

Jia Junxin: Thank you Mr. Shi, Shi always talked about the diversification of the exit mechanism, including internationalization, going overseas, including license out, as well as differentiation, commercialization, and of course. Next, I invite Gao Tejia's Yu to share.

Yu Jianlin: Thank you, then it is true that from the perspective of this market, this biomedical investment has changed a lot, and I think we are already facing a state of cooling of the capital market and the superposition of the upgrading of the entire biomedical industry. In the future, we can see that with the early capital market, whether it is secondary or primary valuation of the project enterprises has a certain decline, then many companies even if listed, but also form a breaking normal, then it shows that our capital market, it should be said that from our point of view, should gradually mature. Because we think that from the perspective of biomedical venture capital, it may be the norm at present, and the normal state I am talking about may be a normal state, then it should be a due state of the capital market for biomedical investment. So we feel that this thing will continue, in such a situation, at the same time we are facing the entire industrial upgrade. Many of our biopharmaceuticals in the early stage, including innovative drugs, including devices through the layout of the pipeline in the early stage, met the Hong Kong stock 18A, met the requirements of the science and technology innovation board and listed soon, after one or two years of listing, they need to be upgraded to the stage of commercialization, which is also the time when the capital market tests them, whether it is the capital market or commercial events, so in this way I estimate that whether it is innovative drugs or device companies, some biotechs will be successfully upgraded to Biopharma in the future. This is also what we want to see. However, we certainly cannot deny that some biotechs may not be satisfactory after they go public, or fall far short of the required status or goals at the time. Because the entire market has changed, the market capacity of the entire industry is far from what we estimated at the time, and some Biotechs will slowly encounter great difficulties, cash flow difficulties, and even the risk of delisting. So from our Gao Tejia's point of view, from an institutional point of view, we will feel that one aspect is to strengthen some of the layout of early projects, and invest early and small. In addition, pay attention to technology projects, advanced some international, global leading technologies, from the stage of basic research of technology to application transformation we will pay more attention, then pay more attention to the differentiated layout capabilities of enterprises, pay more attention to the value of product or drug commercialization, and pay attention to their global competitiveness, which we may include original research capabilities and technology platforms will look at more. Then from the project side, from the perspective of enterprises, we will feel that enterprises need to re-evaluate and reposition their strategies, missions and visions. There are some start-ups that can properly develop into Biopharma, we think it is okay, but there are some (English) we feel that some Biotech positioning is to exchange their product license out for some cash flow as soon as possible, and even in order not to be acquired by some large pharmaceutical companies and manufacturers, I think this is also a layout in the direction. This is also a normal state from the perspective of global biomedical research and development, which is our point of view.

Jia Junxin: Thank you Mr. Yu Jianlin, Mr. Yu Jianlin has always done some articles from the route of differentiation, especially from biotechnology to biomedicine, and he feels that he should do some articles earlier in terms of commercialization. Next, we have asked Mr. Xu about Danlu to share with you.

Xu Qian: The market changes quite a lot, but we think that it is actually part of the market cycle itself. Because just like in the capital market, in fact, just like the natural world, there are also four seasons of spring, summer, autumn and winter. It's just that the cycle of seasons is not as accurate as the time card in nature, a year is 3 months or how long, and there are 24 solar terms are stuck accurately. Capital markets are behavioral finance, and people and markets are interactive, so its changes may be more diverse. Especially after the boom of innovative drugs in the first three or four years, it is indeed now relatively cold, and it may become colder than everyone expected. There were guests at the meeting two days ago, one guest thought that the cold cycle may take three years, and the other was also a big coffee in the industry that 75% of the companies in biomedicine may not exist after two years, of course, these are some views of the guests, I think they all have their reasons. Therefore, in terms of changes in the capital market cycle, it is indeed as mentioned by the previous guest that the whole may promote investors to pay more attention to the products of First in Class, including the internationalization of products, and even the internationalization ability of the team. For Danlu Capital, a VC investment institution that specializes in investing in the early stages. In fact, I feel that so far, the direct impact on us is not too big, including we met some LPs and other friends in the investment circle, in fact, our overall investment speed is basically the same as in previous years, and it may even be faster, and our investment is still proceeding normally. In addition, it is for some of our investment projects, because we are very concerned about these early frontier stage products, because innovative drugs or innovative medical devices so far have some warm wind in the policy, and some will not participate in centralized procurement, so the overall is okay. Our approach to response is actually to be close, closely around the value of the clinic, and then innovate to create value. It's that we're going to invest in early-stage, really potentially globally innovative projects, and then get ahead of the competition and then actually benefit patients clinically. In this way, even if there is some cold capital and some measures in policy, our project should still be able to grow normally. Specific directions, such as innovative drugs, we will pay more attention to the first in class, pay more attention to its target, its mechanism, is leading in the world. There are also some new technologies, such as the combination of AI and innovative drugs, such as the combination of artificial intelligence and macromolecular drugs, to help screen drugs and accelerate the progress of innovative drugs. There are also domestic medical devices, medical and engineering integration, more and more innovative projects are constantly emerging. From the domestic situation, we believe that there are more and more innovative projects, and the level of innovation has indeed reached an increasingly improving stage, and there are really some projects that have begun, especially in the early stages, and then they can really compete globally. So we invest in such projects, and I feel confident in the future development.

So in summary, we must embrace innovation, cross the cycle of the capital market, and give investors and LPs better returns, thank you.

Jia Junxin: Thank you, Mr. Xu. Xu always starts this investment cycle as early as possible. Then embrace innovation, invest more in some innovative drugs of original technology to think about how to break through the current economic environment. We also found that in 2021, China's biomedical industry actually has almost 89 biopharmaceutical companies in two countries and three places in China and the United States, including Chinese mainland, Hong Kong, China and the United States completed IPOs, about 57 A-shares, mainly about 34 on the science and technology innovation board, 24 in A-share Hong Kong, 8 in the United States, with a financing amount of about 2021.843 billion yuan in 577, the science and technology innovation board accounts for the majority, with about 560.11 billion yuan, and Hong Kong stocks have <> billion Hong Kong dollars. In fact, about <>.<> billion US dollars were listed in the US stock market, and we can also see from these data that although the environment has indeed become very bad, it poses a relatively big challenge for us to invest in biopharmaceutical companies. However, the capital market still embraces some biomedical companies with original technologies with open arms to the capital market.

Let's explore another question. Facing the challenges of the macro environment, including the micro environment, the subdivision of biomedicine. In the investment process, will our institutions be more focused, or subdivided in a specific biomedical track, or focused on a certain segment to find new targets, or new profit growth points. In this regard, what kind of experience, or lessons, we have accumulated in the course of the epidemic in the past three years, we hope that several guests will share with us. For example, whether we are paying attention to biomedical research and development enterprises, or in CRO or CDMO, or in some platform enterprises, or preparation enterprises, or upstream development enterprises of life sciences, in which segments of the field do we focus on to build the core competitiveness of different institutions, in order to adapt to the current harsh economic environment? First of all, please ask Mr. Ouyang to share it with us.

Ouyang Yunlong: Because we have always been mainly invested in innovative drugs and innovative devices, because of the changes in the situation this year, the general strategic policy has not changed much, but in some specific subdivisions, there will be one in recent years, in fact, it is also according to the entire current industry and some of the latest achievements in the academic circle, I specifically say that it is because one of the three directions of our fairy pupil investment is innovative drugs, and innovative drugs are basically only invested in the first in class. In addition to this, there have been two or three similar to the actual can be solved, our guest leaders talked about it, must solve the actual clinical needs. This is very important, such as some very good preparations. The second direction is innovative medical devices, how to define whether it is innovative or not? Can it solve the demand? In fact, now the entire level of equipment in China, the level of our hospital is actually very low, I have seen the data, most of them are second- and third-tier cities or 80s equipment, there are a small number of medical resources are concentrated in large cities. Therefore, our requirements for innovative devices can at least be benchmarked against the current international first-line products, and even monopoly products. For example, the project of the endoscope we cast can be compared to this level of Olympus. Then the CT we shoot has to be benchmarked against Siemens' level, not that you have to surpass it. Because as long as our domestic production can reach this level, we have a cost advantage, and we have a channel advantage, this is to go step by step.

The third general direction is biotechnology, biotechnology is 14, 15 began to invest in synthetic biology, at that time mainly based on enzyme catalytic reactions, and later also invested in Huazhong biology. Because it went public last year, it rose 4 or 5 times a year, which is actually unexpected to us, because it is actually a fermentation category. It's just that his market share is relatively wide, and because its business ideas are very clear, coupled with the trend of synthetic biology capital market that has begun in recent months, it has driven the whole piece. So the focus of our current layout is still in the previous directions.

But in innovative drugs, because these years are the last 5 to 10 years, I think the most representative one in innovative drugs is PD1, one is ADC, so we are now looking at a lot of very new immune mechanism drugs, because of the complexity and diversity of the entire immune mechanism, I believe that PD1 is just the beginning, but the discovery of a drug must go through at least 5 to 10 years of clinical process. And we have seen it achieve innovation and development in the entire biomedicine before, from the previous 10 years of 10 billion US dollars, the latest research report is actually to 20 billion US dollars. Therefore, we must start early, including immune drugs, immune drugs include some new targets, and new mechanisms of old targets, or molecular structure, can actually solve many of our clinical pain points. Because in fact, there are many friends around, including friends, including relatives and families, all kinds of early and advanced cancer, we will also go to help see, help with business diagnosis, including finding suitable drugs. In these processes, it was found that if we can really invest in a solution to the demand, the drug that can finally be successfully marketed is actually whether it is from the income, that is, the return on investment, that is, what Mr. Xu just said, our ultimate goal is to create enough reports for investors. On the other hand, whether investment institutions or individuals invest in good medicine, psychological satisfaction and sense of achievement, and I think it is the most brilliant and happy moment, I also hope that everyone here can invest in such a god-level medicine as 8201 in the past two years. Because there are indeed people around me who have breast cancer without chemotherapy, 8201 is cured, is able to make such a miracle drug, and he was in the United States cancer annual meeting was a standing ovation such treatment, in fact, this is not a particularly complex mechanism, that is, two traditional drugs together, but did a very good structural optimization, this at the beginning of the investor to see, no special experience, but the actual clinical step by step, is able to OR, can increase the survival rate by more than 2 times. If you can invest in such a product, it is the luck and achievement of all investment institutions and investors.

Jia Junxin: Thank you Mr. Ouyang, there are other guests who can share with you, on which specific segments venture capital institutions are looking for our blue ocean in this link, please Mr. Tang share with us.

Tang Yinan: Our understanding is that the whole biomedicine and medical innovation must be a rigid need of society, which is a bottom demand that the people will not change. It may be that for good seeds, there must be good soil to burst out, so at this stage, the entire industry is actually in such a change, the entire upstream and downstream along the ecological chain how to make the soil better, to carry out the system layout. To give a few examples, in the field of efficiency improvement, in fact, we invested in an enterprise made by a scientist who did internal organs last year, which can actually help many innovative drugs improve efficiency in the research stage, including helping pharmaceutical companies enter the clinic on a better date and improve the success rate of clinical trials, which is to interpret the efficiency improvement that new technologies can bring to the industry from one level. Because Yuanyi Capital has been investing well in the field of innovative payment, we have two projects, I want to expand it, both of them are angel rotation investment, one is Maxim's Medical, which is a relatively mature enterprise, it starts from the innovation payment of the entire innovative drug, the payment of special drugs, and has rapidly grown into a unicorn in the industry in the past four or five years. The other is the medical insurance technology that was just laid out at the beginning of this year, which actually focuses on the entire industry of Huimin Insurance, and then completes three rounds of financing during the trough of the entire industry this year, so it is still back to the judgment just now, in fact, when the industry has a big pain point, the demand for innovation is bursting. But from the investment entry point to the investment topic, it is true that we are constantly looking for some models and areas that are better combined with this pain point.

Jia Junxin: Very good, does Mr. Xu have anything to add?

Xu Qian: I think maybe these issues can be viewed from different perspectives, and the previous guests have already said a lot, so I will make a little addition. Because from the perspective of the industry, in previous years, everyone invested in anti-tumor drugs, whether it is global or domestic innovative drug investment more than 50% are invested in the field of anti-tumor, on the one hand, just demand, on the other hand, patients' willingness to pay will be relatively strong, the entire clinical trial time period will be short, the results will be relatively fast. This is due to all these reasons, and the antitumor drug track is relatively hot. After three or five years of development, in fact, now from the perspective of the industry, we actually have a higher degree of attention to other indications, such as some neurological disease-related fields, including the application of gene editing, gene therapy these technologies, especially some more difficult, such as some neurodegenerative diseases, such as Parkinson's with a relatively clear mechanism. So far, the mechanism is not very clear, but there are two main hypotheses, and even many hypotheses of Alzheimer's disease have received more and more attention, which may include that we have spent more time and energy in these areas. In addition, there is anti-aging, the entire anti-aging mechanism is actually now in the field of scientific research is also constantly exploring, and there are constantly new theories, new hypotheses emerge, these directions actually include how to anti-aging, including small molecule drugs, or other gene therapy, we are also paying attention.

So on the whole, people are looking at these problems from different angles to solve these problems. Thank you.

Jia Junxin: Thank you, due to time constraints, we can't have too much time for discussion, thank you very much for talking about the current macro environment from different angles, as well as the financial and capital markets, including how our investment institutions should adjust themselves in this environment, which directions should be more focused on, which tracks, which segments, to create value for investors. Although the current environment of the primary and secondary markets is indeed extremely challenging for investment institutions, not only A-shares, but also Hong Kong stocks, the performance of Hong Kong stocks is particularly violent, especially in the past two years, the sharp fluctuations in the secondary market, the primary market is not so affected by this. But in fact, we reflect on a situation last year, in 2021, there were still nearly 600 biopharmaceutical companies that obtained relatively large amounts of financing in the primary market, and last year's small financing was not counted, and the large amount was about 1200 billion. In the middle, as Mr. Xu and Mr. Tang said just now, biomedicine has the highest proportion, with 800 billion and 900 billion, accounting for a very large proportion. In addition, technology platform companies are now indeed favored by some of the capital market, and I am mainly talking about the primary market. For example, like artificial intelligence pharmacy, synthetic biology. Including single cell, proteomics, structural biology, and BN compounds, and organ chips, etc., the financing amount was more than 100 billion last year, including some upstream product development enterprises in life sciences, this field is actually a relatively large amount of financing, such as cell therapy, genomics, upstream equipment design and manufacturing, including tools, raw material companies, biological macromolecule enterprises and so on。 In fact, the current challenge and threat is indeed in front of each of us, but we should see more opportunities because China does have the largest target group in the world, almost 14.30 billion people. Any of our policies is actually based on people's health, because President Xi Jinping also proposed "healthy China", so it is based on this foundation. We also see that the investment amount of the primary market has also noticed that its focus has changed, including tumors, including autoimmune, antiviral, neurological, metabolic system diseases, anti-infection, etc. as everyone mentioned, in fact, the proportion of our group is very high, so the life and health of the people is a big thing, the space in the field of biomedical health is very large, is a market of 40-<> trillion yuan, we still hold a very optimistic attitude, Especially for our investment institutions.

Next, I will give you no more than 1 minute for each person, we use 30 seconds to understand the current environment, what kind of inspiration or experience do we need to give you as the head of the investment institution? To summarize in one sentence in 30 seconds, please first ask for a general manager.

Shi Zhengzheng: Still full of confidence, face difficulties, and meet the next spring.

Yu Jianlin: I think we mentioned earlier that the capital market has become more mature, the entire industry is also upgrading, and our institution is also growing, and we still firmly believe that biomedicine is the most worthy track for investment.

Tang Yinan: I think growing together with this industry also accelerates our entire process of learning and personal ability growth, although we are often slapped in the face, but this is a process that needs to be gone through itself.

Ouyang Yunlong: I think many times people need to take a break from looking at the world, in short, optimists start businesses, optimists invest. And the general trend will not change, that is, our entire demand for medical treatment, a rigid need for birth, old age, illness and death, as long as you believe in this big logic, we will do our own things well, thank you.

Xu Qian: Embrace innovation and cross the cycle.

Jia Junxin: Well, I would also like to send you eight words, in the face of the current environment, we can only "change according to the situation and embrace change", we have no choice. We still have to see that the future is still bright, and the future is bright. Thank you, thank you to several guests, and thank you to other guests who participated online, thank you very much, we believe that everything will be better in the future, thank you.