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Tianlin Wang, Managing Director of Intel Capital and General Manager of China

[Editor’s note] The author of this article, Wang Tianlin, managing director of Intel Capital and general manager of China, is from Aijiwei, which is authorized by Entrepreneurship State.

At the end of last year, I wrote an article sharing the analytical framework of investment in the chip design industry, which caused some repercussions. The semiconductor industry has continued to thrive in the past year, and industry friends suggest sharing their observations on the industry again, as well as their experiences on investing in other areas of semiconductors. The following are some of my recent thoughts and analyses on the industry. I hope to share with you.

The nature of capacity shortages

The key word in 2021 is production capacity. Almost all friends in the electronics industry are concerned about how long the production capacity shortage will last. This chip shortage, whether it is the span of time or the depth and breadth of the impact on the upstream and downstream industrial chains, is unprecedented. In fact, the essence of the production capacity shortage is the change of supply and demand. The key lies in figuring out which are temporary factors and which are long-term fundamental changes in order to make better judgments.

From the demand side, although the short-term impact of hoarding and epidemic disruption to the supply chain caused by trade disputes is relatively large, it is not a fundamental change. The fundamental reason is the increase in demand for semiconductors in many industries. For example, the chips used in cars before were limited, mostly simple 8-bit and 16-bit MCUs. However, the development of the Internet, artificial intelligence, and new energy vehicles has amplified the demand for automotive chips: vehicle body intelligence has fundamentally changed the architecture of automotive electronics, and new demands for 32-bit MCUs and ECUs have emerged; in-car entertainment and smart cockpits have been continuously upgraded, so that the market for automotive SoCs has grown year by year; it is only a matter of time before autonomous driving chips become mature and popular, and the amount of related power management, battery management, and charging management chips and devices will also increase exponentially. These new trends also expand the demand for traditional chips in automobiles. For example, many sensors have greatly increased the amount of data communicated in the car. Ethernet chips that were not used in the past may have to be equipped with several or even dozens in each car in the future.

In addition to cars, the spread of 5G technology has also increased the demand for chips for mobile phones and base stations. Both cars and mobile phones belong to the category of end-users, and the data generated on the end needs to be processed by the cloud computing and data centers behind them, which will in turn drive the demand for server chips. These are long-term fundamental changes that will not disappear with the improvement of trade disputes or epidemics.

From the supply side, although advanced processes tend to attract more attention, most of this wave of capacity shortage is actually concentrated in mature processes. Take the iPhone 13 Pro as an example, only four of the nearly 50 chips in it use advanced processes: SoC, Modem, DRAM, and NAND. The remaining 40 or so are manufactured in mature processes above 20 nanometers, typically represented by RF and power management chips. However, most of the wafer fabs have not planned to expand the mature production process in advance, and the construction and verification cycle required for new or expanded production is not overnight. Based on this, the chip shortage may continue for some time before the new production capacity on the supply side is released in large quantities.

Now is the best time for technology entrepreneurship

There’s no question about it.Now is the golden age of China’s semiconductor development, and unprecedented challenges have also brought unprecedented opportunities.As mentioned in the previous article, there are three elements in the development of enterprises: market, capital, and talent. After two decades of development, China has become the largest market for semiconductors in the world. According to statistics, the global share of semiconductors purchased by Chinese customers has increased from a few percent at the beginning of this century to one-third or more at present. Taking the mobile phone industry as an example, the main customers of chip companies have gradually evolved from Motorola, Ericsson, and Nokia to Huami OV and Apple Samsung. More importantly,The trade dispute has spawned demands from local customers for supply chain security, giving them more incentive to bring in new local suppliers. These multiple positive factors provide chip entrepreneurs with an unprecedented opportunity.

Secondly, a series of policies in the capital markets have also greatly promoted the development of the semiconductor industry. It can be said that the semiconductor industry is one of the biggest beneficiaries of the Science and Technology Innovation Board: 47 of the top 347 companies listed on the Science and Technology Innovation Board are related to semiconductors, accounting for one-third of the total market value of the Science and Technology Innovation Board; among the top ten companies by market value, five are semiconductor companies. The newly established Beijiao Exchange will also be a good platform for many smaller companies. Due to the many industry segments, many semiconductor companies are located in sub-segments with limited size but indispensable position in the industrial chain. Such "small but beautiful" companies are very suitable for the positioning of Beijiao as "specialized and innovative". In other words,No matter "big and strong" or "small and beautiful", as long as it is a semiconductor company that seriously serves customers with products, it has the opportunity to occupy a place in the capital markets.

In terms of talent, many peers believe that high-quality semiconductor startup teams have been tapped, but we believe the opposite. From the perspective of product technology, even listed companies are still significantly behind world-class semiconductor companies. The market opportunity is by no means just "domestic substitution", and the upside potential is infinite; and the maturity of customers and the favorable capital markets will also attract more industry veterans to join the ranks of entrepreneurs.The current Chinese market is huge, with abundant capital and gradually mature talent training. It can be said that it is the most suitable place in the world for technology entrepreneurship.We believe that we have also seen more technology companies and talents invest in true technological breakthroughs and upgrades with confidence.

From ABC to AAA investment philosophy

I often tell entrepreneurs: "Going public is not an exit, let alone a destination, but a new starting point." When I first started investing in the industry, after careful analysis, I divided each project I saw into three categories: A, B, and C: Class A is definitely something that should be invested in and supported. The company will develop benignly and go public successfully in the future. If you miss this project, you will regret it so much that you can’t sleep. Class C generally has various shortcomings and should never be invested. Class B is somewhere in between, which belongs to whether you can invest or not. But we may also missee and sometimes mistake Class A projects as Class B, so most of the projects our team has launched are Class A, with a small number of potential Class B projects. As more and more investment companies went public, we found that even among Class A companies, there were significant differences. Therefore, we drew on the ratings of the bond market and further subdivided Class A into three grades: A, AA, and AAA. To put it simply, the market value of Class A companies is several billion, AA companies are the leaders in their respective market segments, with a market value of around 10 billion to 56 billion, and AAA is stable at more than 70 billion (10 billion U.S. dollars).Now the focus of our team’s work is also how to findHow have Class A companies evolved?Discover the potential to becomeAA and AAAAt the same time, we also believe that excellent investors can help entrepreneurs achieve success through systematic empowermentClass A companies grow into AA companies.FromAA grows to AAAThe leap.

In the long run, we believe that the domestic secondary market will continue to differentiate into a pyramid structure, and the semiconductor industry is no exception: a very small number of AAA companies located at the spire are companies that have a profound impact on the industrial chain, and are popular stocks allocated by fund managers; a few AA companies, as the leaders of their respective market segments, are within the scope of fund managers’ attention and may be upgraded to AAA companies; and with the increase in the number of listed companies, most companies will belong to Class A with limited liquidity, and few secondary market fund managers will pay attention. Some Class A companies with small performance and limited growth prospects have even broken up after listing, and their liquidity is limited. They are likely to be acquired by AA or AAA companies in a few years. The domestic M & A market is likely to gradually form and mature at that stage. The enthusiasm of the secondary market has also promoted the popularity of the primary market. In the past two years, various investors have rushed into semiconductor projects. For a while, rare goods can be found, and valuations have risen. Due to the pursuit of new investors, the valuations of many A-class semiconductor companies have risen to billions or even billions. If companies cannot transform and upgrade to AA, it is easy to have a situation where the primary and secondary markets are upside down. We believe that entrepreneurs and investors should stay calm in this heat and avoid blindly pursuing high valuations.

The founder’s ability and structure are often the most important factors in determining where a company can goIn order to achieve leapfrogging and become an AA or even a AAA company, in addition to its own efforts, it is also important to expand product categories and new markets by introducing shareholders and partners who "can help and not cause trouble".The vast majorityAAA was gradually developed from AA.Huaqin Technology is a good example. In 2017, we and Yitang Huachuang jointly led the first round of investment in Huaqin. Last month, Mr. Chen Datong and I briefly reviewed: at that time, we thought Huaqin had just entered the ranks of AA. Through the unremitting efforts of the founders and the company team, the strong support of partners, and the empowerment of shareholders in the past four years, we look forward to Huaqin’s early growth into a AAA company.

How to identify leaders in segmented fields

Each field of semiconductors is complex and limited in space. Here are some brief insights into each segment.

Chip manufacturing (wafer fabrication) investment is a big deal. You can use 20nm as the demarcation point and divide it into two fields: advanced process and mature process. The technology and investment threshold of advanced process are getting higher and higher. After years of marathon running, only three or four companies in the world are still holding on. Unlike some industry insiders, I am a big fan of "Moore’s Law", but this does not mean ignoring the importance of mature process, both of which are important parts of the semiconductor industry. Most of the production capacity shortage this time is in mature process. Among them, 22/28nm is tighter than 12/14/16, and 40/55 is tighter than 22/28. Everyone is working overtime to expand production capacity. However, history has proved that,After each industrial expansion, there is overcapacity. To maintain long-term competitiveness, the differentiation of fabs is of great importance, especially in the differentiation and uniqueness of special processes.Taking the automotive industry as an example, a chip that realizes the same function has many times stricter product definition and manufacturing difficulty than consumer and industrial grades: car grade requires a temperature range between minus 40 degrees and 155 degrees above zero, far exceeding the 0 to 40 degrees of ordinary chips; the working life must be more than 10 years, far exceeding the 1-3 years of consumer grade. The domestic passenger car market has exceeded 20 million units per year, ranking first in the world, and is expected to exceed 30 million units in the near future. There is no mature car grade wafer factory in China, and the market potential is huge.

The upstream of manufacturing mainly includes three categories: equipment, materials, and partsThe threshold for equipment companies is relatively high. There are many domestic leading companies that have been or will soon be listed, such as Huachuang, Zhongwei, Shengmei, Yitang, and Tuojing, which have occupied a certain market share in their respective fields and established a clear leading position.If a startup team wants to create a similar product, it has no advantage in funding or customer certification, so it must rely on technological and product innovation to find a breakthrough.Since only a few domestic equipment manufacturers have been validated by advanced processes in some application fields, there is actually a lot of room for improvement. In addition, in the fields of polishing and grinding (CMP) and metrology (Metrology), we believe that more professional teams are needed to tackle innovation.

Semiconductor production processes are complex and require a wide variety of materials and gases, so each market segment is limited in size. We see many "small but beautiful" materials companies making a difference in their respective fields, but the room for growth is limited. From another perspective, managing many suppliers at the same time, the work of the fab supply chain team is also very trivial.In the next round of competition, we are optimistic about companies with the ability to expand and diversify their product portfolios – in addition to their own organic growth, it is also a very effective way to become bigger and stronger through mergers. We believe that the domestic materials industry will eventually emerge several leading companies. In fact, not many domestic materials teams start businesses from scratch, and more use the accumulation of other industries to cut into semiconductors.For example, Bochun Materials has successfully switched to the semiconductor field due to its years of accumulation in the photovoltaic industry. It is currently one of the few domestic material suppliers that have been certified by international wafer factories such as Intel, TSMC, and Micron. It will have the opportunity to expand its product portfolio to related fields in the future.

Parts and components were often overlooked by investors in the past, mainly due to the limited market size and the low technical threshold, especially the long time and high uncertainty to pass the certification of equipment companies. In a sense, this industry is a typical long cycle and limited return. However, due to the demand for supply chain security caused by trade disputes, and the determination of Beijiao to name and support "specialized and new" enterprises, more and more local parts and components companies have attracted the attention of equipment companies and chip manufacturing plants; we also hope that more parts manufacturers can directly provide users with professional, timely and customized services. Shenzhou Semiconductor is a good example. They have passed a rigorous evaluation with professional service capabilities and become an Intel-certified supply chain field service provider.

Due to the trade dispute, EDA has become the hottest track for semiconductor investment in the past two years. EDA tools are similar to materials and components, and there are many and complex sub-fields, but each volume is relatively limited. Although there is a large influx of capital, it may not be entirely positive for the long-term development of the industry.Reference globalEDAWe believe that subsequent mergers and acquisitions and integrations are only a matter of time, and eventually there will be two to three companies involvedAA/AAA leaders dominate the market.Therefore, investors entering the market at a multi-billion valuation at this moment must rely on projects that have selected AA/AAA to generate positive returns.

The packaging capacity of the semiconductor back-end can be said to be completely accompanied by a serious shortage of chip manufacturing. Therefore, most OSATs in China are still focused on expanding production capacity to meet the immediate needs of customers. But we believe that advanced packaging will be an important trend in the semiconductor industry in the next few years, and it must be more closely integrated with the previous chip manufacturing – the era of relying on one or two general-purpose chips to eat all application scenarios is over.Future computing is based on heterogeneity; and as one of the key technologies to support heterogeneous computing, advanced packaging will bring many new entrepreneurial and investment opportunitiesFor example, in the substrate, patch, bonding, cutting and other aspects, new equipment and material requirements will be stimulated. Huafeng Technology is a representative manufacturer in this field. They have entered the advanced packaging placement machine market through innovative design and technology, and successfully entered the market including Sun Moonlight and many domestic first-class OSAT customers.

One last thing, yeah.chip designThe company’s opinion. There are many domestic design companies, and they have made considerable achievements in low-power and low-cost chips, which are not inferior to international manufacturers. A good ecosystem has been formed on the end (consumer electronics, mobile phones, and the Internet of Things). The next breakthroughs are likely to appear in higher-performance computing, such as servers, base stations, and other industries used in cloud computing and edge computing. The design concepts and know-how of high-performance chips and low-power consumption are quite different. Take power management chips as an example.We are pleased to see that many domestic startups are actively expanding into high voltage on the basis of low current.We have invested in JEWAT Microelectronics, which is a good example. Although several founders are from leading international companies, the early stage of entrepreneurship began with consumer electronics and lighting to meet the power chip needs of the domestic industry in the early stage of development. After the low-end products became a red sea, JEWAT introduced partners to become shareholders with financing, while fully developing high-voltage and high-current products with high barriers and difficulty, and developed applications such as base stations, servers, automobiles, and personal computer CPU core power supply. Through several years of unremitting efforts and the support of shareholders, customers, and fabs, the product portfolio has been transformed into a high-end, and its performance has improved by leaps and bounds. It has grown into one of the leaders in the sub-industry.

Conclusion: Gathering and selecting, deeply empowering, long-term companionship

The general environment has given entrepreneurs rare opportunities, but in fact the number of high-quality targets is limited, and there are more and more institutions engaged in semiconductor investment, which poses a challenge to investors. Looking forward to 2022, Intel Capital will continue to empower the ecosystem, serve entrepreneurs, and be valuable capital. In addition to the above views on various segments, here are some of our ideas and plans:

First, the industry valuation is at an all-time high, so it is necessary toAt the earliest possible moment, find the best teamNow that the market is large, capital is sufficient, and talent training is gradually mature, more industry veterans will join the ranks of entrepreneurs. If the valuation has risen to billions, be sure that the company has the potential to grow into AA.

Second, "small but beautiful" cannot be ignored, especially those companies that are limited in size in their market segments but have an indispensable position in the industrial chain. The positioning of the newly established Beijing Exchange "specialized and innovative" provides new platforms and opportunities for these companies.

Third, focus on selection before the investment, and deeply empower after the investment. If the street is full of goods, deep empower is shouting slogans. An entrepreneur said to me: "If you are invested by Intel Capital, you will stand on the shoulders of giants." I half-jokingly replied: "There are not too many people standing on the shoulders of giants." We have been investing in China for 23 years, and we have always controlled the scale of 5-8 new investments per year, and the existing portfolio is maintained at around 40. Although I have spent two-thirds of my time on post-investment empowerment, time is always not enough.

Fourth, there are very few institutions that can truly achieve "long-termism".China Semiconductor needs entrepreneurs who adhere to long-term principles, as well as investors who truly adhere to long-term principles.We invested in Chiporiginal Semiconductor in 2005 and stayed with us until the company went public in 2020. On the one hand, we are one of the few industrial direct investors without investment period and duration restrictions; more importantly, we are strategic investors and recognize Chiporiginal as a long-term strategic and ecological partner of Intel.

Thank you for the support and trust of friends inside and outside the industry. On the premise of doing my job well, I will try to write a dry article every year to share my views and experiences. I wish all entrepreneurs all the best and make more and stronger AA and AAA technology companies.

About the author:

Wang Tianlin is currently the managing director and general manager of Intel Capital in China. He joined Intel in 2005 and led Intel’s Centrino Wireless Product Research & Development and Marketing teams in Oregon and Israel. After graduating from Wharton School in 2014, he returned to China and was responsible for business development and risk management of Intel’s end point computing department in China. He joined Intel Capital in 2016 and started to lead Intel Capital’s business in China in 2017, and re-established an investment team with an industrial background. He focuses on investing in technology innovation companies, including semiconductors, cloud computing, Internet of Things, artificial intelligence, communication technology, etc. Mainly invested in Huaqin Communication, Espressif Information, Zhuoyi Information, Kangxi Communication, Extreme Krypton, Airborne Intelligence, and Yizhi Technology, etc. At the same time, he led the China team to lead the investment of many start-up companies including Nanxin Semiconductor, Jiehuate Microelectronics, Gelun Electronics, Bochun Materials, etc. In addition, he has also served as a director or board observer in more than 20 companies, including Unigroup Zhanrui, Horizon Robotics, Chongqing Blue Bank and No. 9 Company.

This article is authorized by the columnist to publish in Entrepreneurship State, and the copyright belongs to the original author. The article is the author’s personal opinion and does not represent the position of Entrepreneurship State. Please contact the original author for reprinting. If you have any questions, please contact editor@cyzone.cn

Recently, 55-year-old Wang Zuxian made a rare appearance.

I saw her on social media,

Posted a face-to-face selfie.

She’s in the picture.

He looked quite happy in a brown sweater and a long hair shawl.

In the New Year, you can see Muse’s selfies.

This is also a benefit for fans.

However, compared to the peerless elegance of that year,

Now Wang Zuxian’s appearance is very different.

Maybe it’s because of age.

In the photos she sent out, her face was severely swollen.

There are even some camels on the back,

The charm of that year has been lost.

Many netizens speculated.

It should be the sequelae caused by the disfigurement accident that year.

It is worth mentioning that,

In the selfie posted by Wang Zuxian,

You can see the Canadian mansion behind her,

Very stylish atmosphere, clean.

It is reported that,

Wang Zuxian owns many properties in Hong Kong and Canada.

At present, the Hong Kong media on Wang Zuxian’s worth assessment, at least more than 6 billion.

So even if Wang Zuxian doesn’t film,

She can still eat and wear without worrying.

It is not an exaggeration to say that Wang Zuxian is a proper little rich woman.

She has been away for many years,

It will be often photographed by netizens.

Go to the monastery to pray for blessings.

You go to the temple.

Wang Zuxian would wear a Taoist robe.

From the exposed photos,

Visiting Wang Zuxian,

He seemed very religious.

Mention Wang Zuxian,

People who like watching Hong Kong movies,

You will definitely know her.

In the age of beautiful women,

Wang Zuxian relies on his pure and sweet appearance, slender and shapely figure,

With Maggie Cheung, Zhong Chuhong, Guan Zhilin,

He was also named one of the four leading figures in the Hong Kong film industry in the 1990s.

In 1967, Wang Zuxian was born into a sports family in Taiwan Province.

Due to the influence of his family,

She has been particularly fond of playing basketball since childhood.

In 1979, 12-year-old Wang Zuxian,

As a professional forward for the women’s basketball team,

He also played professional football for three years.

In 1982, when she went to and from the basketball court as usual,

Spotted by an advertiser,

Invited her to shoot a cosmetics commercial.

Unexpectedly, this commercial was a huge hit after it aired.

Wang Zuxian also developed a keen interest in the performing arts.

After graduating from junior high school,

She was admitted to Guoguang Drama Experimental School,

Begin to systematically learn the professional knowledge of acting.

At the age of 17,

Wang Zuxian starred in his first romantic film, "This Year’s Lakeside Will Be Cold".

With this film, she officially entered the entertainment industry.

Tall figure, fresh and beautiful appearance,

Let Wang Zuxian become the star as soon as he debuts.

Not only that, it is only the second year of debut.

She is even more with big stars such as Zhong Zhentao and Zhou Runfa,

He has successively cooperated with works such as "The Wife Murder Duo" and "Yigai Yuntian".

Heaven seems to have a special preference for this girl,

In 1987, the third year of her career.

She and the famous Leslie Cheung,

He co-starred in the classic romance film "The Ghost of a Thousand Women".

Once the film was released,

Received a win-win situation in both word-of-mouth and box office.

Nie Xiaoqian, played by Wang Zuxian,

With blurred eyes and resentful temperament,

She is a miserable, kind and affectionate ghost,

Carved into the wood three points.

With the corner of Nie Xiaoqian, Wang Zuxian became a hit.

That year, she was only 20 years old.

The age of 20 is the time for youthful ignorance.

It is also the age to have beautiful fantasies about love.

That year, Wang Zuxian fell in love with the singer Qi Qin.

They met and fell in love with each other because of the filming of the movie "Fangcao Bilian Tian".

It was also that year.

Qi Qin quickly became popular with "About Winter".

One was the hit movie Muse.

One is a new rock star,

The two of them are talented and beautiful, and they can be regarded as golden boys and girls.

It was rumored that Qi Qin was among Zhong Chuhong, Maggie Cheung, and the others.

I personally selected Wang Zuxian.

Because he thinks Wang Zuxian looks very pure,

And they are all Taiwanese.

As a singer, Qi Qin also used his unique way,

Expressing his love for Wang Zuxian.

The popular song "About Winter",

It was written by Qi Qin to Wang Zuxian.

During the period of love between the two,

It is also a generous show of love and envy for everyone.

But one woman was not happy.

She was Qi Qin’s first love, Fang Meifang.

This is also because Wang Zuxian and Qi Qin’s feelings later fell apart.

Hidden dangers are laid.

In 1993, Wang Zuxian officially broke up with Qi Qin.

After leaving Qi Qin,

She developed an affair with businessperson Lin Jianyue.

This unethical relationship,

For a long time, Wang Zuxian was controversial.

Finally, in 1996, the two went their separate ways.

Going around after a breakup,

Wang Zuxian and Qi Qin got back together and walked together again.

Wang Zuxian at that time,

Already 29 years old, Qi Qin is 36 years old.

In 1998, Qi Qin and Wang Zuxian bought real estate in Beijing.

Build a love nest together, ready for marriage.

Both of them happily planned for the future.

Just as the outside world is expecting,

When they were finally able to achieve success,

The accident happened again.

In August 2001, Fang Meifang, in the name of her son Fang Wei,

A complaint brought Qi Qin to court.

Ask Qi Qin to pay child support 15 million Taiwan dollars.

Embarrassed Qi Qin,

He had to go to court against his own son.

Fang Meifang’s purpose is very clear.

She would not let Qi Qin marry Wang Zuxian as she wished.

And sure enough.

After the illegitimate child incident was exposed,

Wang Zuxian has endured pressure from all quarters.

She had to cancel the wedding.

Qi Qin was sad.

A year later, Wang Zuxian and Qi Qin officially broke up.

At that time, Wang Zuxian was 35 years old.

Qi Qin is also 42 years old.

Qi Qin, who really wanted to get married and settle down,

Seeing that Wang Zuxian no longer believes in himself,

He turned around and married a girl 24 years younger than himself.

This made Wang Zuxian very sad.

After filming "Beautiful Shanghai" in 2005,

She officially announced her retirement from the entertainment industry.

After that, Wang Zuxian went to Canada to live a low-key life.

Never heard again who she was in love with.

In 2014, it was even more reported that she had seen through the world and converted to Buddhism.

Time flies,

Once a peerless Muse is 55 years old.

She was no longer young and beautiful.

No longer superior in temperament,

But even if the beauty is late,

It is still impossible to erase the face of Zeng Jingwei.

Author: Mo Mo, Editor: Maizi

Responsible editor:

Titanium Media Note:This article comes from WeChat official account eight points health news (ID: HealthInsight), author: Wu Yeting, editor in charge: Wang Jilu, titanium media authorized to publish.

In more than a month, 21 trading limits, the stock price rose from 8.75 yuan to 84.82 yuan, an increase of nearly 9 times, and it has not stopped, Wantai Bio is likely to become the most rising new stock in 2020. This is also far more than the 16 trading limits of WuXi PharmaTech in 2018 and the increase of nearly 5 times.

Along with the stock price, there is the value of the actual controller Zhong Shanshan, whose shares in Wantai Bio have reached 27.60 billion yuan. In September 2001, he spent 17.10 million yuan to buy 95% of the shares in Wantai Bio, which has increased by 1600 times in 19 years. And the low-key Zhong Shanshan, the most well-known commercial version of the picture, is about to be listed on the Hong Kong Stock Exchange. It is estimated that the market value will be 100 billion after the listing, and the wealth of Zhong Shanshan will exceed 100 billion.

Wantai Bio was established in 1991 as a Sino-Japanese joint venture. Since then, its shares have been converted several times, and its main business has remained unchanged. It is mainly engaged in the research and development, production and sales of in vitro diagnostic reagents, in vitro diagnostic instruments and vaccines.

Although the main business is vaccines, Wantai Bio’s first vaccine was developed in 1998 and did not go on sale until 2012. Moreover, this is a hepatitis E vaccine. Its sales revenue in 2019 was only over 14 million, accounting for less than 2%.

To this year, the first real market prospects of the main product, from 2003 began to develop the 2-valent human papillomavirus vaccine (HPV vaccine, cervical cancer vaccine) Xin Kening (Cecolin) before the market, and Wantai biological investment in research and development costs have exceeded 1.10 billion yuan, it can be seen that the pharmaceutical industry really needs time and capital to temper.

Wantai Bio’s Xinkoning is the third HPV vaccine in the world, which was approved on the same day, as well as Watson Bio’s 13-valent pneumococcal polysaccharide conjugate vaccine, which is China’s first 13-valent pneumonia vaccine. Pfizer’s annual sales are $5.80 billion. After the COVID-19 pandemic broke out, Kanginuo and Kexing Bio were in the first sequence of global COVID-19 vaccine development.

So, is China’s vaccine industry starting to shift from the sales-driven trend of the past to the trend of emphasizing R & D and paying attention to both legs? Is the popularity of Wantai Bio a projection of the industry emerging from the shadows after the "vaccine crisis" in 2018, or a capital hype for vaccine stocks under the COVID-19 pandemic?

Since landing on the main board of the Shanghai Stock Exchange on April 29, Wantai Bio has stably maintained the rhythm of the daily limit of each trading day, and by June 1, it has continuously harvested 21 one-word daily limit boards.

Up to now, the record of new shares listed on the main board of the Shanghai Stock Exchange this year is the Star Semiconductor listed in February, which has achieved 22 one-word daily limit. Followed by Wantai Bio, and Wantai Bio has not yet opened the board and is expected to break the record.

And pushing the time forward to a longer cycle, according to Wind data statistics, since the implementation of the first day of listing restrictions on new shares in 2014, a total of 51 new shares have exceeded 20 after listing. After Jucan Optoelectronics, which listed in October 2017, Star Semiconductor and Wantai Bio are the only two new shares that have reached 20 one-word boards in more than two years. Also in the pharmaceutical field, the last one with the largest number of boards was WuXi AppTec, which listed in 2018. After 16 one-word boards, it rose from 21.6 yuan to 92.91 yuan.

According to the data disclosed in the prospectus, Wantai Bio achieved revenue of 949 million, 983 million yuan and 1.184 billion yuan in 2017, 2018 and 2019 respectively, the largest proportion of which is diagnostic reagents. However, this composition is about to change. Wantai Bio’s HPV vaccine has been officially listed in May this year, and the company expects sales revenue to usher in explosive growth.

Since the outbreak of the COVID-19 pandemic, Wantai Bio, together with the National Research Center for Infectious Disease Diagnostics and Vaccine Engineering Technology (NIDVD) of Xiamen University, has developed 11 detection reagents such as the novel coronavirus antibody detection kit (double antigen sandwich method), and invested in the research and development of the recombinant protein new coronavirus vaccine candidate (COVID-19XWG-03).

Detection kits and vaccines related to COVID-19 are an important reason for the continuous rise of Wantai, a securities analyst to eight health news analysis, detection and vaccine are two important concepts involved in Wantai, the former product quality has been internationally recognized, exported to many countries; the latter because the final can be completely against the novel coronavirus will be the vaccine, and the companies involved in the development of COVID-19 vaccines, including Wantai Bio, have a certain degree of overgrowth.

In vitro diagnostics and vaccines are the core business of Wantai Bio.

In vitro diagnosis refers to a diagnostic method that obtains clinical diagnostic information by testing human samples (blood, body fluids, cells, tissues, etc.) outside the human body. Internationally, it is collectively referred to as IVD (In-Vitro Diagnostics). During the COVID-19 pandemic, nucleic acid testing with pharyngeal swab sampling is an in vitro diagnostic method.

According to its prospectus, Wantai Bio has formed characteristic testing products in AIDS, hepatitis, tuberculosis, dengue virus, etc. In 2019, diagnostic reagents and diagnostic instruments generated 1.20 billion yuan of business income for Wantai, accounting for more than 80%.

Compared with in vitro diagnostics, vaccine research and development requires more investment and takes longer to develop and market. The current R & D pipeline includes recombinant hepatitis E vaccine, bivalent cervical cancer vaccine, nine-valent cervical cancer vaccine, next-generation cervical cancer vaccine, and freeze-dried varicella live vaccine, of which only the first two have been approved for marketing.

In the prospectus, Wantai attributed its core competitiveness to its research and development capabilities. As of the end of 2019, the company had a research and development team of 382 people, accounting for 21.41% of the total number of employees.

In addition, Wantai Bio and Xiamen University jointly established the National Infectious Disease Diagnostic Reagents and Vaccine Engineering Technology Research Center, and maintained close cooperation with the team of Xia Ning Shao, Dean of the School of Public Health of Xiamen University.

During the reporting period, the R & D expenses invested by Wantai were 159 million yuan, 138 million yuan and 166 million yuan respectively, accounting for about 15% of the operating income.

This proportion is relatively high in the industry, but it is still not high compared to the nearly 30% of sales expenses.

After the outbreak of the epidemic, Wantai Bio invested in the development of COVID-19 antibody detection kits and COVID-19 vaccines.

In March, the novel coronavirus antibody detection kit (chemiluminescent microparticle immunoassay) was approved by the State Drug Administration on an emergency basis, becoming one of the five novel coronavirus antibody detection reagents that had been approved at that time. Since then, Wantai Bio has developed 11 detection reagents such as the novel coronavirus antibody detection kit (double antigen sandwich method) in conjunction with the National Infectious Disease Diagnostic Reagents and Vaccine Engineering Technology Research Center (NIDVD) of Xiamen University. As of March 30, Wantai Bio has supplied 437,000 detection reagents in China and 502,000 abroad.

According to the information disclosed by Wantai, the product uses a double antigen sandwich method to detect the total antibodies of novel coronavirus in blood samples (including various antibody types such as IgM, IgG and IgA), which methodologically guarantees that the reagent has higher sensitivity and better specificity, and reduces the false positive rate. Since then, several novel coronavirus antibody detection kits developed by Wantai have been certified by the European Union CE and exported to South Korea, Italy, Hungary, Austria, the Netherlands and other countries.

On April 2, Wantai Bio and GlaxoSmithKline (GSK) jointly announced that they have cooperated in the development of novel coronavirus. But at present, compared with other COVID-19 vaccines under development, Wantai Bio has fallen behind.

The launch of the HPV vaccine is a milestone for Wantai Bio.

According to its prospectus, as the third cervical cancer vaccine supplier in the world and the first domestic HPV vaccine to be launched in China, Wantai expects to lead its domestic peers by about two years.

This market is very large, according to Wantai’s calculation, the current domestic cervical cancer vaccination for women aged 9-45 a total of about 300 million people, according to the domestic cervical cancer vaccine price for imported vaccines 1/2 (about 300 yuan/dose, 900 yuan/person) calculation, the stock market size up to 270 billion yuan, according to 1% vaccination rate estimated market demand is 2.70 billion yuan.

Cervical cancer vaccines currently available on the market are divided into bivalent, quadrivalent, and nine-valent. The higher the number, the more virus types that can be prevented. The overall protective efficacy of the bivalent vaccine against cervical cancer prevention is 84.5%, and the overall protective efficacy of the nine-valent vaccine is 92%.

The price and young age group are the advantages of Wantai’s bivalent vaccine, which is priced at 329 yuan/shot. The whole process of vaccination between 9 and 14 years old requires two shots, or 658 yuan; for those over 14 years old, the whole process requires three shots, or 987 yuan. The bivalent vaccine of GSK is 580 yuan/shot, and the whole process costs 1,740 yuan for three shots. Merck’s quadrivalent and nine-valent vaccines are 798 yuan/shot, 1,298 yuan/shot, respectively. Three shots cost 2,394 yuan and 3,894 yuan.

In the past May, Xinkening has been officially launched, and ads for domestic HPV vaccines can be seen on Alipay.

However, there are also pessimistic expectations for market demand. Zhao Heng, founder of Latitude Health, a medical strategy consulting firm, said in an interview with Time Finance that the bivalent cervical cancer vaccine of Wantai Bio will not cause major changes to the current domestic market structure, because the consumption attribute of cervical cancer vaccine is stronger, and consumers prefer the nine-valent, and the advantages of the bivalent cervical cancer vaccine are weaker.

Xiamen University, a partner of Wantai Bio, previously said that the first batch of launch areas are Hubei, Xinjiang, Jilin, Yunnan, Jiangsu, Shandong and other provinces. From this market layout, it can avoid head-to-head confrontation with Merck and GSK to a certain extent, and open the second- and third-tier cities with cost-effectiveness.

In addition to the 2-valent vaccine, the 9-valent HPV vaccine is also in Wantai’s research and development plan. It was approved in 2017 and completed the Phase 1 clinical trial in 2019. It has now entered the Phase 2 clinical trial, ahead of other domestic companies.

It is worth mentioning that Wantai’s research and development technology on HPV vaccines can help improve the protection rate of 9-valent vaccines from 92% to 99%, which has been recognized by GSK, a leading company in the industry. It will pay a total of 134 million euros to Wantai Bio (about 1 billion yuan), use Wantai’s HPV vaccine antigen technology to develop new cervical cancer vaccines, and share the international market sales revenue with Wantai. In November 2019, Wantai received the first milestone payment of 11 million euros (about 85 million yuan).

For many years, China’s vaccine industry has been sales-driven.

In an article, Junlin Investment Research Institute described China’s vaccine industry as: a typical "two legs one big and one small walk" driving model, research and development is the calf, sales is the thigh, because the early research and development costs are high and the later production costs are low, only the more sold, can quickly return to the cost, and generate several times the profit of revenue growth. So whoever can sell the vaccine and earn back the white ocean will have a high status. In a typical vaccine company, Jiang Rensheng of Zhifei Bio has a sales background, Du Weimin of Kangtai Bio has a sales background, Gao Junfang of Changsheng Bio has a financial background, her husband and vice president Zhang Youkui has a sales background, and Li Yunchun, chairperson of Watson Bio, also has a sales background.

The advantage of sales-driven is that it can generate quick cash flow, which is conducive to promoting research and development and launching new vaccines.

For example, Changsheng Bio had a sales cost of 583 million yuan in 2017, and there were 25 sales staff, and the per capita annual sales cost exceeded 23 million. Many cases involving vaccine distributors bribing CDC staff can be found in the judgment document network.

The sales of Wantai biological pre-vaccine are relatively small, but in the sales of testing reagents, the company was also involved in a case of bribery by the director of the hospital’s laboratory department. The company’s overall sales expenses also accounted for a high proportion, approaching 30%.

While focusing on sales, if the product is light, it is prone to problems. Extreme cases are like the Changsheng Biological Vaccine incident in 2018, which pushed substandard vaccines to the market.

After the incident, the vaccine industry was mired in a crisis of confidence and was facing a reshuffle.

At the end of Product Research & Development, good news has come one after another. On December 31, 2019, Wantai Bio’s HPV vaccine and Watson Bio’s 13-valent pneumonia vaccine were approved at the same time, providing room to compete with imported vaccines in these two fields. In the research and development competition of COVID-19 vaccines, more than 130 projects around the world, Kang Xinuo’s adenovirus vector vaccine and Koxing Bio’s inactivated vaccine, are the first to enter clinical trials.

However, the newly approved vaccine, after the listing of the feedback is still unknown. Wantai Bio’s hot market, and the overall rise in the biomedical industry under the epidemic is also related, according to the wind sub-industry index, if the latest index data compared with the beginning of the year to calculate the increase, health care social security and supplies index (50.65%), biotechnology index (45.37%), life science tools and services index (26.01%) are ranked high, like Kang Xinuo’s stock, also rose 3 times at the peak.

Whether China’s vaccine industry will shift from sales-driven to a model that places equal emphasis on sales and research and development is still uncertain. But change is happening.

On May 31st, Wenjie new M7 Ultra was officially listed. At the press conference, Hongmeng Zhihang handed over the latest answers to a number of products – Wenjie new M5 was listed for 1 month and will break through 20,000 units; Zhijie S7 ranked NO.3 in the April delivery volume of 300,000 + pure electric cars; Wenjie M9 was listed for 5 months and will break through 90,000 units. Among them, as the sales and quality double champion of China’s high-end luxury SUV market, Wenjie new M7 was listed for 8 months and will break through 180,000. The listed Wenjie new M7 Ultra is updated with "extraordinary driving control, extraordinary safety, extraordinary wisdom and extraordinary space", which will bring users a more outstanding travel experience and help Hongmeng Zhihang family sales continue to rise.

At the press conference, Yu Chengdong, executive director of Huawei, chairperson of end point BG, and chairperson of smart car solutions BU, said: "The new M7 Ultra brings four major upgrades, and the increase in volume does not increase the price! The appearance is more pleasing to the eye, the chassis performance is stronger, the smart driving ability and safety ability are higher, and the sound effect is more shocking, which will allow more users to enjoy the high-end and ultimate travel experience. It is a well-deserved’national SUV ‘in the era of smart cars!"

The new family design, the flagship style of the road to simplicity

The new M7 Ultra shows its new temperament in a family-style design language. The front face shape adopts a more delicate grille design, presenting a more complete profile and giving the whole vehicle a stronger sense of technology. The new M7 Ultra comes standard with a new 20-inch double seven-spoke star-twinkling wheel hub, which is more beautiful. At the same time, it can be equipped with a 21-inch double ten-spoke sports wheel hub, which is full of aura.

The new M7 Ultra offers 5 exterior colors and 3 interior color schemes. Including ice crystal silver, deep space gray, azure blue and gilt black, the new interstellar blue (optional) body color scheme highlights the high-end texture and technological luxury of the flagship homologous. The interior color comes standard with Shaohua apricot and amber brown, and the new red tea orange interior can be selected to bring more dynamic choices to consumers.

Newly upgraded 192-line lidar makes smart driving safer and stronger

The newly upgraded flagship 192-line lidar of the new M7 Ultra has more powerful accurate detection and fast response capabilities, with a maximum detection distance of 250m and an industry-leading scanning frequency of 20Hz. At the same time, with more powerful software and hardware coordination capabilities, the new M7 Ultra realizes more comprehensive intelligent safety protection and easier intelligent driving experience.

The omnidirectional anti-collision ability of Wenjie’s new M7 Ultra has been further advanced, achieving "no one has me, and no one has me". The effective range of forward active safety AEB has been increased to 4-150km/h, and the braking speed in stationary vehicle scenes has been increased to 120km/h; lateral active safety can be actively recognized as drainage horses, cones, roadsides, pedestrians and vehicles, and the effective range has been increased to 40-130km/h; backward active safety can actively identify pedestrians, vehicles and two-wheelers, and the effective range has been increased to 1-60km/h. From September 2023 to May 2024, the new M7 actively avoids more than 80,000 possible collisions (Note: This function is only for auxiliary driving and cannot replace driver control. Drivers need to maintain necessary attention at all times and intervene in a timely manner according to the surrounding environment), effectively reducing the risk of accidents for users.

As of May 2024, HUAWEI ADS 2.0 high-level intelligent driving system continues to evolve, urban NCA pilot has covered more than 40,000 cities and towns across the country, the total mileage of intelligent driving has reached 220 million kilometers, and the computing power of cloud learning and training has been increased to 3.5E FLOPS.

Newly upgraded CDC variable damping shock absorber, more luxurious driving texture

The new M7 Ultra has newly upgraded the CDC continuous variable damping shock absorber, and the driving experience has been fully upgraded. The chassis suspension provides three adjustable modes. For different usage scenarios, the shock absorber can realize information transmission within 10 milliseconds, and the adjustment frequency can reach 100 times/second. At the same time, the CDC can independently control the corresponding wheel vibration damping, actively suppress the fluctuation of the body posture, make the corners smoother, start and stop silkier, and effectively improve the driving comfort and driving stability.

Relying on Huawei’s hardcore technology, the M7 Ultra realizes the intelligent coordination ability of ADS preview and CDC shock absorber automatic adjustment. During vehicle driving, the M7 Ultra can intelligently identify the speed bumps on the road, adjust the damping of the shock absorber in advance, "soft up and hard down" to reduce the impact feeling and optimize the driving experience. In addition, with this software and hardware upgrade, as well as the adjustment skills of Huawei German Research Institute, the test result of the M7 Ultra Elk has been improved to 75.5km/h, effectively improving the stability and safety of driving control.

The new M7 Ultra is equipped with the HUAWEI DriveONE extended range electric drive platform, and the four-wheel drive version has a zero-hundred acceleration of 4.8s, leading the same level in power performance. Under the condition of full oil and full power CLTC, the new M7 has a comprehensive battery life of 1300km, achieving a long range without worry.

New luxury texture cockpit, ever-changing magic space upgraded again

Ask the world to upgrade the new M7 Ultra magic space, the new ring scatter is integrated into Schroeder acoustic scattering technology, the sound diffusion angle is increased by 2.5 times, the balance is increased by 40%, and the sound effect ? HUAWEI SOUND is more shocking and the listening is more immersive. At the same time, the ring scatter can be linked with the ambient light, making the interaction more ceremonial and the good sound visible. Combined with HUAWEI Maglink ? convenient and re-upgrade, the magic magnetic attraction can be removed and combined, and it is suitable for a variety of sizes of tablets (some configurations need to be optional and purchased separately, and the actual product delivery shall prevail) to achieve front and rear screen interaction and entertainment creation.

The new five-seat version of Wenjie M7 Ultra has the largest 3338mm effective space in the car in the same class, as well as oversized one-row, two-row and trunk space, easily meeting the travel needs of the whole family. The newly upgraded Shuyun seat, Nappa leather is more skin-friendly to the touch (only one and two rows of cushions and backrests are Nappa leather), the seat is softer, supports and fits better, making every seat like immersed in soft clouds. With Shuyun headrest, it brings a more comfortable and ultimate riding experience.

In terms of space flexibility, the new M7 Ultra has upgraded the main driver’s music headrest with a pluggable design. The front seat backrest can be reclined 69 °, and the depth after docking with the rear seat cushion can reach a maximum of 3m, achieving a beach chair mode where two people can easily lie flat, and can also be flexibly changed to a single bed or a double bed mode. At the same time, the two-row zero-gravity seat with six seats has a new anti-pinch function, with a larger adjustable angle and more detailed care for passengers.

In terms of price rights and interests, the official guide price of the new M7 Ultra series is: the new M7 Ultra five-seat rear drive smart driving version 289,800 yuan, the new M7 Ultra five-seat four-wheel drive smart driving version 309,800 yuan, the new M7 Ultra six-seat rear drive smart driving version 309,800 yuan, and the new M7 Ultra six-seat four-wheel drive smart driving version 329,800 yuan. The first batch of users who order before 23:59:59 on June 30 can enjoy the purchase rights and interests of up to 35,000 yuan, including a gift of 3,000 yuan in cash (only available to deduct the last payment of the car purchase), a gift of 12,000 yuan in matching gold (which can be used to deduct the interior, appearance and wheel hub. If it is not selected or the matching amount is lower than the equity amount, it will be reduced by the actual matching amount), and a gift of 20,000 yuan in ADS high-end function package subsidy rights (which can be used to deduct part of the ADS high-end function package. The valid period of this right is within 30 days from the date of delivery of the vehicle). Wenjie New M7 Ultra will be available as soon as it is listed, and the order will be opened immediately. It will be officially delivered in batches from June 2.

At this press conference, the first blockbuster product of the STELATO Enjoy brand, the Panorama Smart Flagship S9, opened for pre-sale. As the first executive-level luxury flagship sedan of Hongmeng Zhixing, the Enjoy S9 not only has the lowest wind resistance of the world’s mass-produced executive luxury sedan, but also reshapes the luxury experience in a new space based on Huawei’s intelligent precipitation. In addition, the new car also has surging power beyond traditional luxury, equipped with the latest Turing platform, and launched HUAWEI ADS 3.0 high-end intelligent driving system and other intelligent technologies, all-round reshaping of executive luxury.

The pre-sale price of Enjoy S9 is 450,000 yuan – 550,000 yuan. Now you can double the intention fee (5,000 yuan to 10,000 yuan) and give priority to delivery. It is reported that Enjoy S9 will be listed at the Guangdong-Hong Kong-Macao Greater Bay Area International Automobile Expo and will be officially listed in Beijing in August.