2021 Healthcare Survey

AmCham Shanghai Healthcare Committee

March 2021

1
 Survey Summary

Survey conducted Feb 2 - Mar 10

19 healthcare member companies responded

Survey scope: Business performance, investment plans,

regulatory environment in 2020
2
What sub-industry does your company belong to?
请问贵公司属于以下哪个细分行业?

Medical Devices 医疗器械 53%

Pharmaceuticals 药品 42%

Healthcare Services 医疗服务业 16%

Other Life Science (diagnostics, tools) 其他生命科学(诊

16%
断，器具)

Others (digital platform, data company, etc) 其他（数字平

5%
台，数据公司等）

3
How would you describe your company's financial performance in China in 2020?
2020年贵司在华业务的财务状况如何？

Very profitable 盈利丰厚 15.8%

Profitable 盈利 68.4%

Break-even 盈亏平衡 0%

Slight loss 稍有亏损 10.5%

Large loss 大幅亏损 5.3%

• 84.2% of respondents were profitable in 2020

• 15.8% of respondents suffered losses in 2020
4
What is your total China revenue for 2020?
贵司2020年在华业务的营业收入为?

> US$500 million >5亿美元 52.6%

US$251 - $500 million 2.51亿-5亿美元 5.3%

US$101 - $250 million 1亿-2.5亿美元 5.3%

US$51 - $100 million 5100万-1亿美元 15.8%

US$10 - $50 million 1000万-5000万美元 10.5%

US$1 - $9 million 100万-900万美元 5.3%

< US$1 million >100万美元 5.3%

No revenue 无营业收入

• 52.6% of respondents’ total revenue exceeded US$500 million in 2020

5
How did 2020 China revenue compare to 2019 results?
贵司2020年的在华营收较2019年相比有何变化?

Up > 50% 增长>50% 10.5%

Up 21 - 50% 增长21-50%
Up 11 - 20% 增长11-20% 21.1%
Up 1 - 10% 增长1-10% 36.8%
Remains the same 持平 5.3%
Down 1 - 10% 下滑1-10% 15.8%
Down 11 - 20% 下滑11-20% 5.3%
Down 21 - 50% 下滑21-50% 5.3%
Down > 50% 下滑>50%

• 68.4% of respondents’ China revenue increased in 2020 compared to 2019

• 26.4% of respondents’ China revenue decreased in 2020 compared to 2019
6
 How did the 2020 operating margins of your China operations compare to 2019?
贵司2020年在华业务的营业利润率与2019年相比，结果如何？
Improved substantially (Up 11% or more) 显著提升（增长11%以上） 10.5%

Improved slightly (Up 1 - 10%) 略有提升（增长1-10%） 42.1%

Remains the same 持平 10.5%

Deteriorated slightly (Down 1 - 10%) 略有衰减（下滑1-10%） 26.3%

Deteriorated substantially (Down 11% or more) 显著衰减（下滑11%以上） 0%

Not applicable 不适用 10.5%

• 52.6% of respondents’ operating margins in China improved in 2020 compared to 2019

• 26.3% of respondents’ operating margins in China deteriorated in 2020 compared to 2019

7
How does China rank in your company's global investment plans?
中国市场在贵司全球投资计划中的地位如何?

One among many investment Number one priority 名列首位

destinations 投资目的地之一 26%
37%

Second or third priority

第二位或第三位…

• 63% of respondents ranked China as a top 3 investment destination

8
 How did your company's investment in China change in 2020 compared to the
previous year?
贵司2020年在华的投资规模与前一年相比有何变化？

15.8% 15.8% 21.1% 36.8% 10.5%

• 52.7% of respondents increased their investment in China compared to the previous year
• 10.5% of respondents decreased their investment in China compared to the previous year

9
In 2020, by how much did your company increase or decrease employee
headcount in China?
2020年贵司在华员工数量有何变化？
26.3% 26.3% 26.3%

15.8%

5.3%

Increase more than 11 - 20% increase 1 - 10% increase 1 - 10% decrease No change
20% 增长20%以上 增长11-20% 增长1-10% 减少1-10% 没有变化

• 57.9% of respondents increased their employee headcount in 2020

• Among them, 26.3% of respondents increased their employee headcount by
more than 20% in 2020
10
 How would you describe the Chinese regulatory policy toward companies in your
industry?
您认为贵司所处行业的政府政策如何？

Some favoritism toward foreign companies

略微偏袒外资企业 Strong favoritism toward local companies
11% 非常偏袒本地企业
11%
Foreign and local companies treated equally
平等对待本地企业和外资企业
11%
Some favoritism toward local companies
略微偏袒本地企业
68%

• 79% of respondents believe there are favoritism toward local companies

11
 To what extent do the following regulatory challenges hinder your business?
下列监管挑战对贵司的业务是否构成阻碍？
Procurement practices favoring domestic competitors Top 3 regulatory challenges:
采购政策倾向于本土同业
15.8% 73.7% 10.5%
procurement practices
favoring domestic
Tax administration 税务管理 73.7% 26.3%
competition; data
localization and other
Obtaining required licenses 获取所需证照的难度 42.1% 52.6% 5.3% cybersecurity requirement;
lack of IPR protection and
Investment restrictions 投资限制 52.6% 36.8% 10.5% enforcement
Data localization and other cybersecurity requirements
21.1% 73.7% 5.3% Tax administration and lack of
数据本地化和其他网络安全合规要求
impartial civil and judicial
Lack of impartial civil and judicial remedies for business remedies for business
disputes 缺乏公正的民事与刑事商业纠纷补偿
73.7% 26.3%
disputes are considered of no
Lack of IPR protection and enforcement 知识产权保护 hinderance
36.8% 57.9% 5.3%
与执法乏力

No hindrance 不构成阻碍 Some hindrance 略有阻碍 Serious hindrance 严重阻碍

12
How did Volume-based procurement impact your company’s business in 2020?
2020年的带量采购对于贵公司有什么样的有影响？

Negative impact/ 有负面影响 No impact / 没有影响 Positive impact/ 有积极影响

52.60% 42.10% 5.30%

• 52.6% of respondents were negatively impacted by VBP

• Only 5.3% of respondents said VBP had a positive impact on their business
• 75% of pharmaceutical companies reported a negative impact vs. 50% of medical
device companies reported a negative impact. Other sub-industry companies
were less impacted.

13
What was the R&D investment expenditure in China in 2020?
2020年贵公司在研发方面的投资情况如何？

5.30%
Increase > 20% 增加超过20%
15.80%
Increase 11 - 20% 增加11-20%
10.50% Increase 6 - 10% 增加6-10%
10.50%
Increase 1 - 5% 增加1-5%

No change in R&D investment expenditure 研发投资计划没有变化

42.10% Decrease 1 - 5% 减少1-5%

Decrease 6 - 10% 减少6-10%

5.30%
Decrease 11 - 20% 减少11-20%
5.30%
5.30%
Decrease > 20% 减少超过20%

• 42.1% of respondents increased their investment in R&D

• 42.1% of respondents had no change in R&D investment expenditure
• 15.9% of respondents decreased their investment in R&D
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Please respond to the following statement: Our investment in innovation and
R&D in China is limited by inadequate IP protection.
您对此说法 “我们在中国的研发投资有限，是因为知识产权保护不力” 所持的
态度是
Strongly disagree
Not applicable (no innovation,
强烈反对
5% R&D investment in China) 不适
用（没有在华创新研发投资）
21%

Disagree 不同意
26%
Agree 同意
48%

• 48% of respondents agree lack of IP protection limited their R&D investment

• 31% of respondents disagree with this statement

15
Compared to your company, how do you rate your Chinese competitors in these
business areas?
在以下各方面，贵司如何评价处于同样业务领域的本土竞争企业？

More advanced更领先 Equal水平相同 Less advanced更落后

Use of digital strategies 数字营销手段的运用 26.3% 47.4% 26.3%

Product quality 产品质量 10.5% 10.5% 78.9%

Speed to market 市场化速度 63.2% 21.1% 15.8%

Sales and marketing 销售和市场营销 21.1% 47.4% 31.6%

Product development 产品开发 10.5% 21.1% 68.4%

• Speed to market is considered as the most competitive aspect of Chinese companies (by
63.2% of respondents)
• Product quality is considered as the least competitive aspect of Chinese companies (by 78.9
% of respondents)
16
Since the start of COVID-19, has your investment in digital technologies changed?
自新冠疫情爆发以来，贵司对数字技术的投资有何变化？

100%
Increased 增加了

17
 If you are increasing your investment in digital technologies, in which areas are
you investing?
如果贵司计划增加对数字技术的投资，主要的投资领域包括?
100%

68.40%
63.20%
57.90%
52.60%
42.10%
31.60%
21.10%
5.30%

Implementing Upgrading our Using data Leveraging data to Automating our Implementing new Automating back Investing in smart Not increasing
technologies to technology to analytics to drive better manage, customer technologies to office via RPA manufacturing investment in
enable digital further enable product and service control and relationship digitize recruiting, (robotic process technologies digital technologies
marketing virtual working pricing, promotion, balance operations management and development or automation) and
etc supply and demand sales management workforce other technologies
management

• Top 3 future investment areas for digitalization are: digital marketing, virtual
working, data analytics to drive product and service pricing, promotion, etc.
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Key Findings

1. Business performance in 2020

• 84.2% of respondents were profitable in 2020

• 68.4% of respondents’ China revenue increased in 2020 compared to 2019

• 52.6% of respondents’ operating margins in China improved in 2020 compared to

2019

19
Key Findings

2. Operation environment
• 79% of respondents believe there is favoritism toward local companies
• Top 3 regulatory challenges:
✓procurement practices favoring domestic competition;
✓data localization and other cybersecurity requirements;
✓lack of IP protection and enforcement
• 52.6% of respondents were hit negatively by VBP

3. Local competition
• The most competitive aspect of Chinese companies: Speed to market
• The least competitive aspect of Chinese companies: Product development

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Key Findings

3. Investment
• 63% of respondents ranked China as a top 3 investment destination
• 52.7% of respondents increased their investment in China compared to the previous
year

4. R&D
• 42.1% of respondents increased their investment in R&D
• 48% of respondents agreed lack of IP protection limited their R&D investment

5. Top 3 future investment areas for digital technologies

• digital marketing
• virtual working
• data analytics to drive product and service pricing, promotion, etc.
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 Thank You
AmCham Shanghai Healthcare Committee
March 2021

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