During the two sessions | This livelihood answer sheet has both temperature and thickness.

  Cctv news(Evening News): It’s two sessions a year again. In 2024, the National People’s Congress will be held soon. Looking back on the past year, have the proposals and proposals of the deputies been effective? How has the development goal put forward in the government work report been achieved? What kind of answers have been handed over from the central government to the local government in various fields such as development and people’s livelihood? "Evening News" launched a series of reports "One Year of the Two Sessions". Let’s first look at the quality of people’s livelihood papers.

  People’s livelihood is no small matter, and branches and leaves are always related to love. The General Secretary of the Supreme Leader pointed out that the upbringing and education of children, the employment of young people and the medical care for the elderly are family matters as well as state affairs. The expectation of the people is the direction of people’s livelihood work. Looking back at the National People’s Congress in 2023, the Government Work Report made a commitment to the development of people’s livelihood. What changes have taken place around us during this year? Let’s pay attention together.

  Education: There are more and more good schools at home.

  This week, primary and secondary schools in many places across the country ushered in the new semester in the spring of 2024. The Taiping New Town School in Anning, Yunnan Province, which was just completed last year, has solved the problem of difficult schooling for the children of surrounding residential areas and migrant workers. Nowadays, children can enjoy high-quality teaching resources at their doorstep.

  From small bungalows to tall buildings, from "small yards" to "big schools", the conditions for running schools in rural areas are getting better and better, and the gap between urban and rural education is also being bridged step by step. This is the development goal of "promoting the balanced development of compulsory education and urban-rural integration" put forward in the "Government Work Report" at the two sessions last year. In the past year, there have been more and more good schools at the doorstep of ordinary people. According to preliminary statistics, at present, 1,736 high-quality schools and more than 50,000 "special post plan" teachers have been added in various places, which has further strengthened the teaching staff of rural schools in the central and western regions.

  Culture: The opening hours of venues are longer, and the public culture is richer.

  There are more and more good schools at home, and public cultural life is more colorful. In the past year, reading a good book in the city study, watching a special exhibition in the rural museum, or having a sweaty game with three or five friends in the gym at home have become the daily life of more and more people. This has gradually fulfilled the promise of prosperity and development of cultural undertakings and industries put forward at the two national conferences in 2023. On the eve of the Spring Festival this year, the open area of the three major cultural buildings in the Beijing City Sub-center reached nearly 90%. Among them, the city library has a collection capacity of 8 million volumes, which will build the world’s largest single reading room and the largest intelligent three-dimensional stacks in China. In this year, it has become the new normal that cultural venues around the country are "brightly lit and crowded" at night. At present, there are 33,500 new public cultural spaces such as urban study rooms, cultural post stations and cultural auditoriums, and people can enjoy high-quality cultural and artistic services at their doorsteps.

  Medical treatment: "seeing a disease" and "seeing a good disease" at home.

  At the doorstep of ordinary people, there is another obvious change, that is, there are more and more good hospitals. In 2023, the National People’s Congress proposed to promote the expansion and sinking of high-quality medical resources and the balanced regional layout. With the accelerated construction of national regional medical centers, urban medical groups and county medical communities, a large number of top experts and leading technologies in China have sunk to areas with relatively weak medical standards. Up to now, China has set up 13 specialized national medical centers and identified 125 national regional medical center construction projects, covering all provinces with weak medical resources, and the goal of "staying out of the province when seriously ill" is gradually being realized.

  Medical care: medical insurance is more convenient when drug prices have dropped.

  It is convenient to see a doctor, and it is easy to reimburse medical insurance. In 2023, the National People’s Congress proposed to deepen the reform of the medical and health system and promote the coordinated development and governance of medical insurance, medical care and medicine. In one year, all employees’ medical insurance and residents’ medical insurance participants can realize the online filing of medical treatment across provinces and different places, and the new version of the medical insurance drug list will also be officially implemented this year. It is expected that the burden will be reduced by more than 40 billion yuan for patients in the next two years. Among them, the price change of dental implants has always been concerned by the people. After a series of comprehensive price control, the overall cost of a single conventional dental implant has been reduced from an average of 15,000 yuan to about 6,000-7,000 yuan.

  Old-age care: better service, more assured home-based care

  With the "medical care" to see a doctor, the problem of providing for the aged is even more touching. Over the past year, from the central government to the local government, a number of policies to actively respond to the aging of the population, such as the construction of basic old-age service system, food service for the elderly, and aging transformation, have been introduced. The Law on the Construction of Barrier-free Environment has been implemented. More than 700,000 families of elderly people with special difficulties in China have undergone aging transformation, making it more convenient and safe for the elderly to provide for the elderly at home.

  Wu Lantian, an 88-year-old man from Zhengzhou, Henan Province, enjoyed an aging renovation plan tailored for him by the community. He installed guardrails and emergency pagers at the bedside and such long handrails in his bedroom.

  In this year, the Central Office and the State Council issued the Opinions on Promoting the Construction of the Basic Old-age Service System, proposing that by 2025, the basic old-age service system will cover all the elderly, which provides institutional guarantee for all the elderly to achieve "a sense of security".

  This year, the country adhered to the people first, and made great efforts to protect and improve people’s livelihood. These daily lives, which we are most concerned about, the most direct and the most realistic, bear everyone’s yearning for a better life. We are delighted to see that these goals and commitments are being implemented step by step, bringing stable happiness to the people.

Betrox, alert! "Di Renjie 3" Kenny Lin Sandra into tell it to the judge

1905 movie network news Tsui Hark’s new work will be released nationwide on July 27th. Today, the film released a special edition of Kenny Lin, showing the charm of Sha Tuozhong, a warm and cute medical officer. As a "comedy actor" in the film, Sha Tuozhong is warm and cute, capturing a large number of diehard fans and gaining the title of "group pet". Not only that, this time, Sha Tuozhong also talked about love with Shui Yue, played by Sandra. The warm and cute doctor met a "savage girlfriend", and the two interacted with each other in a unique and loving way. For this relationship, Kenny Lin revealed that it would be "a very pure love", and director Tsui Hark called this relationship "a match made in heaven".

This time, "Four Heavenly Kings" returns with "China’s first detective", which will bring the strongest visual enjoyment in summer. With the continuous release of materials, the movie’s popularity index on platforms such as Cat’s Eye and Taobao Film is rising, which is bound to become the most anticipated blockbuster in summer.

 

Kenny Lin displayed its fancy charm, and Sha Tuozhong, a warm and cute medical officer, won the title of "group pet"

Today, "China’s first detective" has returned, upgraded in an all-round way, and the visual effect is amazing. Kenny Lin re-adorns Di Renjie’s "Best Partner" — — Warm and cute medical officer Sha Tuozhong. This film released a special edition of Kenny Lin, and the behind-the-scenes tidbits were made public, showing its fancy charm. As the "comedy actor" in Di Renjie series, Sha Tuozhong captured the audience with warm and cute temperament, and harvested a lot of die-hard powder, which was even more affectionately called "Meng Tuotuo". In this regard, Kenny Lin said: "Shatuo is a funny person, and it is not surprising that anything happened to him." Director Tsui Hark said that when he wrote the script, he referred to Kenny Lin’s own characteristics: "When I wrote the script, I felt that Kenny Lin was like this." Chen Guofu, the producer, even said that all these are the qualities that Kenny Lin gave Sha Tuozhong "because he is so cute".

In the play, Sha Tuozhong’s style is ever-changing, which attracted Mark Chao, an adult of Di, to say with a smile: "Di Renjie is thrifty, and he doesn’t usually go shopping to buy clothes. Unlike Sha Tuozhong, that guy is narcissistic, loves beauty and wears all kinds of clothes." However, in addition to "spitting", Mark Chao praised Kenny Lin, not only calling Kenny Lin a "younger brother", but also breaking the news that his contrast with the role is actually great: "This kid’s emotional intelligence quotient is particularly high and very powerful."

Sandra, on the other hand, revealed that he was drenched in water while filming a certain scene, and Kenny Lin took the initiative to send cold medicine, which made him very moved. Such warm and cute characteristics have also brought Sha Tuozhong a good popularity, and even won the title of "group pet". Previously, several leading actors played the fun of "the debut of the D-Five group in Datang", and Kenny Lin also published Weibo proudly, saying that "after the D-Five debut, this group pet belongs to me" and personally stamped his status as a "group pet".

 

"Ten Shyness Levels" Sha Tuozhong actually talks about love. Tsui Hark: Sha Tuozhong and Shui Yue are a perfect match.

In Di Renjie’s series of films, Sha Tuozhong is a rare and charming "little brother" with superb medical skills and loyal and lively people, but there is only one weakness that bothers him and the people around him, that is, the serious "heterosexual phobia" — — In the face of the opposite sex, I am shy "level 10" and too nervous to even speak. In Four Heavenly Kings, Sha Tuozhong will overcome his weakness and start a special love affair. Earlier, the film revealed that Sha Tuozhong would have an emotional line, which surprised fans and cheered with surprise. He commented that "Wa will finally find someone, and he is moved" and "Show the happy smile of his old mother".

Regarding this "Sato loyalty romance", Kenny Lin revealed: "This is a very pure love, and there is a relatively relaxed and not pessimistic simple love between them." In today’s special edition, this pair of CP is exposed daily, and the warm and cute medical officer meets the "savage girlfriend", and the interaction is very loving. Hidden "strong onlookers" Sha Tuozhong took a bath, and even put down the rhetoric of "I want to see it"; Their eyes met, and Shuiyue looked back, but Sha Tuozhong blushed to avoid it; Shuiyue tried his best to protect Sha Tuozhong, but "accidentally hit" Sha Tuo’s injury.

Director Tsui Hark revealed the "qualitative change process" of this relationship and called it "a match made in heaven": "Shatuo is very kind. When he is willing to help someone unconditionally, the other party will not refuse. Shui Yue was originally arrogant, but when she met Sha Tuo on the run, I thought it was a match made in heaven. " With the continuous release of materials, the movie’s popularity index on platforms such as Cat’s Eye and Taobao Film is rising, and the topic discussion is getting higher and higher, becoming the most anticipated blockbuster in summer.

3.3 million old computers can’t check and verify SMS. Police investigation: What kind of black industrial chain is hidden behind it?

  Beijing, China, November 28 (Reporter Li Xingjian from the Central Radio and Television Station) According to the report of China Voice "News Night", many elderly people often choose an "elderly machine" with simple function and low price when choosing a mobile phone. However, some criminals have targeted some unprotected "old-age machines" and implanted virus Trojans to achieve remote control and illegal profits. Recently, the court in Xinchang County, Shaoxing City, Zhejiang Province found that the company of the criminal suspect Wu Mou illegally controlled more than 3.3 million elderly phones, obtained more than 5 million mobile phone verification codes, and made a profit of more than 7.9 million yuan from the sale. The elderly victims were all over 31 provinces, municipalities and autonomous regions in China. The police revealed that not only old machines, but also some children’s watches with communication functions should be wary of such Trojans. What kind of black industrial chain is hidden behind this?

  In August last year, in order to take care of her grandmother who is over 80 years old but lives alone, Xiao Zhu of Xinchang County, Zhejiang Province bought her a cheap functional machine online. The so-called function machine is what people often call "the aged machine", which only has basic functions such as answering phones and sending and receiving short messages.

  However, when Xiao Zhu changed the package for her mobile phone, she found that the short messages sent by others could be received normally, but the verification code could not be received. Xiao Zhu put the phone card into his mobile phone, and the verification code could be received normally. He suspected that his grandmother’s old machine was equipped with a Trojan horse and immediately called the police.

  Chen Yi, deputy head of the network police brigade of Xinchang County Public Security Bureau, said: "The function of inquiring telephone charges is normal, and other short messages are received normally. Once you encounter bank verification codes, including some mobile verification codes, you will not receive them. It is certain that a program in this mobile phone must have blocked the verification code. "

  The police conducted an investigation on the online sales of the same brand of elderly phones. The police visited 25 people who bought the same mobile phone locally in Xinchang County and found that there were 15 mobile phones with abnormal SMS sending and receiving. At the same time, the police also conducted a judicial appraisal of the Trojan horse program in the mobile phone. Chen Yi introduced: "The appraisal opinion is that this Trojan has the function of identifying and obtaining all short messages in the mobile phone, which can be blocked according to keywords, and finally the short messages it needs can be uploaded to the server."

  The public security organs at Shaoxing and Xinchang levels set up a "8.12" task force for infringing citizens’ personal information led by the network security department. After finding out the organizational structure of the whole criminal gang, they rushed to Shenzhen to control all the people involved in this technology company, and obtained a lot of background server data and contracts for trading with upstream and downstream chains. Li Yun, a policeman handling the case of the Criminal Investigation Detachment of Xinchang County Public Security Bureau, said: "Their data inventory has reached more than 5 million mobile phone numbers, and the total amount of information has reached nearly 50 million. This is a very huge amount of data."

  After investigation, this company, with Wu Mou as the general manager, made a Trojan horse program that can control the mobile phone to recognize and intercept short messages, and cooperated with the motherboard manufacturer to implant the Trojan horse program into the mobile phone motherboard. These motherboards with the Trojan horse program entered the mobile phone manufacturer and were finally sold to the elderly.

  According to the statistics of the background server of Wu Mou Company, there are more than 3.3 million mobile phone numbers activated by the implanted Trojan horse program, involving more than 4,500 functional model numbers, and the victims are all over 31 provinces, municipalities and autonomous regions in China. Li Yun, a policeman who handled the case, said: "Once this function machine is used by the elderly, it will actively send the mobile phone number to the Wu Mou gang, and the Wu Mou gang will input the number downstream, and then click to receive the verification code after getting the number downstream. They just go to the e-commerce platform ‘ Bonus hunter ’ Yes. "

  It is understood that companies in Wu Mou not only use a small number of illegally obtained mobile phone numbers and verification codes to register their own apps and make profits by swiping them, but most of them are sold to "wholesalers" of citizens’ personal information like the "sweet potato" platform.

  These platforms are an important part of this black industrial chain, and they are called "code receiving platforms" in the "industry". They buy personal information from companies like Wu Mou at a low price, and sell it to gangs and individuals in "bonus hunter" at a higher price through QQ group and WeChat group, and earn a profit from the difference. Thus, citizens’ personal information enters the "black market" and is bought and sold layer by layer, forming a huge criminal network. The criminal suspect Zou said: "A commodity gains a profit of two or three dollars. If you want to make money, you have to register so many. The model is very simple, that is, reselling and earning the difference."

  The cyber security law stipulates that no individual or organization may steal or obtain personal information in other illegal ways, and may not illegally sell or illegally provide personal information to others.

  Since June, 2020, Xinchang County Procuratorate has successively filed public prosecutions with Xinchang County Court for Wu Mou and other 70 people suspected of illegal control of computer information systems, infringement of citizens’ personal information and fraud. Recently, the Xinchang County Court made a judgment that Wu Mou was sentenced to four years and six months in prison for the crime of illegally controlling the computer information system, and fined 600,000 yuan, and the illegal income of 6.16 million was recovered; Tong was sentenced to three years in prison for infringing citizens’ personal information, suspended for four years, fined 80,000 yuan, and 70,000 yuan of illegal income was recovered.

  The police investigating the case reminded that most smart phones are equipped with mobile phone security assistants and other software, which can identify virus Trojans for killing. However, some elderly machines or children’s smart watches produced by informal manufacturers have hidden dangers of being implanted by Trojans. Look for regular and reliable brand products when buying. "When buying this kind of electronic products for children and the elderly, we still have to choose electronic products that can be trusted by big brands, so that the quality is reliable. And in the process of use, we should pay attention to keeping our personal information, pay attention to confidentiality, and not easily disclose the information to others. "

2 dead and 106 hospitalized! Kobayashi Pharmaceutical’s monascus health care products have been upgraded and recalled in China. What is the impact?

Kobayashi Pharmaceutical, once "snapped up" by consumers in China, was caught in a storm of illness and death caused by health care products.

On the evening of March 27th, Kobayashi Pharmaceutical (China) Co., Ltd. issued a statement to assist Kobayashi Pharmaceutical Co., Ltd. to recall the products related to the use of red bream raw materials independently, saying that according to the announcement of Kobayashi Pharmaceutical Co., Ltd., this independent recall involved three products, none of which were listed and sold in Chinese mainland market. Some consumers in China have purchased related products through overseas cross-border platforms, overseas physical stores or other channels, and our company will actively provide assistance in product recycling.

"For products purchased from cross-border official channels, assist Kobayashi Pharmaceutical Co., Ltd. to recycle through UNQ Japan Co., Ltd.. For other consumers, it is recommended to contact the original purchase channel to return the goods. If we encounter problems and difficulties in this process, our company will actively assist and properly solve related matters from the perspective of facilitating consumers. " The statement said that the company had notified the relevant cross-border platforms on March 22, 2024, requesting them to take off the relevant products urgently, and informed all consumers to stop eating immediately as soon as possible. We will continue to inform you many times through Want Want, SMS and other channels to ensure that the information can reach every consumer. For other known platforms with related products for sale, we are contacting the platforms one by one to request that the related products be immediately removed from the shelves and that the platforms inform all consumers to stop eating immediately as soon as possible.

According to CCTV news, NHK reported that the Japanese Ministry of Health, Labor and Welfare announced the second death case after ingesting health products containing red koji from Kobayashi Pharmaceutical Company on March 26th, and the number of people admitted to hospital has increased to 106.

According to Japanese media reports on March 27th, local time, the Osaka city government of Japan ordered Kobayashi Pharmaceutical Company to recall three kinds of products, such as "red yeast cholesterol granules", because the above products received a large number of reports of health damage and death, and the Ministry of Health, Labor and Welfare thought that "it was suspected to contain harmful substances". The monascus involved was produced by Kobayashi Pharmaceutical Osaka Factory, and the company said that it may be different from the expected ingredients from mold that caused the problem.

Prior to this, on March 24th, Kobayashi Pharmaceutical China issued a recall notice to consumers of China e-commerce platform, saying that some affected products were sold to Chinese mainland through cross-border channels, and consumers could return them and get a refund. At that time, in the notice, only one item involved in the product was mentioned.

On March 27th, the reporter contacted the customer service center of Kobayashi Pharmaceutical in China as a consumer. The customer service staff said that only one product in China was added with monascus ingredients, and other products were not. Regarding the safety of health care products containing monascus ingredients, the customer service staff said: "The reply given by our agency is that we have not confirmed whether it is directly related to kidney disease at present." If consumers are worried about health risks, it is recommended to have a kidney examination on blood, and the inspection fee will be reimbursed by the company.

If there is something wrong with the kidney, can it be judged that it is related to the product? The above-mentioned customer service staff said that it depends on the doctor’s judgment. "There must be a problem if it has not been confirmed yet, so the company can’t give a reply for the time being saying that there must be a problem, or there must be no problem."

It is worth noting that there are also domestic health care products companies and pharmaceutical companies that own products containing "red yeast".

On March 27th, Luye Pharmaceutical (2186.HK) told The Paper that the raw material of the red yeast used in Xuezhikang Capsule is a special red yeast produced by Peking University Weixin Biotechnology Co., Ltd., which has independent intellectual property rights and has nothing to do with the raw materials used by Kobayashi Pharmaceutical.

Kobayashi Pharmaceutical was asked to recall three products in Japan. What is "red koji"?

The pathogenic and fatal storm of health care products containing monascus ingredients has been fermented for many days.

On March 22, Kobayashi Pharmaceutical announced that some consumers have recently developed kidney diseases after using the health products containing monascus ingredients produced by the company. Subsequently, Japanese food and alcohol manufacturers also announced the recycling of products related to red koji produced by Kobayashi Pharmaceutical.

On March 25th, Kobayashi Pharmaceutical Co., Ltd. of Japan announced that 33 people had developed kidney diseases and other abnormal health conditions after taking the health products containing monascus, and 26 of them had been hospitalized.

On March 26th, Kobayashi Pharmaceutical Company of Japan announced that a person who might continue to take health products containing monascus for about 3 years died of kidney disease in February. Taking this product is suspected to have a causal relationship with death. An investigation has been launched and people are urged not to use the product for the time being. Also on March 26th, the Japanese Ministry of Health, Labor and Welfare held a three-hour hearing on Kobayashi Pharmaceutical Co., Ltd. on the issue that the raw materials of red yeast rice may cause damage to consumers’ health.

Japanese regulatory authorities have taken measures against Kobayashi Pharmaceutical related products. According to CCTV news, citing Japan’s current affairs news agency, Japan’s Ministry of Health, Labor and Welfare has informed relevant departments in Osaka City where Kobayashi Pharmaceutical Company is headquartered to take measures such as discarding the company’s related products based on the Food Sanitation Law.

According to Japanese media reports on March 27th, local time, the Osaka municipal government of Japan ordered Kobayashi Pharmaceutical to recall three products, including "red yeast cholesterol granules". In addition, Kobayashi Pharmaceuticals of Japan has withdrawn eight kinds of monascus health products from the Japanese Consumer Hall as functional label foods for the record, including three recalled products.

According to Japanese media reports, Kobayashi Pharmaceutical also announced that "Monascus" raw materials are also supplied to 52 companies including beverage and food manufacturers. Among the "red koji" raw materials produced, 20% are used for their own products, and 80% are sold to other enterprises. According to Japanese media reports, Kobayashi Pharmaceutical has supplied raw materials of monascus to other manufacturers through trading companies since 2016, and has been used in Japanese wine and snacks. The suppliers also include enterprises in Taiwan, China.

According to CCTV news, as of the evening of 26th local time, 30 companies, including Kobayashi Pharmaceutical Company, have announced that they have independently recycled the products of Kobayashi Pharmaceutical Company’s monascus raw materials. Some consumers said that this raw material was also used in many foods, even in miso sauce. According to Japanese media reports, relevant Japanese departments will conduct emergency inspections on the safety of more than 6,000 functional foods on the market.

What is the monascus ingredient in the above health care products that may harm health?

According to an article published on February 29th, 2024 by WeChat WeChat official account "Guangdong Traditional Chinese Medicine" sponsored by Guangdong Provincial Bureau of Traditional Chinese Medicine, the traditional Chinese medicine monascus is a kind of rice koji fermented by monascus, which can be used as medicine and food. It was called Danqu in ancient times, originated in China, and has been used for more than two thousand years, and has been popularized among the people as early as the Han Dynasty. Monascus, as a microbial fermented product, can not only be used as a natural non-toxic food pigment, but also be used for antibacterial and antiseptic of meat, fish, beans and other foods. Monascus is also rich in wine fragrance, which is a good raw material for brewing vinegar.

As for the medicinal value of monascus, the above article mentioned that in the late 1970s, Japanese scientists discovered and isolated a chemical component named K(Monacolin K from monascus fermentation broth, and found that it could significantly inhibit cholesterol synthesis in the body. Monascus contains not only monacolin compounds, but also ergosterol, bioflavonoids, saponins, dietary fiber, aminoglycans and other rich physiologically active substances, which have a wide range of pharmacological effects such as lowering blood fat, lowering blood sugar, lowering blood pressure, inhibiting bacteria, resisting tumors and enhancing immunity. Flavonoids, a natural antioxidant in monascus, can protect the liver.

It should be noted that Kobayashi Pharmaceutical once said that after analyzing the components of monascus health products, it was found that some monascus raw materials may contain unknown components beyond the company’s grasp. According to this statement, it is not the monascus itself that causes patients to be admitted to hospital or die, but other unknown ingredients in the raw materials of monascus. Luye Pharmaceutical also mentioned in its response that ordinary monascus is a traditional fermented product, and the differences in strain quality, production technology and quality control management lead to different product quality and safety results.

Gu Zhongyi, director of Beijing Dietitians Association and master of public health in Tsinghua University, said that there is an active ingredient lovastatin in monascus, which can reduce the level of cholesterol in blood, but the specific dosage and effect need to be said separately. Controversially, there will be a secondary metabolite citrinin in the late fermentation of monascus, which has kidney and liver toxicity. Therefore, China has specific requirements for monascus-related products.

Gu Zhongyi stressed that if you buy health food to reduce blood fat, consult a professional or do enough homework according to your own needs, you’d better consult your doctor Yamatonokusushi first. Be sure to read the label information on the product package carefully, especially if it is not clearly marked in Chinese, be sure to consult it before eating. After using any new health food, it is best to record your feelings and symptoms, and stop consulting a doctor immediately if you feel unwell.

Kobayashi Pharmaceutical China recalled a health product containing monascus, and the company said that it could reimburse the inspection fee.

Are health products that may cause kidney disease and even death sold in China?

On March 24th, Kobayashi Pharmaceutical China issued the Notice on Stopping the Use of Red Stork Cholesterol Granules and Self-recall, saying that the company had received some reports that red Stork Cholesterol Granules, a health food manufactured and sold in Japan, might cause kidney diseases after eating it. In view of this situation, we analyzed the composition of this product and its raw materials (manufactured by Zishe), and found that some raw materials may contain unexpected ingredients. Some of the affected products are sold to Chinese mainland through cross-border channels.

Product source mentioned in Kobayashi Pharmaceutical’s China recall notice: Kobayashi Pharmaceutical China official WeChat official account.

"If you have eaten the above products and feel unwell, please consult the customer service center. At the same time, if you hold this product, please contact the customer service center, and we will explain the return and refund methods to you. " China, Kobayashi Pharmaceutical, said that if you have red herring cholesterol granules (60 capsules, barcode 4987072059708), please stop eating.

The above recall notice is for consumers of Tmall Kobayashi’s overseas flagship store, Pinduoduo’s official overseas flagship store and Kobayashi’s overseas direct sales store in JD.COM. On March 27th, a reporter from The Paper searched on the e-commerce platform. Only Tmall could find "Kobayashi’s overseas flagship store", and no health products related to monascus were on sale. However, "Pinduoduo’s official overseas flagship store" and "Kobayashi’s overseas JD.COM direct store" could not be found in Pinduoduo and JD.COM.

China of Kobayashi Pharmaceutical said, "We recognize that this is a serious problem and will continue to investigate.". However, the specific properties of this component and its correlation with kidney diseases have not yet been determined. For the purpose of protecting consumers’ health, we decided to recall the related products of red carp raw materials independently.

On March 27th, the reporter contacted the customer service center of Kobayashi Pharmaceutical in China as a consumer. The customer service staff first asked whether the user had drowsiness, turbid urine and difficulty in urination after purchasing and using this drug. After receiving the reply of "not at present", the customer service staff stressed that "the reply given by our agency is that we have not confirmed whether it is directly related to kidney disease at present". If the consumer is worried about health risks, it is suggested to have a kidney examination on blood, and the company will be responsible for reimbursement of the examination fees.

If there is a kidney problem, can it be judged that the kidney problem is related to the product? The above-mentioned customer service staff said that it depends on the doctor’s judgment. "There must be a problem if it has not been confirmed yet, so the company can’t give a reply for the time being saying that there must be a problem, or there must be no problem."

Kobayashi pharmaceutical products have been "snapped up" by consumers in China.

Kobayashi Pharmaceutical was established in Japan in 1998. Although the company name contains the word "pharmaceutical", it is not a pharmaceutical enterprise in the usual sense. According to official data, Kobayashi Pharmaceutical provides a variety of products in the fields of pharmaceuticals, fragrances, health care products and daily necessities.

Around 2015, Kobayashi’s products in Japan became the target of Japanese tourists’ "buying" in Japan, and the post "You must buy 12 kinds of magic drugs when you go to China" circulated on social networking sites included many products owned by Kobayashi. According to The Paper’s previous report, Kobayashi Pharmaceutical gave people the impression that it was developing the daily necessities production of unique commodities in a Niche Market. Kobayashi Pharmaceutical was rated as an "inbound consumer brand" by the Japanese capital market, and the company’s share price also rose. In 2015, the annual growth rate of Kobayashi Pharmaceutical’s share price reached 40%.

Japanese media reported that the recalled red carp cholesterol granules are said to have the effect of reducing harmful cholesterol values, with annual sales of 600 million yen. The recalled products have been sold in pharmacies in Japan since 2021, with a cumulative sales volume of nearly 1.1 million copies.

Under the influence of the recent turmoil, Kobayashi Pharmaceutical’s share price plummeted, closing down 16.51% on 25th, slightly rising on 26th and closing down 3.83% on 27th.

Part of the products sold by Kobayashi Pharmaceutical in China Source: official website screenshot

In China, Kobayashi’s activities can also be traced back to 1998: Kobayashi Pharmaceutical Co., Ltd., Shanghai Friendship Group and Benfeng Development Co., Ltd. of Hong Kong Special Administrative Region established Shanghai Kobayashi in Minhang, Shanghai. Official website data show that in 1999, the company began to produce and sell domestic colloidal aromatic products. In 2002, Kobayashi Pharmaceutical Co., Ltd. of Japan acquired the shares of Shanghai Friendship Group and Benfeng Development Co., Ltd. of Hong Kong Special Administrative Region, established a wholly-owned company, and changed its name to "Shanghai Kobayashi Daily Chemical Co., Ltd.". In 2023, Kobayashi Pharmaceutical China absorbed and merged with Shanghai Kobayashi Daily Chemical.

According to Tianyancha App, Kobayashi Pharmaceutical Co., Ltd. has invested in three companies in Chinese mainland, including Kobayashi Pharmaceutical (China) Co., Ltd., Hefei Kobayashi Pharmaceutical Co., Ltd. and Shanghai Kobayashi Pharmaceutical Trading Co., Ltd., among which the first two companies are still in existence. Kobayashi Pharmaceutical (China) Co., Ltd. invested in Hefei Kobayashi Commodity Co., Ltd. and Jiangsu Kobayashi Pharmaceutical Co., Ltd., and set up branches in Beijing, Shanghai and Guangzhou.

By category, the products currently sold by Kobayashi Pharmaceutical in China include warm stickers, antipyretic stickers, deodorant, personal care, cleaning products, oral care, disinfectants and so on.

Clarification of domestic drugs and health products: the use of red yeast in products has nothing to do with Kobayashi Pharmaceutical.

It is not a company of Kobayashi Pharmaceutical to use monascus for health care products. The reporter found through wind search that many health care products or pharmaceutical companies such as Tomson Bianjian, Qidi Pharmaceutical, Shouxian Valley and Luye Pharmaceutical have "monascus" related products.

Qidi Pharmaceutical (000590) mentioned in the reply in January 2024 that the registered health food of the company for delaying aging includes red koji soybean isoflavone tablets; At the end of 2023, Shouxiangu (603896) announced that its wholly-owned subsidiary Jinhua Shouxiangu Pharmaceutical Co., Ltd. had completed the registration of domestic health food. Chenguang Bio (300138) mentioned in the semi-annual report of 2023 that the company has the health food registration approval certificate of Caizhiyuan Ginkgo biloba red yeast capsule.

In addition to health care products, there are also pharmaceutical companies involved in monascus-related business. Qianyuan Pharmaceutical has the patent of "a red yeast fermentation device", the application date is April 22, 2022, and the validity period is 10 years.

Xuezhikang of Lvye Pharmaceutical Co., Ltd. is made from red yeast rice and used for the treatment of hyperlipidemia. Regarding the safety of the monascus ingredients in Xuezhikang, Luye Pharmaceutical emphasized that compared with ordinary monascus, Xuezhikang’s raw materials are strictly screened monascus strains, and the production process is strictly controlled. The company conducts regular monitoring according to the requirements of regulatory laws and regulations, and all testing indicators meet the relevant national drug safety management standards, and no unqualified conditions are found. Xuezhikang capsule has been approved for marketing since 1995. A large number of safety research evidences and clinical application data in the past 30 years have fully proved its effectiveness and safety, and the company will continue to carry out safety research, monitoring and analysis of Xuezhikang products. Patients can safely use this product under the guidance of a doctor.

Short video ≠ vulgar! Hip-hop video comes into play strongly, subverting cognition!

  Too rustic, too superficial and too vulgar are the main reasons why short videos are frequently criticized. When short videos become the mainstream mode of information dissemination, users don’t want to be surrounded by invalid information or abandoned by the times. It is necessary to choose the one with attitude and not kitsch among hundreds of short video apps.

  

  The most popular short video apps can be divided into tool-based and social-based apps. Tool-based short video apps have tall shooting and editing tools, including various filters, multi-lens editing, sticker animation, background music and other functions, allowing users to shoot movie-like videos on their mobile phones through simple operations. For example, to draw videos, interesting tweets, etc., these apps meet the shooting needs of non-professionals in different scenes through the video editing tools on the tall. Of course, they also have social functions such as "work sharing", but they pay more attention to "tools" than "socialization" compared with their users. Social short video apps pay more attention to video viewing and sharing. The main types are PGC (professional production content), UGC (user-generated content) and PUGC (professional user-generated content or expert-produced content), which record and share the wonderful moments in life through simple shooting and editing. Tik Tok, Aauto Quicker and Watermelon are this type of apps, and their contents can be basically divided into five sections: street visiting passers-by, funny spitting, life, film and television, and personal talent.

  The differentiation of product styles of short video apps leads to a dilemma in the market structure. Short video apps with powerful video production functions lack a platform that can spread in a large area, while social short video apps with a huge user base have the problems of high cost and difficulty in making excellent videos. So is there a short video App on the market that can integrate perfect functions and powerful influence?

  Hip-hop video, an App—— that upholds the concept of "the more you share, the happier you are", has entered the market strongly under such urgent demand, making the technical hard power and the influence of fans perfectly unified, and with its unique gameplay mechanism, it is about to subvert market cognition.

  

  As the main position of hip-hop video, the short video section not only has the effect of not losing to the professional shooting and editing App, but also is simpler and easier to understand. It can be done as soon as you think about it, and the one-button setting perfectly presents the video color enhancement effect. What’s more worth mentioning is that the short video section has the function of recording MV for a long time. Every lyric and every picture can be expressed at will, interpreted as much as possible, and made into a complete memory without restriction. And while sharing the happy time, you will also get the attention, praise and even reward from friends or strangers.

  Hip-hop videos can show their own platforms, not only for recording and sharing, but also for playing hip-hop live broadcast, so that every ordinary person with a hot heart and dreams can get a customized stage. In addition to all the functions of other similar live broadcast platforms, the anchor can also convene a fan group for large-scale interaction. And VR technology will be applied to live broadcast in the later stage. No matter whether the live broadcast content is life entertainment or commercial promotion, it can make the live broadcast get rid of the constraints of space and create a real and strong sense of live interaction among fans.

  Originally, I could rely on face value, but I like to rely on talent. The hip-hop song room section in the hip-hop video App makes your musical talent targeted. Your singing or Rouman’s euphemistic applause, or deep and restrained memories, can not only make the audience focus on you, but also perform with friends, and also have the function of real-time recording of singing. Let your musical talent not be buried in the hip-hop studio.

  The 5G era is coming, are you still chatting with others with expression packs? Wake up! Coming to hip-hop chat rooms, real-time voice conversations, and telling jokes in person are far more attractive than pasting them in the dialog box. You can meet interesting souls and meet like-minded friends here. It is not only a place for people with the same interests to chat, but also a private place for business negotiations.

  

  Where there are people, there are rivers and lakes, and this sentence is also applicable in the virtual world. It is not necessarily a long-term solution to wander alone in the rivers and lakes. Hip-hop family plate, so that you can find a home alone. A group of young people with the same preferences, values and mutual appreciation create a big family of their own. Gathering popularity, sharing works, helping each other to improve income, like-minded will be more valuable!

  Although having money can’t buy time, it’s always irresistible to use happy time to get benefits. Hip-hop video adopts the profit sharing model of members, and the relationship between members will become closer. Members adopt sharing links, invite their friends to become members through unique invitation codes, and bind themselves. When binding members pay fees, members who send invitations will enjoy the platform reward policy, which will make members more willing to share, and the more they share, the happier they will be.

  

  Rejecting vulgarity, hip-hop video will bring users a refreshing and ultimate experience with full positive energy! Short video, live broadcast, karaoke room, multi-player voice chat room and hip-hop family meet the needs of all kinds of people. At the same time, we should dig deep into industry resources, accurately find the pain points of senior players, and gather short video, live broadcast, social interaction, e-commerce and other functions ready to go! Hip-hop video, subvert your perception of traditional short video App, and get ready for a heat wave in the short video industry!

  Hip-hop video, the more you share, the happier you are.

  Disclaimer: The purpose of reprinting this article by China Youth Network is to convey more information, and it does not represent the views and positions of this website. The content of the article is for reference only and does not constitute investment advice. Investors operate accordingly at their own risk. )

Professor Edvard I. Moser, winner of the Nobel Prize in Physiology or Medicine, visited our school and was a guest at Hefei Masters Forum.

On the morning of April 8th, at the invitation of Anhui Foreign Experts Bureau and our school, Professor Edvard I. Moser, winner of the 2014 Nobel Prize in Physiology or Medicine, visited our school, accompanied by Pan Yaqun, member of the Party Group of Anhui Human Resources and Social Security Department and director of Anhui Foreign Experts Bureau. Vice President Chen Chusheng met with the guests. Xu Geliang, Dean of the First Affiliated Hospital of our school and Deputy Secretary of the Party Committee, and Professor Shen Yong from the College of Life Sciences attended the meeting.


 


Chen Chusheng first welcomed Professor Edvard I. Moser’s visit and introduced the general situation of the school. Subsequently, the two sides discussed the construction of the school’s life science and medicine department and related issues of brain research. 


 



 


After the talks, Professor Edvard I. Moser gave a report entitled The brain′s navigation system in the multimedia classroom of the third teaching building in the West District. The report was presided over by Professor Shen Yong, and Director Pan Yaqun made a speech before the meeting. 


 



 


Professor Edvard I. Moser vividly demonstrated the importance of the spatial positioning system of the brain to human life in ancient times through animation. Because the composition of the human brain is very complex, and mammals such as mice, rats and squirrel monkeys may have a common ancestor with humans in evolutionary history, and their brain structures are very similar, neuroscientists turned to the simpler mouse or rat brain for research. Then Professor Edvard I. Moser introduced the development history of the research on human brain location system, from the concept of cognitive map was put forward around 1930 to the discovery of location cells in hippocampus by Professor John O′Keefe around 1970. In 2005, Professor Edvard I. Moser’s team discovered another kind of grid cell for localization in the area of the entorhinal cortex near the hippocampus of the brain. 


 



 


Professor Edvard I. Moser emphasized that the localization mechanism of hippocampus and olfactory cortex is completely different. The grid cells in the olfactory cortex can form a consistent and universal map when the environment changes, while the map composed of the position cells in the hippocampus has undergone earth-shaking changes with the environment changes. Therefore, the brain location system has two parts: the accurate location map of grid cells (low-dimensional) and the diversified map of location cells (high-dimensional). From the perspective of evolution, integrating the information of two sets of maps to navigate seems to be an efficient solution for animal navigation system. The distance and direction measured by the grid formed in the medial olfactory cortex will not change as it moves from one compartment to another. On the contrary, the location cells in the hippocampus form an independent map for each individual compartment, which makes it possible to store all kinds of memories. In the entorhinal cortex, in addition to the grid cells, Professor Edvard I. Moser and his colleagues also found the head direction cells, boundary cells and velocity cells, which all serve the system of mapping the world where mammals live. Through a series of experiments and data, Professor Edvard I. Moser showed that there are cells in the medial entorhinal cortex that can sense their own direction and distance from external markers, and discussed the mechanism of the lateral entorhinal cortex to perceive time, and suggested that there may be time cells besides grid cells and position cells. 


 


Finally, Professor Edvard I. Moser pointed out that these studies are helpful for human beings to treat and understand Alzheimer’s disease, and the entorhinal cortex is one of the earliest brain regions in patients with Alzheimer’s disease. This disease causes degeneration of brain cells in the inner olfactory cortex, which eventually leads to cell death, which is consistent with the early symptoms of Alzheimer’s disease-disorientation of space and memory loss. With the increase of life expectancy, the incidence of Alzheimer’s disease is getting higher and higher. Professor Edvard I. Moser called for the joint efforts of related workers all over the world (from basic research to clinic) to cure and study the disease.


 



 


Professor Edvard I. Moser’s report gave us a deep understanding of the study of brain localization system. After the speech, the teachers and students present enthusiastically asked questions and exchanged ideas with Professor Edvard I. Moser.


 


During the visit, Professor Edvard I. Moser and his party visited the Neurodegenerative Disease Research Center and Brain Resource Bank (Brain Aging and Brain Diseases Research Center) of the School of Life Sciences of the University of Science and Technology of China with Professor Shen Yong, and offered their best wishes for the 60th anniversary of our school. 


 


 Edvard I. Moser, born in Norway in 1962, is now a Norwegian psychologist and neuroscientist, and the founding director of the Kafliko Institute of Systems Neuroscience and the Center for Memory Biology of the Norwegian University of Science and Technology. Mosor and his wife, Mai Britt Mosor, have led a series of cutting-edge research on brain mechanism in the past decades. In 2013, Edward Mosor won the Huo Weici Prize. In 2014, Edvard I. Moser, John O‘Keefe and May-Britt Moser won the Nobel Prize in Physiology or Medicine. 


 


(Ministry of International Cooperation and Exchange)

People’s Republic of China (PRC) vaccine management law

(Adopted at the 11th meeting of the 13th the NPC Standing Committee on June 29th, 2019)

Catalogue

  Chapter I General Principles

  Chapter II Vaccine Development and Registration

  Chapter III Vaccine Production and Batch Issuance

  Chapter IV Vaccine Circulation

  Chapter V Vaccination

  Chapter VI Monitoring and Handling of Abnormal Reaction

  Chapter VII Post-marketing Management of Vaccines

  Chapter VIII Safeguard Measures

  Chapter IX Supervision and Administration

  Chapter X Legal Liability

  Chapter XI Supplementary Provisions

Chapter I General Principles

  Article 1 This Law is formulated in order to strengthen vaccine management, ensure vaccine quality and supply, standardize vaccination, promote the development of vaccine industry, safeguard public health and safeguard public health safety.

  Article 2 This Law shall apply to the development, production, circulation, vaccination and supervision and management of vaccines in People’s Republic of China (PRC). Where there are no provisions in this Law, the provisions of laws and administrative regulations such as the Drug Administration Law of People’s Republic of China (PRC) and the Law of People’s Republic of China (PRC) on the Prevention and Control of Infectious Diseases shall apply.

  The term "vaccine" as mentioned in this Law refers to preventive biological products used for human immunization in order to prevent and control the occurrence and epidemic of diseases, including immunization planned vaccines and non-immunization planned vaccines.

  Article 3 The state implements the strictest management system for vaccines, and adheres to safety first, risk management, whole-process control, scientific supervision and social co-governance.

  Article 4 The State adheres to the strategic and public welfare nature of vaccine products.

  The state supports basic and applied research on vaccines, promotes vaccine research and innovation, and incorporates vaccine research, production and storage for preventing and controlling major diseases into the national strategy.

  The state formulates development plans and industrial policies for the vaccine industry, supports the development and structural optimization of the vaccine industry, encourages large-scale and intensive vaccine production, and continuously improves the vaccine production technology and quality level.

  Article 5 The holder of a vaccine marketing license shall strengthen the quality management of the vaccine throughout its life cycle and be responsible for the safety, effectiveness and quality controllability of the vaccine.

  Units and individuals engaged in vaccine development, production, circulation and vaccination activities shall abide by laws, regulations, rules, standards and norms, ensure that the information in the whole process is true, accurate, complete and traceable, assume responsibilities according to law and accept social supervision.

  Article 6 The State implements an immunization planning system.

  Residents living in China have the right to vaccinate the EPI according to law and fulfill the obligation to vaccinate the EPI. The government provides free immunization program vaccines to residents.

  The people’s governments at or above the county level and their relevant departments shall ensure that school-age children are vaccinated with immunization programs. The guardian shall ensure that school-age children are vaccinated with EPI vaccine on time according to law.

  Article 7 The people’s governments at or above the county level shall incorporate vaccine safety and vaccination into the national economic and social development plan at the corresponding level, strengthen the capacity building of vaccine supervision and management, and establish and improve the working mechanism of vaccine supervision and management.

  The local people’s governments at or above the county level shall be responsible for the supervision and administration of vaccines in their respective administrative areas, and uniformly lead, organize and coordinate the supervision and administration of vaccines in their respective administrative areas.

  Article 8 The drug supervision and administration department of the State Council is responsible for the supervision and administration of vaccines throughout the country. The competent department of health in the State Council is responsible for the supervision and management of national vaccination. Other relevant departments in the State Council are responsible for the supervision and management related to vaccines within their respective responsibilities.

  The pharmaceutical supervisory and administrative departments of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall be responsible for the supervision and administration of vaccines in their respective administrative areas. The departments responsible for drug supervision and administration of the people’s governments at the municipal and county levels with districts (hereinafter referred to as the drug supervision and administration departments) shall be responsible for the supervision and administration of vaccines in their respective administrative areas. The competent health department of the local people’s government at or above the county level shall be responsible for the supervision and administration of vaccination in this administrative region. Other relevant departments of the local people’s governments at or above the county level shall be responsible for the supervision and administration of vaccines within their respective functions and duties.

  Article 9 the State Council and the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall establish departmental coordination mechanisms to coordinate the work related to vaccine supervision and management, regularly analyze the vaccine safety situation, strengthen vaccine supervision and management, and ensure vaccine supply.

  Article 10 The State implements the whole-course electronic traceability system for vaccines.

  The drug supervision and administration department of the State Council shall, jointly with the health authorities of the State Council, formulate unified standards and norms for vaccine traceability, establish a national collaborative platform for vaccine electronic traceability, and integrate the traceability information of the whole process of vaccine production, circulation and vaccination to realize vaccine traceability.

  The holder of the vaccine marketing license shall establish a vaccine electronic traceability system, which is connected with the national vaccine electronic traceability collaborative platform, so as to realize the traceability and verifiability of the vaccine in the smallest packaging unit in the whole process of production, circulation and vaccination.

  Disease prevention and control institutions and vaccination units shall truthfully record vaccine circulation and vaccination according to law, and provide traceability information to the national vaccine electronic traceability collaborative platform in accordance with regulations.

  Article 11 In the process of vaccine development, production and inspection, we should establish and improve the biosafety management system, strictly control biosafety risks, strengthen biosafety management of pathogenic microorganisms such as bacterial strains, protect the health of operators and the public, and ensure that the use of pathogenic microorganisms such as bacterial strains is legal and legitimate.

  The history, biological characteristics and generations of bacterial strains and cell strains used in vaccine development, production and inspection shall be clearly defined, and detailed files shall be established to ensure that the sources are legal, clear and traceable; Where the source is unknown, it shall not be used.

  Article 12 People’s governments at all levels and their relevant departments, disease prevention and control institutions, vaccination units, vaccine marketing license holders and vaccine industry associations shall regularly carry out publicity, education and popularization of vaccine safety laws, regulations and vaccination knowledge through activities such as National Children’s Vaccination Day.

  The news media should carry out public welfare publicity on vaccine safety laws, regulations and vaccination knowledge, and supervise vaccine violations by public opinion. Publicity and reporting on vaccines should be comprehensive, scientific, objective and fair.

  Thirteenth vaccine industry associations should strengthen industry self-discipline, establish and improve industry norms, promote the construction of industry credit system, guide and urge members to carry out production and operation activities according to law.

Chapter II Vaccine Development and Registration

  Article 14 The state shall, according to the epidemic situation of diseases, the immune status of the population and other factors, formulate relevant research and development plans, arrange necessary funds, and support the research and development of new vaccines such as multiple vaccines and multiple vaccines.

  The state organizes vaccine marketing license holders, scientific research institutions and medical and health institutions to jointly tackle key problems and develop vaccines urgently needed for disease prevention and control.

  Article 15 The State encourages vaccine marketing license holders to increase investment in research and innovation, optimize production technology, improve quality control level and promote vaccine technology progress.

  Sixteenth to carry out clinical trials of vaccines shall be approved by the drug supervision and administration department of the State Council according to law.

  Clinical trials of vaccines shall be carried out or organized by tertiary medical institutions or disease prevention and control institutions at or above the provincial level that meet the requirements set by the drug supervision and administration department of the State Council and the health authorities of the State Council.

  The state encourages qualified medical institutions and disease prevention and control institutions to carry out clinical trials of vaccines according to law.

  Article 17 An applicant for a vaccine clinical trial shall formulate a clinical trial plan, establish a clinical trial safety monitoring and evaluation system, carefully select the subjects, reasonably set the subjects’ groups and age groups, and take effective measures according to the degree of risk to protect the legitimate rights and interests of the subjects.

  Eighteenth to carry out clinical trials of vaccines, the written informed consent of the subjects shall be obtained; If the subject is a person without civil capacity, he shall obtain the written informed consent of his guardian; If the subject is a person with limited capacity for civil conduct, he shall obtain the written informed consent of himself and his guardian.

  Nineteenth vaccines listed in China shall be approved by the drug supervision and administration department of the State Council and obtain the drug registration certificate; To apply for vaccine registration, true, sufficient and reliable data, materials and samples shall be provided.

  The State Council pharmaceutical supervisory and administrative department shall give priority to the review and approval of vaccines and innovative vaccines urgently needed for disease prevention and control.

  Twentieth to deal with major public health emergencies in urgent need of vaccines or other vaccines identified by the health authorities in the State Council, the benefits outweigh the risks, the drug supervision and administration department of the State Council can conditionally approve the application for vaccine registration.

  In case of particularly serious public health emergencies or other emergencies that seriously threaten public health, the health authorities in the State Council put forward suggestions for emergency use of vaccines according to the needs of prevention and control of infectious diseases, which can be used urgently within a certain scope and time limit with the consent of the drug supervision and administration department in the State Council.

  Twenty-first the State Council pharmaceutical supervisory and administrative departments shall, when approving the application for vaccine registration, approve the production technology, quality control standards, instructions and labels of the vaccine.

  The drug supervision and administration department of the State Council shall timely publish the contents of vaccine instructions and labels on its website.

Chapter III Vaccine Production and Batch Issuance

  Article 22 The State implements a strict access system for vaccine production.

  To engage in vaccine production activities, it shall be approved by the pharmaceutical supervisory and administrative department of the people’s government at or above the provincial level and obtain a pharmaceutical production license.

  To engage in vaccine production activities, in addition to meeting the requirements of drug production activities stipulated in the Drug Administration Law of People’s Republic of China (PRC), the following conditions shall also be met:

  (1) Having a moderate scale and sufficient production capacity reserve;

  (2) Having systems, facilities and equipment to ensure biological safety;

  (3) meeting the needs of disease prevention and control.

  The holder of the vaccine marketing license shall have the vaccine production capacity; If it is really necessary to entrust production beyond the vaccine production capacity, it shall be approved by the drug supervision and administration department of the State Council. Those who accept commissioned production shall abide by the provisions of this law and the relevant provisions of the state to ensure the quality of vaccines.

  Article 23 The legal representative and principal responsible person of the vaccine marketing license holder shall have a good credit record, and the personnel in key positions such as the person in charge of production management, the person in charge of quality management and the person authorized by quality shall have relevant professional background and working experience.

  The holder of the vaccine marketing license shall strengthen the training and assessment of the personnel specified in the preceding paragraph, and report their positions and changes to the pharmaceutical supervisory and administrative departments of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government in a timely manner.

  Article 24 Vaccines shall be produced and inspected according to the approved production technology and quality control standards, and the whole production process shall meet the requirements of good manufacturing practice.

  The holder of the vaccine marketing license shall, in accordance with the provisions, review and inspect the whole process of vaccine production and vaccine quality.

  Article 25 The holder of vaccine marketing license shall establish a complete production quality management system, continuously strengthen deviation management, and truthfully record all data formed in the production and inspection process by means of information technology to ensure that the whole production process continues to meet the statutory requirements.

  Article 26 The State implements the system of batch issuance of vaccines.

  Before each batch of vaccine is sold or imported, it shall be audited and tested by the batch issuing agency designated by the drug supervision and administration department of the State Council in accordance with the relevant technical requirements. If it meets the requirements, a batch issuance certificate will be issued; Do not meet the requirements, issued a notice of disapproval.

  Vaccines that are not issued in batches shall not be sold, and shall be destroyed under the supervision of the pharmaceutical supervisory and administrative departments of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government; The imported vaccines that are not issued in batches shall be destroyed under the supervision of the drug supervision and administration department at the port location or otherwise handled according to law.

  The State Council pharmaceutical supervisory and administrative departments and batch issuing institutions shall publish the batch issuing results of listed vaccines in time for public inquiry.

  Article 27 To apply for batch issuance of vaccines, the batch issuing institution shall be provided with the batch production and inspection records, abstracts and other materials, and samples of products with the same batch number. Imported vaccines shall also provide certificates of origin and batch issuance; In case of exemption from batch issuance in the country of origin, a certificate of exemption from batch issuance shall be provided.

  Twenty-eighth to prevent and control the epidemic situation of infectious diseases or to deal with emergencies, the vaccine is approved by the drug supervision and administration department of the State Council, and is exempted from batch issuance.

  Twenty-ninth batches of vaccines should be issued batch by batch for data review and sampling inspection. The inspection items and inspection frequency of vaccine batch issuance shall be dynamically adjusted according to the risk assessment of vaccine quality.

  If there are doubts about the authenticity of the application materials or samples for vaccine batch issuance, or there are other situations that need further verification, the batch issuing institution shall verify them, and if necessary, organize on-site verification by means of on-site sampling inspection.

  Thirtieth batch issuing institutions found that there are significant quality risks in the process of batch issuance of vaccines, it shall promptly report to the pharmaceutical supervisory and administrative departments of the State Council and the people’s governments of provinces, autonomous regions and municipalities directly under the central government.

  The department that receives the report shall immediately conduct on-site inspection on the vaccine marketing license holder, notify the batch issuing institution not to approve or suspend the batch issuance of the relevant products or all products of the vaccine marketing license holder according to the inspection results, and order the vaccine marketing license holder to rectify. The holder of the vaccine marketing license shall immediately rectify and report the rectification to the department that ordered it to rectify in time.

  Article 31 The holder of the vaccine marketing license shall truthfully record the production process deviation, quality difference, faults and accidents in the production process and the measures taken, and specify them in the documents issued by the corresponding batch of products; If the quality of the vaccine may be affected, the holder of the vaccine marketing license shall take immediate measures and report to the pharmaceutical supervisory and administrative departments of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government.

Chapter IV Vaccine Circulation

  Article 32 The national immunization program vaccine shall be subject to centralized bidding or unified negotiation by the competent health department of the State Council in conjunction with the financial department of the State Council, and the winning bid price or transaction price shall be formed and announced, and all provinces, autonomous regions and municipalities directly under the Central Government shall implement unified procurement.

  Other EPI vaccines and non-EPI vaccines other than the national EPI vaccines are purchased by provinces, autonomous regions and municipalities directly under the Central Government through provincial public resource trading platforms.

  Article 33 The price of vaccine shall be set by the holder of vaccine marketing license independently and reasonably according to law. The price level, price difference rate and profit rate of vaccines should be kept within a reasonable range.

  Article 34 Provincial institutions for disease prevention and control shall, according to the national immunization program and the needs of disease prevention and control in their respective administrative areas, formulate plans for vaccine use in immunization programs in their respective administrative areas, and report to the departments that organize vaccine procurement in accordance with the relevant provisions of the state, and at the same time report to the health authorities of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government for the record.

  Thirty-fifth vaccine marketing license holders should supply vaccines to disease prevention and control institutions in accordance with the procurement contract.

  Disease prevention and control institutions shall supply vaccines to vaccination units in accordance with regulations.

  Units and individuals other than disease prevention and control institutions shall not supply vaccines to vaccination units, and vaccination units shall not receive the vaccines.

  Article 36 The holder of the vaccine marketing license shall distribute the vaccine to the disease prevention and control institution or the inoculation unit designated by the disease prevention and control institution in accordance with the purchase contract.

  Vaccine marketing license holders and disease prevention and control institutions shall have the conditions for cold chain storage and transportation of vaccines, and may also entrust qualified vaccine distribution units to distribute vaccines.

  Disease prevention and control institutions can charge storage and transportation fees for the distribution of non-immunization-planned vaccines. The specific measures shall be formulated by the financial department of the State Council in conjunction with the competent price department of the State Council, and the charging standards shall be formulated by the competent price department of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government in conjunction with the financial department.

  Thirty-seventh disease prevention and control institutions, vaccination units, vaccine marketing license holders and vaccine distribution units shall abide by the management norms of vaccine storage and transportation to ensure the quality of vaccines.

  Vaccines should be in the specified temperature environment during the whole process of storage and transportation, and the cold chain storage and transportation should meet the requirements, and the temperature should be monitored and recorded regularly.

  The management standards for vaccine storage and transportation are jointly formulated by the drug supervision and administration department of the State Council and the health department of the State Council.

  Article 38 When selling vaccines, the holder of the vaccine marketing license shall provide a copy of the batch issuance certificate or an electronic document stamped with his seal; Sales of imported vaccines, should also provide a copy of the customs clearance form for imported drugs or electronic documents stamped with its seal.

  Disease prevention and control institutions and vaccination units shall, when receiving or purchasing vaccines, obtain the supporting documents specified in the preceding paragraph and keep them for future reference for not less than five years after the expiration of the vaccine.

  Article 39 The holder of the vaccine marketing license shall, in accordance with the regulations, establish a true, accurate and complete sales record and keep it for future reference for not less than five years after the expiration of the vaccine.

  Disease prevention and control institutions, vaccination units and vaccine distribution units shall, in accordance with regulations, establish true, accurate and complete records of receipt, purchase, storage, distribution and supply, and keep them for future reference for not less than five years after the expiration of the vaccine.

  When the disease prevention and control institutions and inoculation units receive or purchase vaccines, they shall obtain the temperature monitoring records of the whole process of transportation and storage, and keep them for future reference for not less than five years after the expiration of the vaccine; If the temperature monitoring records of the whole transportation and storage process cannot be provided or the temperature control does not meet the requirements, it shall not be accepted or purchased, and it shall immediately report to the pharmaceutical supervisory and administrative department and the health department of the local people’s government at or above the county level.

  Article 40 Disease prevention and control institutions and inoculation entities shall establish a system of regular inspection of vaccines, and take measures such as isolated storage and setting warning signs for vaccines with unrecognizable packaging, unqualified storage temperature, and expiration date, and dispose of them in accordance with the provisions of the State Council drug supervision and administration department, health department and ecological environment department. Disease prevention and control institutions and vaccination units shall truthfully record the disposal situation, and the disposal records shall be kept for future reference for not less than five years after the expiration of the vaccine.

Chapter V Vaccination

  Forty-first the State Council health authorities to develop a national immunization program; The types of vaccines under the National Immunization Program shall be drawn up by the competent health department of the State Council in conjunction with the financial department of the State Council, and published after being approved by the State Council.

  The competent department of health in the State Council established the national immunization program expert advisory committee, and established the dynamic adjustment mechanism of vaccine types in the national immunization program together with the financial department of the State Council.

  The people’s governments of provinces, autonomous regions and municipalities directly under the Central Government may, when implementing the national immunization program, increase the types of vaccines for immunization programs according to the needs of disease prevention and control in their respective administrative areas, and report them to the health authorities in the State Council for the record and publication.

  Forty-second the State Council health authorities should formulate and publish vaccination work norms, and strengthen the standardized management of vaccination.

  The competent department of health in the State Council shall formulate and publish the immunization procedures of the national immunization program vaccine and the guiding principles for the use of the non-immunization program vaccine.

  The competent health authorities of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall formulate vaccination plans in light of the actual conditions of their respective administrative regions and report them to the competent health authorities of the State Council for the record.

  Forty-third disease prevention and control institutions at all levels shall, according to their respective responsibilities, carry out publicity, training, technical guidance, monitoring, evaluation, epidemiological investigation and emergency response related to vaccination.

  Article 44 An inoculation entity shall meet the following conditions:

  (1) Obtaining the practice license of a medical institution;

  (2) Having doctors, nurses or rural doctors who have received professional vaccination training organized by the health authorities of the people’s government at the county level and passed the examination;

  (3) Having cold storage facilities, equipment and a cold storage system that meet the management standards for vaccine storage and transportation.

  The competent health department of the local people’s government at or above the county level shall designate qualified medical institutions to undertake the immunization program vaccination work in the responsible area. Eligible medical institutions can undertake non-immunization vaccination work, and shall report to the competent health department that issued the practice license of their medical institutions for the record.

  Vaccination units should strengthen internal management, and carry out vaccination work should abide by vaccination work norms, immunization procedures, vaccine use guidelines and vaccination programs.

  Disease prevention and control institutions at all levels shall strengthen the technical guidance on vaccination work of vaccination units and the management of vaccine use.

  Article 45 When carrying out vaccination, medical and health personnel shall inform the recipients or their guardians of the varieties, functions, contraindications, adverse reactions, on-site observation and other matters needing attention, inquire about the health status of the recipients and whether there are any contraindications to vaccination, and record the information truthfully. The recipient or his guardian shall truthfully provide the health status and vaccination contraindications of the recipient. If vaccination is forbidden, medical and health personnel shall give medical advice to the recipient or his guardian, and truthfully record the medical advice.

  Before vaccination, medical and health personnel should check the health status of the recipients, check the vaccination contraindications, check the vaccination certificate, check the appearance, batch number and expiration date of the vaccine and syringe, check the name and age of the recipients and the name, specification, dosage, vaccination site and vaccination route of the vaccine, and ensure that the recipients, vaccination certificate and vaccine information are consistent before vaccination can be implemented.

  Medical and health personnel shall vaccinate the recipients who meet the vaccination conditions. In case of adverse reactions of the seed recipients during the on-site observation, medical and health personnel shall take timely treatment and other measures in accordance with the requirements of vaccination work norms.

  Article 46 Medical and health personnel shall truthfully, accurately and completely record the vaccination information such as the vaccine variety, the identification information of the marketing license holder, the smallest packaging unit, the expiration date, the vaccination time, the medical and health personnel who carried out the vaccination, the recipients, etc. in accordance with the regulations of the health authorities in the State Council, so as to ensure that the vaccination information can be traced and inquired. Vaccination records shall be kept for no less than five years after the expiration of the vaccine.

  Article 47 The state practices a vaccination certificate system for children. Within one month after a child is born, his guardian shall apply for a vaccination certificate at the vaccination unit or the birth hospital where the child lives. The vaccination unit or the hospital of birth shall not refuse to handle it. The guardian shall properly keep the vaccination certificate.

  Vaccination shall be administered by the place of residence. During the period when children leave their original place of residence, the vaccination unit undertaking vaccination at the current place of residence shall be responsible for vaccination.

  The format of vaccination certificate shall be stipulated by the competent health department of the State Council.

  Article 48 When children enter kindergartens and schools, nursery institutions and schools should check their vaccination certificates. If they find that they have not been vaccinated in accordance with the regulations, they should report to the vaccination unit where the children live or where the nursery institutions and schools are located, and cooperate with the vaccination unit to urge their guardians to replant in accordance with the regulations. Disease prevention and control institutions shall provide technical guidance for kindergartens and schools to check vaccination certificates.

  Measures for the inspection of children’s nursery and school vaccination certificates shall be formulated by the competent department of health of the State Council in conjunction with the administrative department of education of the State Council.

  Forty-ninth vaccination units shall not charge any fees for vaccination.

  Inoculation units can charge vaccination service fees in addition to vaccine fees for non-immunization programs. The charging standards for vaccination service fees shall be formulated by the competent price departments of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government in conjunction with the financial departments.

  Article 50 The competent health department of the local people’s government at or above the county level may, according to the information of infectious disease monitoring and early warning, report to the people’s government at the corresponding level for decision and report to the competent health department of the people’s government at or above the provincial level for the record, and carry out mass vaccination in the administrative area.

  If it is necessary to carry out mass vaccination nationwide or across provinces, autonomous regions and municipalities directly under the Central Government, it shall be decided by the health authorities in the State Council.

  The local people’s government at or above the county level or the competent department of health in the State Council, which has made the decision on mass vaccination, shall organize the relevant departments to do a good job in personnel training, publicity and education, and material mobilization.

  No unit or individual may carry out mass vaccination without authorization.

  Article 51 If the local people’s governments at or above the county level or their health authorities need to take emergency vaccination measures during the outbreak and epidemic of infectious diseases, it shall be implemented in accordance with the provisions of laws and administrative regulations.

Chapter VI Monitoring and Handling of Abnormal Reaction

  Article 52 The term "abnormal reaction to vaccination" refers to the adverse drug reaction that a qualified vaccine causes damage to the tissues, organs and functions of the recipient during or after the implementation of standardized vaccination, and all parties concerned are not at fault.

  The following situations do not belong to the abnormal reaction of vaccination:

  (a) the general reaction after vaccination caused by the characteristics of the vaccine itself;

  (2) Damage caused to the recipients due to vaccine quality problems;

  (three) the damage caused to the recipients by the vaccination unit’s violation of the vaccination work norms, immunization procedures, guiding principles for vaccine use, and vaccination programs;

  (four) the recipient is in the incubation period or precursor period of a disease at the time of inoculation, and the disease is coupled after inoculation;

  (5) The recipient has vaccination contraindications specified in the vaccine instructions, and the recipient or his guardian failed to truthfully provide the health status and vaccination contraindications of the recipient before vaccination, and the original disease of the recipient has an acute recurrence or aggravation after vaccination;

  (6) Psychogenic reactions of individuals or groups due to psychological factors.

  Article 53 The State shall strengthen the monitoring of abnormal reactions to vaccination. The monitoring plan for abnormal reaction of vaccination shall be formulated by the competent health department of the State Council in conjunction with the drug supervision and administration department of the State Council.

  Fifty-fourth vaccination units, medical institutions and other suspected abnormal reactions to vaccination shall report to the disease prevention and control institutions in accordance with regulations.

  The holder of the vaccine marketing license shall set up a special institution with full-time staff to actively collect, track and analyze the suspected abnormal vaccination reactions, take timely risk control measures, report the suspected abnormal vaccination reactions to the disease prevention and control institutions, and submit the quality analysis report to the pharmaceutical supervisory and administrative departments of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government.

  Article 55 In case of suspected abnormal reaction to vaccination, the disease prevention and control institutions shall report it in time according to the regulations, organize investigation and diagnosis, and inform the recipients or their guardians of the conclusions of the investigation and diagnosis. If the conclusion of the investigation and diagnosis is controversial, you can apply for appraisal according to the appraisal method formulated by the competent department of health in the State Council.

  Due to vaccination, the recipient dies, is severely disabled, or has a significant impact on the society, such as group suspected vaccination abnormal reaction. The competent health department and drug supervision and administration department of the people’s government at or above the municipal level with districts shall, according to their respective functions and duties, organize investigation and handling.

  Article 56 The state practices a compensation system for abnormal reactions to vaccination. In the process of vaccination or after vaccination, the recipient’s death, serious disability, organ and tissue damage and other damages are abnormal reactions to vaccination or cannot be ruled out, and compensation should be given. The scope of compensation shall be managed by catalogue and dynamically adjusted according to the actual situation.

  The compensation expenses required for immunization planning vaccine shall be arranged by the financial departments of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government in the vaccination funds; The compensation expenses required for vaccination of non-EPI vaccines shall be borne by the holders of relevant vaccine marketing licenses. The state encourages people who have received abnormal vaccination to be compensated through commercial insurance and other forms.

  Compensation for abnormal reaction of vaccination should be timely, convenient and reasonable. The scope, standards and procedures of compensation for abnormal reaction of vaccination shall be stipulated by the State Council, and the provinces, autonomous regions and municipalities directly under the Central Government shall formulate specific implementation measures.

Chapter VII Post-marketing Management of Vaccines

  Article 57 The holder of the vaccine marketing license shall establish and improve the quality management system of the whole life cycle of the vaccine, formulate and implement the post-marketing risk management plan of the vaccine, conduct post-marketing research of the vaccine, and further confirm the safety, effectiveness and quality controllability of the vaccine.

  For vaccines that require further research when approving the application for vaccine registration, the vaccine marketing license holder shall complete the research within the prescribed time limit; If the research is not completed within the time limit or it cannot be proved that the benefits outweigh the risks, the drug supervision and administration department of the State Council shall handle it according to law until the drug registration certificate of the vaccine is cancelled.

  Fifty-eighth vaccine marketing license holders should carry out quality tracking analysis of vaccines, continuously improve quality control standards, improve production processes, and improve the stability of production processes.

  If the production process, production site and key equipment are changed, it shall be evaluated and verified, and filed or reported in accordance with the provisions of the drug supervision and administration department of the State Council on change management; Changes that may affect the safety, effectiveness and quality controllability of vaccines shall be approved by the drug supervision and administration department of the State Council.

  Article 59 The holder of a vaccine marketing license shall continuously update the instructions and labels according to the post-marketing research and abnormal reaction of vaccination, and apply for approval or filing in accordance with regulations.

  The State Council drug supervision and administration department shall publish the updated vaccine instructions and labels on its website in time.

  Article 60 The holder of a vaccine marketing license shall establish a system of retrospective analysis and risk reporting of vaccine quality, and truthfully report the production and circulation of vaccine, post-marketing research and risk management to the drug supervision and administration department of the State Council every year according to regulations.

  Article 61 The drug supervision and administration department of the State Council may, according to the actual situation, order the holder of vaccine marketing license to carry out post-marketing evaluation or directly organize post-marketing evaluation.

  The drug supervision and administration department of the State Council shall cancel the drug registration certificate of the vaccine that has a serious abnormal reaction to vaccination or is harmful to human health for other reasons.

  Article 62 The pharmaceutical supervisory and administrative department of the State Council may, according to the needs of disease prevention and control and the development of vaccine industry, organize post-marketing evaluation of vaccine varieties. If it is found that the product design, production process, safety, effectiveness or quality controllability of this vaccine variety are obviously inferior to other vaccine varieties for preventing and controlling the same disease, it shall cancel the drug registration certificates of all vaccines of this variety and abolish the corresponding national drug standards.

Chapter VIII Safeguard Measures

  Sixty-third people’s governments at or above the county level shall include the funds needed for vaccine safety, purchase of planned vaccines for immunization, vaccination and information construction in the government budget at the corresponding level to ensure the implementation of the immunization planning system.

  The people’s government at the county level shall, in accordance with the relevant provisions of the state, grant subsidies to rural doctors and other primary medical and health personnel engaged in vaccination work.

  The state supports vaccination work in economically underdeveloped areas according to needs. The people’s governments of provinces, autonomous regions and municipalities directly under the Central Government and the people’s governments at the municipal level divided into districts shall give necessary financial subsidies to the people’s governments at the county level in economically underdeveloped areas to carry out the work related to vaccination.

  Article 64 The people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall, according to the epidemic trend of infectious diseases in their respective administrative areas, determine the projects related to vaccination within the scope of infectious disease prevention and control projects determined by the health authorities in the State Council, and ensure the implementation of the projects.

  Article 65 The competent health authorities of the State Council shall provide the vaccine marketing license holders with information on the vaccine demand of the national immunization program according to the vaccine use plans of the national immunization programs of all provinces, autonomous regions and municipalities directly under the Central Government, and the vaccine marketing license holders shall make reasonable arrangements for production according to the vaccine demand information.

  When there is a risk of vaccine supply shortage, the health authorities in the State Council and the drug supervision and administration departments in the State Council put forward suggestions, and the departments in charge of industry and information technology in the State Council and the finance department in the State Council should take effective measures to ensure vaccine production and supply.

  The holder of vaccine marketing license shall organize production according to law to ensure vaccine supply; If the holder of the vaccine marketing license stops vaccine production, it shall report to the drug supervision and administration department of the State Council or the drug supervision and administration department of the people’s government of a province, autonomous region or municipality directly under the Central Government in time.

  Article 66 The State shall include vaccines in the strategic material reserve, and implement the reserve at the central and provincial levels.

  The competent department of industry and information technology in the State Council and the financial department shall, jointly with the health authorities, public security departments, market supervision and management departments and drug supervision and management departments in the State Council, strengthen the production capacity and product management of vaccine reserves and establish a dynamic adjustment mechanism according to the needs of disease prevention, control and public health emergency preparedness.

  Sixty-seventh financial arrangements at all levels for vaccination funds should be earmarked, and no unit or individual may misappropriate or occupy them.

  The relevant units and individuals shall accept the audit supervision of audit institutions in accordance with the law when using the funds for vaccination.

  Article 68 The State implements a compulsory vaccine liability insurance system.

  The holder of the vaccine marketing license shall take out compulsory vaccine liability insurance in accordance with the regulations. If the vaccine quality problem causes damage to the recipient, the insurance company shall pay compensation within the insured liability limit.

  The specific measures for the implementation of the compulsory vaccine liability insurance system shall be formulated by the drug supervision and administration department of the State Council in conjunction with the health authorities of the State Council and the insurance supervision and administration institutions.

  Article 69 When an infectious disease breaks out and is prevalent, the holder of the relevant vaccine marketing license shall timely produce and supply vaccines for preventing and controlling infectious diseases. Transportation units should give priority to the transportation of vaccines for the prevention and control of infectious diseases. The people’s governments at or above the county level and their relevant departments shall do a good job in organization, coordination and guarantee.

Chapter IX Supervision and Administration

  Article 70 The drug supervision and administration department and the competent health department shall, according to their respective functions and duties, supervise and manage the whole process of vaccine development, production, circulation and vaccination, and supervise the holders of vaccine marketing license, disease prevention and control institutions and vaccination units to perform their obligations according to law.

  The pharmaceutical supervisory and administrative departments shall supervise and inspect the quality of vaccines in vaccine development, production, storage, transportation and vaccination according to law. Health authorities shall supervise and inspect the implementation of immunization planning system and vaccination activities according to law.

  The drug supervision and administration department shall strengthen the on-site inspection of vaccine marketing license holders; When necessary, units and individuals that provide products or services for vaccine development, production, circulation and other activities may be subject to extended inspection; The relevant units and individuals shall cooperate and shall not refuse or conceal.

  Article 71 The state builds a team of professional and specialized drug inspectors at the central and provincial levels, and strengthens the supervision and inspection of vaccines.

  The pharmaceutical supervisory and administrative departments of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall send inspectors to the holders of vaccine marketing licenses. Inspectors are responsible for supervising and inspecting the implementation of good manufacturing practice, collecting clues about vaccine quality risks and violations of laws and regulations, reporting the situation to the pharmaceutical supervisory and administrative departments of the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government and making suggestions, and being responsible for the behavior during their stationing.

  Article 72 If there are potential safety hazards in vaccine quality management, and the holder of vaccine marketing license fails to take timely measures to eliminate them, the pharmaceutical supervisory and administrative department may take measures such as responsibility interview and rectification within a time limit.

  Serious violation of drug-related quality management norms, the drug supervision and administration department shall order the suspension of vaccine production, sales and distribution, and immediately rectify; After the rectification is completed, production, sales and distribution can only be resumed if the drug supervision and administration department checks that it meets the requirements.

  The drug supervision and administration department shall establish a credit record system for vaccine marketing license holders and their related personnel, incorporate it into the national credit information sharing platform, publicize their serious dishonesty information in accordance with the regulations, and implement joint punishment.

  Article 73 If there are or are suspected to be quality problems with vaccines, the vaccine marketing license holders, disease prevention and control institutions and inoculation entities shall immediately stop selling, distributing and using, and stop production if necessary, and report to the pharmaceutical supervisory and administrative departments and health authorities of the people’s governments at or above the county level in accordance with regulations. The competent health department shall immediately organize disease prevention and control institutions and inoculation units to take necessary emergency measures and report to the competent health department of the people’s government at a higher level. The pharmaceutical supervisory and administrative department shall take measures such as sealing up and detaining according to law. For vaccines that have been sold, the holder of the vaccine marketing license shall promptly notify the relevant disease prevention and control institutions, vaccine distribution units and inoculation units, recall them in accordance with regulations, and truthfully record the recall and notification, and the disease prevention and control institutions, vaccine distribution units and inoculation units shall cooperate.

  If the production, sale, distribution, use or recall of vaccines are not stopped in accordance with the provisions of the preceding paragraph, the pharmaceutical supervisory and administrative departments and health authorities of the people’s governments at or above the county level shall, according to their respective functions and duties, order them to stop production, sale, distribution, use or recall of vaccines.

  Vaccine marketing license holders, disease prevention and control institutions, and vaccination units shall not conceal, falsely report, delay reporting or omit reporting vaccines that have or are suspected to have quality problems, and shall not conceal, forge or destroy relevant evidence.

  Article 74 The holder of a vaccine marketing license shall establish an information disclosure system, and timely disclose information such as vaccine product information, instructions and labels, implementation of relevant quality management standards for drugs, batch issuance, recall, acceptance of inspection and punishment, and compulsory insurance for vaccine liability on its website in accordance with regulations.

  Article 75 The drug supervision and administration department of the State Council shall establish an information sharing mechanism on vaccine quality and vaccination together with the health authorities of the State Council.

  The pharmaceutical supervisory and administrative departments and health authorities of the people’s governments at or above the provincial level shall organize vaccine marketing license holders, disease prevention and control institutions, vaccination units, news media, scientific research units, etc. to exchange information on vaccine quality and vaccination in accordance with the principles of science, objectivity, timeliness and openness.

  Article 76 The State implements a unified system for publishing vaccine safety information.

  Vaccine safety risk warning information, major vaccine safety accidents and their investigation and handling information, and other vaccine safety information determined by the State Council that needs to be published uniformly shall be published by the drug supervision and administration department of the State Council jointly with relevant departments. The national report on the abnormal reaction to vaccination shall be uniformly published by the competent health department of the State Council in conjunction with the drug supervision and administration department of the State Council. The above information shall not be released without authorization. The release of major vaccine safety information should be timely, accurate and comprehensive, and scientific evaluation should be made in accordance with the provisions, and necessary explanations should be made.

  The pharmaceutical supervisory and administrative department of the people’s government at or above the county level shall immediately verify and analyze the vaccine safety information that may mislead the public and public opinion, in conjunction with the health authorities and other relevant departments, professional institutions and relevant vaccine marketing license holders, and publish the results in a timely manner.

  No unit or individual may fabricate or disseminate false vaccine safety information.

  Article 77 Any unit or individual has the right to know vaccine information according to law and put forward opinions and suggestions on vaccine supervision and management.

  Any unit or individual has the right to report vaccine violations to the health authorities, drug supervision and administration departments and other departments, and to report to the people’s government at the same level or higher level and its relevant departments and supervisory organs if the health authorities, drug supervision and administration departments and their staff fail to perform their supervisory and administrative duties according to law. The relevant departments and organs shall promptly verify and deal with it; Reward informants for verified reports in accordance with regulations; Informants who report serious illegal acts of their units and verify them are rewarded handsomely.

  Article 78 The people’s governments at or above the county level shall formulate emergency plans for vaccine safety incidents, and stipulate the classification of vaccine safety incidents, the organization and command system and responsibilities for handling, the prevention and early warning mechanism, the handling procedures and emergency safeguard measures.

  The holder of the vaccine marketing license shall formulate a plan for handling vaccine safety incidents, regularly check the implementation of various preventive measures, and eliminate potential safety hazards in time.

  In the event of a vaccine safety incident, the holder of the vaccine marketing license shall immediately report to the drug supervision and administration department of the State Council or the drug supervision and administration department of the people’s government of a province, autonomous region or municipality directly under the Central Government; Disease prevention and control institutions, vaccination units and medical institutions shall immediately report to the health authorities and drug supervision and administration departments of the people’s governments at or above the county level. The pharmaceutical supervisory and administrative department shall, jointly with the health authorities, set up a command organization for handling vaccine safety incidents in accordance with the provisions of the emergency plan, carry out medical treatment, risk control, investigation and handling, information release, explanation and other work, and do a good job in the aftermath of replanting. The cost of replanting vaccine safety incidents caused by quality problems shall be borne by the holder of vaccine marketing license.

  The relevant units and individuals shall not conceal, falsely report, delay reporting or omit reporting vaccine safety incidents, and shall not conceal, forge or destroy relevant evidence.

Chapter X Legal Liability

  Article 79 Whoever violates the provisions of this Law and constitutes a crime shall be severely investigated for criminal responsibility according to law.

  Article 80 If the vaccines produced and sold belong to counterfeit drugs, the pharmaceutical supervisory and administrative department of the people’s government at or above the provincial level shall confiscate the illegal income, vaccines produced and sold illegally, raw materials, auxiliary materials, packaging materials, equipment and other articles specially used for illegal vaccine production, order it to stop production and business for rectification, revoke the pharmaceutical registration certificate until the pharmaceutical production license is revoked, and impose a fine of not less than 15 times but not more than 50 times the value of vaccines produced and sold illegally. If the value of vaccines is less than 500,000 yuan, it shall be calculated as 500,000 yuan.

  If the vaccines produced and sold are inferior drugs, the pharmaceutical supervisory and administrative department of the people’s government at or above the provincial level shall confiscate the illegal income and vaccines produced and sold illegally, as well as raw materials, auxiliary materials, packaging materials, equipment and other items specially used for illegal vaccine production, order it to stop production and business for rectification, and impose a fine of not less than 10 times but not more than 30 times the value of vaccines produced and sold illegally. If the value is less than 500,000 yuan, it shall be calculated as 500,000 yuan. If the circumstances are serious, the drug registration certificate shall be revoked until the drug production license is revoked.

  If the vaccines produced and sold are fake drugs, or the vaccines produced and sold are inferior drugs and the circumstances are serious, the pharmaceutical supervisory and administrative department of the people’s government at or above the provincial level shall confiscate the income earned by the unit during the illegal act, impose a fine of more than one time and less than ten times the income earned, prohibit the pharmaceutical production and business activities for life, and be detained by the public security organ for more than five days and less than fifteen days.

  Article 81 Under any of the following circumstances, the pharmaceutical supervisory and administrative department of the people’s government at or above the provincial level shall confiscate the illegal income and vaccines illegally produced and sold, as well as raw materials, auxiliary materials, packaging materials, equipment and other articles specially used for illegal vaccine production, order it to stop production and business for rectification, and impose a fine of not less than 15 times but not more than 50 times the value of illegally produced and sold vaccines. If the value is less than 500,000 yuan, it shall be calculated as 500,000 yuan; If the circumstances are serious, the relevant drug approval documents shall be revoked until the drug production license is revoked. The legal representative, principal responsible person, directly responsible person in charge, key position personnel and other responsible personnel shall be confiscated, and they shall be fined more than 50% but less than 10 times of the income earned. They shall be prohibited from engaging in drug production and business activities for ten years until life, and shall be detained by public security organs for more than five days and less than fifteen days:

  (1) Providing false data, materials, samples or committing other deceptive acts when applying for clinical trials, registration and batch issuance of vaccines;

  (two) fabricating production and inspection records or changing the batch number of products;

  (3) Units or individuals other than disease prevention and control institutions supply vaccines to vaccination units;

  (four) commissioned the production of vaccines without approval;

  (five) the production process, production site, key equipment and other changes in accordance with the provisions should be approved without approval;

  (6) Updating vaccine instructions and labels shall be approved without approval according to regulations.

  Article 82 Unless otherwise provided for in this Law, if the holder of vaccine marketing license or any other unit violates the relevant quality control standards of drugs, the pharmaceutical supervisory and administrative department of the people’s government at or above the county level shall order it to make corrections and give it a warning; Refuses to correct, a fine of two hundred thousand yuan and five hundred thousand yuan; If the circumstances are serious, a fine of not less than 500,000 yuan but not more than 3 million yuan shall be imposed, and the company shall be ordered to suspend production and business for rectification until the relevant drug approval documents and drug production licenses are revoked. The legal representative, principal responsible person, directly responsible person in charge, personnel in key positions and other responsible personnel shall be confiscated from their own units during the illegal act, and a fine of not less than 50% but not more than 5 times shall be imposed, and they shall be prohibited from engaging in drug production and business activities for ten years until life.

  Article 83 If a holder of a vaccine marketing license violates the provisions of this Law in any of the following circumstances, the pharmaceutical supervisory and administrative department of the people’s government at or above the provincial level shall order him to make corrections and give him a warning; Refuses to correct, a fine of two hundred thousand yuan and five hundred thousand yuan; If the circumstances are serious, it shall be ordered to suspend production and business for rectification, and a fine of not less than 500,000 yuan but not more than 2 million yuan shall be imposed:

  (1) Failing to establish an electronic traceability system for vaccines as required;

  (two) the legal representative, the main person in charge, the person in charge of production management, the person in charge of quality management, the quality authorized person and other key positions do not meet the prescribed conditions or fail to carry out training and assessment in accordance with the provisions;

  (3) Failing to report or put on record as required;

  (4) Failing to carry out post-marketing research in accordance with the regulations, or failing to set up institutions and staff in accordance with the regulations to actively collect, track and analyze suspected abnormal reactions to vaccination;

  (5) Failing to take out compulsory vaccine liability insurance as required;

  (six) the information disclosure system is not established in accordance with the provisions.

  Article 84 If a batch issuing institution violates the provisions of this Law in any of the following circumstances, the drug supervision and administration department of the State Council shall order it to make corrections and give it a warning, and the principal responsible person, the directly responsible person in charge and other directly responsible personnel shall be given a warning according to law until demotion:

  (1) Failing to conduct examination and inspection in accordance with the provisions;

  (2) Failing to announce the results of batch issuance of vaccines on the market in time;

  (3) Failing to verify in accordance with the provisions;

  (4) Failing to report the major quality risks of the vaccine as required.

  If, in violation of the provisions of this Law, the batch issuing institution fails to issue a batch issuing certificate or refuses to issue a batch issuing notice in accordance with the provisions, the drug supervision and administration department of the State Council shall order it to make corrections, give it a warning, and demote or dismiss the principal responsible person, the directly responsible person in charge and other directly responsible personnel according to law; If the circumstances are serious, the principal responsible person, the directly responsible person in charge and other directly responsible personnel shall be dismissed according to law.

  Article 85 If disease prevention and control institutions, inoculation units, vaccine marketing license holders and vaccine distribution units violate the requirements of cold chain storage and transportation in the management norms for vaccine storage and transportation, the pharmaceutical supervisory and administrative department of the people’s government at or above the county level shall order them to make corrections, give them a warning, destroy the illegally stored and transported vaccines and confiscate their illegal income; Refuses to correct, the vaccination units, vaccine marketing license holders, vaccine distribution units at more than two hundred thousand yuan to one million yuan fine; If the circumstances are serious, the vaccination units, vaccine marketing license holders and vaccine distribution units shall be fined for illegally storing and transporting vaccines for more than 10 times and less than 30 times. If the value is less than 100,000 yuan, the vaccine marketing license holders and vaccine distribution units shall be ordered to stop production and suspend business for rectification until the relevant approval documents and drug production licenses are revoked, and the legal representatives, principals and direct responsibilities of the vaccine marketing license holders and vaccine distribution units shall be directly responsible.

  If the disease prevention and control institutions and inoculation units commit illegal acts as prescribed in the preceding paragraph, the competent health department of the people’s government at or above the county level shall give a warning to the main person in charge, the directly responsible person in charge and other directly responsible personnel according to law until they are dismissed, and order the responsible medical and health personnel to suspend their practice activities for more than one year and less than 18 months; If serious consequences are caused, the principal responsible person, the directly responsible person in charge and other directly responsible personnel shall be dismissed according to law, and the inoculation qualification of the inoculation unit may be revoked, and the practice certificate of the responsible medical and health personnel shall be revoked by the original issuing department.

  Article 86 If disease prevention and control institutions, inoculation entities, vaccine marketing license holders and vaccine distribution entities violate the management norms of vaccine storage and transportation other than those specified in Article 85 of this Law, the pharmaceutical supervisory and administrative department of the people’s government at or above the county level shall order them to make corrections, give them a warning and confiscate their illegal income; Refuses to correct, the vaccination units, vaccine marketing license holders, vaccine distribution units at more than one hundred thousand yuan to three hundred thousand yuan fine; If the circumstances are serious, the vaccination unit, vaccine marketing license holder and vaccine distribution unit shall be fined for illegally storing and transporting vaccines with a value of more than three times and less than ten times. If the value is less than 100,000 yuan, it shall be calculated as 100,000 yuan.

  If the disease prevention and control institutions and vaccination units commit illegal acts as prescribed in the preceding paragraph, the health department of the people’s government at or above the county level may give warning to the principal responsible person, the directly responsible person in charge and other directly responsible personnel according to law until dismissal, and order the responsible medical and health personnel to suspend their practice activities for more than six months and less than one year; If serious consequences are caused, the principal responsible person, the directly responsible person in charge and other directly responsible personnel shall be dismissed according to law, and the practice certificate of the responsible medical and health personnel shall be revoked by the original issuing department.

  Article 87 If a disease prevention and control institution or vaccination unit violates the provisions of this Law in any of the following circumstances, the competent health department of the people’s government at or above the county level shall order it to make corrections, give it a warning and confiscate its illegal income; If the circumstances are serious, the principal responsible person, the directly responsible person in charge and other directly responsible personnel shall be given a warning until dismissal, and the responsible medical and health personnel shall be ordered to suspend their practice activities for more than one year and less than 18 months; If serious consequences are caused, the principal responsible person, the directly responsible person in charge and other directly responsible personnel shall be dismissed according to law, and the practice certificate of the responsible medical and health personnel shall be revoked by the original issuing department:

  (1) Failing to supply, receive or purchase vaccines as required;

  (two) vaccination did not comply with the vaccination work norms, immunization procedures, vaccine use guidelines, vaccination program;

  (three) unauthorized mass vaccination.

  Article 88 If a disease prevention and control institution or vaccination unit violates the provisions of this Law in any of the following circumstances, the competent health department of the people’s government at or above the county level shall order it to make corrections and give it a warning; If the circumstances are serious, the principal responsible person, the directly responsible person in charge and other directly responsible personnel shall be given a warning until dismissal, and the responsible medical and health personnel shall be ordered to suspend their practice activities for more than six months and less than one year; If serious consequences are caused, the principal responsible person, the directly responsible person in charge and other directly responsible personnel shall be dismissed according to law, and the practice certificate of the responsible medical and health personnel shall be revoked by the original issuing department:

  (1) Failing to provide traceability information as required;

  (2) Failing to obtain and keep relevant certification documents and temperature monitoring records in accordance with regulations when receiving or purchasing vaccines;

  (3) Failing to establish and keep records of vaccine receipt, purchase, storage, distribution, supply, inoculation and disposal in accordance with regulations;

  (4) Failing to inform or ask the recipient or his guardian about the situation in accordance with the regulations.

  Article 89 If disease prevention and control institutions, vaccination units and medical institutions fail to report suspected abnormal vaccination reactions and vaccine safety incidents in accordance with regulations, or fail to organize investigation and diagnosis of suspected abnormal vaccination reactions in accordance with regulations, the competent health department of the people’s government at or above the county level shall order them to make corrections and give them a warning; If the circumstances are serious, the vaccination units and medical institutions shall be fined between 50,000 yuan and 500,000 yuan, and the principal responsible persons, directly responsible personnel in charge and other directly responsible personnel of the disease prevention and control institutions, vaccination units and medical institutions shall be given a warning according to law until dismissal; If serious consequences are caused, the principal responsible person, the directly responsible person in charge and other directly responsible personnel shall be dismissed according to law, and the practice certificate of the responsible medical and health personnel shall be revoked by the original issuing department.

  Article 90 If a disease prevention and control institution or vaccination unit collects fees in violation of the provisions of this Law, the competent health department of the people’s government at or above the county level shall supervise it to return the illegally collected fees to the unit or individual who originally paid the fees, and the market supervision and management department of the people’s government at or above the county level shall punish it according to law.

  Article 91 Anyone who, in violation of the provisions of this Law, engages in immunization planning vaccination without being designated by the competent health department of the local people’s government at or above the county level, or engages in non-immunization planning vaccination that does not meet the requirements or has not been put on record, shall be ordered by the competent health department of the people’s government at or above the county level to make corrections, give a warning, confiscate the illegal income and illegally held vaccines, be ordered to suspend business for rectification, and be fined not less than 100,000 yuan but not more than 1 million yuan. The principal responsible person, the directly responsible person in charge and other directly responsible personnel shall be punished according to law.

  In violation of the provisions of this law, units or individuals other than disease prevention and control institutions and vaccination units carry out mass vaccination without authorization, and the health authorities of the people’s governments at or above the county level shall order them to make corrections, confiscate the illegal income and illegally held vaccines, and impose a fine of not less than 10 times but not more than 30 times the value of illegally held vaccines. If the value is less than 50,000 yuan, it shall be calculated as 50,000 yuan.

  Ninety-second guardians who fail to ensure that school-age children are vaccinated on time according to law shall be criticized and educated by the health authorities of the people’s government at the county level and ordered to make corrections.

  Nursery institutions and schools that fail to check vaccination certificates in accordance with the regulations when children enter kindergartens and schools, or fail to report to the vaccination unit after discovering children who have not been vaccinated in accordance with the regulations, the education administrative department of the local people’s government at or above the county level shall order them to make corrections, give them a warning, and punish the principal responsible person, the directly responsible person in charge and other directly responsible personnel according to law.

  Article 93 Whoever fabricates or disseminates false vaccine safety information, or makes trouble in the inoculation unit, which constitutes a violation of public security administration, shall be punished by the public security organ according to law.

  Newspapers, periodicals, radio, television, Internet sites and other media fabricate and disseminate false information about vaccine safety, and the relevant departments shall punish them according to law, and the principal responsible person, the directly responsible person in charge and other directly responsible personnel shall be punished according to law.

  Article 94 If the local people’s governments at or above the county level have any of the following circumstances in vaccine supervision and management, the directly responsible person in charge and other directly responsible personnel shall be demoted or dismissed according to law; If the circumstances are serious, he shall be dismissed according to law; Causing serious consequences, the main person in charge shall resign:

  (a) ineffective performance of duties, resulting in serious adverse effects or heavy losses;

  (2) Concealing, misrepresenting, delaying or omitting vaccine safety incidents;

  (3) Interfering with or obstructing the investigation of vaccine violations or vaccine safety incidents;

  (four) a particularly serious vaccine safety accident occurred in the administrative area, or a series of major vaccine safety accidents occurred.

  Article 95 If the drug supervision and administration department, health department and other departments have any of the following circumstances in vaccine supervision and management, the directly responsible person in charge and other directly responsible personnel shall be demoted or dismissed according to law; If the circumstances are serious, he shall be dismissed according to law; Causing serious consequences, the main person in charge shall resign:

  (a) failing to perform the duties of supervision and inspection, or failing to investigate and deal with illegal acts in time;

  (two) unauthorized mass vaccination;

  (3) Concealing, misrepresenting, delaying or omitting vaccine safety incidents;

  (4) Interfering with or obstructing the investigation of vaccine violations or vaccine safety incidents;

  (5) divulging the information of informants;

  (six) received a report on the suspected abnormal reaction to vaccination, and failed to organize the investigation and handling in accordance with the provisions;

  (seven) other acts that fail to perform the duties of vaccine supervision and management, resulting in serious adverse effects or heavy losses.

  Article 96 If the vaccine quality problem causes damage to the recipients, the holder of the vaccine marketing license shall be liable for compensation according to law.

  Disease prevention and control institutions and vaccination units that violate vaccination work norms, immunization procedures, guiding principles for the use of vaccines, and vaccination programs, causing damage to the recipients, shall be liable for compensation according to law.

Chapter XI Supplementary Provisions

  Article 97 The meanings of the following terms in this Law are:

  Immunization vaccines refer to vaccines that residents should be vaccinated in accordance with government regulations, including vaccines determined by the national immunization program, vaccines added by the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government when implementing the national immunization program, and vaccines used for emergency vaccination or mass vaccination organized by the people’s governments at or above the county level or their health authorities.

  Non-EPI vaccines refer to other vaccines voluntarily vaccinated by residents.

  The holder of vaccine marketing license refers to an enterprise that has obtained the registration certificate of vaccine drugs and the drug production license according to law.

  Article 98 The State encourages vaccine production enterprises to produce and export vaccines in accordance with international procurement requirements.

  The exported vaccine shall meet the standards or contract requirements of the importing country (region).

  Article 99 Entry-exit vaccination and procurement of required vaccines shall be separately stipulated by the frontier health and quarantine organ in consultation with the financial department of the State Council.

  Article 100 This Law shall come into force as of December 1, 2019.

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  Time: July

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  Time: September

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  Time: September 8, 2019—September 13, 2019.

Government information disclosure

  According to the requirements of the Regulations of People’s Republic of China (PRC) Municipality on the Openness of Government Information (the State Council Order No.492, hereinafter referred to as the Regulations) and the Notice on Further Improving the Compilation and Release of the Annual Report on Government Information Disclosure (Guo Ban Kai Letter [2016] No.14), the 2015 annual report of the Ministry of Finance on government information disclosure is hereby released to the public. The full text includes an overview, proactive disclosure of government information, practical promotion of information disclosure in key areas, serious disclosure according to application, strengthening the construction of information disclosure platform, major problems and improvement measures, etc. The data statistics period is from January 1, 2015 to December 31, 2015. This report can be found on the portal website of the Ministry of Finance (www.mof.gov.cn, hereinafter referred to as the portal website). If you have any questions about this report, please contact the Financial Information Disclosure Office of the General Office of the Ministry of Finance (address: No.3, South Third Lane, Sanlihe, Xicheng District, Beijing, zip code: 100820, telephone number: 68551570, and fax).

  I. Overview

  In 2015, according to the Notice of the General Office of the State Council on Printing and Distributing the Main Points of Government Information Disclosure in 2015 (Guo Ban Fa [2015] No.22), the Ministry of Finance strengthened the construction of portal website columns and government WeChat platform, and made full use of portal website, WeChat WeChat official account, Ministry of Finance proclamation, news media, newspapers and periodicals yearbook and other forms to announce fiscal policies and financial data to the public in a timely and proactive manner. We will comprehensively promote the disclosure of information in key areas such as the central financial budget and final accounts, the use of financial funds, administrative examination and approval, and government procurement, conscientiously handle matters that are disclosed upon application, and actively do a good job in policy interpretation and response, further expanding and refining the scope and content of financial information disclosure, and enhancing the timeliness and influence of financial information disclosure.

  II. Proactive disclosure of government information

  The Ministry of Finance regards the voluntary disclosure of government information as an important means to promote administration according to law, financial management according to law and the construction of service-oriented institutions. For government information that is voluntarily disclosed, it shall be disclosed within 20 working days from the date when the information is formed or changed, such as newly issued financial regulations, rules and normative documents. The national financial revenue and expenditure, the national lottery sales and the economic operation of state-owned and state-controlled enterprises have been published on the portal website on a monthly basis. The timely disclosure of special work was realized: on March 24, 2015, the national land transfer revenue and expenditure in 2014 was disclosed, and on November 27, the national science and technology investment bulletin in 2014 was published. In 2015, more than 180,000 pieces of information were published through portals and mobile websites, and more than 2,100 pieces of information were published through government WeChat. The average daily page views of portals exceeded 2 million, and the number of government WeChat subscribers was nearly 500,000. Published 12 issues of the Ministry of Finance Proclamation and published 164 policy documents.

  Third, effectively promote information disclosure in key areas

  (1) Promoting the information disclosure of financial funds.

  The first is the disclosure of the central government’s budget and final accounts. In 2014, on the basis of the classification of expenditure function items, in 2015, the basic expenditure was disclosed to the economic classification items. On the basis of the disclosure of special transfer payments to specific projects, the budget of tax refund, general transfer payments and special transfer payments in different regions has been increased. On the same day, 100 central departments made public the departmental budget and final accounts and the "three public" funds budget and final accounts. On March 17, 2015, the Ministry of Finance published the Report on the Implementation of the Central and Local Budgets in 2014 and the Draft Central and Local Budgets in 2015 through the portal website; On March 25th, the central budget for 2015 was made public; On June 29th, the Report on the Final Accounts of the Central Government in 2014 was made public; On July 10, the 2014 national financial final accounts were made public; On July 17th, the Ministry of Finance organized the central department to make public to the public for the first time a number of legal and social information such as final accounts data of expenditure economic classification subjects, summary of financial appropriation income and expenditure, government procurement expenditure, operating expenses of government agencies, and occupation of state-owned assets, which won favorable comments from public opinion and the public. On November 16th, the Notes on the Final Accounts of the National Social Insurance Fund in 2014 was published.

  The second is the disclosure of the central "three public" funds budget and final accounts. Actively coordinate the central departments to do a good job in publicizing the budget and final accounts of the "three public" funds. In the budget and final accounts made public by the central government in 2015, the expenditure table of "three public funds" and the final account table of "three public funds" were set up respectively, which reflected in detail the budget arrangement of "three public funds" and the implementation of the previous year, and further refined the "official vehicle purchase and operation fee" into "official vehicle purchase fee" and "official vehicle operation fee", and made them public for the first time. On April 17, 2015, the budget implementation of the "three public funds" in 2014 and the budget arrangement in 2015 were made public through the portal website. On June 28th, with the final report of the central government in 2014, the expenditures of the "three public funds" at the central level in 2014 were disclosed.

  The third is the disclosure of national budget implementation information and local budget and final accounts. Set up "financial data" and "national financial revenue and expenditure" columns on the portal website, timely release the implementation of the national financial budget on a monthly basis, and actively explain the hot issues that may cause social concern in the operation of revenue and expenditure, and respond to public concern. Make unified arrangements and requirements for the subject, time, form and content of local budget and final accounts disclosure, make special reports on local budgets and final accounts of provinces (autonomous regions and municipalities directly under the Central Government), and make them publicly available in the "Special Review" column of the portal website. The Notice on Special Inspection of the Disclosure of Local Budgets and Accounts (No.84 [2015] of Finance Supervision) was issued, and special inspections were carried out on the timeliness, completeness and detail of the disclosure of local budgets and accounts. According to the relevant work arrangement of China’s accession to the International Monetary Fund (IMF) Special Data Dissemination Standard (SDDS), the Ministry of Finance began to publish the monthly revenue and expenditure, financing data and quarterly debt balance data of the central government on a regular basis in mid-2015.

  (two) to promote the information disclosure of financial administrative examination and approval. First, a column "Reform of Administrative Examination and Approval System" was set up on the portal website, and information such as policies and systems related to administrative examination and approval, financial administrative examination and approval items, and the progress of the reform of the examination and approval system were published in a centralized manner, so as to facilitate the public to obtain administrative examination and approval information in a timely manner. Second, in accordance with the requirements of the State Council’s Decision on Cancelling and Adjusting a Batch of Administrative Approval Items (Guo Fa [2015] No.11), the information of administrative approval for canceling adjustment was released in time. In 2015, five administrative approval items involving the Ministry of Finance cancelled by the State Council were all made public on the portal website, which promoted the implementation and orderly connection of the cancellation of decentralization of approval items. The third is to actively promote the disclosure of relevant information on administrative licensing. Open the "Online Administrative Examination and Approval" column on the portal website, fully disclose the setting basis of administrative license, and promote the disclosure of information such as the conditions, procedures, quantity and the catalogue of materials to be submitted for the implementation of license. Some flowcharts of administrative licensing matters have been made public on the portal website.

  (3) Promoting the disclosure of government procurement information. First, on February 25, 2015, the Key Points of Government Procurement in 2015 was published, so as to let the public know the key points of government procurement in time and enhance the transparency of government procurement. The second is to implement the relevant provisions of the Regulations on the Implementation of the Government Procurement Law and improve the specific operating system of government procurement information disclosure. On July 17, 2015, the Notice of the Ministry of Finance on Doing a Good Job in Government Procurement Information Disclosure (Caiku [2015] No.135) was issued, which clarified the disclosure scope of various government procurement information, standardized the disclosure channels, and refined the disclosure requirements, which effectively promoted the disclosure of government procurement information. The third is to strengthen the operation and management of China government procurement network, improve the column setting, and timely disclose government procurement information, especially the information on bidding, winning the bid and correcting. Standardize the release and update of government procurement information content.

  (4) Promoting the information disclosure of national debt and local government bonds. First, in the "Treasury Bond Management" column of the portal website, at the beginning of the year, the annual book-entry treasury bond bidding and issuance rules, savings bonds issuance quota management measures, key-term treasury bonds, 50-year treasury bonds, and savings bonds issuance plans were announced, and the debt service information of annual treasury bonds and local government bonds paid by the Ministry of Finance was announced; At the end of each quarter, announce the issuance plan of all national debt for the next quarter; Announce the issuance notice of book-entry treasury bonds 1 or 5 working days before the tender, and announce the issuance announcement on the day of the end of the tender; Announce the announcement of savings bonds’s issuance 5 working days before the issuance. Second, based on the release of the yield curve of key-term government bonds in 2014, the three-month and six-month government bond yields will be released in 2015 to provide a benchmark for financial market pricing. The third is to publish the relevant institutional measures for the issuance management of local government bonds on the portal website, and further improve the information disclosure system of local government bonds, such as information disclosure before issuance, issuance results disclosure, duration information disclosure, major events disclosure, and debt service disclosure. Guide the financial departments of local governments to do a good job in information disclosure of local government bonds according to regulations.

  (five) the publicity of the results of the NPC deputies’ suggestions and CPPCC members’ proposals. In 2015, the Ministry of Finance made great efforts to improve the working mechanism, strengthen supervision and supervision, and consider, deploy and promote the handling of NPC deputies’ proposals and CPPCC members’ proposals together with business work as an important means to promote financial work, an important platform to build consensus, and an important channel to enhance understanding and support. In 2015, the Ministry of Finance handled a total of 4,103 proposals, of which 2,506 were proposed by representatives and 489 were sponsored. There were 1597 members’ proposals and 333 sponsors; A total of 38 key proposals were identified and 15 related policies and measures were introduced. In the portal "Suggestions" column, 57 summaries of 2014 replies were published.

  Four, seriously handle the disclosure according to the application.

  Establish "centralized acceptance and decentralized handling; The government information of "one order to the end, the whole process of tracking" is handled in public according to the application mechanism, and the standardized workflow of six steps, such as application acceptance, elements review, distribution, tracking and coordination, information provision and data archiving, is strictly implemented, and a system for handling government information in public according to the application is developed, which digitizes all links of acceptance, transfer, reply and archiving to realize the whole process. In 2015, a total of 145 applications for government information disclosure were received, all of which were handled in accordance with relevant laws and regulations. Received 17 cases of information disclosure reconsideration with the Ministry of Finance as the respondent, and 13 cases of information disclosure litigation with the Ministry of Finance as the defendant and the specific behavior as the main body. This year, the Ministry of Finance did not collect fees from applicants for government information disclosure.

  Five, strengthen the construction of information disclosure platform

  (1) Improve the information content support system. Implement the "Opinions of the General Office of the State Council on Strengthening the Construction of Government Website Information Content" (Guo Ban Fa [2014] No.57) and the "Notice of the General Office of the State Council on Carrying out the First National Government Website Survey" (Guo Ban Fa [2015] No.15), pay close attention to the construction of portal website information content, and strive to improve the management level of portal website. Issued the "Notice on Further Improving the Information Content Construction of the Portal of the Ministry of Finance" to all units in the Ministry and local Commissioner’s Offices, strengthened the information release and update of the portal, and standardized the information release process of the portal. Earnestly carry out the general survey of the portal website and the China municipal government procurement network, do a good job in the investigation and information reporting, and earnestly do a good job in rectification. A total of 276 invalid links and 12 "sleep" columns were cleared in the sub-stations run by departments and commissioners.

  (2) Improve the website information collection mechanism. Adhere to the monthly statistical bulletin portal departments, the Commissioner’s office, the provinces (autonomous regions and municipalities) finance department (bureau) sub-channel content security evaluation score, enhance the enthusiasm of each unit to upload information actively. The Ministry of Finance portal website sub-channels of some key information release schedule in 2015 was issued. On this basis, the information release task was decomposed into months, and letters were sent to various departments at the beginning of each month, and checked and coordinated at the end of each month, so as to effectively strengthen the organization and guidance for the information release of sub-channels of various departments of the portal website.

  (3) Strict information release review. Establish an information release mechanism of "clear division of labor, clear rights and responsibilities, multi-person review and step-by-step control", and strictly review information release to ensure timely and accurate release of authoritative information. For key information such as financial news and photo news, the policy, text and figures are strictly controlled, and sensitive matters are repeatedly communicated with relevant units for revision.

  (4) Strengthen financial news propaganda. Pay attention to the use of financial news publicity platform to improve the effect of financial information disclosure. Considering and arranging fiscal policy interpretation and fiscal policy formulation synchronously, the leaders of the organization department attended more than 30 press conferences (including briefings), interviews with Chinese government websites and joint interviews with journalists, organized relevant departments to hold press conferences (including briefings) and carry out policy interpretation for more than 40 times, and publicized the background, objectives and main points of the fiscal policy in various forms such as digitalization, charts and diagrams. Carefully use the international financial conferences attended by the Ministry of Finance, such as the 48th annual meeting of the ADB Board of Directors, the signing ceremony of the articles of association of the AIIB, the seventh special meeting of China-US Strategic and Economic Dialogue, and the G20 meeting of finance ministers and central bank governors, to be interviewed by the international mainstream media on issues of international concern, to publicize the healthy development of China’s economy, and to announce the development and achievements of China’s fiscal reform.

  VI. Main Problems and Improvement Measures

  In 2015, the work of financial information disclosure has achieved certain results, but there are still some problems such as the scope of disclosure needs to be expanded, the content of disclosure needs to be refined, and the construction of open platform needs to be strengthened. In 2016, the Ministry of Finance will focus on the following aspects:

  (1) Further expand the scope of financial information disclosure. Conscientiously implement the "Opinions on Comprehensively Promoting the Openness of Government Affairs", adhere to the principle of openness as the norm and non-openness as the exception, closely focus on economic and social development and people’s concerns, continuously expand the scope of financial information disclosure, and strengthen financial information release and policy interpretation.

  (two) to further improve the public budget and final accounts. Timely disclosure of reports and statements (except confidential information) on budgets, budget adjustments, budget implementation and final accounts approved by the People’s Congress and its Standing Committee according to law; All expenditures on budget and final accounts are disclosed to functional classification item-level subjects (except classified information) and to economic classification subjects (except classified information) according to regulations; Make public the tax refund, general transfer payment and special transfer payment in different regions, and make public the budget and final accounts of the next special transfer payment according to specific projects; All departments and units shall make public final accounts, indicating the number and number of delegations going abroad on business, the number and quantity of official vehicles purchased, and the batch and number of domestic official receptions.

  (three) to further promote the disclosure of administrative examination and approval information. Timely disclose the application conditions, quantity, procedures and time limit of licensing matters, as well as all materials and information to be submitted when applying. Timely public cancellation, decentralization and implementation of administrative examination and approval project information.

  (four) to further promote the disclosure of government procurement information. Do a good job in the information disclosure related to the whole process of government procurement, and disclose the overall situation of government procurement budget arrangement and procurement implementation in accordance with the requirements of public financial budget and final accounts. Make the disclosure of government procurement information an important part of supervision and inspection, and investigate the responsibility of purchasers and procurement agencies who fail to release government procurement project information according to law.

  (V) Further strengthen the construction of the financial information disclosure platform. Strengthen the construction of the standard system of information disclosure catalogue, further improve the column setting of portal website, improve the mechanism of information content collection, review and release, and optimize the information query method. Make full use of new media such as WeChat WeChat official account to broaden the channels of information dissemination, enrich the content of WeChat information, and innovate the display forms of WeChat to meet the diverse information needs of different groups.

Boiling of automobile aftermarket and blue ocean

Image source @ Panorama.com

Wen | Xianfeng Chuang (ID:xianfengk2vc), by Zhang Runtao

Core point of view:

1. 【 Macro Pattern 】The size of China’s automobile aftermarket is 1.2 trillion, which is about half that of the United States, but the number of auto parts manufacturers, auto parts distribution channels and maintenance service enterprises is twice that of the United States. On the whole, China’s automobile aftermarket is in the form of "ant market", and there are obvious opportunities for integration in all aspects.

At present, the core contradiction between supply and demand in the automobile aftermarket is not the inefficient matching of traffic, but the low efficiency of the supply chain of automobile parts and the low quality of maintenance services. Therefore, it is difficult for giants (Ali, Tencent, JD.COM, Baidu, Didi, Guazi, Manbang) who use traffic to bless the track to quickly end the war in a short time by means of user subsidies, and emerging startups can still break through with their own unique advantages.

2. [Opportunities and Methods]Driven by two forces on the demand side (a large number of cars leave the maintenance period+consumption upgrade) and three forces on the supply side (due to the mature productivity trained for OEM in Europe and America+excellent scale effect of China’s auto parts circulation channels+mature technical infrastructure of maintenance services), China’s automobile aftermarket will systematically spawn a variety of entrepreneurial-investment opportunities, and startup companies can learn from the 13 methods mentioned in this paper to create long-term value and become industry unicorns.

3. [Valuation System and Growth Timeline]Venture companies interested in contacting VC capital can aim at "becoming a unicorn of 1 billion dollars in 8 years" and benchmark the valuation system of listed companies in the US stock market, so as to push back their own business rhythm and team configuration.

When will unicorns come out of China automobile aftermarket? This is a topic that entrepreneurs and investors often discuss in the industrial upgrading track.

On the one hand, Auto Zone, Advance Auto Parts, O’Reilly and NAPA, the four major chains in the field of auto parts in the United States, stand at a market value of tens of billions of dollars, and there are unicorns with a market value of billions of dollars in the field of maintenance services, such as Monro Muffler Brake and Valvoline, but there is no listed giant in China that can compete with them in the same amount.

On the other hand, Internet giants such as BAT/ JD.COM/Didi have been exploring the post-steam for a long time, and star startups such as Kangzhong/Batulu/Kaisi have also been in the post-steam battlefield for many years. However, at present, the whole post-steam competition pattern in China is not clear, and new players are still eager to try with their own unique resources.

These two characteristics make new entrepreneurs and investors always reluctant to take their eyes off the automotive aftermarket in China.

This paper tries to analyze the present situation and future of China automobile aftermarket from the perspective of Top-Down — —

Part.1  The Market Size and product-service categories of automobile aftermarket are presented in an overview;

Part.2  This paper systematically analyzes the competitive pattern of automobile aftermarket from three aspects: macro supply system, core track players and giant layout.

Part.3 This paper introduces the macro trend that affects the automobile aftermarket, and gives 13 "tricks" to achieve the unicorn after automobile in the future;

Part.4 From the perspective of capital market, this paper shows the valuation system of post-automobile companies with examples, and discusses the method of reversing the growth timeline of enterprises based on this.

I hope this article can bring some reference value to entrepreneurs, industry professionals and friends who are concerned about the post-steam industry, and welcome friends who are interested in this topic to exchange and discuss.

I. Market Size

In 2018, the automobile aftermarket in China is about 1.2 trillion, including 780 billion auto parts (65%) and 420 billion maintenance services (35%).

Automobile aftermarket size = car ownership × average car consumption, divided into two core elements — —

1. Car ownership

In 2018, the number of cars in China was 240 million (including passenger cars and commercial vehicles), with a growth rate of 10.6% (the number of new cars in 2018 was 28.08 million, down 3% year-on-year). Although the number of new car transactions declined, the overall number of cars will continue to rise in the future.This data can also be confirmed from the car ownership of thousands of people — — As can be seen from the figure below, China’s car ownership of 1,000 people is not only far lower than that of developed countries such as the United States and Japan, but also lower than that of many developing countries, and there is still room for increasing car ownership in the future. 

The number of P.S. cars with 1,000 people depends on population density, economic level, public transportation level and other factors, so I won’t analyze them here. The above large numbers are only for reference.

2. Average car consumption amount

In 2018, the average car consumption of China Automobile for maintenance was about 5,000 yuan; This variable is positively related to the average age of cars. At present, the average age of cars in China is 5 years, and it will inevitably increase in the future.

Based on the two basic driving forces, namely, the increasing number of cars in China and the increasing age of cars, it is expected that the future automotive aftermarket will be in the growing trillion-dollar volume for a long time.

Second, product & service category

The final deliverables in the automotive aftermarket include [auto parts] and [maintenance services].

1. Auto parts

Auto parts refer to all the parts that make up a car; According to the maintenance or replacement cycle, auto parts are usually divided into two categories: [wearing parts] and [whole vehicle parts] — —

① Wearable parts

Wearable parts refer to accessories that must be repaired or replaced after a certain mileage or time. Typical categories of wearing parts include: engine oil, gearbox oil, brake oil, tires, engine oil filter, air filter, air conditioning filter, gasoline filter, spark plug, antifreeze, brake pads, brake discs, etc.

② Complete vehicle parts

 Whole vehicle parts refer to the parts that must be repaired or replaced after an accident. Typical whole vehicle parts include: engine, bumper, gearbox, oil cylinder and so on.

Due to the numerous manufacturers of various brands, and the characteristics of many cars, models and models under each brand, the number of SKUs of auto parts is huge — — At present, the average SKU of automobile spare parts is about 30,000, and the overall SKU of automobile spare parts is more than 50 million. This is a huge SKU volume for a single industry, but looking at the breakdown of wearing parts and whole car parts categories:Wearable parts are universal (for example, different models can share the same specification of engine oil), so the effect of collecting orders is obvious for players who are trading platforms, and they are relatively suitable for self-operation; The universality of the whole vehicle is weak, so the effect of collecting orders is not obvious for players who are trading platforms, and it is relatively suitable for third-party infrastructure (Marketplace, logistics, supply chain finance, etc.).

2. Maintenance service

Maintenance service refers to the human service of automobile parts maintenance or replacement and beauty care. Usually, the maintenance or replacement of beauty care and wearing parts is a high-frequency service item, and the maintenance or replacement of whole automobile parts is a low-frequency service item.

At present, the size of China’s automobile aftermarket is about 1/2 that of the United States (the car ownership of the two countries is similar, but the average age of the car in the United States is twice that of China+), but the number of auto parts manufacturers, auto parts distribution channels and maintenance service enterprises is twice that of the United States — —On the whole, the post-steam market in China is in a relatively scattered "ant market" form, and the quality and efficiency of products and services are uneven, so there are obvious opportunities for integration.

First, the macro supply system

Because there are two core factors in China: ① few car owners master maintenance technology and ② low labor cost, 95% of maintenance services are provided by 4S shops and repair shops, and only 5% of car owners will choose to repair their own cars; Therefore, [automotive aftermarket] has also formed two core circulation paths based on this:

A.4S shop system (accounting for 20%): auto parts manufacturer authorized by the main engine factory → Main engine factory after-sales department → 4S shop → Consumers;

B. Independent post-market system (accounting for 75%): &rarr, an auto parts manufacturer not authorized by the OEM; Agent → Dealer → Auto parts city retailer → Repair shop → Consumers.

The following describes the basic status quo of three types of supply roles: auto parts manufacturers, auto parts distribution channels and service terminals — —

1. Auto parts manufacturers

① Auto parts manufacturer authorized by the OEM (original parts)

This kind of auto parts manufacturers have formed a long-term and stable cooperative relationship with automobile brand manufacturers, such as Denso in Japan, Bosch in Aisin Germany and Mainland China, which produce auto parts according to the design requirements of automobile brand manufacturers, put on the Logo of automobile brand and sell them to automobile brand manufacturers, and then circulate them to 4S stores.

Such manufacturers represent the most advanced supply chain level of auto parts in terms of quality and efficiency, and because of the profit margin requirements of automobile brand manufacturers and 4S shop system, the brand premium of auto parts of such manufacturers is often very high when they are circulated to consumers.

② Auto parts manufacturers not authorized by the OEM.

This kind of auto parts manufacturers can be roughly divided into three categories — —

Class A (factory parts): Class A manufacturers are completely auto parts manufacturers authorized by the OEM, but they sell another part of their production capacity to the independent post-market (without the Logo of the automobile brand), but the supply chain system behind them is exactly the same. Because the premium of automobile brand is removed, the price of such accessories in the independent market is 20%~30% cheaper than that in the 4S shop system, so it is the best choice for consumers in the independent market.

Class B (sub-factory parts): evolved from the foundry of Class A manufacturer. In the process of OEM for international brands, Class B manufacturers have mastered the skilled supply chain technology (especially in the more general consumable parts category). In order to expand their own revenue and profits, they often choose to create their own brands and sell them to the circulation channels of the independent market system. The quality and efficiency of Class B manufacturers in many auto parts categories are almost the same as those of international brands, so it is the second best choice in the post-independence market system.

Class C (spare parts): a "self-reliant" manufacturer that has no direct relationship with the auto parts manufacturer authorized by the main engine factory. Relying on the research of auto parts in the market and close contact with Class B manufacturers, these manufacturers indirectly mastered the supply chain technology of auto parts, and based on this, they created their own brands and sold them to the circulation channels of the independent market system. Class C manufacturers are weaker than Class A in quality and efficiency, but they can still meet the needs of most parts in automobile aftermarket service.

2. Distribution channels of auto parts

① OEM after-sales department

The after-sales department of the main engine factory is also the after-sales department of automobile brand manufacturers, which purchases automobile parts from authorized manufacturers and sells them to 4S stores at a higher price. Because the 4S shop has the brand premium authorized by the automobile manufacturer, and the automobile manufacturer decides the supply of auto parts in the 4S shop by policy instructions, the main engine factory often sells it to the 4S shop with a higher gross profit (the gross profit is higher than that of the same quality parts).

② Market circulation channels after independence.

After independence, the circulation channel of the market is consistent with the general commodity circulation system, mainly including three core links: agency, distribution and retail. The upstream of the whole circulation channel is the auto parts manufacturer authorized by the non-OEM, and the downstream is the repair shop. Because the repair shop has almost no brand premium, and there are many distribution channels in the domestic market after independence, the agents, dealers and retailers here often have relatively low price increase rates — — The gross profit margin of the distribution channel of general wearing parts is 20%~30%, and the gross profit margin of the distribution channel of whole vehicle parts is 30%~45%.

Note that the two types of circulation channels are now "merging", which is manifested in:

A. 4S shop purchases auto parts from independent market circulation channels.

The core reason is that the newly implemented "Measures for the Administration of Automobile Sales" in July 2017 allows some non-original parts to enter the 4S shop system, which enables agents, dealers and retailers who originally operated in the independent post-market system to serve as additional parts channels for 4S shops.

B the repair shop purchases auto parts from the 4S shop and the after-sales department of the main engine factory.

The core reason is that the operating performance of 4S stores has generally declined in recent years, and the liquidity of auto parts originally circulated in the 4S store system has declined, resulting in more inventory. In order to digest these inventories, 4S stores and the after-sales department of the main engine factory will sell them to repair shops.

3. Service terminal

① 4S shop

4S shop was first introduced to China by Guangzhou Honda in 1998, and now it has become the most important system in China’s new car circulation network. The two most important functions of 4S stores are: first, new car sales, and second, after-market service (mainly to undertake the maintenance service demand within the three-year maintenance period or a certain mileage maintenance period). According to the profit structure, about 20% of China 4S stores’ profits come from new car sales, and the remaining 80% comes from after-market service, which is equivalent to the profit structure of American car dealers.

② Repair shop

Different from the 4S shop, the repair shop will undertake the maintenance services of many brands of cars, and the repair price of the repair shop is relatively low due to competitive factors and weak brand premium (including auto parts and maintenance services are cheaper than those of the 4S shop).

China’s Ministry of Communications conducts certification examination for repair technicians in repair shops every year, but there is no strict high-standard system for qualification examination as a whole, so the overall service level of repair shops in China is still uneven (the service level < mean > can meet most of the automobile maintenance needs, but the variance < variance > fluctuates greatly).

It is worth noting that 4S stores and repair shops are excellent channels for selling automobile insurance because they have excellent customer resources, so many insurance companies will have a binding relationship with 4S stores and repair shops (M×N multiple binding relationship) and cross-sell each other’s products and services &mdash; &mdash; 4S shops and repair shops recommend car owners to buy a company’s insurance, and an insurance company will recommend car owners to the corresponding 4S shops or repair shops for maintenance. In essence, both parties can reduce the cost of obtaining customers by reusing sales personnel with each other.

Second, a list of core players in each segment of the track

The core players in the automotive aftermarket include &mdash; &mdash;

1. Auto parts

① Brand manufacturers

Representative manufacturers include: Bosch, Denso Japan, Magna International, Continental Group, ZF, Aisin Seiki, Hyundai Mobius, Lear, Valeo, Faurecia, Andoto, Yazaki, Panasonic Automotive Systems, Sumitomo Electric, Mahler, Yanfeng, Toyota Textile, Jettaggart, ThyssenKrupp, BASF, Fuyao Glass, Weifang.

Because of the high initial investment cost and fierce competition of brand manufacturers, there are no star startups within the range of VC.

② Circulation channels

A. Main wearing parts: three heads and six arms, Kangzhong Auto Parts, Haomeite, and Kuaizhun Automobile.

Due to the high consumption frequency of wearing parts and strong SKU reuse among different car series, almost all wearing parts channel players cut into the supply chain in the self-operated B2B mode, and the upstream purchases from brand manufacturers and the downstream sells them to repair shops. At the same time, they operate their own logistics system and focus on the delivery of the last 1km.

In the retail store opening mode, Kangzhong Auto Parts mainly adopts the direct operation mode, and the three-headed, six-armed, good-beautiful and fast-accurate auto clothes mainly adopt the joining mode, each of which has its own advantages and disadvantages &mdash; &mdash; The service quality control of direct marketing mode is relatively standardized, but the disadvantage lies in the slow speed of opening stores and the long-term accumulation to show the scale effect of supply chain; The service quality control of the joining mode is not standard, and it is usually easy to receive customer complaints, but the advantage is that it can borrow private capital to start quickly and show the scale effect of the supply chain in a short time.

B. Main auto parts: Batulu, Kaisi, Chetongyun, Zhongchi Chefu and Haohao Auto Parts.

The whole vehicle parts are completely different from the wearing parts, and their extremely low frequency, numerous SKUs and non-reusable SKUs between different vehicles make all vehicle parts channel players use the inquiry and quotation system (including "Vin code &rarr; Auto parts SKU "database)+third-party trading platform (that is, Marketplace) mode cuts into the supply chain, and the upstream docking agents/dealers/retailers, downstream docking repair shops or 4S shops (some players indirectly obtain customer repair shops or 4S shops through cooperation with insurance companies), and there are both self-operated and third-party modes in logistics.

Since the inventory of the whole vehicle parts in the market circulation channel is often unstable after independence, in order to ensure the supply adequacy of the whole vehicle parts SKU and the timeliness of logistics delivery, all kinds of players in the whole vehicle parts channel have also begun to try to "control the goods" on the basis of the Marketplace model &mdash; &mdash; For example, Batulu’s self-built multi-level warehouse requires suppliers to put the goods in Batulu’s self-operated warehouse and requires warehouse goods to only receive deployment instructions from the platform.

C. All-category management: harmony with steam, rapid development and saving.

All-category channel players are essentially a combined version of two types of channel player modes, namely, wearing parts and whole vehicle parts, such as Heqi &mdash; &mdash; The business model of its wearing parts category is similar to Kangzhong, and the business model of its whole car parts category is similar to Batulu and Chetongyun.

The distribution channel of auto parts is a battleground for China auto aftermarket, essentially because this track has excellent scale effect, and the current situation of China auto parts field with scattered upstream and downstream and high gross profit margin in circulation is just an excellent soil to make use of scale effect &mdash; &mdash; The scale effect in the distribution channel of auto parts can make the enterprise reduce the purchasing cost, warehousing and logistics cost while the sales volume is increasing, and then the gross profit margin is increasing.

Take Auto Zone (American stock code: AZO), one of the four major auto parts chains in the United States, as an example. The changes of its sales and gross profit margin from fiscal year 1990 to fiscal year 2018 are shown in the following figure. It can be seen that in the time span of nearly 30 years, the sales of Auto Zone soared from US$ 670 million to US$ 11.22 billion, and its gross profit margin also increased from 38.1% to 53.2% (while the stock price rose more than 40 times). In essence, it is because the OEM brand and upstream centralized purchasing have brought about a sharp decline in procurement costs, and the logistics and warehousing costs under the DC (Distribution Center)-Hub-Store system are also declining.

2. Maintenance service

Representative companies include: Tuhu Car Maintenance, Auto Superman, Xiaoju Car Service, Diandian Car Maintenance, Master De, Chexiangjia, cluster car treasure, Changtu Automobile, Youyishou, New Focus (A-share listed company) and Xiaomuzhi (New Third Board listed company).

The basic mode of maintenance service players can be summarized as "upgraded repair shop", which provides car owners with beauty care, auto parts replacement or maintenance services, and sells third-party or OEM auto parts at the same time..Tuhu Car Maintenance is a typical example. At the beginning, it cut into the market with the tire category of wearing parts, providing online trading and offline installation services for car owners, and gradually became the first channel brand and maintenance service brand in the tire category. At present, Tuhu Car Maintenance has gradually expanded its own auto parts business (expanding engine oil, filters and other categories) and maintenance service business (expanding automobile beauty care, wearing parts maintenance and replacement, auto insurance sales and other services).

There are also various companies with unique entry points in the automobile aftermarket, such as Youchelian, Yunka and Zhengda Fortis, which cut into the maintenance of commercial vehicles, and Vin code &rarr; Mingjue Technology, which is cut into the database of automobile parts SKU, is cut into the automobile parts agent and forms a strategic cooperation with Manbang, and is cut into the music match &hellip; Due to the limitation of space, I won’t describe them here, but it can be seen that the current pattern of China’s automobile aftermarket is uncertain and the innovation vitality is still very abundant.

Third, the layout of giants

In recent years, giants in the fields of Internet, offline retail, used cars, logistics, insurance, automobile OEM, etc. have been frequently deployed in the automobile aftermarket (as shown in the following figure) &mdash; &mdash; Take Ali as an example. After trying the "car terminal" business in 2016, in 2018, Tmall once again established the "Xinkangzhong" alliance with Auto Superman and Kangzhong Auto Parts. Behind these three giants, they respectively represent the traffic of car owners, maintenance services and the huge potential of auto parts supply chain.

From the above table, we can feel that after the giants inject ① owner flow, ② warehousing & logistics capability, ③ financial capability (insurance & payment & credit) and ④ original auto parts supply chain and service capability into the automotive aftermarket, it is not only a blessing to this track, but also a challenge to the existing players in the track.

However, it should be noted that the core contradiction between supply and demand in China automotive aftermarket is not the inefficient matching of flow, but the low efficiency of auto parts supply chain and the low quality of maintenance service &mdash; &mdash; Therefore, for the giants who use traffic to bless the track (Ali, Tencent, JD.COM, Baidu, Didi, Guazi and Manbang), it is difficult to quickly end the war in the automobile aftermarket by using user subsidies in a short time. A new automobile aftermarket system with wide customers, good quality and high efficiency needs to be watered patiently.

First, the macro trend

The future development of China’s automotive aftermarket will be driven by the following five important forces &mdash; &mdash;

1. Demand side

① China’s automobile aftermarket will be in a growing trillion-dollar volume for a long time, and as more and more cars leave the 4S shop maintenance period, more and more car owners will choose the independent aftermarket in the future;

(2) The increasing GDP per capita in China and the increasing professionalism of citizens in automobile knowledge will create the demand for high-quality chain service organizations, high-quality chain auto parts channels and domestic brands of high-quality auto parts;

2. Supply side

(1) Thanks to the long-term experience of OEM for European and American international brands, the supply chain system of China auto parts manufacturers is very mature, and they can provide auto parts with almost the same quality and higher cost performance as European and American international brands in quite a few categories, so it is possible to produce high-quality domestic brands of auto parts;

② The distribution channels of auto parts in China’s post-independence market system are currently in a large and scattered pattern, and the market share of Top-3 channel players is less than 1%; However, the auto parts track has the characteristics of positive scale effect, and several big head companies will be produced in the future.

With reference to the auto parts market in the United States, the overall market share of the four auto parts chains, Auto Zone, Advance Auto Parts, O’Reilly and NAPA, is more than 30% and is still rising. Due to the consistency of the supply chain attributes of auto parts, China auto parts channel companies will accelerate the appearance of scale effect when the infrastructure such as Internet, AI and logistics are mature.

(3) The development of automobile control unit networking, AR, Internet and other technologies will help repair shops greatly improve service quality and reduce service costs.

Second, 13 ways to upgrade the post-steam industry

Any industry, its direction of creating value mainly includes three kinds:

(1) better quality:That is, the products and services provided by the industry make consumers experience better;

② Higher efficiency:That is, the industry consumes less resources to deliver each unit of products and services, among which the core resources are money (cost) and time &mdash; &mdash; In the steady state (that is, in the state of non-burning money), the lower pricing limit of products and services provided by the industry to consumers is determined by the consumed cost, and the lower convenience limit is determined by the consumed time;

(3) get more customers:That is, the products and services provided by the industry can reach more consumers.

P.S. The value creation direction of an industry is also the lifelong struggle direction of all enterprises in the industry &mdash; &mdash; Whether the enterprise is in the production link, distribution link or the final retail service link.

Based on the five macro forces on the demand side and supply side of China automobile aftermarket, Combined with the players after China automobile, the four major auto parts chains in the United States (Auto Zone, Advance Auto Parts, O’Reilly, NAPA)& maintenance service unicorn (Monro Muffler Brake, Valvoline), the world retail giants (WalMart, Costco, 7-11), (4) observation of companies such as Amazon Web Service (WeWork) and venture capital enterprise (looking for steel net and intelligent cloth interconnection) focuses on the three value creation directions of "getting more customers, better quality and higher efficiency".

The author thinks that players in auto parts and maintenance service tracks can use the following 13 methods to build long-term value and become unicorns in the automotive aftermarket &mdash; &mdash;The company’s value and growth rate depend on the diversity of the following 13 methods and the speed of promotion. The more methods used and the faster the promotion, the greater the company’s value and the faster the growth rate..

1. Auto parts

① Business flow

< the first move > set list: 

Intensive expansion of the service area of circulation channels through direct marketing/joining/merger/joint venture (joint venture through Marketplace mode) and other ways, so as to intensively expand the order volume, and then reduce the purchase cost and enhance the quality control ability through the way of < centralized collection and unified procurement > or < self-operated OEM brand >;

< 2nd move > membership system:

Establish a membership system to reduce the circulation uncertainty of the whole supply chain by locking the purchase behavior of auto parts of car owners or repair shops in advance, and then reduce the inventory backlog cost and labor cost under no operation state caused by circulation uncertainty;

< 3rd move > "Vin code &rarr; Auto parts SKU "database:

Establish a database of mapping relationship between vehicle Vin code and auto parts SKU, and support 4S shops/repair shops, distribution channels and brand manufacturers to interact in various ways, such as text/picture/voice, which greatly reduces communication costs;

② Logistics

< 4 > logistics infrastructure:

Establish central warehouse, city warehouse, pre-warehouse (store) system and logistics billing algorithm to greatly reduce logistics costs in the case of intensive orders (depending on the use progress of various methods in business flow);

③ Production

< 5th move > hardware upgrade:

Under the basic conditions of highly mature auto parts supply chain in China, < introduce advanced hardware equipment of world top brands > or < self-developed hardware equipment >, thus reducing the production cost of the factory and improving the delivery quality of the factory;

< No.6 > Software upgrade:

Open ERP system with downstream channels and upstream raw material suppliers, and do capacity optimization based on data (sales order information/raw material supply information/factory capacity information) and AI algorithm;

④ Finance

< No.7 > vertical supply chain finance:

Due to the inconsistency between upstream and downstream accounting periods in the auto parts industry chain, data-driven supply chain financial services can be provided for brand manufacturers, distribution channels, repair shops /4S stores (refer to steel B2B e-commerce players looking for steel nets);

⑤ Internal operation of enterprises

< trick 8 > SaaS:

For factories, distribution channels, repair shops /4S stores, develop professional SaaS systems suitable for auto parts industry, so as to improve the operating efficiency of each unit of the industrial chain (including invoicing, ERM, IM, manpower, finance, etc.).

2. Maintenance service

① Business flow

< trick 9 > bind the insurance company:

Deep binding with insurance companies through cooperation agreements/cross-shareholding, etc., the two sides share customer resources with each other and jointly reduce the cost of obtaining customers;

< 10th trick > membership system:

Establish 2C membership system, reduce the uncertainty of service demand forecast by locking the maintenance consumption behavior of car owners in advance, and then reduce the inventory backlog cost and labor cost under the condition of no operation caused by the uncertainty of demand forecast;

② service

< 11th move > Senior technicians share the platform:

Because experienced technicians in a region are scarce resources, and the cost of hiring such senior technicians in a single repair shop is too high (the frequency of difficult problems encountered by a single repair shop is relatively small), the shared platform for senior technicians can minimize the labor cost of repair shops and increase the personal income of senior technicians at the same time;

< 12th move > Maintenance experience sharing platform:

China’s Ministry of Communications conducts certification examination for maintenance technicians in repair shops every year, but there is no strict high-standard system for qualification examination as a whole, so most technicians still need to improve their maintenance level through "personal experience" and "indirect reading of master’s work notes".

Therefore, establishing a maintenance experience sharing platform to support technicians to find corresponding solutions through text/picture/voice when encountering problems can greatly improve the maintenance quality and reduce the maintenance cost (reducing the cost of returning goods and training due to misjudgment, etc.);

< 13th move > Remote maintenance and diagnosis platform based on networked sensors;

At present, all the control units (such as engine and gearbox) in the car have been digitized and networked, and automobile brand manufacturers have established a perfect data diagnosis and maintenance guide system based on this. In the past, this system was only open to 4S shops, but now it has been gradually introduced into the independent market.

Therefore, based on this technology, a remote maintenance and diagnosis platform can be established, which can automatically give early warning signals in the process of automobile driving and then guide the owner to adjust his driving habits or carry out lightweight maintenance. After an automobile accident, the platform can automatically send orders to the best repair shop nearby and support experienced technicians and experts to interact with ordinary technicians in the first-line repair shop in real time through AR equipment, thus greatly improving the maintenance quality of the repair shop and reducing the maintenance cost (reducing the labor cost of senior technicians).

It should be noted that &mdash; &mdash;

① There is no fixed application order for these 13 methods.For example, a company can first be an OEM brand foundry, and then use the advantages of supply chain to intensively open auto parts chain stores; You can also start a chain store of auto parts intensively first, and then make an OEM brand after you have a scale advantage.

② These 13 methods can be completely used by one company, and can also be jointly used by more than one downstream cooperative relationship or joint venture of several enterprises.For example, logistics infrastructure, an auto parts distributor can build its own logistics infrastructure, use the logistics infrastructure provided by a third party, or build its own logistics infrastructure for some businesses and use a third party for some businesses.

③ The value of the company and the speed of its growth depend on the diversity of the company’s use of 13 methods and the speed of promotion.But it doesn’t mean that companies need to use various methods at the same time in the initial stage. It is suggested that start-ups focus on one thing in the early stage to achieve the ultimate. The so-called "it is better to break one finger than to hurt its ten fingers".

How to choose a company needs to carefully consider its own business resources, team resources and market competition environment in specific regions.

Due to the limited space, this paper only presents the valuation status of "auto parts circulation channel", and the valuation system of auto parts manufacturers and maintenance services can be used as a similar reference.

The following table shows the core business data and valuation data of the four major auto parts chain companies in the United States &mdash; &mdash; Since the main business of Genuine Parts Company includes NAPA, industrial products and office supplies, it is not easy to separate them, so Auto Zone, Advance Auto Parts and O’Reilly are the best three valuation benchmarking companies for auto parts circulation track.

According to the calculation of 2 times P/S, if the market share of an auto parts channel company in China exceeds 1%, the company can become a unicorn with a value of 2.2 billion US dollars (780 billion RMB ×1%×2×1 US dollars /7.07 RMB = 2.2 billion US dollars); If an auto parts channel company is worth US$ 1 billion, its annual revenue only needs to reach RMB 3.5 billion (US$ 1 billion /2×7.07 RMB/US$ 1) and its market share is 4.5&permil; (3.5 billion RMB/750 billion RMB).

For auto parts distribution channel start-ups who are interested in cooperating with VC,We can consider taking [becoming a unicorn with a billion dollars in eight years] as the goal, so as to reverse the annual opening plan and store revenue growth plan in the first to eighth years, and accordingly design what kind of commodity procurement system, warehousing and logistics system and store operation system should be built to achieve this [final goal], and then design what kind of team needs to be formed in order to realize this system.&mdash; &mdash; Although the plan can’t keep up with the changes, and there are many uncertainties in the future business progress, in most cases, "if you plan ahead, you will be abolished."

P.S. The valuation calculation here is only used as a reference for large numbers. In fact, the valuation should be comprehensively considered in combination with the specific fundamental status quo, revenue/gross profit/net profit growth rate and competition links of the enterprise at that time.

 The above is the analysis of the present situation and future of China automobile aftermarket according to the top-down method &mdash; &mdash; After 10 years, there will be many unicorns in the aftermarket. I look forward to your contribution here!

[Author of Titanium Media: This article comes from WeChat WeChat official account "Xianfeng Chuangchuang" (ID:xianfengk2vc) by Zhang Runtao. 】