This sentence was said by Zhong Rong, a literary critic during the Southern and Northern Dynasties, when he evaluated Bao Zhao, a poet from the Song Dynasty in the Southern Dynasties, in "Shipin".
"Talented people are insignificant" means that Bao Zhao is very talented, but his social status is very low, his family is also very poor, and his life is also very humble.
"The reason is to annihilate the contemporary times" means that his poetry was not taken seriously in the literary circles at that time and did not receive due evaluation and recognition.
In general, the meaning of this sentence is that although Bao Zhao was talented, due to the limitations of his status, his poems did not receive the attention and recognition they deserved at the time.
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