Core Viewpoint - The controversy surrounding Giant Bio's product "Recombinant Collagen Essence" has raised questions about its collagen content, leading to a significant decline in the company's stock price following allegations of false labeling and exaggerated claims [1][6]. Group 1: Product Allegations - Beauty blogger "Big Mouth Doctor" (Hao Yu) reported that the collagen content in Giant Bio's "Recombinant Collagen Essence" was only 0.0177%, which is below the national standard of 0.1% for non-trace components [1]. - The report also indicated that the core amino acid "glycine," essential for collagen, was not detected in the product, suggesting potential false labeling and exaggeration of claims [1]. Group 2: Company Response - In response to the allegations, Giant Bio issued a statement denying the claims, asserting that multiple self-test results showed collagen content greater than 0.1%, contradicting the reported data [1]. - The company emphasized that its testing methods adhered to the "Pharmacopoeia of the People's Republic of China" and industry standards, and it has commissioned a third-party organization for retesting [1]. Group 3: Stock Market Impact - Following the allegations, Giant Bio's stock price experienced a continuous decline over four days, indicating a significant market reaction to the controversy [6]. - The situation was exacerbated by a lengthy article from Huaxi Bio, which criticized Giant Bio's marketing strategies and its comparison of collagen to hyaluronic acid [8]. Group 4: Connections and Recommendations - There are notable connections between Huaxi Bio and Big Mouth Doctor, as both have indirect stakes in Shanghai Liuye Medical Technology Service Co., Ltd., suggesting potential conflicts of interest [8]. - Big Mouth Doctor has previously recommended products from Huaxi Bio, indicating a possible bias in the ongoing criticism of Giant Bio [9].

临近年中电商大促，"重组胶原蛋白第一股"巨子生物却陷入巨大争议。 近日，一位自称为香港大学化学博士、前欧莱雅中国科学传播负责人的社交媒体博主"大嘴博士"连续发 文称，经检测，巨子生物旗下品牌可复美的核心产品"胶原棒（Human-Like重组胶原蛋白肌御修护次抛 精华）"中的重组胶原蛋白实际含量低于宣传口径。 作为巨子生物的收入王牌，可复美系列在2024年大赚45亿元、同比增长62.9%，占公司总收入的80%。 其中，以"胶原棒"为核心的功效型护肤品品类又为可复美贡献了近八成的收入。 在小红书等社交媒体上，不少质疑声因此认为，如果连头部企业都可能存在"造假"现象，作为普通消费 者，还能不能何信任和选择重组胶原蛋白产品？ 重组胶原用得少，是"产量跟不上"？ 最初的争议源于一组数字。 按照"大嘴博士"选择的高精度HPLC高效液相色谱氨基酸定量检测法，"胶原棒"中的重组胶原蛋白实际 含量仅为0.0177%，远低于产品中标注的"成分"添加（≥0.1%），或构成配方表造假。对此，可复美则 表示，按照国内重组胶原蛋白辅料"YY/T 1947-2025"行业标准，多批次产品检测结果的胶原蛋白含量均 大于0.1%。 双方随后的 ...

Core Viewpoint - The controversy surrounding the collagen content in the product "Human-Like Recombinant Collagen" from the brand Kefu Mei, owned by the company Giant Bio, has raised significant concerns regarding product integrity and testing methods [1][2][3]. Group 1: Controversy Details - KOL "Dr. Big Mouth" (Hao Yu) claimed that tests showed the collagen content in Kefu Mei's product was only 0.0177% using HPLC amino acid quantification [1]. - Giant Bio responded by stating their tests indicated collagen content greater than 0.1%, contradicting the claims made by Hao Yu, but third-party test results are still pending [2]. - Hao Yu further questioned Giant Bio's testing methods, suggesting that the use of the biuret method could lead to inflated results due to the presence of sodium polyglutamate in the product [3]. Group 2: Previous Issues and Impact - This is not the first controversy for Kefu Mei in 2023, as the brand was previously accused of illegally adding epidermal growth factor (EGF), which led to a public trust crisis [4][5]. - The Shaanxi Provincial Drug Administration investigated the previous claims and found no violations after sampling [6]. - The outcome of the current controversy is crucial for Giant Bio's future performance, as Kefu Mei is projected to generate revenue of 4.542 billion yuan in 2024, contributing over 80% to the company's total revenue [6]. Group 3: Market Reaction - Despite the unresolved testing results, the controversy has significantly impacted Giant Bio's stock price [7]. - As of May 29, Giant Bio's market capitalization was 72.9 billion HKD, having lost 12.8 billion HKD since early May [8].

Core Viewpoint - The public relations battle between Huaxi Biological and Juzhi Biological has led to a significant market value loss for Juzhi Biological, amounting to 17.4 billion yuan in just 10 days [4]. Group 1: Public Relations Battle - Huaxi Biological publicly criticized the capital market's behavior of favoring collagen while disparaging hyaluronic acid, directly naming Juzhi Biological and several brokerage firms [3][4]. - Juzhi Biological's market value dropped from 90.9 billion yuan to 73.5 billion yuan within 10 days, a decrease of 17.4 billion yuan [4]. - The negative publicity may impact consumer sentiment and Juzhi Biological's performance during the upcoming 618 promotional event [4]. Group 2: Controversial Testing Methods - The primary controversy revolves around the testing methods used to assess the collagen content in Juzhi Biological's products [5][6]. - A beauty blogger claimed that the actual collagen content in Juzhi Biological's product was only 0.0177%, significantly below the stated standard of ≥0.1% [9]. - Juzhi Biological defended its testing methods, stating that the blogger's approach lacked industry standards and that they were involved in formulating these standards [11]. Group 3: Timeline of Events - On May 17, Huaxi Biological published a critical article targeting Juzhi Biological and brokerage firms [18]. - Juzhi Biological did not respond initially, leading to perceptions of a "pillow fight" in the public relations battle [18]. - The timeline of events suggests a coordinated effort by the blogger to raise questions about Juzhi Biological's products, particularly before the 618 sales event [22][23]. Group 4: Industry Implications - The incident serves as a cautionary tale for other beauty and skincare brands regarding the importance of protecting their core assets, particularly product ingredients and their efficacy [33]. - Companies are urged to establish robust standards and testing methods to safeguard against potential public relations crises [34]. - The need for a credible third-party testing framework is emphasized, as the absence of such standards can lead to consumer distrust and brand damage [30].

Core Insights - Morgan Stanley reported that during the 618 promotional period from May 13 to 26, 2023, promotional efforts varied significantly among brands, with Proya leading in Tmall beauty and Caitang ranking first in Douyin makeup [1][5] Tmall Rankings - Proya maintained the top position in Tmall beauty rankings during the 618 event, with L'Oreal Paris and Estee Lauder following in the top three [2] - Comfy, a brand under Giant Bio, ranked 3rd on May 13, dropped to 9th on May 15, and fell to 12th from May 16 to 26 in Tmall beauty rankings [1][6] Douyin Rankings - In Douyin makeup, Caitang ranked first, while Comfy's performance fluctuated, indicating a preference for balancing sales growth and profit margins rather than pursuing high rankings [1][5] - High-end skincare brands showed increased focus on Douyin, with seven brands entering the top ten during the promotional period [5] Comfy Brand Insights - Comfy's initial high rankings during e-commerce shopping festivals tend to decline, a pattern observed in previous events like Double 11 [1][6] - The brand's strategy includes collaborating with less promotional-driven key opinion leaders (KOLs) and limiting supply on heavily discounted packages [6] - Recent consumer concerns regarding Comfy products on social media may impact consumer confidence, although the company is expected to address these issues with independent testing results [6] Market Outlook - Morgan Stanley estimates that the recent decline in Giant Bio's stock price to a forward P/E ratio of approximately 22x reflects the market's absorption of some earnings downside risks from consumer feedback [7] - Despite short-term uncertainties, Morgan Stanley maintains a buy rating and advises investors to build long-term positions during stock price weaknesses [7]

Core Viewpoint - The article discusses allegations against Juzhi Biotechnology regarding potential fraud in their collagen products, specifically questioning the accuracy of the testing methods used to measure collagen content [1][10]. Group 1: Allegations and Testing Methods - A video and post alleging that Juzhi Biotechnology's collagen product cannot be detected for collagen content have sparked significant discussion [1]. - The controversy centers around the testing method used, with the blogger claiming that the "biuret method" (双缩脲法) is flawed for complex cosmetic formulations, as it may yield inflated results due to interference from other ingredients [3][8]. - Juzhi Biotechnology claims to have used the biuret method as per the Chinese Pharmacopoeia and relevant industry standards to test their product [7]. Group 2: Product Versions and Consumer Impact - The blogger pointed out discrepancies between the product versions sent for testing, indicating that Juzhi Biotechnology submitted a 2.0 version while the blogger tested a 1.0 version, which has since been reportedly "shelved" [8][9]. - Consumers have reported that the 1.0 version of the product is no longer available on major e-commerce platforms, while the 2.0 version remains for sale [10]. Group 3: Regulatory Attention - The incident has attracted regulatory scrutiny, with local market supervision authorities acknowledging the situation and beginning investigations [10]. - The ongoing controversy has led to a notable decline in the company's stock price, with reports of a 10% drop following the allegations [10].

Core Viewpoint - The controversy surrounding the authenticity of collagen content in a product by Juzhi Biotechnology has sparked significant discussion, particularly regarding the testing methods used to measure collagen levels [1][2]. Group 1: Testing Methods and Controversy - The testing method used by Juzhi Biotechnology, known as the Biuret method, has been questioned for its reliability in complex cosmetic formulations, as it may yield inflated results due to interference from other ingredients [5][7]. - A blogger has raised concerns that the Biuret method cannot accurately distinguish between collagen and other peptide components, such as sodium polyglutamate, which could lead to misleading results [5][6]. - The blogger also highlighted discrepancies between the product versions sent for testing by Juzhi Biotechnology and their own submissions, indicating potential inconsistencies in the testing process [6]. Group 2: Regulatory Attention and Market Impact - The controversy has attracted regulatory scrutiny, with local market supervision authorities acknowledging the issue and beginning investigations [9][10]. - Following the controversy, the 1.0 version of the product has reportedly been removed from major e-commerce platforms, while the 2.0 version remains available for sale [10].

Core Viewpoint - The controversy surrounding the collagen content in the "可复美重组胶原蛋白肌御修护次抛精华" product has raised significant concerns regarding the accuracy of its labeling and the validity of the testing methods used to assess its ingredients [2][5]. Group 1: Product Testing and Claims - A beauty influencer claimed that the collagen content in the product was only 0.0177%, which is below the national standard minimum of 0.1% for non-trace ingredients [2]. - The influencer's testing method, HPLC, is not recognized by current industry standards, leading to questions about the reliability of the results [5]. - 可复美's internal tests reportedly show collagen content between 0.27% and 0.28%, which complies with the labeling regulations [5]. Group 2: Regulatory Compliance and Labeling - According to the "Cosmetic Labeling Management Measures," non-trace ingredients must be listed separately if they are present in amounts greater than or equal to 0.1% [5]. - 可复美 asserts that "soluble collagen" is listed seventh in the ingredient order, which aligns with regulatory requirements [5]. - The influencer's claim that the actual collagen content is 0.0177% raises concerns about potential false labeling practices [5]. Group 3: Market Impact - The product, known as "胶原棒," is a top-selling item for 可复美, with over 1 million units sold through a single link on its flagship store [5]. - The timing of the controversy, just before the "618" shopping festival, could lead to increased returns and cautious behavior from distributors [5].

5月27日晚间，美妆博主大嘴博士在其微博、微信公众号等社交媒体再度发文(视频)，质疑巨子生物检测报告中的检测方法和检测产品问题。 有机构研报称，尽管巨子生物迅速否认指控，但此类负面宣传仍可能影响消费者情绪，进而损害可复美在即将到来的618促销活动中的表现。618购物节向来 是美妆行业的销售旺季，众多品牌都会在这个时期加大营销投入，争取取得亮眼的销售成绩。可复美作为巨子生物的核心品牌，原本也对618寄予厚望。但 如今这场风波让可复美的618之路充满不确定性。若在618前夕，第三方检测结果仍未公布，消费者的观望情绪可能会持续加重，这无疑将对可复美的销售业 绩造成重大打击。 有意思的是，巨子生物内部检测5月24日开始，当天就出了结果，送往第三方检测已经过去三天了，结果却迟迟没能披露。无论是吃瓜的网友，还是美妆行 业人士，都在等第三方检测结果，也在等有关监管部门介入调查后的一个权威答案。只有权威的检测结果和清晰的解释，才能让消费者重新建立对品牌的信 任，也才能让整个事件尘埃落定。而对于巨子生物而言，如何妥善应对此次危机，化解消费者的疑虑，将是其面临的重大挑战。 此外，"大嘴博士"质疑，巨子生物内部检测的产品是胶原棒2 ...

Summary of the Conference Call for Juzi Biotechnology Company Overview - **Company**: Juzi Biotechnology - **Key Brands**: Kefu Mei and Keli Jin Industry Insights - **Market Trends**: The recombinant collagen market continues to show strong growth potential, with no signs of slowing down. The demand for products in this category remains robust, as evidenced by the high growth rates of key products and positive feedback from new product launches [4][10]. Core Points and Arguments - **Product Innovation**: Juzi Biotechnology is driving growth through product iterations, such as the upgrade of collagen peptide to version 2.0, and the introduction of new products like Focus Cream and Honey Repair Cream. These new products have received positive feedback from distribution channels and are expected to become new growth drivers [2][5]. - **Kefu Mei Brand Strengths**: Kefu Mei focuses on efficacy and safety, having established professional trust through medical device certification. The brand is expanding its product line into niche areas such as acne treatment and thermal injury repair, while also enhancing offline direct store presence to improve market performance [2][9]. - **Sales Performance**: Kefu Mei's collagen stick accounts for approximately 30% of total sales and continues to grow rapidly. The new customer acquisition rate is close to 50%, with a repurchase rate significantly higher than the industry average [2][12]. - **Keli Jin Brand Dynamics**: Keli Jin has achieved short-term growth through organizational restructuring and product line optimization. However, long-term growth may face challenges due to potential limitations in collagen technology for anti-aging effects [2][20]. - **Regulatory Challenges**: Sales of Class II medical device products are growing steadily, but the approval process for Class III medical devices is slow, with uncertain timelines for specific approvals despite receiving priority review qualifications for collagen fillers [2][21]. Financial Performance - **Revenue Growth**: Juzi Biotechnology has experienced rapid revenue and profit growth, although the sales expense ratio has increased. The company plans to control this ratio through product combination sales and customer referral strategies [6][7]. Marketing and Competitive Landscape - **Competitive Positioning**: Kefu Mei differentiates itself from competitors by emphasizing safety and efficacy. The brand has established a strong medical aesthetic image through partnerships with hospitals and medical institutions, contrasting with competitors that rely on celebrity endorsements [17][25]. - **Market Competition**: While other brands have launched collagen products, Kefu Mei's unique positioning and established trust in safety and efficacy mitigate significant competitive threats. The market is expanding collectively rather than through direct competition [25]. Product Strategy - **Product Development**: Kefu Mei's strategy includes launching successful single products and then expanding related skincare offerings. The brand also targets various consumer needs with different product forms [11][12]. - **New Product Launches**: The Focus Cream and Zhenyu Secret Repair Cream have distinct market positions, with the latter targeting a high-end consumer segment and addressing specific skin repair needs [18]. Future Outlook - **Growth Projections**: Kefu Mei is expected to achieve a growth rate of 40% to 50% in Q1 2025, with an annual performance forecast of 25% to 28%. The overall performance is anticipated to remain stable due to new product launches and marketing strategies [10][19]. Additional Considerations - **Consumer Sentiment**: Recent controversies regarding product ingredient content are not expected to significantly impact the company's fundamentals, as consumer recognition of product efficacy remains high [3][24]. - **Offline Expansion**: Kefu Mei has begun establishing offline direct stores, with plans to open 40 new locations in 2025. This strategy aims to enhance member interaction and improve market performance [22][23].