Core Viewpoint - The recent controversy surrounding Giant Biological (巨子生物) has led to a significant decline in its stock price and raised questions about the integrity of its flagship product, "Recombinant Collagen" [1][2][6] Company Overview - Giant Biological, established in September 2001, is a leader in the global recombinant collagen market, with a registered capital of 68,752.179 million RMB [3] - The company's product line includes "Recombinant Collagen Essence," which claims to enhance skin firmness and elasticity [3] Controversy Details - A report by Dr. Hao Yu accused Giant Biological of product fraud, stating that the collagen content in its "Recombinant Collagen Essence" was only 0.0177%, below the non-trace standard of 0.1% [3][4] - The company has strongly denied these allegations, asserting that all products undergo rigorous quality control and testing [4][5] Market Impact - Following the controversy, Giant Biological's stock price fell by over 8% on May 26, 2023, closing at 73.600 HKD, resulting in a market capitalization of 788 billion HKD [1][6] - The company's market value has decreased from 900 billion HKD to 788 billion HKD due to the ongoing scandal [7] Financial Performance - For 2024, Giant Biological is projected to have a revenue of 5.678 billion RMB, with a year-on-year growth of 56.53% [8] - The company's net profit is expected to be 2.062 billion RMB, reflecting a growth of 42.06% [8] - Despite strong revenue growth, the company's R&D expenditure is only 107 million RMB, accounting for less than 2% of its revenue [8]

Core Viewpoint - The ongoing dispute regarding the detection methods for recombinant collagen in cosmetics has raised significant concerns about the reliability of testing methods used by the company, Juzhi Biotechnology, and the implications for consumer trust [1][4]. Group 1: Detection Methods - Juzhi Biotechnology referenced the "Detection Methods for Recombinant Collagen Content" from the Chinese medical industry standard YY/T 1947-2025, which includes two main types of detection methods [1][2]. - The first method is the "mass spectrometry method," which is primarily used for tissue regeneration materials and is not suitable for complex cosmetic formulations due to potential interference from other ingredients [2][3]. - The second method includes six techniques, with the Kjeldahl method being the most likely choice for Juzhi Biotechnology, despite its limitations in accurately assessing specific proteins in complex formulations [2][3]. Group 2: Product Withdrawal and Consumer Trust - Juzhi Biotechnology's product, Human-Like Recombinant Collagen Essence, has been removed from major sales channels, raising questions about the company's testing results [4]. - The claim that testing for recombinant collagen content requires raw materials from Juzhi is misleading, as the product itself can be purchased for independent testing [4][5]. - The company's practice of not selling raw materials externally may pose risks, as it limits independent verification and peer review of their recombinant collagen [4][5]. Group 3: Questions and Concerns - There are significant concerns regarding the independence of any future sample testing if Juzhi Biotechnology provides the samples themselves, as this could lead to questions about the integrity of the results [5]. - Two critical questions remain unanswered by Juzhi Biotechnology: the absence of the core amino acid glycine in the tests and the potential misrepresentation of dipeptides as "mini collagen" [5].

Core Viewpoint - The stock price of Giant Bio (HK02367) experienced a significant decline following allegations of product fraud related to its brand, Kefu Mei, which led to a public statement denying the accusations and asserting compliance with regulatory standards [9][10]. Group 1: Company Performance - As of May 26, Giant Bio's stock opened with a drop exceeding 8%, later narrowing to a decline of 3.52% [1]. - The company's market capitalization is approximately 80 billion HKD [11]. - Kefu Mei, a brand under Giant Bio, reported sales revenue exceeding 4.5 billion CNY in 2024, reflecting a year-on-year growth of 62.9% [10]. Group 2: Industry Context - The A-share market saw a collective decline in stocks related to recombinant protein, with notable drops in companies such as Ruizhi Pharmaceutical and Sanofi Guojian, each falling nearly 6% [2]. - The market reaction indicates a broader concern regarding the credibility of companies in the recombinant protein sector following the allegations against Giant Bio [2].

Core Viewpoint - The article discusses the challenges faced by Juzi Biotechnology, particularly regarding allegations of product fraud and the company's heavy reliance on its flagship product, Kefu Mei, amidst increasing scrutiny and competition in the beauty and healthcare industry [1][5][7]. Company Overview - Juzi Biotechnology, founded by Fan Daidi, specializes in recombinant collagen products, with its flagship offerings being Kefu Mei and Keli Jin [1][4]. - The company went public on the Hong Kong Stock Exchange in 2022, achieving a market capitalization of approximately HKD 821 billion (RMB 753 billion) as of May 23, 2025 [4]. Financial Performance - Juzi Biotechnology reported a revenue of RMB 55.39 billion in 2024, marking a 57.17% year-on-year increase, with a net profit of RMB 20.62 billion, up 42.06% [7]. - The contribution of Kefu Mei to the company's revenue rose from 30.3% in 2019 to 82% in 2024, while the second brand, Keli Jin, decreased to 15.2% [7]. Research and Development - The company's R&D expenditure in 2024 was only RMB 1.07 billion, accounting for 1.9% of its revenue, significantly lower than competitors like Huaxi Biotechnology and Jinbo Biotechnology, which spent 7.13% and 4.92% of their revenues on R&D, respectively [8]. - Juzi Biotechnology's core patents are primarily from 2005 to 2013, indicating a slow pace of new product development [8]. Market Challenges - The company is currently facing allegations of product fraud, specifically regarding the efficacy of its recombinant collagen products, which has led to public scrutiny and potential reputational damage [5][6]. - There are concerns about the company's supply chain management and regulatory compliance, particularly following allegations of using banned ingredients in its products [7][8].

Core Viewpoint - The beauty company, Giant Biological (02367.HK), is experiencing significant growth in performance and market capitalization, surpassing HKD 80 billion, while facing public scrutiny regarding the collagen content in its products [1][10]. Company Summary - Giant Biological's product, "Kefumei Recombined Collagen Protein Essence," was criticized by a beauty industry influencer for allegedly having a collagen content of only 0.0177%, which does not meet the regulatory requirement of being above 0.1% for non-trace ingredients [1][4]. - In response to the allegations, Giant Biological stated that their testing showed collagen content exceeding 0.1% and has engaged third-party testing agencies to verify the results [6][10]. - The company has seen its stock price and market value rise despite the controversy, indicating strong investor confidence [1][10]. Industry Summary - The controversy surrounding recombinant collagen products has sparked discussions about the effectiveness and labeling of such ingredients in the beauty industry [7][9]. - The market for recombinant collagen products is projected to grow significantly, with an expected market size of RMB 108.3 billion by 2027, and a compound annual growth rate of 55% from 2022 to 2027 [10]. - Major players in the beauty industry, including Marubi Biological and Huaxi Biological, are also entering the recombinant collagen market, indicating a competitive landscape [10].

Core Viewpoint - The article discusses the controversy surrounding Huaxi Biological, a leading player in the medical aesthetics industry, which publicly refuted claims made by nine brokerage firms regarding the obsolescence of hyaluronic acid, asserting that these claims mislead the market and harm the industry [2][5][13]. Group 1: Industry Response - Huaxi Biological received support from two industry associations before making its statement and has reported the misleading content to the China Securities Regulatory Commission (CSRC) [2][12]. - Following Huaxi's public rebuttal, some brokerage firms have deleted their reports, and certain institutions have issued apologies to the company [2][12]. - The brokerage reports in question were primarily focused on the emerging concept of recombinant collagen, which Huaxi argues is being promoted at the expense of hyaluronic acid [5][13]. Group 2: Misleading Claims - Huaxi Biological criticized the brokerage reports for making misleading comparisons between hyaluronic acid and recombinant collagen, claiming that these reports lacked scientific basis and were driven by speculative capital [5][13]. - The company highlighted that the reports suggested hyaluronic acid was inferior to recombinant collagen in terms of safety and efficacy, which Huaxi disputes, stating that such conclusions are not supported by scientific evidence [5][31]. Group 3: Regulatory and Compliance Issues - The article raises concerns about the compliance of the brokerage reports, suggesting that they may not have adhered to the necessary standards for objectivity and scientific backing [20][21]. - Industry experts indicate that the reports should have included relevant data to support their claims, and the lack of such data could lead to regulatory scrutiny [21][22]. - The ongoing regulatory environment is described as increasingly stringent, with past instances of penalties for brokerage firms due to similar issues [26][27]. Group 4: Scientific Basis of Claims - Huaxi Biological argues that both hyaluronic acid and recombinant collagen have their unique applications and benefits, and it is inappropriate to declare one superior to the other without substantial scientific evidence [31][32]. - The company emphasizes that the existing research favors hyaluronic acid in certain applications, particularly in skin hydration and immediate filling, while recombinant collagen may have advantages in tissue repair [31][32].

Core Viewpoint - The article discusses the controversy surrounding Huaxi Biological's rebuttal of the claims made by nine brokerage firms regarding hyaluronic acid being "outdated" and the promotion of recombinant collagen as a superior alternative, highlighting the impact of these claims on the market and the industry [2][4][9]. Group 1: Company Actions - Huaxi Biological publicly refuted the claims about hyaluronic acid and named nine brokerage firms for misleading reports, which has led to some brokerages retracting their reports and issuing apologies [2][8]. - The company received support from two industry associations before making its statement and has reported the matter to the China Securities Regulatory Commission [2][8]. - As of May 23, three of the ten reports mentioned have been removed from public access, while the remaining seven are still available for viewing [8][9]. Group 2: Industry Context - The medical beauty industry is characterized by a high overlap between capital market participants and enterprise users, making capital evaluations significantly impactful on the competitive landscape, which explains Huaxi Biological's strong response [2][4]. - The article emphasizes that the claims made in the brokerage reports lack scientific basis and are driven by speculative capital, which could harm a key industry in China [6][9][24]. Group 3: Scientific Claims - Huaxi Biological argues that the reports promoting recombinant collagen over hyaluronic acid are misleading and lack substantial scientific evidence, asserting that both substances have their unique benefits and should not be directly compared [23][24]. - The company highlights that the regulatory approvals for hyaluronic acid products far exceed those for recombinant collagen, indicating a stronger safety profile for hyaluronic acid [25][26]. Group 4: Regulatory Environment - The article notes that the regulatory environment for brokerage reports is tightening, with recent inspections revealing issues in compliance and the need for better management of report quality and information sources [18][20]. - There is a growing concern about the potential for misleading information in brokerage reports, which could lead to regulatory actions against the firms involved if found to be in violation of established guidelines [21][22].

Core Viewpoint - The beauty blogger "Dr. Big Mouth" accused Giant Biological (02367.HK) of serious fraud regarding its Kefu Mei collagen essence, claiming that the actual content of recombinant collagen is only 0.0177% in the best-selling product, and that the key component "glycine" is missing [2][3][10]. Group 1: Accusations and Responses - The blogger questioned the legality of labeling recombinant collagen as a non-trace component when its actual content is below the regulatory threshold of 0.1% [3][10]. - Giant Biological issued a statement firmly denying the allegations, asserting that multiple tests showed collagen content greater than 0.1%, contradicting the blogger's claims [12][14]. - The company emphasized its adherence to scientific ethics and regulatory compliance, stating that all products are rigorously tested and verified [12][14]. Group 2: Product Composition Concerns - The blogger raised concerns about the absence of glycine in a product claiming to contain recombinant collagen, questioning the validity of calling it "recombinant collagen" [5][9]. - There were also questions about the marketing of a dipeptide molecule as "Mini small molecule collagen," suggesting potential misuse of scientific terminology [7]. Group 3: Market Performance and Investor Sentiment - Despite the controversies, Giant Biological has seen significant growth, reporting a revenue of 5.539 billion yuan in 2024, a year-on-year increase of 57.07%, and a net profit of 2.062 billion yuan, up 42.06% [22]. - The company has gained substantial attention from investors, with several funds heavily investing in its stock, indicating strong market confidence [24].

Core Viewpoint - The controversy surrounding the collagen product "Kefumei" from Giant Biological has escalated due to allegations of ingredient falsification, leading to a crisis of trust among investors and consumers [5][6][10]. Company Summary - Dr. Hao Yu published a report claiming that the collagen content in "Kefumei" is only 0.0177%, significantly below the stated minimum of 0.1%, and that key component glycine was not detected [5][10]. - Giant Biological quickly responded to the allegations, asserting that their products comply with regulatory standards and that they have commissioned multiple third-party testing agencies to verify the collagen content [12][15]. - The company emphasized that their products have passed strict regulatory reviews and that the testing methods used by Dr. Hao Yu are not recognized by industry standards [15][12]. - As of May 25, "Kefumei" has sold over 1 million units, contributing significantly to the company's revenue, with sales projected to reach 27.88 billion yuan and 45.42 billion yuan in 2023 and 2024, respectively [17][19]. Industry Summary - The incident highlights a broader issue within the recombinant collagen industry, where there is currently no unified testing standard, leading to discrepancies in results from different testing methods [22]. - The controversy reflects a struggle between technical standards and commercial interests, with the ultimate resolution depending on consumer trust and regulatory oversight [22]. - The need for transparency in testing and a shift from marketing-driven to technology-driven strategies is critical for the long-term success of companies in the recombinant collagen sector [22].

Core Viewpoint - The skincare brand Kefu Mei, under Giant Biological, strongly denies allegations of false advertising regarding the content of recombinant collagen in its products, asserting that the claims made by a beauty blogger are unfounded and based on non-standard testing methods [2][3][6]. Group 1: Allegations and Responses - A beauty blogger named "Big Mouth Doctor" accused Kefu Mei of having only 0.0177% of recombinant collagen in its product, which should theoretically be above 0.1% for non-trace ingredients, questioning the product's compliance with regulations [3][10]. - Kefu Mei responded by stating that their products undergo a three-tier verification system for quality control, ensuring no ingredient fraud or concealment occurs [6][9]. - The company presented its own testing results showing collagen content between 0.27% and 0.28%, contradicting the blogger's claims [6][7]. Group 2: Industry Standards and Legal Actions - Kefu Mei highlighted that there are currently no industry or national standards for the content of recombinant collagen, and the blogger's testing methods are not recognized by industry standards [8][9]. - The company plans to initiate legal action against the blogger for defamation, asserting that the allegations challenge the authority of regulatory bodies [9][10]. Group 3: Company Performance and Market Context - Giant Biological has experienced significant growth, with 2024 revenues reaching 5.54 billion yuan, a 57.2% increase year-on-year, and net profits of 2.06 billion yuan, up 42.4% [10]. - Kefu Mei's contribution to revenue exceeds 80%, with a year-on-year growth of 62.9%, positioning Giant Biological as one of the fastest-growing companies in the domestic beauty industry [10].