Summary of Key Points from the Conference Call Company and Industry Overview - The conference call focuses on **Juzhibio** and its brand **Kefumei**, which operates in the **recombinant collagen protein** market, currently valued at approximately **400 billion RMB** [4][2]. Core Insights and Arguments - **Sales Impact from Public Relations Incident**: A recent incident involving a video by a chemist questioning the collagen content in Kefumei's products led to a significant drop in sales. The target growth rate for the 618 sales period was **60%**, but actual growth was only **20%-30%**. Sales on Douyin dropped by **50%** following the incident [2][22]. - **Long-term Market Potential**: Despite short-term setbacks, the long-term outlook for the recombinant collagen market remains positive, driven by market segmentation and the introduction of new collagen products (types IV and XVII) [1][4]. - **Product Performance**: The **Kefumei collagen stick** is a core product, with a pre-pandemic growth expectation of **50%**. It has a high repurchase rate of **70%-80%**, with new customer acquisition at nearly **50%** [1][6]. The **Focus Cream**, launched eight months ago, generated **200 million RMB** in revenue but has a low repurchase rate of **20%** due to its long improvement cycle [7][8]. - **Brand Loyalty and Customer Retention**: The brand enjoys a high level of recognition and loyalty among existing customers, with a repurchase rate of **40%** during key sales events, indicating strong customer satisfaction [12][11]. Additional Important Insights - **Channel Strategy**: Juzhibio is enhancing its online and offline channel operations, with plans to open **20 new direct stores** to improve customer engagement and service capabilities [16][14]. - **Market Competition**: The recombinant collagen market is becoming increasingly competitive, with several brands entering the space. However, the lack of regulatory barriers in the cosmetics sector allows for market expansion rather than intensified competition [24][25]. - **Impact of Pricing and Promotions**: The pricing strategy for the collagen stick has seen a **25%** increase in consumer feedback during the 618 period, indicating a shift in consumer perception and potential challenges in maintaining sales momentum [6][25]. - **Future Growth Opportunities**: The company is exploring new growth points through product bundling and marketing strategies, particularly for the Focus Cream, which is positioned as a secondary growth driver [23][19]. Conclusion - Juzhibio's long-term growth potential in the recombinant collagen market remains strong despite recent challenges. The company is actively working to enhance its product offerings, customer engagement strategies, and market positioning to navigate the competitive landscape and capitalize on future opportunities.

Core Viewpoint - Guojin Securities maintains a "buy" rating for Juzi Bio (02367), projecting EPS for 2025-2027 to be 2.40/2.93/3.54 HKD, with corresponding PE ratios of 23/19/16 times, indicating confidence in the company's product matrix and recovery in sales growth post-public sentiment impact [1][2]. Group 1 - Juzi Holding currently holds approximately 54.26% of the company's shares and plans to increase its stake by at least 200 million HKD within 3-6 months, reflecting strong confidence in the company's future [2]. - The company aims to enhance brand building, channel expansion, and regulatory approvals, focusing on increasing R&D investment for medical device products and meeting diverse market needs [2][3]. Group 2 - The company will intensify marketing efforts for its main brands and incubate new brands to elevate its skincare business, with notable products like collagen sticks and the focus cream showing promising growth [3]. - Juzi Bio plans to initiate commercialization preparations for three categories of medical devices, emphasizing market education and training to support its second growth curve [3].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [5][13]. Core Insights - The controlling shareholder, Juzi Holding, plans to increase its stake in the company by at least HKD 200 million within 3-6 months, reflecting strong confidence in the company's future [2][3]. - The company aims to enhance its brand, expand distribution channels, and strengthen regulatory approvals, focusing on product development and marketing efforts [4]. - The projected earnings per share (EPS) for 2025-2027 are estimated at CNY 2.40, CNY 2.93, and CNY 3.54, with corresponding price-to-earnings (PE) ratios of 23, 19, and 16 [5][11]. Summary by Sections Event Commentary - Juzi Holding announced a plan to increase its shareholding, indicating confidence in the company's prospects [2]. Operational Analysis - Juzi Holding currently holds approximately 54.26% of the company's shares and plans to acquire an additional 3.268 million shares, representing about 0.3% of the total share capital [3]. - The company will focus on increasing R&D investment and enhancing its product offerings, particularly in three categories of medical devices [4]. Future Outlook - The company plans to strengthen its marketing for key brands and develop new brands to support growth in its skincare business [4]. - The product matrix, including medical devices and skincare lines, is expected to continue driving growth [5]. Financial Forecasts - Revenue is projected to grow from CNY 3,524 million in 2023 to CNY 10,921 million by 2027, with a compound annual growth rate (CAGR) of approximately 23.95% [11]. - Net profit is expected to increase from CNY 1,452 million in 2023 to CNY 3,790 million by 2027, reflecting a strong growth trajectory [11].

Core Viewpoint - The article emphasizes the importance of the "self-care" concept in the skincare industry, highlighting how brands like Keli Jin are redefining anti-aging narratives by integrating cultural philosophies and emotional connections into their products and experiences [4][10][22]. Group 1: Brand Activities and Philosophy - Keli Jin's event "My 'Reorganization' Energy" in Chengdu reflects a shift towards creating a gentle space for urban dwellers, focusing on self-awareness and emotional needs through skincare [2][4]. - The brand utilizes Eastern wellness philosophies, such as "regulating energy, following trends, and maintaining harmony," to connect skincare with personal well-being [2][7]. - The event featured activities like morning exercises and DIY scent bags, which engage multiple senses and promote a holistic approach to skincare [6][8]. Group 2: Emotional Connection and Consumer Engagement - The concept of "self-care" has evolved into a crucial channel for brands to establish deeper relationships with younger consumers, who seek products that resonate with their lifestyles and emotional needs [4][10]. - Keli Jin aims to transition from a focus on product functionality to building emotional connections, making "self-care" a core element of its brand identity [4][10][12]. Group 3: Technological Integration and Product Development - Keli Jin leverages over 20 years of research in recombinant collagen technology, holding 167 patents and applications, positioning itself as a leader in this field [12][22]. - The brand's core ingredient, C5HA recombinant collagen, is scientifically formulated to enhance skin absorption and promote collagen production, addressing both efficacy and consumer trust [12][14]. - Keli Jin's product matrix includes a range of items designed for both morning and night use, catering to the growing demand for "time-specific care" and "certain efficacy" among consumers [16][18]. Group 4: Market Trends and Brand Strategy - The skincare industry is witnessing a structural shift where emotional resonance and understanding consumer needs are becoming as important as product efficacy [19][22]. - Keli Jin's dual strategy of combining "soft narrative" with "hard technology" allows it to build a brand model that is both scientifically grounded and emotionally engaging [22][30]. - The brand's approach to anti-aging is reframed from a battle against time to a gentle reorganization of one's state, aligning with modern consumer desires for self-acceptance and emotional well-being [29][30].

Market Overview - The Hong Kong stock market showed a positive trend with the Hang Seng Index rising 1.63% to close at 24,181.43 points, while the Hang Seng China Enterprises Index and the Hang Seng Tech Index also saw significant gains of 1.74% and 2.78% respectively, marking a technical bull market as they rose over 20% from April lows [1] - The trading volume for the day reached 245.83 billion HKD, indicating strong market activity [1] Blue Chip Performance - Kuaishou-W (01024) led the blue-chip stocks with a 5.58% increase, closing at 62.4 HKD, contributing 16.34 points to the Hang Seng Index [2] - Other notable performers included WuXi Biologics (02269) up 5.48%, SMIC (00981) up 5.1%, while Budweiser APAC (01876) and Zijin Mining (02899) experienced declines of 2.06% and 1.64% respectively [2] Sector Highlights - Major technology stocks collectively rose, with Kuaishou increasing over 5% and Meituan and JD.com both rising over 4% [3] - The innovative drug sector showed strong performance, with stocks like Eucure Biopharma-B (01477) up 19.45% and King’s Ray Biotech (01548) up 16.14% [3][4] - The Chinese securities sector saw a broad increase, with firms like Everbright Securities (06178) rising 5.27% and GF Securities (01776) up 4.66% [4] Regulatory Developments - The China Securities Regulatory Commission approved the transfer of control for eight companies to Central Huijin, which may lead to a new wave of mergers and acquisitions in the securities industry [5] Consumer and Technology Trends - The upcoming Apple Worldwide Developers Conference (WWDC 2025) is expected to drive interest in consumer electronics and related stocks, with companies like AAC Technologies (01415) and Sunny Optical (02382) showing gains [6] - New consumption stocks also performed well, with companies like Bruker (00325) rising 22.34% [6][7] Commodity Movements - Gold stocks faced declines, with Shandong Gold (01787) down 3.99%, influenced by stable U.S. employment data which suggests the Federal Reserve may maintain its current interest rate stance [7] Notable Stock Movements - China Rare Earth (00769) surged 60% following news of eased export controls on rare earths, reflecting strong market interest [8] - Huicai Holdings (01180) experienced a dramatic drop of 47.54% before being suspended, indicating volatility in the entertainment equipment sector [9]

Group 1 - The new consumption concept stocks in the Hong Kong market showed mixed performance in the afternoon session [1] - Bluetec (00325.HK) surged over 24%, indicating strong investor interest [1] - Mixue Group (02097.HK) rose nearly 7%, reflecting positive market sentiment [1] Group 2 - Gu Ming (01364.HK) increased by over 5.5%, suggesting a stable growth trend [1] - Giant Bio (02367.HK) saw a rise of over 4%, indicating resilience in its stock performance [1] - Lao Pu Gold (06181.HK) declined nearly 3%, showing some weakness in the market [1] Group 3 - Hu Shang Ayi (02589.HK) fell by 1.3%, indicating a slight downturn in its stock [1]

Core Viewpoint - The ongoing public dispute between two major players in the beauty industry, Huaxi Biological and Juzhi Biological, has escalated into a fierce battle over allegations of fraud and market manipulation, significantly impacting their market positions and stock prices [1][4][34]. Group 1: Background and Timeline - The conflict began on May 17 when Huaxi Biological publicly criticized several brokerage reports that favored Juzhi Biological's products, suggesting they misled the market [5][6]. - On May 24, beauty influencer Hao Yu accused Juzhi Biological of fraud regarding its "collagen stick" product, claiming the actual collagen content was only 0.0177%, far below the labeled 0.1% [16][17]. - Following these allegations, Juzhi Biological issued a rebuttal, presenting an internal quality inspection report to counter the fraud claims [18][19]. Group 2: Market Impact - Since the dispute began, Huaxi Biological's stock price has increased by approximately 6.8%, while Juzhi Biological's stock has seen a cumulative decline of 25.20%, resulting in a market value loss of over 16 billion HKD [34]. - The consumer market has also reacted, with Juzhi Biological's product ranking dropping significantly on e-commerce platforms, indicating a shift in consumer perception [36]. Group 3: Industry Dynamics - The conflict highlights a broader competition between two factions in the beauty industry: the hyaluronic acid camp represented by Huaxi Biological and the recombinant collagen camp led by Juzhi Biological [39]. - The rise of recombinant collagen products has been attributed to a lack of standardized regulations and testing methods, allowing companies like Juzhi Biological to capitalize on marketing without stringent scientific backing [41]. - In contrast, Huaxi Biological has faced significant challenges, with its market value plummeting from 140 billion to 26.1 billion, while Juzhi Biological's market capitalization has surged by 230% since its IPO [37].

巨子生物(02367.HK)：公司控股股东Juzi Holding计划自本公告日期起三至六个月内增持本公司股份， 增持金额不低于港币2亿元。 ...

Core Viewpoint - The ongoing controversy surrounding the collagen content claims by Juzhi Biotechnology highlights a deeper crisis of trust within the skincare industry, exacerbated by a lack of transparency and regulatory standards [1][2][3]. Group 1: Industry Trust Issues - The dispute over ingredient authenticity has revealed significant gaps in consumer trust and industry standards, with companies often engaging in "black box" practices that obscure the true efficacy of their products [3][4]. - The skincare sector is facing a crisis where consumers are increasingly skeptical of scientific claims, demanding transparency and accountability from brands [3][10]. Group 2: Regulatory and Market Dynamics - Recent events, including a fine imposed on CSS for false advertising, illustrate the consequences of misleading marketing practices, with penalties disproportionately affecting downstream partners rather than brands [6][9]. - The market for soluble collagen and other active ingredients is experiencing explosive growth, with a reported 106.93% increase in soluble collagen registrations, indicating a shift in consumer preferences towards these components [6][9]. Group 3: Ingredient Efficacy and Marketing Practices - The industry is grappling with two main issues: the imbalance in quantifying ingredient efficacy and the use of "shadow ingredients" to mislead consumers about product value [7][8]. - Companies are often reducing the actual amounts of active ingredients to cut costs, leading to a significant disparity between product claims and actual performance, which undermines consumer trust [7][8]. Group 4: Future Opportunities and Challenges - The lack of standardized testing methods and regulatory frameworks is creating a fragmented market where companies can exploit loopholes, leading to a potential collapse of consumer confidence [10][11]. - The need for an open and transparent verification platform is critical for establishing trust and setting future industry standards, as current practices are failing to meet consumer expectations [10][11].

Market Overview - The Hong Kong stock market indices collectively declined, with the Hang Seng Index stopping a three-day rise, closing down 0.48% at 23,792.54 points, with a total turnover of HKD 235.62 billion [1] - The Hang Seng China Enterprises Index fell 0.63% to 8,629.75 points, and the Hang Seng Tech Index also dropped 0.63% to 5,286.52 points [1] - For the week, the Hang Seng Index rose 2.16%, the China Enterprises Index increased by 2.34%, and the Tech Index gained 2.25% [1] Blue Chip Performance - Kuaishou-W (01024) continued its upward trend, rising 8.44% to HKD 59.1, contributing 22.8 points to the Hang Seng Index [2] - The annualized revenue run rate for Kuaishou's AI product exceeded USD 100 million as of March, with monthly payments surpassing RMB 100 million in April and May [2] - Other blue-chip stocks included CSPC Pharmaceutical Group (01093) up 12.72%, Hansoh Pharmaceutical (03692) up 2.84%, while SMIC (00981) fell 4.85% and Trip.com Group (09961) dropped 3.31% [2] Sector Highlights - Large tech stocks generally declined, with Xiaomi down over 2% and Alibaba down over 1%, while Kuaishou rose over 8% [3] - Precious metals saw gains, with China Silver Group rising 26% and silver prices reaching a 13-year high, driven by industrial demand [3] - The innovative drug sector saw gains, with CSPC Pharmaceutical up 12.72% and other biotech firms also performing well, indicating a positive outlook for the sector [4] Stablecoin Sector - The stablecoin sector experienced a pullback after Circle's successful NYSE listing, with China Everbright Holdings (00165) dropping 17.2% [5] - The Hong Kong government announced the implementation of the Stablecoin Regulation on August 1, 2025, which aims to reshape the regulatory framework for stablecoins [6] Automotive Sector - Automotive stocks declined, with XPeng Motors (09868) down 1.77% and Great Wall Motors (02333) down 1.76% [6] - Concerns over a price war in the automotive industry were raised, with profit margins for the sector declining [6] Notable Stocks - WanGuo Gold Group (03939) reached a new high, rising 11.73% to HKD 30, supported by positive mining contracts [7] - Xinyi Energy (03868) increased by 7.07% as it submitted listing materials for a solar power infrastructure REIT in China [8] - Juzhibio (02367) faced pressure, down 3.04%, amid ongoing controversies regarding its product composition [9]