每经AI快讯，9月24日，港股巨子生物(02367.HK)跌超4%，截至发稿，跌4.15%，报58.9港元，成交额 2.72亿港元。 ...

巨子生物(02367)跌超4%，截至发稿，跌4.15%，报58.9港元，成交额2.72亿港元。 今年5月，美妆博主"大嘴博士"郝宇发文指控巨子生物旗下可复美"胶原棒"重组胶原蛋白含量仅为 0.0177%，远低于0.1%的"非微量添加"标准，且缺失核心氨基酸甘氨酸。巨子生物迅速否认，称产品合 规，内部检测远超0.1%。6月1日，华熙生物发文力挺郝宇。巨子生物则称收到了郝宇所用检测机构 的"道歉声明"，指其"从未授权郝宇使用报告"。此后，双方多次隔空交锋，直至6月23日，巨子生物发 布声明，承认其"现有的质量标准、检测方法和标签标识在某些方面已逐渐显现出其局限性"。 消息面上，华熙生物日前发布9月22日投资者关系活动记录表，就此前备受关注的"支持郝宇博士"一事 作出正式回应。华熙生物在记录表中透露，已联合国家计量院等多家第三方检测机构对相关企业的相关 产品展开检测，结果几十份检测结果均显示，相关产品中的重组胶原蛋白添加量未达标。华熙生物表 示，"已将数十份检测报告提交国家药品监督管理局。"值得注意的是，此前国家网信办将"大嘴博士"列 为网络环境整治典型案例。 ...

消息面上，华熙生物日前发布9月22日投资者关系活动记录表，就此前备受关注的"支持郝宇博士"一事 作出正式回应。华熙生物在记录表中透露，已联合国家计量院等多家第三方检测机构对相关企业的相关 产品展开检测，结果几十份检测结果均显示，相关产品中的重组胶原蛋白添加量未达标。华熙生物表 示，"已将数十份检测报告提交国家药品监督管理局。"值得注意的是，此前国家网信办将"大嘴博士"列 为网络环境整治典型案例。 智通财经APP获悉，巨子生物(02367)跌超4%，截至发稿，跌4.15%，报58.9港元，成交额2.72亿港元。 今年5月，美妆博主"大嘴博士"郝宇发文指控巨子生物旗下可复美"胶原棒"重组胶原蛋白含量仅为 0.0177%，远低于0.1%的"非微量添加"标准，且缺失核心氨基酸甘氨酸。巨子生物迅速否认，称产品合 规，内部检测远超0.1%。6月1日，华熙生物发文力挺郝宇。巨子生物则称收到了郝宇所用检测机构 的"道歉声明"，指其"从未授权郝宇使用报告"。此后，双方多次隔空交锋，直至6月23日，巨子生物发 布声明，承认其"现有的质量标准、检测方法和标签标识在某些方面已逐渐显现出其局限性"。 ...

Group 1 - The overall performance of domestic beauty and skincare companies in the first half of 2025 remains stable, with Proya and Shiseido maintaining their positions as industry leaders, while Juzhibio leads in profit [1][2] - Proya's main brand shows a slight decline, indicating a near ceiling for single-brand growth in the domestic market, while Maogeping has entered the top five, representing the high-end trend in domestic beauty [2][10] - The financial performance of major companies shows varied results, with Proya reporting revenue of 5.362 billion yuan (up 7.21%), Shiseido at 4.108 billion yuan (up 17.30%), and Juzhibio at 3.113 billion yuan (up 22.50%) [3][4] Group 2 - Juzhibio's profit reached 1.182 billion yuan, a 20.60% increase, while Proya's profit was 799 million yuan (up 13.80%) and Maogeping's profit was 670 million yuan (up 36.10%) [5][6] - The beauty industry is facing challenges with brand positioning and organizational restructuring, particularly for established companies like Huaxi Biological and Beitaini, which have seen significant declines in performance [25][30] - Maogeping has successfully expanded into high-end skincare and fragrance markets, with a focus on diversifying its business to reduce reliance on single products [20][23] Group 3 - The emergence of new active ingredients, such as ergothioneine, is gaining attention in the beauty industry, with companies investing in research and development to innovate [39][42] - Marketing strategies are shifting towards brand strength and celebrity endorsements, with companies like Proya and Marubi actively engaging high-profile brand ambassadors [51][53] - Companies are increasingly focusing on building comprehensive sales channels that integrate online and offline strategies, as well as domestic and international markets, to adapt to changing consumer behaviors [58][60]

[Company Information](index=3&type=section&id=Company%20Information) This section provides an overview of the company's governance structure and key contact details [Board of Directors and Committees](index=3&type=section&id=Board%20of%20Directors%20and%20Committees) The company's board comprises executive and independent non-executive directors, supported by audit, remuneration, nomination, and corporate governance committees - Executive Directors include **Mr. Yan Jianya** (Chairman and CEO), **Ms. Ye Juan**, **Ms. Fang Juan**, **Ms. Zhang Huijuan**, and **Ms. Yan Yubo**[4](index=4&type=chunk) - Independent Non-Executive Directors are **Mr. Huang Jin**, **Mr. Shan Wenhua**, and **Ms. Huang Siying**[4](index=4&type=chunk) - **Ms. Huang Siying** chairs the Audit Committee, **Mr. Shan Wenhua** chairs the Remuneration Committee, and **Mr. Yan Jianya** chairs both the Nomination and Corporate Governance Committees[4](index=4&type=chunk) [Key Contact Information](index=3&type=section&id=Key%20Contact%20Information) The company discloses essential contact information, including its reporting accountants, legal advisors, official website, stock code, and principal bankers - Reporting accountants and independent auditors are **Ernst & Young**[4](index=4&type=chunk) - The company's website is **www.xajuzi.com**, and its stock code is **2367**[4](index=4&type=chunk) - Principal bankers include **China Merchants Bank**, **Shanghai Pudong Development Bank**, and **Chang'an Bank**[5](index=5&type=chunk) [Financial Highlights](index=5&type=section&id=Financial%20Highlights) This section presents a summary of the company's financial performance, assets, and liabilities [Performance Overview](index=5&type=section&id=Performance%20Overview) For the six months ended June 30, 2025, the company achieved robust performance with revenue increasing by 22.5% to RMB 3.11 billion and profit for the period growing by 20.6% to RMB 1.18 billion For the Six Months Ended June 30 - Performance Overview | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 3,112,662 | 2,540,432 | 22.5 | | Gross Profit | 2,542,345 | 2,093,240 | 21.5 | | Profit Before Tax | 1,444,148 | 1,155,190 | 25.0 | | Profit for the Period | 1,182,444 | 980,550 | 20.6 | | Profit for the Period Attributable to Owners of the Parent | 1,182,083 | 983,164 | 20.2 | | Profit for the Period Attributable to Non-controlling Interests | 361 | (2,614) | -113.8 | [Assets and Liabilities Overview](index=5&type=section&id=Assets%20and%20Liabilities%20Overview) As of June 30, 2025, total assets increased by 40.4% to RMB 11.29 billion, total liabilities rose by 128.4% to RMB 2.10 billion, and total equity grew by 29.1% to RMB 9.19 billion As of June 30, 2025 - Assets and Liabilities Overview | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 11,286,255 | 8,037,958 | 40.4 | | Total Liabilities | 2,097,407 | 918,136 | 128.4 | | Total Equity | 9,188,848 | 7,119,822 | 29.1 | | Non-current Assets | 1,398,527 | 1,636,001 | -14.5 | | Current Assets | 9,887,728 | 6,401,957 | 54.4 | | Current Liabilities | 2,030,033 | 835,995 | 142.8 | | Net Current Assets | 7,857,695 | 5,565,962 | 41.2 | | Non-current Liabilities | 67,374 | 82,141 | -18.0 | | Total Equity | 9,188,848 | 7,119,822 | 29.1 | [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) This section provides a comprehensive review of the company's business performance, strategic initiatives, and future outlook [Business Review](index=6&type=section&id=Business%20Review) In the first half of 2025, the company achieved steady growth despite external challenges, with revenue and net profit increasing by 22.5% and 20.6% respectively, driven by R&D investment, product innovation, and refined channel operations - During the reporting period, the company's revenue reached **RMB 3.11 billion**, a year-on-year increase of **22.5%**; net profit reached **RMB 1.18 billion**, a year-on-year increase of **20.6%**[9](index=9&type=chunk) - R&D expenditure was **RMB 41 million**, accounting for **1.3% of revenue**, with over **140 ongoing R&D projects** and **186 authorized and pending patents**[10](index=10&type=chunk) - Rebiome brand revenue was **RMB 2.54 billion**, a year-on-year increase of **22.7%**; Collagene brand revenue was **RMB 500 million**, a year-on-year increase of **26.9%**[14](index=14&type=chunk)[15](index=15&type=chunk) - Direct sales channel revenue was **RMB 2.33 billion**, accounting for **74.7%**, an increase of **2.3 percentage points** year-on-year; distribution channel revenue was **RMB 790 million**, accounting for **25.3%**[21](index=21&type=chunk) [R&D Innovation and Technological Breakthroughs](index=6&type=section&id=R%26D%20Innovation%20and%20Technological%20Breakthroughs) The company continuously increases R&D investment, expands the application scope of recombinant collagen, and participates in setting industry standards, solidifying its leading position in synthetic biology - R&D expenditure was **RMB 41 million**, accounting for **1.3% of revenue**, with over **140 ongoing R&D projects**[10](index=10&type=chunk) - Obtained important patent authorizations such as "Recombinant Human Type XVII Collagen and its Application for Hair Growth and Care" and "Type I Recombinant Collagen, its Metal Chelates, and Whitening Cosmetics"[10](index=10&type=chunk) - Participated in drafting the PRC pharmaceutical industry standard "Recombinant Collagen Dressing" and was awarded the "National Advanced Collective in Light Industry" honor[11](index=11&type=chunk) [Product Iteration and Brand Development](index=7&type=section&id=Product%20Iteration%20and%20Brand%20Development) The Rebiome and Collagene brands successfully launched multiple star products through continuous innovation and upgrades, strengthening brand value and consumer connection through diversified marketing activities - Rebiome recombinant collagen dressing ranked **TOP1** on Tmall's medical dressing praise list during the 2025 618 promotion[13](index=13&type=chunk) - Rebiome launched "Collagen Stick 2.0" with proprietary recombinant Type IV collagen, ranking **TOP1** among domestic liquid essences on Tmall during the 618 promotion[13](index=13&type=chunk) - Collagene upgraded "Collagen Mask King" to version 3.0, ranking **TOP4** on Tmall's smear mask hot-selling list and **TOP1** on JD's nourishing mask hot-selling list during the 618 promotion[15](index=15&type=chunk) - Rebiome and Collagene brands enhanced brand promotion and consumer interaction by participating in industry conferences, online and offline events, and public welfare initiatives[16](index=16&type=chunk)[17](index=17&type=chunk) [Channel Strategy and Refined Operations](index=9&type=section&id=Channel%20Strategy%20and%20Refined%20Operations) The company adheres to an omni-channel strategy, deepening refined online and offline operations, expanding its sales network, and enhancing efficiency and market penetration through data analysis and content marketing - Offline channel products entered approximately **1,700 public hospitals**, **3,000 private hospitals and clinics**, over **130,000 chain pharmacy stores**, and approximately **6,000 CS/KA stores**[19](index=19&type=chunk) - Rebiome brand specialty stores expanded to **24 stores nationwide** and became the **first Chinese functional skincare brand** to enter Watsons in Malaysia[19](index=19&type=chunk) - Online channels achieved sales growth through refined Tmall member operations, a multi-account Douyin live streaming system, and integration with JD's medical ecosystem for professional scenarios[20](index=20&type=chunk)[21](index=21&type=chunk) [Social Responsibility and Sustainable Development](index=11&type=section&id=Social%20Responsibility%20and%20Sustainable%20Development) The company actively participates in public welfare activities, promotes health and skincare knowledge, advocates environmental protection, and assists in combating counterfeiting to maintain market order - Partnered with the Chinese Medical Doctor Association to conduct public welfare clinics with over **400 public hospitals nationwide**, promoting health and skincare knowledge[22](index=22&type=chunk) - Launched the "Empty Bottle Recycling Program" to convert recycled tubes into regenerated products and collaborated with universities to host an environmental creative competition[22](index=22&type=chunk) - Assisted police in combating counterfeiting and participated in roundtable discussions to promote the healthy and sustainable development of the medical aesthetics industry[22](index=22&type=chunk) [Business Outlook](index=11&type=section&id=Business%20Outlook) Looking ahead to the second half of 2025, the company will continue to focus on scientific and technological research and industrialization, consolidate its technological leadership, and strengthen brand building and channel operations for sustainable high-quality development - Continuously strengthen scientific and technological research and industrialization exploration to consolidate technological leadership[23](index=23&type=chunk) - Enhance brand promotion and consumer communication to continuously build brand image and lay a solid foundation for long-term development[23](index=23&type=chunk) - Refine and solidify operations across all channels, cultivating sustainable, high-quality capabilities and organization amidst changes[23](index=23&type=chunk) [Operating Results](index=12&type=section&id=Operating%20Results) This section details the company's operating results for the first half of 2025, highlighting a 22.5% increase in total revenue driven by strong sales of professional skincare products, a slight decrease in gross margin, reduced R&D costs, increased sales and administrative expenses, and double-digit growth in profit for the period and EPS - Total revenue was **RMB 3.11 billion**, a year-on-year increase of **22.5%**, driven by refined online and offline operations, growth in star products, and enhanced brand influence[24](index=24&type=chunk) - Gross margin decreased from **82.4%** in the same period of 2024 to **81.7%** in 2025, primarily due to changes in product category structure[37](index=37&type=chunk) - R&D costs were **RMB 41.2 million**, a year-on-year decrease of **15.5%**, mainly due to some R&D projects entering the commercialization phase and reduced share-based payment expenses[39](index=39&type=chunk) - Profit for the period was **RMB 1.18 billion**, a year-on-year increase of **20.6%**; basic earnings per share was **RMB 1.14**, a year-on-year increase of **15.2%**[44](index=44&type=chunk)[45](index=45&type=chunk) [Revenue by Product Category](index=12&type=section&id=Revenue%20by%20Product%20Category) Professional skincare products are the primary source of revenue, with both functional skincare products and medical dressings achieving growth, and health food and other categories also showing increased revenue Revenue by Product Category | Product Category | 2025 (RMB millions) | 2025 (%) | 2024 (RMB millions) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Professional Skincare Products | | | | | | －Functional Skincare Products | 2,409.5 | 77.4 | 1,939.6 | 76.4 | | －Medical Dressings | 693.2 | 22.3 | 592.2 | 23.3 | | Health Food and Others | 10.0 | 0.3 | 8.6 | 0.3 | | **Total** | **3,112.7** | **100.0** | **2,540.4** | **100.0** | - Revenue from functional skincare products increased due to refined omni-channel operations, enhanced brand influence, and successful launch of star products (Focus Cream, Collagen Mask King 3.0)[25](index=25&type=chunk) - Revenue from medical dressings increased primarily due to the continuous enrichment of the product matrix[25](index=25&type=chunk) [Revenue by Sales Channel](index=13&type=section&id=Revenue%20by%20Sales%20Channel) Direct sales channel revenue increased its proportion to 74.7%, with significant growth in online direct sales through DTC stores and e-commerce platforms, and substantial growth in offline direct sales due to store expansion and new product launches Revenue by Sales Channel | Sales Channel | 2025 (RMB millions) | 2025 (%) | 2024 (RMB millions) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Direct Sales | | | | | | －Online Direct Sales via DTC Stores | 1,816.4 | 58.4 | 1,603.2 | 63.1 | | －Online Direct Sales to E-commerce Platforms | 391.1 | 12.6 | 167.4 | 6.6 | | －Offline Direct Sales | 117.8 | 3.7 | 67.6 | 2.7 | | **Subtotal** | **2,325.3** | **74.7** | **1,838.2** | **72.4** | | Sales to Distributors | 787.4 | 25.3 | 702.3 | 27.6 | | **Total** | **3,112.7** | **100.0** | **2,540.4** | **100.0** | - Online direct sales via DTC stores revenue increased by **13.3%**, mainly due to multi-platform layout, refined operations, and star product traction[27](index=27&type=chunk) - Online direct sales to e-commerce platforms revenue increased by **133.6%**, primarily driven by deep cultivation of beauty users and medical ecosystem resources on JD's self-operated channels[28](index=28&type=chunk) - Offline direct sales revenue increased by **74.3%**, mainly due to expanding the number of offline direct sales customer stores, strengthening marketing activities, and accelerating the layout of Rebiome brand stores[29](index=29&type=chunk) [Revenue by Brand](index=14&type=section&id=Revenue%20by%20Brand) Rebiome and Collagene brands are the company's main revenue contributors, both achieving steady growth, while other brands experienced a slight revenue decrease due to strategic adjustments Revenue by Brand | Brand | 2025 (RMB millions) | 2025 (%) | 2024 (RMB millions) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Professional Skincare Products | | | | | | －Rebiome | 2,541.9 | 81.7 | 2,070.9 | 81.5 | | －Collagene | 502.7 | 16.1 | 396.1 | 15.6 | | －Other Brands | 58.1 | 1.9 | 64.9 | 2.6 | | Health Food and Others | 10.0 | 0.3 | 8.6 | 0.3 | | **Total** | **3,112.7** | **100.0** | **2,540.4** | **100.0** | - Rebiome sales revenue increased by **22.7%**, mainly due to channel expansion, brand promotion, and increased market recognition of star products[32](index=32&type=chunk) - Collagene sales revenue increased by **26.9%**, mainly due to online channel expansion and successful upgrade and iteration of the star product Collagen Mask King[33](index=33&type=chunk) - Other brands' sales revenue decreased by **10.5%**, primarily due to strategic product upgrade adjustments for the Keyu brand[34](index=34&type=chunk) [Cost and Expense Analysis](index=15&type=section&id=Cost%20and%20Expense%20Analysis) Cost of sales increased due to higher sales volume, leading to a slight decrease in gross margin; sales and distribution expenses grew due to increased brand building investment; R&D costs decreased due to project commercialization and reduced share-based payment expenses; administrative expenses rose due to management expansion and digital upgrade investments - Cost of sales was **RMB 570.3 million**, a year-on-year increase of **27.5%**, mainly due to increased sales volume, higher direct material costs, increased logistics and shipping fees, and higher manufacturing and labor costs from capacity expansion[36](index=36&type=chunk) - Sales and distribution expenses were **RMB 1.06 billion**, a year-on-year increase of **18.7%**, primarily due to increased investment in brand building, market promotion, and channel expansion[38](index=38&type=chunk) - R&D costs were **RMB 41.2 million**, a year-on-year decrease of **15.5%**, mainly from some R&D projects entering the commercialization phase and reduced share-based payment expenses[39](index=39&type=chunk) - Administrative expenses were **RMB 82.6 million**, a year-on-year increase of **25.7%**, primarily due to increased payroll expenses from management expansion and increased investment in digital upgrades[42](index=42&type=chunk) [Financial Policies and Risk Management](index=16&type=section&id=Financial%20Policies%20and%20Risk%20Management) As of June 30, 2025, the company had no outstanding bank loans, making the gearing ratio inapplicable, maintained ample liquidity, and monitored and managed foreign currency, credit, and liquidity risks - As of June 30, 2025, the company had **no outstanding bank loans or other borrowings**, and the gearing ratio was not applicable[46](index=46&type=chunk) - Liquidity was **RMB 6.94 billion**, an increase of **72.3%** compared to December 31, 2024[52](index=52&type=chunk) - The Board believes foreign currency risk is **not material** to the Group, credit risk is continuously monitored and **not material**, and liquidity risk is managed by maintaining sufficient cash and cash equivalents[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) [Other Information](index=18&type=section&id=Other%20Information) This section covers details regarding the company's employees, remuneration policies, interim dividend, corporate governance, directors' and major shareholders' interests, employee incentive schemes, and use of proceeds from offerings [Employees, Training, and Remuneration Policy](index=18&type=section&id=Employees%2C%20Training%2C%20and%20Remuneration%20Policy) As of June 30, 2025, the company had 2,162 full-time employees and attracts, retains, and motivates talent through competitive remuneration, performance incentives, and comprehensive training programs - As of June 30, 2025, the Group had **2,162 full-time employees**, with **43.7%** in production and manufacturing, **29.1%** in sales and marketing, **8.6%** in R&D, and **18.6%** in general and administration[58](index=58&type=chunk) - The company offers competitive remuneration, performance-based cash incentives, and other motivational measures, and adopts comprehensive training programs[58](index=58&type=chunk) [Interim Dividend](index=19&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[61](index=61&type=chunk) [Corporate Governance and Securities Transactions](index=19&type=section&id=Corporate%20Governance%20and%20Securities%20Transactions) The company is committed to high standards of corporate governance, complying with the Listing Rules' Corporate Governance Code, though the roles of Chairman and CEO are combined. It also has policies for securities transactions and handling inside information - The company complies with the Corporate Governance Code, except that the roles of Chairman and CEO are combined by **Mr. Yan Jianya**, which the company believes provides strong and consistent leadership[62](index=62&type=chunk) - All Directors confirmed compliance with the "Model Code for Securities Transactions by Directors of Listed Issuers" during the reporting period[63](index=63&type=chunk) - The company has established and implemented information disclosure policies and procedures, including monitoring potential inside information, to ensure prompt identification and assessment[63](index=63&type=chunk) [Directors' and Major Shareholders' Interests](index=19&type=section&id=Directors%27%20and%20Major%20Shareholders%27%20Interests) This section discloses the interests and short positions of directors, chief executives, and major shareholders in the company's shares as of June 30, 2025, indicating Mr. Yan Jianya and his spouse Dr. Fan Daidi as principal shareholders Directors' or Chief Executive's Interests in the Company's Shares | Name of Director or Chief Executive | Nature of Interest | Number of Shares Interested | Approximate Percentage of Shareholding in the Company | | :--- | :--- | :--- | :--- | | Mr. Yan Jianya | Spouse's interest; Beneficiary of a trust | 590,407,572 | 55.13% | | Ms. Ye Juan | Beneficiary of a trust | 1,049,800 | 0.10% | | Ms. Fang Juan | Beneficiary of a trust | 1,157,601 | 0.11% | | Ms. Zhang Huijuan | Beneficiary of a trust | 1,240,000 | 0.12% | Major Shareholders' Interests in the Company's Shares | Name of Shareholder | Capacity and Nature of Interest | Number of Shares | Approximate Percentage of Shareholding in the Company | | :--- | :--- | :--- | :--- | | Dr. Fan | Interest in controlled corporation; Spouse's interest | 590,407,572 | 55.13% | | Juzi Holding | Beneficial owner | 582,161,535 | 54.36% | | Refulgence Holding | Interest in controlled corporation | 582,161,535 | 54.36% | | Trident Trust Company (B.V.I.) Limited | Trustee | 582,161,535 | 54.36% | - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities on the Stock Exchange[69](index=69&type=chunk) [Employee Incentive Schemes](index=22&type=section&id=Employee%20Incentive%20Schemes) The company has a Restricted Share Unit (RSU) Scheme and a 2023 Share Option and Share Award Scheme, designed to attract and retain talent, incentivize employee contributions, and promote the Group's long-term development, with some share options exercised during the period - The RSU Scheme was adopted in December 2021, with a maximum of **19,000,000 shares** fully granted and no further grants after listing[71](index=71&type=chunk) - The 2023 Share Option Scheme and 2023 Share Award Scheme were adopted on August 17, 2023, with a maximum of **99,500,000 shares** issuable[79](index=79&type=chunk) - On December 28, 2023, the company granted **20,000,000 share options** to **128 eligible participants** under the 2023 Share Option Scheme, with an exercise price of **HKD 35.05 per share**[82](index=82&type=chunk)[84](index=84&type=chunk) - During the reporting period, a total of **7,684,000 share options** were exercised at an exercise price of **HKD 35.05 per share**[85](index=85&type=chunk) [Use of Proceeds from Global Offering and Placements](index=27&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering%20and%20Placements) The company details the intended and actual use of net proceeds from its Global Offering (IPO) and two placements and subscriptions, primarily for R&D investment, capacity expansion, sales and distribution network enhancement, operational and information system upgrades, and working capital - Net proceeds from the Global Offering were approximately **HKD 573.7 million**, primarily allocated to R&D investment (**11%**), production capacity expansion (**28%**), enhancement of omni-channel sales and distribution network (**46%**), operational and information system upgrades (**5%**), and working capital (**10%**)[89](index=89&type=chunk)[90](index=90&type=chunk) Use of Net Proceeds from Global Offering (As of June 30, 2025) | Use of Proceeds | Percentage of Proceeds | Net Proceeds (HKD millions) | Cumulative Amount Used (HKD millions) | Unused Amount (HKD millions) | | :--- | :--- | :--- | :--- | :--- | | R&D Investment | 11% | 63.1 | 63.1 | 0 | | Expansion of Production Capacity | 28% | 160.6 | 160.6 | 0 | | Enhancement of Sales and Distribution Network | 46% | 263.9 | 263.9 | 0 | | Improvement of Operations and Information Systems | 5% | 28.7 | 24.8 | 3.9 | | Working Capital and General Corporate Purposes | 10% | 57.4 | 57.4 | 0 | | **Total** | **100%** | **573.7** | **569.8** | **3.9** | - Net proceeds from the May 2024 placement and subscription were approximately **HKD 1.63 billion**, with **90%** for core business development and ecosystem layout, and **10%** for supplementing working capital[93](index=93&type=chunk) Use of Net Proceeds from 2024 Placement and Subscription (As of June 30, 2025) | Use of Proceeds | Percentage of Proceeds | Net Proceeds (HKD millions) | Cumulative Amount Used (HKD millions) | Unused Amount (HKD millions) | | :--- | :--- | :--- | :--- | :--- | | Core Business Development and Ecosystem Layout | 90% | 1,464.3 | 646.7 | 817.6 | | Supplementing Working Capital and General Corporate Purposes | 10% | 162.7 | 55.2 | 107.5 | | **Total** | **100%** | **1,627** | **701.9** | **925.1** | - Net proceeds from the April 2025 placement and subscription were approximately **HKD 2.29 billion**, with **90%** intended for core business development and ecosystem layout (including brand promotion, marketing, category expansion, overseas business, and R&D investment), and **10%** for supplementing working capital; unused as of June 30, 2025[98](index=98&type=chunk) [Independent Review Report](index=30&type=section&id=Independent%20Review%20Report) This section presents the independent auditor's review report on the interim financial information [Review Conclusion](index=30&type=section&id=Review%20Conclusion) Ernst & Young has reviewed the Group's interim financial information for the six months ended June 30, 2025, and found no matters that lead them to believe it is not prepared in all material respects in accordance with International Accounting Standard 34 - The independent auditor is **Ernst & Young**[103](index=103&type=chunk) - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410[101](index=101&type=chunk) - The conclusion is that the interim financial information is prepared in all material respects in accordance with International Accounting Standard 34[102](index=102&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=31&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section provides the interim condensed consolidated statement of profit or loss and other comprehensive income [Profit or Loss Statement Overview](index=32&type=section&id=Profit%20or%20Loss%20Statement%20Overview) For the six months ended June 30, 2025, the company reported revenue of RMB 3.11 billion, gross profit of RMB 2.54 billion, profit for the period of RMB 1.18 billion, and basic earnings per share of RMB 1.14, all showing year-on-year growth Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 3,112,662 | 2,540,432 | | Cost of Sales | (570,317) | (447,192) | | **Gross Profit** | **2,542,345** | **2,093,240** | | Selling and Distribution Expenses | (1,058,575) | (892,020) | | Administrative Expenses | (82,635) | (65,650) | | R&D Costs | (41,176) | (48,701) | | Other Income | 68,800 | 52,428 | | **Profit Before Tax** | **1,444,148** | **1,155,190** | | Income Tax Expense | (261,704) | (174,640) | | **Profit for the Period** | **1,182,444** | **980,550** | | Profit for the Period Attributable to Owners of the Parent | 1,182,083 | 983,164 | | Basic Earnings Per Share (RMB) | 1.14 | 0.99 | | Diluted Earnings Per Share (RMB) | 1.13 | 0.97 | [Other Comprehensive Income](index=33&type=section&id=Other%20Comprehensive%20Income) During the reporting period, net other comprehensive income was RMB (9,131) thousand, primarily affected by exchange differences on translation of functional currency to presentation currency and fair value changes of equity investments designated at fair value through other comprehensive income Other Comprehensive Income (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Exchange differences on translation of overseas operations | 67 | (8,248) | | Translation of the company's functional currency to presentation currency | (21,735) | 9,830 | | Equity investments designated at fair value through other comprehensive income: fair value changes | 12,537 | – | | **Other comprehensive income for the period, net of tax** | **(9,131)** | **1,582** | | **Total comprehensive income for the period, net of tax** | **1,173,313** | **982,132** | [Interim Condensed Consolidated Statement of Financial Position](index=33&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section presents the interim condensed consolidated statement of financial position [Asset Structure](index=34&type=section&id=Asset%20Structure) As of June 30, 2025, the company's total assets reached RMB 11.29 billion, with a significant proportion of current assets, a substantial increase in cash and cash equivalents, and a slight decrease in non-current assets Asset Structure (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Total Non-current Assets** | **1,398,527** | **1,636,001** | | Property, Plant and Equipment | 1,163,594 | 1,041,771 | | Investments accounted for using the equity method | 77,126 | 11,436 | | Equity investments designated at fair value through other comprehensive income | 28,720 | – | | **Total Current Assets** | **9,887,728** | **6,401,957** | | Inventories | 441,144 | 310,814 | | Trade and Other Receivables | 466,472 | 141,282 | | Financial assets at fair value through profit or loss | 1,917,487 | 1,828,640 | | Cash and Cash Equivalents | 6,943,768 | 4,030,207 | | **Total Assets** | **11,286,255** | **8,037,958** | [Liabilities and Equity Structure](index=34&type=section&id=Liabilities%20and%20Equity%20Structure) As of June 30, 2025, the company's total liabilities increased to RMB 2.10 billion, primarily due to a significant increase in dividends payable, while total equity grew to RMB 9.19 billion, indicating strengthened financial position Liabilities and Equity Structure (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Total Current Liabilities** | **2,030,033** | **835,995** | | Trade and Other Payables | 299,990 | 286,708 | | Other Payables and Accruals | 281,457 | 408,890 | | Dividends Payable | 1,278,874 | – | | **Total Non-current Liabilities** | **67,374** | **82,141** | | **Total Liabilities** | **2,097,407** | **918,136** | | **Total Equity** | **9,188,848** | **7,119,822** | | Equity Attributable to Owners of the Parent | 9,176,877 | 7,108,212 | | Non-controlling Interests | 11,971 | 11,610 | [Interim Condensed Consolidated Statement of Changes in Equity](index=35&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This section presents the interim condensed consolidated statement of changes in equity [Equity Movement Overview](index=36&type=section&id=Equity%20Movement%20Overview) For the six months ended June 30, 2025, the company's total equity increased from RMB 7.12 billion at the beginning of the year to RMB 9.19 billion, primarily driven by profit for the period and proceeds from share issuance, while also reflecting the impact of declared dividends and share-based payments - As of January 1, 2025, total equity was **RMB 7.12 billion**[109](index=109&type=chunk) - Profit for the period was **RMB 1.18 billion**, and proceeds from share issuance increased equity by **RMB 2.16 billion**[109](index=109&type=chunk) - Final dividend for 2024 declared was **RMB 1.28 billion**[109](index=109&type=chunk) - As of June 30, 2025, total equity was **RMB 9.19 billion**[109](index=109&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=37&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This section presents the interim condensed consolidated statement of cash flows [Cash Flow Overview](index=38&type=section&id=Cash%20Flow%20Overview) For the six months ended June 30, 2025, net cash flow from operating activities decreased, investing activities shifted from net outflow to net inflow, and net cash flow from financing activities significantly increased due to ordinary share issuance, leading to a substantial growth in cash and cash equivalents at period-end Interim Condensed Consolidated Statement of Cash Flows (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash flows from operating activities | 715,689 | 922,792 | | Net cash flows from / (used in) investing activities | 73,751 | (343,498) | | Net cash flows from financing activities | 2,149,080 | 1,484,309 | | Net increase in cash and cash equivalents | 2,938,520 | 2,063,603 | | Cash and cash equivalents at end of period | 6,943,768 | 4,564,386 | - Net cash flows from operating activities decreased, mainly due to increases in inventories, trade and other receivables, and prepayments[111](index=111&type=chunk) - Net cash flows from investing activities turned positive, mainly due to increased proceeds from disposal of financial assets at fair value through profit or loss and a decrease in bank deposits[112](index=112&type=chunk) - Net cash flows from financing activities significantly increased, primarily from proceeds from the issuance of ordinary shares[112](index=112&type=chunk) [Notes to the Interim Condensed Consolidated Financial Information](index=39&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes to the interim condensed consolidated financial information, covering accounting policies, segment information, revenue analysis, profit before tax components, income tax, earnings per share, property, plant and equipment, trade receivables and payables, share capital, commitments, related party transactions, fair value of financial instruments, and post-reporting period events [Basis of Preparation and Accounting Policies](index=40&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 and adopted revised IFRS accounting standards, which had no significant impact on the financial information - The interim condensed consolidated financial information has been prepared in accordance with **International Accounting Standard 34 "Interim Financial Reporting"**[113](index=113&type=chunk) - The adoption of amendments to **IAS 21 "Lack of Exchangeability"** had no impact on the interim condensed consolidated financial information[115](index=115&type=chunk) [Operating Segments and Geographical Information](index=40&type=section&id=Operating%20Segments%20and%20Geographical%20Information) The Group operates in a single operating segment, primarily engaged in the R&D, manufacturing, and sales of beauty and health products based on bioactive ingredients, with all revenue and non-current assets derived from mainland China - The Group operates in a **single operating segment**, primarily engaged in the R&D, manufacturing, and sales of beauty and health products based on bioactive ingredients[116](index=116&type=chunk) - During the period, all of the Group's revenue was derived from customers located in **mainland China**, and all non-current assets were located in **mainland China**[117](index=117&type=chunk) [Revenue and Other Income Analysis](index=41&type=section&id=Revenue%20and%20Other%20Income%20Analysis) Revenue from contracts with customers is entirely from the sale of goods within mainland China, recognized at a point in time. Other income primarily consists of interest income and government grants Revenue Analysis (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue from contracts with customers | 3,112,662 | 2,540,432 | | Category of goods or services: Sale of goods | 3,112,662 | 2,540,432 | | Geographical markets: Mainland China | 3,112,662 | 2,540,432 | | Timing of revenue recognition: Goods transferred at a point in time | 3,112,662 | 2,540,432 | Other Income Analysis (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Government grants | 4,742 | 13,241 | | Interest income | 63,396 | 38,991 | | Others | 662 | 196 | | **Total** | **68,800** | **52,428** | [Components of Profit Before Tax](index=42&type=section&id=Components%20of%20Profit%20Before%20Tax) Profit before tax is calculated after deducting costs such as inventories, depreciation, amortization, marketing and promotion expenses, and including interest income and share-based payment expenses - Cost of inventories, consumables, and customized products was **RMB 417.86 million**[121](index=121&type=chunk) - Depreciation of property, plant and equipment was **RMB 33.83 million**, and depreciation of right-of-use assets was **RMB 3.26 million**[121](index=121&type=chunk) - Marketing and promotion expenses were **RMB 969.43 million**, and equity-settled share-based payment expenses were **RMB 22.62 million**[121](index=121&type=chunk) [Income Tax and Dividends](index=43&type=section&id=Income%20Tax%20and%20Dividends) Income tax expense increased due to higher taxable profit, with some subsidiaries enjoying a 15% preferential corporate income tax rate. The company declared a final dividend and a special dividend for 2024 but no interim dividend Income Tax Expense Analysis (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current tax: deducted during the year | 277,250 | 169,763 | | Deferred tax | (15,546) | 4,877 | | **Total tax expense for the year** | **261,704** | **174,640** | - Corporate income tax in mainland China is accrued at a statutory rate of **25%**, with certain subsidiaries enjoying a **15% preferential tax rate**[123](index=123&type=chunk) - On June 13, 2025, shareholders approved a 2024 final dividend of **RMB 0.6021 per share** and a special dividend of **RMB 0.5921 per share**, totaling **RMB 1.28 billion**[125](index=125&type=chunk) - During the period, the company neither paid nor declared an interim dividend[126](index=126&type=chunk) [Earnings Per Share Calculation](index=44&type=section&id=Earnings%20Per%20Share%20Calculation) Basic and diluted earnings per share are calculated based on profit for the period attributable to ordinary equity holders of the parent, considering the weighted average number of ordinary shares issued and the dilutive effect of the Restricted Share Unit Scheme and Share Option Scheme Earnings Per Share Calculation (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the parent used for basic EPS calculation | 1,182,083 | 983,164 | | **Number of Shares** | **2025** | **2024** | | Weighted average number of ordinary shares issued for basic EPS calculation | 1,034,853,754 | 988,391,916 | | Dilutive effect - weighted average number of ordinary shares: Restricted Share Unit Scheme | 9,336,447 | 5,479,715 | | Dilutive effect - weighted average number of ordinary shares: 2023 Share Options | 5,028,154 | 19,033,962 | | **Total** | **1,049,218,355** | **1,012,905,593** | [Property, Plant and Equipment](index=44&type=section&id=Property%2C%20Plant%20and%20Equipment) During the reporting period, the company acquired assets worth RMB 161.24 million and disposed of assets with a net book value of RMB 5.59 million, generating a net gain of RMB 1.61 million - For the six months ended June 30, 2025, the Group acquired assets at a cost of **RMB 161.24 million**[129](index=129&type=chunk) - Assets with a net book value of **RMB 5.59 million** were disposed of, resulting in a net gain on disposal of **RMB 1.61 million**[129](index=129&type=chunk) [Trade Receivables and Payables](index=45&type=section&id=Trade%20Receivables%20and%20Payables) As of the end of the reporting period, both trade receivables and payables were primarily aged within one year, indicating effective liquidity management Ageing Analysis of Trade Receivables (As of June 30, 2025) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 year | 466,319 | 140,804 | | 1 to 2 years | 148 | 440 | | 2 to 3 years | 5 | 5 | | Over 3 years | – | 33 | | **Total** | **466,472** | **141,282** | Ageing Analysis of Trade Payables (As of June 30, 2025) | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 year | 293,939 | 279,253 | | 1 to 2 years | 3,042 | 3,300 | | 2 to 3 years | 3,009 | 4,155 | | **Total** | **299,990** | **286,708** | [Share Capital Movements and Commitments](index=45&type=section&id=Share%20Capital%20Movements%20and%20Commitments) The company's share capital increased due to the issuance of ordinary shares, and contractual commitments as of the reporting period end were primarily for buildings, plant, and machinery - Issued and fully paid ordinary shares increased from **1,028,220,000 shares** as of December 31, 2024, to **1,070,904,000 shares** as of June 30, 2025, with share capital increasing from **RMB 65 thousand** to **RMB 68 thousand**[132](index=132&type=chunk)[133](index=133&type=chunk) - The increase in share capital primarily resulted from the issuance of **35,000,000 ordinary shares** through private placement and shares issued to employees under the 2023 Share Option Scheme[133](index=133&type=chunk) Contractual Commitments (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Buildings | 115,538 | 45,591 | | Plant and Machinery | 138,202 | 87,251 | | **Total** | **253,740** | **132,842** | [Related Party Transactions and Fair Value of Financial Instruments](index=47&type=section&id=Related%20Party%20Transactions%20and%20Fair%20Value%20of%20Financial%20Instruments) Key management personnel compensation is disclosed as related party transactions, and the fair value measurement and hierarchy of financial instruments are detailed to ensure financial transparency Key Management Personnel Remuneration (For the Six Months Ended June 30) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Salaries, bonuses, allowances, and benefits in kind | 1,333 | 1,851 | | Contributions to retirement benefit plans | 174 | 225 | | Equity-settled share-based payment expenses | 6,977 | 14,564 | | **Total** | **8,484** | **16,640** | - Fair value measurements of financial instruments are categorized into Level 1 (quoted prices in active markets) and Level 2 (significant observable inputs), with no transfers into or out of Level 3 during the reporting period[139](index=139&type=chunk)[141](index=141&type=chunk) Assets Measured at Fair Value (As of June 30, 2025) | Indicator | Level 1 (RMB thousands) | Level 2 (RMB thousands) | Level 3 (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Equity investments designated at fair value through other comprehensive income | 28,720 | – | – | 28,720 | | Financial assets at fair value through profit or loss: financial products | – | 1,917,487 | – | 1,917,487 | | **Total** | **28,720** | **1,917,487** | **–** | **1,946,207** | [Events After Reporting Period and Approval](index=48&type=section&id=Events%20After%20Reporting%20Period%20and%20Approval) No significant events occurred after the reporting period, and the interim financial statements were approved and authorized for issue by the Board on August 27, 2025 - No significant events occurred after the reporting period[142](index=142&type=chunk) - The interim financial statements were approved and authorized for issue by the Board on August 27, 2025[143](index=143&type=chunk) [Definitions](index=48&type=section&id=Definitions) This section provides definitions for key terms and abbreviations used throughout the interim report to ensure clear and consistent understanding for readers [Glossary of Terms](index=49&type=section&id=Glossary%20of%20Terms) This section defines key terms and abbreviations used in the interim report to ensure clear and consistent understanding for readers - This section includes definitions for terms such as "Board", "Business Day", "Company", "Directors", "Global Offering", "Group", "HKD", "Hong Kong", "HKEX", "Independent Third Party", and "Latest Practicable Date"[145](index=145&type=chunk) - It also includes definitions for "Listing", "Listing Rules", "Macau", "Main Board", "PRC", "Prospectus", "Province", "Reporting Period", and "RMB"[146](index=146&type=chunk) - Furthermore, it defines terms like "SFO", "Shares", "Shareholder", "Subsidiary", "US", and "USD"[149](index=149&type=chunk)

Group 1 - The core technology of the company is "yeast-based low-immunity recombinant collagen production" [1] - The company has been deeply engaged in the biotechnology field for 25 years, with 186 patents and patent applications [3] - The collaboration with Northwest University on "yeast-based low-immunity recombinant collagen and its applications" won the "2024 China Petroleum and Chemical Industry Federation Technology Invention Award First Prize" and was recognized as "internationally leading" by experts [3] Group 2 - The company is perceived not only as a cosmetics manufacturer but also as a high-tech enterprise with global market potential [3] - International journalists expressed strong interest in the company's production processes and products, highlighting the blend of science, beauty, and health [5] - The company showcased popular skincare products, leading to interest in further reporting and potential collaborations from foreign journalists [5] Group 3 - The "Walk Through China: Meet Shaanxi" event is organized by various Chinese associations and aims to showcase the unique charm and strong development of Shaanxi [7]

Group 1 - The National Cyberspace Administration of China announced the second batch of typical cases in the "Clear and Bright: Optimizing the Business Network Environment - Rectifying 'Black Mouths' Involved in Enterprises" campaign, which includes the beauty blogger "Dr. Big Mouth" [1] - "Dr. Big Mouth" has been accused of publishing misleading evaluation information that disrupts market competition, with multiple accounts linked to a beauty product company [1] - The blogger, whose real name is Hao Yu, has over 1.7 million followers on social media and claims to have 19 years of experience in cosmetics research and popular science [1] Group 2 - On May 24, "Dr. Big Mouth" publicly questioned the credibility of a product from Juzhi Biotechnology, claiming that the actual content of recombinant collagen in the product was only 0.0177% [1][2] - Juzhi Biotechnology responded by stating that their tests showed collagen content greater than 0.1%, contradicting the claims made by "Dr. Big Mouth" [2] - On June 1, Juzhi Biotechnology received an apology from the testing agency commissioned by "Dr. Big Mouth," which stated that it had not authorized the testing and demanded that he stop using the report [2] Group 3 - On June 5, "Dr. Big Mouth" released a video questioning the testing methods used by Juzhi Biotechnology, while his accounts faced bans and several videos were taken down [3] - On June 26, a social media platform announced measures to combat "black mouth" behavior, focusing on malicious defamation, extortion, and false marketing, leading to further sanctions against "Dr. Big Mouth" [3]

Group 1 - In recent years, several provinces in China, including Sichuan, Henan, Jiangxi, and Shaanxi, have seen changes in their wealth rankings, with new billionaires emerging as the richest individuals in these regions [1][2] - Wang Ning, the founder of Pop Mart, has surpassed Qin Yinglin and Qian Ying, becoming the richest person in Henan with a wealth of $23 billion, ranking 96th globally according to Forbes [1] - Pop Mart reported a revenue of 13.88 billion yuan in the first half of 2025, a year-on-year increase of 204.4%, and an adjusted net profit of 4.71 billion yuan, up 362.8% [1] Group 2 - Chen Tian Shi, founder of Cambrian, has become the new richest person in Jiangxi, with a wealth of $21.5 billion, significantly surpassing the previous richest, Luo Yuhao, whose wealth is $4.3 billion [2] - Cambrian's stock price has surged due to the booming Chinese chip industry, reaching a market capitalization of 663.7 billion yuan, briefly overtaking Kweichow Moutai as the top stock in A-shares [2] - Both Wang Ning and Chen Tian Shi are part of the younger generation of entrepreneurs, born in the 1980s, and are leading figures in the emerging consumer and chip industries [2] Group 3 - In Shaanxi, the couple Fan Daidi and Yan Jianya from Juzhi Biotechnology have become the new richest individuals, with a wealth of $5.1 billion, surpassing the previous richest, Li Zhenguo and Li Xiyan, who have a wealth of $3.5 billion [4] - The wealth of Zhu Yi, the actual controller of Baili Tianheng, has increased significantly, with his shares valued at over 115 billion yuan, making him the richest in Sichuan [2][3]

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Insights - The company reported a revenue of 3.11 billion HKD for H1 2025, representing a year-on-year growth of 22.5%. The net profit attributable to shareholders was 1.18 billion HKD, up 20.2% year-on-year, while the adjusted net profit reached 1.21 billion HKD, reflecting a 17.4% increase [2][4]. Summary by Sections Revenue Performance - In H1 2025, the revenue breakdown by product categories showed medical dressings, functional skincare, and health food generating revenues of 690 million HKD, 2.41 billion HKD, and 10 million HKD respectively, with year-on-year growth rates of 17%, 24%, and 16% [6]. - By brand, the revenues for 可复美, 可丽金, and other brands were 2.54 billion HKD, 500 million HKD, and 60 million HKD respectively, with growth rates of 23%, 27%, and -10% [6]. - Channel-wise, revenues from DTC, e-commerce direct sales, offline direct sales, and distribution were 1.82 billion HKD, 390 million HKD, 120 million HKD, and 790 million HKD respectively, with year-on-year growth rates of 13%, 134%, 74%, and 12% [6]. Profitability - The net profit margin slightly decreased by 0.7 percentage points in H1 2025, attributed to a 0.7 percentage point decline in gross margin and changes in sales, management, and R&D expense ratios [6]. - The overall expense ratio narrowed by 1.6 percentage points, while the income tax expense increased by approximately 87.06 million HKD year-on-year [6]. Investment Outlook - The company is expected to maintain healthy growth throughout the year, with projected adjusted net profits of 2.55 billion HKD, 3.00 billion HKD, and 3.65 billion HKD for 2025, 2026, and 2027 respectively, corresponding to PE valuations of 23, 19, and 16 times [6].

Core Viewpoint - The article discusses the regulatory actions taken against the "Big Mouth Doctor" account for spreading misleading information about companies, particularly targeting Juzi Biological, which faced significant market backlash due to allegations of product falsification [3][4][6]. Summary by Sections Regulatory Actions - The National Internet Information Office announced the second batch of typical cases in the "Clear and Optimized Business Network Environment" campaign, which included the banning of the "Big Mouth Doctor" account for distorting company information and disrupting market order [3][6]. Incident Overview - In May, the "Big Mouth Doctor" account published a report alleging that Juzi Biological's product, Kefu Mei, was fraudulent, claiming it could not detect collagen [4][5]. - Juzi Biological responded with multiple statements asserting the accuracy of their products and the inaccuracy of the claims made by the "Big Mouth Doctor" [5][6]. Market Impact - The controversy led to a significant drop in Juzi Biological's stock price, with a reported decline of 10% over two days [6]. - The incident occurred during the "618" shopping festival, raising concerns about potential consumer backlash and its impact on sales [9]. Company Performance - Despite the controversy, Juzi Biological's financial performance remained strong, with a revenue increase from 2.375 billion to 5.539 billion yuan from 2022 to 2024, and net profit rising from 1 billion to 2.062 billion yuan [8]. - The company reported a revenue of 3.113 billion yuan for the first half of 2025, a year-on-year increase of 22.5%, with Kefu Mei contributing significantly to this growth [9]. Industry Context - The collagen market in China is projected to grow rapidly, with a compound annual growth rate of 44.93%, reaching an estimated market size of 219.38 billion yuan by 2030 [10]. - Competitors in the beauty industry, such as Marubi and L'Oreal, are also increasing their investments in this segment, indicating a competitive landscape [10].