Core Viewpoint - The recent debate in the medical beauty industry regarding "recombinant collagen" has led to significant stock price fluctuations for leading companies, particularly Huaxi Biological and Juzhi Biological, with Huaxi denying any "business war" motives behind its actions [1][5]. Group 1: Market Reactions and Company Performance - From May 24 to June 18, Huaxi Biological's stock price increased by 23.65%, while Juzhi Biological's stock price fell by over 31% during the same period [1]. - As of June 18, Juzhi Biological's market capitalization was approximately 514 billion RMB, while Huaxi Biological's market capitalization was 245 billion RMB, less than half of Juzhi's [1]. Group 2: Opposition to "Name Games" - Huaxi Biological firmly opposes the "name game" in ingredient labeling, arguing that the capital market's concept switching has led to misunderstandings about hyaluronic acid and recombinant collagen, affecting the business environment and causing resource misallocation [2][3]. - The company emphasizes that recombinant collagen is only a small part of collagen research and that the leading edge of protein research remains with life science institutions and pharmaceutical companies [3]. Group 3: Industry Standards and Scientific Communication - Huaxi Biological highlights that no medical beauty Class III device certificates based on recombinant collagen have been approved internationally, indicating that this field requires more time for practical observation [3]. - The company plans to enhance professional communication with the capital market, noting that many analysts lack a biological background and often misinterpret the relationship between hyaluronic acid and collagen [4]. Group 4: Denial of Business War Claims - Huaxi Biological denies rumors that its recent actions are motivated by a "business war" due to pressure on its hyaluronic acid business and competition losses in recombinant collagen [5][6]. - The company asserts that its business has not been under pressure as claimed, with hyaluronic acid business growing over 10% annually and medical-grade hyaluronic acid growing over 20% [6]. Group 5: Consumer Trust and Market Integrity - Huaxi Biological argues that consumer trust in domestic brands should not be built on the misuse of academic concepts and misleading marketing practices, which could distort the business ecosystem and lead to resource misallocation [7]. - The company calls for industry-wide participation in product testing and standard discussions to enhance understanding and eliminate industry bubbles and misconceptions [7]. Group 6: Timeline of Events - The controversy began in mid-May when Huaxi Biological questioned several brokerage reports that promoted recombinant collagen and criticized hyaluronic acid [8]. - On May 24, beauty blogger "Big Mouth Doctor" Hao Yu publicly questioned the collagen content in Juzhi Biological's products, leading to further disputes [9][10].

Group 1 - The State Council of China, led by Premier Li Qiang, is promoting the replication of pilot measures from the China (Shanghai) Free Trade Zone and is reviewing new models for real estate development [2] - The U.S. stock market experienced a decline, with major indices falling over 1%, including the Dow Jones down 1.79% and the Nasdaq down 1.3% [2] - International gold prices rose, with spot gold increasing by 1.4% to $3433.35 per ounce, while oil prices also surged, with WTI crude oil up 7.55% to $73.18 per barrel [3] Group 2 - The European stock indices all fell, with Germany's DAX down 1.07% and France's CAC40 down 1.04% [4] - As of the end of May, China's M2 money supply reached 325.78 trillion yuan, growing by 7.9% year-on-year, while M1 increased by 2.3% [5] - The China Securities Regulatory Commission has issued new regulations for the management of algorithmic trading in the futures market, effective from October 2025 [6] Group 3 - The Ministry of Industry and Information Technology is seeking public opinions on the "Automobile Data Export Security Guidelines (2025 Edition)" [7] - The Chinese defense ministry has expressed strong dissatisfaction with Japan's recent military provocations and has called for an end to such actions [8] - The official report on the "Luo Mouyu Fall Incident" indicates that the case was ruled a suicide, with investigations ongoing [8] Group 4 - Guizhou Moutai announced an adjustment to its profit distribution plan for 2024, increasing the cash dividend per share from 27.624 yuan to 27.673 yuan [14] - Tencent has clarified that it is not considering acquiring Nexon, dispelling market speculation [15] - Ant Group has changed its legal representative to CEO Han Xinyi, while the core management team remains unchanged [16] Group 5 - Huaxia Happiness's debt restructuring has faced challenges, with a significant portion of shareholders opposing a key proposal [19] - Zijin Mining reported that its largest copper mine, Kamoa-Kakula, is expected to see a production decrease of over 22% year-on-year due to operational suspensions [25] - The company Chasing has denied rumors regarding a failed bet and is actively addressing false information spread about it [27]

Core Viewpoint - The controversy surrounding the cosmetic brand "Kefumei" and its alleged false advertising of a collagen product has escalated, leading to significant public attention and legal implications for the involved parties [1][3]. Group 1: Company Responses - "Giant Bio" issued a statement acknowledging the apology from the testing agency used by "Dr. Big Mouth" and emphasized that the agency did not authorize the testing report [4]. - "Giant Bio" reiterated that their product contains real recombinant collagen protein and denied any allegations of false advertising or misleading consumers [5]. - "Huaxi Bio" publicly supported "Dr. Big Mouth," stating that the company is an important member of its ecosystem and has invested in related ventures [4]. Group 2: Influencer Background - "Dr. Big Mouth," whose real name is Hao Yu, is a well-known beauty influencer with over 2.8 million followers across various platforms and holds a PhD in chemistry from the University of Hong Kong [3]. - The influencer's allegations against "Giant Bio" regarding the authenticity of their collagen product gained significant traction, even trending on social media [3]. Group 3: Legal and Regulatory Implications - "Giant Bio" announced intentions to pursue legal action against those spreading false information, highlighting the seriousness of the allegations and the potential impact on their brand [4]. - The testing agency involved has demanded that "Dr. Big Mouth" cease using and sharing the disputed test report to prevent further public misinformation [4].

Core Insights - The medical beauty industry in China is projected to grow, with a consumption penetration rate increasing from 3.2% in 2020 to 5.8% by 2025, indicating over 80 million people have undergone medical beauty procedures [1] - The brand "可复美" (Kefumei) under 巨子生物 (Giant Bio) is facing significant negative publicity due to allegations of product fraud related to its key ingredient, recombinant collagen [2][3] - The controversy has led to a substantial decline in Giant Bio's stock price, dropping nearly 30% from its peak of 87.1 HKD [3][25] Industry Overview - The medical beauty market is expanding rapidly, with a notable increase in consumer engagement and product usage [1] - The competitive landscape is intensifying, particularly with rival companies like 华熙生物 (Huaxi Bio) actively targeting Giant Bio amid the ongoing controversies [4][5] Company Performance - Giant Bio's revenue grew from 20 billion RMB in 2022 to 35.24 billion RMB in 2023, marking a 49.05% increase, and further to 55.39 billion RMB in 2024, with a 57.2% year-on-year growth [25] - Despite strong revenue growth, the company has faced challenges in maintaining investor confidence due to recent scandals, leading to a market capitalization drop of over 60 billion HKD [3][25] Product Controversies - The allegations against Kefumei include claims that the amount of recombinant collagen in its products is significantly lower than advertised, raising questions about product integrity [3][6] - Previous controversies involved undisclosed ingredients like epidermal growth factor (EGF), which is banned in cosmetic products, further complicating the brand's reputation [10][12][17] Market Dynamics - The ongoing disputes have prompted consumers to reconsider their loyalty to Kefumei, with potential shifts towards alternative brands like 修丽可 (Xiu Li Ke) and 敷尔佳 (Fu Er Jia) [27] - The company's reliance on sales and marketing over research and development is evident, with a stark contrast between sales expenses and R&D investment, which may impact long-term sustainability [28][29]

Core Viewpoint - The controversy surrounding the collagen product "Kefumei" and its alleged false claims has led to significant media attention and a public dispute between two major players in the beauty and medical aesthetics industry, Juzhibio and Huaxi Biological. Group 1: Allegations and Responses - The beauty blogger "Dr. Big Mouth" raised concerns about the collagen content in "Kefumei" products, claiming it was only 0.02%, below the regulatory threshold of 0.1% [5] - Juzhibio, the parent company of "Kefumei," denied these allegations, asserting that their internal tests showed collagen content exceeding 0.1%, with third-party tests indicating levels between 0.2% and 0.22% [8] - The blogger's videos related to Juzhibio were removed from social media platforms, which he attributed to malicious reporting rather than voluntary deletion [1] Group 2: Industry Dynamics - The dispute is seen as a competitive clash between Juzhibio and Huaxi Biological, with the latter supporting the blogger's claims and hinting at a potential "business war" [8] - Juzhibio's market capitalization is reported to be over twice that of Huaxi Biological, despite similar performance levels, indicating a market preference for Juzhibio's collagen products [8] - Huaxi Biological had previously attempted to enter the collagen market through acquisitions, indicating a strategic interest in this segment [9] Group 3: Market Impact - Following the public dispute, both Juzhibio and Huaxi Biological experienced stock price declines, with Juzhibio opening at 59.8 HKD per share and Huaxi Biological at 54.34 CNY per share [11]

Core Viewpoint - The article discusses the ongoing competition between two major players in the medical beauty industry, Huaxi Biological and Juzhi Biological, highlighting the market dynamics and the impact of recent controversies on their valuations and reputations [4][12][44]. Group 1: Market Dynamics - Huaxi Biological publicly criticized the notion that hyaluronic acid is outdated, directly targeting nine brokerage firms for their lack of rigor in research reports, which favored Juzhi Biological [4][12]. - Juzhi Biological's market capitalization has decreased significantly, dropping to approximately HKD 65 billion, a nearly one-third reduction from its peak on May 20 [8][46]. - The medical beauty market is experiencing rapid changes, with Juzhi Biological's revenue surpassing Huaxi Biological's in 2024, and its net profit being nearly twelve times that of Huaxi Biological [12][44]. Group 2: Controversies and Responses - Juzhi Biological faced allegations of product ingredient fraud, specifically regarding its core product, Kefu Mei, which is crucial for its revenue [6][29]. - The company initially responded slowly to the allegations, which led to investor dissatisfaction and a significant drop in stock price [28][29]. - Despite attempts to clarify the situation through third-party testing, Juzhi Biological's responses have been met with skepticism, particularly regarding the validity of their testing methods [26][27]. Group 3: Competitive Landscape - The competition between Huaxi Biological and Juzhi Biological is characterized as a market "replacement," with both companies vying for dominance in the medical beauty sector [13][44]. - Huaxi Biological's management attributes the market shift to capital chasing new trends, particularly the rise of collagen products over hyaluronic acid [44][45]. - The article emphasizes the fragility of the business models in the medical beauty industry, as both companies heavily rely on specific products, making them vulnerable to market changes [47][48].

公告显示，孩子王拟受让五星控股持有的江苏星丝域65%的股权并承担该等股权对应的实缴义务，巨子 生物、自然人陈英燕、王德友拟同时受让五星控股持有的江苏星丝域10%、8%及6%的股权并承担对应 的实缴义务，前述交易完成后，孩子王持有江苏星丝域65%股权，江苏星丝域成为孩子王的控股子公 司。 同时，孩子王拟通过控股子公司江苏星丝域现金收购丝域实业100%股权，本次交易以从事证券期货服 务业务的评估机构出具的权益评估价值为定价参考，最终确定转让价格为人民币16.5亿元。本次交易完 成后，丝域实业将成为孩子王的控股子公司。 据悉，这不是孩子王第一次"跨界"。今年年初，孩子王以1.62亿元人民币现金收购上海幸研生物科技有 限公司（下称幸研生物）60%股权，跨界化妆品行业。 日前，孩子王儿童用品股份有限公司（下称孩子王）发布"关于收购关联方股权暨与关联方共同收购丝 域实业100%股权"的公告。 公告显示，丝域实业成立于2014年7月1日，长期深耕个护行业，成为细分行业龙头企业。截至2024年 末，丝域共经营2503家养发门店，其中176家为直营门店，2327家为加盟门店，合计会员数量超过200 万。 弗若斯特沙利文数据显示 ...

Core Viewpoint - The ongoing dispute between Juzi Biotech and Huaxi Biotech highlights significant issues within the domestic beauty industry, including unclear standards and a crisis of consumer trust [4][7][26]. Group 1: Company Developments - Juzi Biotech's major shareholder announced plans to increase its stake in the company by at least 200 million HKD, leading to a temporary stock price increase of 4.15% [3][18]. - Despite the initial stock price rise, Juzi Biotech's shares fell again shortly after, indicating a lack of sustained investor confidence [4][5]. - In contrast, Huaxi Biotech reported a significant decline in revenue and profit, with a revenue of 5.317 billion RMB, down 11.61% year-on-year, and a net profit drop of 70.59% to 174 million RMB [22][25]. Group 2: Market Dynamics - The competition between Huaxi Biotech and Juzi Biotech has drawn attention to the effectiveness of hyaluronic acid versus the emerging trend of recombinant collagen, with predictions indicating that the collagen market could surpass hyaluronic acid by 2026 [19][25]. - Juzi Biotech's revenue reached 5.539 billion RMB, a year-on-year increase of 57.17%, while its net profit grew by 42.4% to 2.062 billion RMB [22][25]. Group 3: Industry Issues - The dispute has revealed a lack of rigorous standards and clear definitions in the beauty industry, contributing to consumer skepticism [7][26]. - Industry insiders have pointed out that the marketing strategies often overshadow research and development, with Juzi Biotech's R&D expenditure being significantly lower than that of its competitors [27][29]. - The ongoing debate over ingredient efficacy may serve as a catalyst for improved transparency and standards within the industry, potentially benefiting consumers and companies alike [29][30].

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].