Group 1 - The medical beauty sector increased by 4.29% on November 10, with *ST Meigu leading the gains [1] - The Shanghai Composite Index closed at 4018.6, up 0.53%, while the Shenzhen Component Index closed at 13427.61, up 0.18% [1] - The main funds in the medical beauty sector saw a net inflow of 94.61 million yuan, while retail funds experienced a net outflow of 53.71 million yuan [1] Group 2 - *ST Meigu's closing price was 4.22 yuan, with a rise of 4.98% and a trading volume of 163,200 shares, amounting to a transaction value of 68.05 million yuan [1] - Aimeike's closing price was 156.50 yuan, with a rise of 4.92% and a trading volume of 110,400 shares, amounting to a transaction value of 173.27 million yuan [1] - Huaxi Biological's closing price was 51.46 yuan, with a rise of 3.37% and a trading volume of 40,500 shares, amounting to a transaction value of 207 million yuan [1]

Core Viewpoint - Huaxi Biological's stock price has shown a slight decline this year, with recent trading indicating a downward trend, while the company continues to maintain a diverse business model in the biotechnology sector [2][3]. Company Overview - Huaxi Biological Technology Co., Ltd. was established on January 3, 2000, and went public on November 6, 2019. The company is located in Jinan, Shandong Province, and specializes in microbial fermentation and cross-linking technology platforms [2]. - The company has developed a full industry chain business system that includes raw materials, medical terminal products, functional skincare products, and functional foods, serving global pharmaceutical, cosmetic, food manufacturing enterprises, medical institutions, and end users [2]. Financial Performance - For the period from January to September 2025, Huaxi Biological reported operating revenue of 3.163 billion yuan, a year-on-year decrease of 18.36%, and a net profit attributable to shareholders of 252 million yuan, down 30.29% year-on-year [2]. - Since its A-share listing, Huaxi Biological has distributed a total of 1.138 billion yuan in dividends, with 528 million yuan distributed over the past three years [3]. Stock Performance - As of November 10, Huaxi Biological's stock price was 50.79 yuan per share, with a market capitalization of 24.464 billion yuan. The stock has decreased by 0.27% this year, with a 4.39% drop over the last five trading days [1][2]. - The company experienced a net inflow of main funds amounting to 2.5905 million yuan, with large orders accounting for 24.19% of total purchases [1]. Shareholder Information - As of October 31, the number of Huaxi Biological's shareholders was 30,600, an increase of 0.86% from the previous period. The average circulating shares per person decreased by 0.85% to 15,749 shares [2]. - The top ten circulating shareholders include several ETFs, with notable reductions in holdings for major funds such as E Fund and Huaxia [3].

- The report predicts the adjustment of sample stocks for the CSI 300, CSI 500, and STAR 50 indices in December 2025[1][6] - The CSI 300 Index selects companies with good operating conditions, no violations, no major financial report issues, and no significant stock price anomalies[7] - The CSI 500 Index excludes CSI 300 sample stocks and the top 300 stocks by average market value, selecting companies with good operating conditions and no major issues[9][10] - The STAR 50 Index selects companies listed on the STAR Market with good operating conditions, no violations, and no major financial report issues[13] - The report provides detailed predictions for stocks to be included and excluded from each index based on average market value and average trading volume[8][11][14]

Core Insights - The retail industry is experiencing a shift from value preservation to emotional value, with a focus on high-growth segments for investment opportunities [5][28] - The report maintains a positive outlook on the retail sector, emphasizing the importance of consumer insights and differentiated product offerings [5][28] Retail Market Overview - The retail index reported a slight increase of 0.31% during the week of November 3 to November 7, 2025, underperforming the Shanghai Composite Index, which rose by 1.08% [7][16] - Year-to-date, the retail index has increased by 4.20%, lagging behind the Shanghai Composite Index's 19.27% growth [16][20] Investment Strategy for 2026 - The investment strategy highlights four main themes: 1. **Gold and Jewelry**: Focus on high-end and fashionable gold segments, with recommendations for brands like Lao Pu Gold and Chao Hong Ji [5][48] 2. **Retail E-commerce**: Emphasize the transformation of offline retail to enhance service and experience, with key players like Yonghui Supermarket and Ai Ying Shi [5][48] 3. **Cosmetics**: Target domestic brands that capture emotional value and innovate on safety ingredients, recommending brands like Juzi Biological and Pechoin [5][49] 4. **Medical Aesthetics**: Focus on differentiated product manufacturers and expanding medical institutions, with recommendations for brands like Ai Mei Ke and Ke Di-B [5][49] Sector Performance - The jewelry sector is undergoing significant changes due to rising gold prices and a decline in traditional wedding markets, leading to the emergence of brands with strong consumer insights [5][29] - The cosmetics sector is seeing a rise in domestic brands leveraging cultural roots and emotional value to capture market share [5][41] Company-Specific Insights - **Chao Hong Ji**: Reported a revenue increase of 28.4% year-on-year for the first three quarters of 2025, with a notable performance in Q3 [54] - **Yonghui Supermarket**: Experienced a revenue decline of 22.2% year-on-year for the first three quarters of 2025, but is undergoing significant transformation [50] - **Juzi Biological**: Achieved a revenue growth of 21.7% year-on-year for the first half of 2025, focusing on collagen products [50]

Core Viewpoint - The eighth China International Import Expo has showcased Huaxi Biological's innovative solutions in anti-aging based on extracellular matrix (ECM) science, highlighting China's strength in life sciences innovation [1] Group 1: ECM Scientific Layout - Huaxi Biological maintains a systematic scientific layout of ECM, aligning with global life science frontiers, with ECM changes recognized as a major aging marker by 2025 [3] - The company actively participates in ECM research, focusing on key components like hyaluronic acid and collagen, transitioning from a "single substance era" to a "system structure era" in anti-aging research [3] - Huaxi Biological's research system integrates glycomics and cell biology, utilizing a 30 billion-level molecular database and AI R&D platform for multi-scale research and engineering applications [3] Group 2: Global Research and Industry Application - The company's active substances are widely adopted by global Fortune 500 companies and top research institutions, contributing to ECM signal communication and regeneration mechanism studies [5] Group 3: Innovation and Manufacturing Capabilities - At the Import Expo, Huaxi Biological showcased innovative products derived from ECM research, leveraging China's manufacturing capabilities and a leading pilot transformation platform with 64 pilot production lines [6] - The company has received multiple domestic and international awards for its raw material research, exemplifying the effective transformation of cutting-edge research into market results [9] Group 4: Transition from Manufacturing to Standard Setting - Huaxi Biological is transitioning from "technology output" to "standard leadership," establishing a global intellectual property protection network through PCT patents in over 30 countries [9] - The company plans to build a regional center in Europe for "nearshore manufacturing" to quickly respond to global market demands [9] Group 5: Product Development and Medical Applications - The company's product lines, such as Runbaiyan, demonstrate the ability to rebuild healthy ECM networks, while Huaxi Dangkang nutrition products reflect a systemic anti-aging approach [10] - Huaxi Biological has obtained 11 Class III medical device certificates for aesthetic injection products, with the latest technology capable of rejuvenating skin by restoring ECM structure [10] Group 6: Milestone Achievements - Huaxi Biological has established the international standard for hyaluronic acid (ISO 22718), breaking the monopoly of Western companies on bioactive substance standards, marking a significant shift in the company's role [12] - The company aims to enhance China's influence in global life sciences through leading-edge research and industry ecosystem construction, signaling the start of a new cycle in systemic anti-aging [12]

Core Viewpoint - The Ministry of Industry and Information Technology (MIIT) has announced the list of selected units for the high-performance bioreactor innovation task, aiming to enhance the supply capacity of key equipment for biological manufacturing [2][3]. Summary by Relevant Sections Task Objectives - The initiative focuses on three categories: reactor systems, key components and consumables, and industrial operating systems, with a total of nine tasks aimed at selecting and nurturing units with strong innovation capabilities and mastery of core technologies [2]. Selected Units - Notable units included in the list are: - Tianjin Institute of Industrial Biotechnology, Chinese Academy of Sciences - Guangzhou Aibaitai Biotechnology - Shanghai Dongfulong - Jiangsu Weiji Wisdom - Shanghai Shunyu Hengping - Shanghai Ailite [5][6]. Task Directions - The tasks cover various directions such as: 1. Microbial parallel bioreactors 2. Cell parallel bioreactors 3. Large cell bioreactors 4. Core physicochemical parameter in-situ monitoring 5. Biological reactor intelligent industrial operating systems [5][6]. Innovation Goals - The goal is to break through several landmark technologies, cultivate typical application scenarios, and accelerate the landing and application of new technologies and products, thereby enhancing the integrated development capability of high-performance bioreactors [2].

Market Overview - The medical beauty sector experienced a decline of 0.93% on November 7, with Ai Meike leading the drop [1] - The Shanghai Composite Index closed at 3997.56, down 0.25%, while the Shenzhen Component Index closed at 13404.06, down 0.36% [1] Stock Performance - The closing prices and performance of key stocks in the medical beauty sector are as follows: - *ST Meigu: Closed at 4.02, up 1.77% with a trading volume of 143,600 shares and a turnover of 57.01 million yuan [1] - Jinbo Biological: Closed at 234.00, up 0.02% with a trading volume of 7,738.5 shares and a turnover of 1.83 billion yuan [1] - Huaxi Biological: Closed at 49.78, down 0.04% with a trading volume of 17,300 shares and a turnover of 86.15 million yuan [1] - Ai Meike: Closed at 149.16, down 1.87% with a trading volume of 30,900 shares and a turnover of 465 million yuan [1] Capital Flow - The medical beauty sector saw a net outflow of 46.6453 million yuan from main funds, while retail investors contributed a net inflow of 34.3979 million yuan [1] - The capital flow for key stocks is as follows: - *ST Meigu: Net outflow of 2.6832 million yuan, down 4.71% [2] - Huaxi Biological: Net outflow of 3.3342 million yuan, down 3.87% [2] - Ai Meike: Net outflow of 40.6279 million yuan, down 8.74% [2]

Core Viewpoint - Huaxi Biological is facing a trust crisis in the capital market due to continuous shareholding reduction by original shareholders and a significant drop in stock price, which has fallen over 80% from its peak. The company's core skincare business has seen a substantial decline in revenue over the past two years, leading to a notable decrease in both revenue and net profit for the first three quarters of 2025. The company is undergoing a "bone-scraping" reform to improve profitability through cost reduction and efficiency enhancement, while also seeking new growth through external investments. However, the lack of internal growth drivers and the underperformance of core business pose significant challenges for the company's recovery and investment transformation [2][3][4]. Financial Performance - As of November 6, 2025, Huaxi Biological's stock price was 49.8 yuan per share, representing an over 82% decline from its historical peak, with a market capitalization of only 24 billion yuan, down more than 120 billion yuan from its peak [4]. - For the first three quarters of 2025, the company reported revenue of 3.163 billion yuan, a year-on-year decrease of 18.36%, and a net profit attributable to shareholders of 252 million yuan, down 30.29% compared to the previous year [4][5]. - The core skincare innovation business has seen a continuous decline in revenue, with a drop of 8.5 billion yuan in 2023 and a further decline to 2.569 billion yuan in 2025, reflecting a year-on-year decrease of over 30% [5][6]. Business Challenges - The raw materials and medical terminal segments have also experienced declines, with the raw materials business showing a slight decrease of 0.58% in the first half of 2025, and the medical terminal business declining by 9.44% [6]. - The company's cost control measures have led to a reduction in sales expenses, which decreased by 5.14 billion yuan to 1.117 billion yuan in the first three quarters of 2025, resulting in a sales expense ratio of 34.26%, down 31.50% [9][10]. Strategic Initiatives - The company has initiated a brand "slimming" plan, shutting down non-core brands to focus on its main business. It has also made significant external investments, totaling 1.009 billion yuan across seven private equity funds, although these investments have not yet yielded substantial returns [10][11]. - Huaxi Biological has made strategic investments in biotechnology and pharmaceuticals, including a 138 million HKD investment in a Hong Kong-based company, aiming to enhance its platform value in the synthetic biology era [11]. Future Outlook - The company’s ability to recover its core skincare business and convert new investments into actual revenue will be critical for regaining trust in the capital market. The current profit improvements are seen as temporary measures, and without a return to double-digit revenue growth, the company may face further challenges in maintaining profitability [10][12].

Core Insights - Huaxi Biological has officially disclosed a patent for a novel specific sequence PDRN, which demonstrates stability in biological activity, molecular weight, and product quality [1] - The new PDRN technology represents the third generation of products in this field, achieving significant breakthroughs in genomic similarity, raw material stability, and sequence control [1][3] Summary by Sections Patent and Technology Development - The patent (application number: 202511375770.9) for "specific sequence nucleic acid molecules and their application as PDRN" has been publicly disclosed by Huaxi Biological [1] - The new PDRN is based on pure synthetic biotechnology, eliminating reliance on animal extraction and enhancing stability [1][4] Key Innovations - The new PDRN technology achieves 100% similarity in GC content with the human genome, ensuring higher safety and efficacy [3] - The production process does not depend on animal sources, aligning with global regulatory trends and consumer preferences [3][4] - The technology allows for precise control over molecular weight and product quality, enabling traceability and adjustability of active ingredients [3] Efficacy and Safety - The PDRN produced under this new technology significantly enhances the expression of vascular endothelial growth factor (VEGF), promoting the repair of damaged cells more effectively than traditional salmon-extracted PDRN [2][3] - The absence of animal components increases the safety profile of the product, addressing barriers in medical and cosmetic applications [3] Industry Impact - This project marks the first global achievement of a PDRN sequence library with 100% similarity to the human genome, pushing the industry towards precision research and development [4] - The advancements are expected to facilitate the transition from random extraction methods to precise R&D, promoting standardization and high-quality development in the industry [4]

Core Insights - The article highlights the advancements and innovations of Huaxi Biological in the field of extracellular matrix (ECM) science, showcasing its commitment to leading global research and development in anti-aging solutions [1][2][4]. Group 1: ECM Science and Research - Huaxi Biological has established a comprehensive system for ECM science, aligning its research with global life science advancements, and is recognized as a key player in the study of ECM components [2][3]. - The company is actively involved in the research of ECM as a significant aging marker, with international journals acknowledging ECM changes as a major indicator of aging by 2025 [2]. - Huaxi Biological's research integrates a "big omics cross-disciplinary" approach, focusing on the synergistic effects of key ECM substances, transitioning from a "single substance era" to a "system structure era" in anti-aging research [2][3]. Group 2: Innovation and Product Development - The company showcases its ECM research outcomes through innovative products, leveraging China's manufacturing capabilities and a leading pilot transformation platform with 64 pilot production lines [3][4]. - Huaxi Biological has developed a series of products aimed at rebuilding healthy ECM networks and enhancing cellular vitality, with notable achievements in the medical aesthetics sector [3][4]. - The company has received multiple domestic and international awards for its research in key materials like hyaluronic acid, demonstrating its ability to convert cutting-edge research into market-ready products [3][4]. Group 3: Global Expansion and Strategic Partnerships - Huaxi Biological is transitioning from "Chinese manufacturing" to "global standards," establishing a robust intellectual property protection network across over 30 countries and planning to set up a regional center in Europe [4][5]. - As of 2024, international sales of raw materials are projected to account for 49.19% of the company's raw material business revenue, with operations in over 70 countries [4]. - Recent strategic partnerships with companies like LG Household & Health Care and Xcell Therapeutics aim to enhance collaboration in synthetic biology and cell therapy, further solidifying Huaxi Biological's position in the global biopharmaceutical landscape [5][6].