Core Viewpoint - Huaxi Biological is continuously downsizing its C-end functional skincare business, specifically shutting down the Runxiquan brand, which was not a major contributor to its revenue and profit [1][2]. Group 1: Business Strategy and Focus - The closure of Runxiquan is part of Huaxi Biological's strategy to focus on its core business and main brands, emphasizing that collagen is not a strategic focus for the company [1][2]. - The company has faced significant pressure from a sharp decline in the performance of its C-end functional skincare brands, with revenue from this segment dropping from over 70% to 40.36% of total revenue by mid-2025 [3]. - Huaxi Biological's chairman has publicly stated the need for corporate restructuring and a return to a startup mentality, highlighting issues with over-reliance on external marketing resources [3]. Group 2: Market Position and Challenges - The company positions itself as a "synthetic biotechnology company," differentiating itself from other domestic beauty brands that rely heavily on consumer sales [4]. - Despite the challenges in the C-end market, Huaxi Biological maintains a competitive edge through its B-end raw materials and medical terminal segments [4]. - The company has diversified its raw material offerings beyond hyaluronic acid, including ingredients like Ectoin and PDRN, but hyaluronic acid remains its core product [6]. Group 3: Brand Management and Market Perception - Huaxi Biological's main brands, including Runbaiyan and Kuadi, have overlapping market positions and unclear differentiation in consumer perception, which complicates their market strategies [9][10]. - The company has shifted from a strategy of aggressive brand expansion to a more focused approach, indicating a need to clarify which brands are core and which are experimental [10][11]. - The overall trend in the domestic beauty industry reflects a shift towards brand structure rebalancing, as companies seek to maintain main brand advantages while managing the performance of sub-brands [11].

Group 1 - The report highlights a significant increase in the amount of share buybacks and repurchases, with a 102% month-on-month growth in planned buyback amounts in August 2025 [4][10][17] - In August 2025, the total amount of completed buybacks in A-shares reached approximately 285.3 billion, marking a 36% increase from July [4][10] - The report indicates that 86% of the funds used for buybacks were from self-owned or raised funds, while 14% came from special loans [4][10] Group 2 - The report notes a substantial increase in the planned repurchase amounts by controlling shareholders, with a rise of 110.1 billion compared to July, totaling 118 billion in new repurchase plans [4][17] - The top three companies with the largest planned repurchase amounts include Changjiang Power, Guizhou Moutai, and Huaxi Biological, with amounts ranging from 30 to 80 billion [17] - In the Hong Kong market, the total buyback amount reached approximately 114.6 billion HKD in August, a 14% increase from July, driven by stock price corrections [20] Group 3 - The report provides a list of companies worth noting for their buyback and repurchase announcements, considering their fundamentals, current valuations, and the proportion of buyback amounts [21][22] - The report includes specific details about companies such as Shengtun Mining and Beijing Keri, highlighting their buyback purposes and amounts [22][23] - The report emphasizes the potential for future expansion of structural monetary policy tools aimed at stabilizing the capital market, which could reshape the A-share ecosystem [7][8]

Market Performance - The medical beauty sector rose by 2.11% on September 11, with Ai Meike leading the gains [1] - The Shanghai Composite Index closed at 3875.31, up 1.65%, while the Shenzhen Component Index closed at 12979.89, up 3.36% [1] Individual Stock Performance - Ai Meike (300896) closed at 201.00, with a gain of 3.10% and a trading volume of 46,300 shares, amounting to a transaction value of 909 million yuan [1] - Huaxi Biological (688363) closed at 59.51, up 0.86%, with a trading volume of 47,500 shares, totaling 279 million yuan [1] - ST Meigu (000615) remained unchanged at 3.14, with a trading volume of 55,800 shares, amounting to 17.45 million yuan [1] - Jinbo Biological (832982) closed at 307.80, down 0.03%, with a trading volume of 7,759.81 shares, totaling 237 million yuan [1] Capital Flow Analysis - The medical beauty sector saw a net inflow of 35.23 million yuan from institutional investors, while retail investors experienced a net outflow of 45.10 million yuan [1] - Ai Meike had a net inflow of 35.43 million yuan from institutional investors, but a net outflow of 40.20 million yuan from retail investors [2] - Huaxi Biological experienced a net inflow of 1.46 million yuan from institutional investors, with a net outflow of 6.54 million yuan from retail investors [2] - ST Meigu had a net outflow of 1.66 million yuan from institutional investors, but a net inflow of 1.64 million yuan from retail investors [2]

Core Viewpoint - Huaxi Biological is accelerating its transformation by shutting down the Runxiquan brand, which has not significantly contributed to its revenue and profit, as part of a strategy to focus on its main business and key brands [2][5][6]. Brand Adjustment - The closure of the Runxiquan brand has been confirmed, with its official stores on platforms like Taobao no longer searchable and its products cleared from its Douyin flagship store [4][6]. - Huaxi Biological emphasized that Runxiquan was never a major brand for the company and its existence did not meaningfully impact revenue or profit [4][7]. Financial Performance - In 2024, Huaxi Biological's functional skincare business generated revenue of 2.569 billion yuan, a year-on-year decline of 31.62% [8]. - The revenue contributions from the four main brands—Runbaiyan (922 million yuan), Kuaidi (649 million yuan), Mibeier (290 million yuan), and BM Jihuo (279 million yuan)—showed significant declines, with year-on-year drops of 22.63%, 41.69%, 31.76%, and 52.06% respectively [8][9]. - Overall, Huaxi Biological's revenue and net profit decreased by 19.57% and 35.38% respectively in the first half of 2025, following an 11.61% and 70.59% decline in 2024 [8][9]. Market Challenges - The functional skincare sector is facing a development bottleneck, with increasing competition and a saturated market limiting growth opportunities for brands like Runxiquan [7][12]. - Huaxi Biological's past success was heavily reliant on "traffic operation," and rising traffic costs have led to a stagnation in performance growth [9][12]. Strategic Transformation - The company is undergoing a significant internal transformation, particularly in its core business of skin science innovation, which involves changes in operations, products, channels, organization, and branding [10][11]. - The shift from a traffic-driven sales model to a science-based brand communication strategy aims to provide scientifically validated skincare solutions [11]. - Huaxi Biological is focusing on optimizing team structures and improving operational efficiency to enhance overall business quality [11].

Core Viewpoint - The closure of the Runxiquan brand by Huaxi Biological is part of a strategic transformation aimed at refocusing on core brands and addressing declining performance in the functional skincare sector [1][4][5] Brand Adjustment - Huaxi Biological has confirmed the shutdown of the Runxiquan brand, stating it contributed insignificantly to revenue and profit [4][5] - The brand was launched in 2019, focusing on collagen-based skincare products, but has since become marginalized [5][6] - Runxiquan's revenue was not disclosed, but it is inferred to have a small share in the overall revenue of Huaxi Biological, which reported total functional skincare revenue of 2.569 billion yuan in 2024 [4][6] Financial Performance - The functional skincare business of Huaxi Biological has seen a significant decline, with a revenue drop of 31.62% in 2024 [6][7] - Major brands under Huaxi Biological, including Runbaiyan and Kuaidi, also experienced revenue declines ranging from 22.63% to 52.06% [6][7] - Overall revenue and net profit for Huaxi Biological fell by 19.57% and 35.38% respectively in the first half of 2025 [6][7] Market Challenges - The functional skincare sector is facing a bottleneck, with increased competition and a saturated market limiting growth opportunities for smaller brands [5][10] - Huaxi Biological's past success was heavily reliant on traffic-driven sales, which has become unsustainable due to rising costs and diminishing returns [7][10] Strategic Transformation - Huaxi Biological is undergoing a significant internal transformation, focusing on five key areas: operations, products, channels, organization, and branding [9] - The company aims to shift from a traffic-driven sales model to a science-based brand communication strategy [9] - Recent adjustments have led to improved team efficiency and inventory turnover for brands like BM Jihuo and Mibeier [9]

Group 1 - The medical beauty sector experienced a decline of 1.32% on September 10, with Huaxi Biological leading the drop [1] - The Shanghai Composite Index closed at 3812.22, up 0.13%, while the Shenzhen Component Index closed at 12557.68, up 0.38% [1] - Major stocks in the medical beauty sector showed mixed performance, with Jinbo Biological up 1.18% and Aimeike down 1.25% [1] Group 2 - The net outflow of main funds in the medical beauty sector was 36.64 million yuan, while retail funds saw a net inflow of 4.67 million yuan [1] - Specific stock performances included ST Meigu's decline of 11.42% and Huaxi Biological's drop of 5.32% [2] - Aimeike experienced a significant net outflow of 31.63 million yuan, indicating a negative trend in investor sentiment [2]

Core Viewpoint - Saint Nor Pharmaceutical has secured approximately HKD 208.2 million in funding through a subscription agreement with Huaxi Biotechnology, which will become its second-largest shareholder with a 9.44% stake [1][2]. Group 1: Investment and Financial Performance - Huaxi Biotechnology's subsidiary will subscribe to 11.56828 million shares at HKD 12 per share, totaling around HKD 139 million [1]. - The stock price of Saint Nor Pharmaceutical surged by 22.78% on the announcement day, closing at HKD 18.38, and continued to rise, reaching HKD 20.62 the following day, marking a cumulative increase of over 120% in eight trading days [2][3]. - As of mid-2023, Saint Nor Pharmaceutical reported no product sales revenue and incurred a loss of approximately USD 3.4 million, with cash and cash equivalents amounting to USD 6.872 million [5][6]. Group 2: Strategic Partnerships and Future Plans - The funding will primarily be used to advance clinical progress of in-development products and delivery system development, with a focus on leveraging Huaxi's expertise in hyaluronic acid to accelerate the development of small nucleic acid products [2][11]. - Saint Nor Pharmaceutical aims to collaborate with Huaxi Biotechnology on the clinical development and commercialization of the STP705 targeted fat reduction project, which is currently in phase I clinical trials [11][13]. - Huaxi Biotechnology has expressed interest in the small nucleic acid drug sector, viewing it as a promising area for investment and collaboration [11][14]. Group 3: Market Context and Challenges - Saint Nor Pharmaceutical, once a leading player in the small nucleic acid sector, has faced challenges in a changing pharmaceutical landscape, leading to a period of contraction after its initial public offering [3][6]. - Huaxi Biotechnology has experienced a decline in revenue from its core functional skincare segment, with a significant drop in sales reported for 2023 and 2024 [7][8]. - The company is undergoing a strategic transformation from a component supplier to a biotechnology platform, which includes direct investments in innovative drug companies like Saint Nor Pharmaceutical [10][14].

Core Viewpoint - Saint Nor Pharmaceutical has secured a significant investment from Huaxi Biotechnology, which will become its second-largest shareholder, indicating a strategic partnership aimed at advancing its clinical pipeline and enhancing its market position in the biopharmaceutical sector [1][3][14]. Group 1: Investment Details - Huaxi Biotechnology plans to subscribe to 11.56828 million shares of Saint Nor Pharmaceutical at HKD 12 per share, totaling approximately HKD 139 million [1]. - In addition to Huaxi, three other investors have subscribed to a total of 5.7841 million shares, raising a total of HKD 208.2 million for Saint Nor Pharmaceutical [2]. - Following the announcement, Saint Nor's stock price surged, closing at HKD 18.38 on September 8, a 22.78% increase, and further rising to HKD 20.62 on September 9, marking a 12.19% increase [2]. Group 2: Company Performance and Strategy - As of mid-2023, Saint Nor Pharmaceutical reported no product sales revenue and incurred a loss of approximately USD 3.4 million, with cash and cash equivalents of USD 6.872 million [6]. - The company has been undergoing management changes, with a new CEO appointed in late 2022, indicating a shift in leadership strategy [6]. - Saint Nor aims to utilize the new funding primarily for advancing its clinical products and delivery systems, with a focus on its aesthetic medicine pipeline in collaboration with Huaxi [3][4]. Group 3: Huaxi Biotechnology's Position - Huaxi Biotechnology has experienced a decline in revenue from its core functional skincare segment, with a reported revenue drop of 19.57% year-on-year in the first half of 2023 [8]. - The company is diversifying its investments, having established several funds focused on life sciences and medical innovations, and this investment in Saint Nor marks its first foray into innovative drug development [10][14]. - Huaxi is particularly interested in the small nucleic acid drug sector, which is gaining recognition for its potential in treating various diseases [10][11]. Group 4: Future Prospects - Saint Nor's lead product, STP705, is in advanced clinical trials for indications including targeted fat reduction and skin malignancies, which aligns with Huaxi's expertise in aesthetic medicine [11][13]. - The partnership is expected to enhance Saint Nor's credibility in the capital market, while also allowing Huaxi to transition from a component supplier to a more integrated biopharmaceutical platform [14].

Core Viewpoint - Saint Noble Pharmaceuticals-B (02257.HK) announced a subscription agreement for the issuance of 17.3524 million shares at a subscription price of HKD 12.00 per share, representing a discount of approximately 19.84% from the last trading price of HKD 14.97 on September 5 [1] Group 1 - The total number of subscription shares represents about 16.50% of the company's existing issued share capital as of the announcement date [1] - After the issuance of all subscription shares, the enlarged issued share capital will be approximately 14.16% [1] - The total proceeds from the subscription are expected to be around HKD 208.2 million, with a net amount of approximately HKD 206 million [1] Group 2 - The subscribers include Huaxi Biotechnology (Hong Kong) Co., Ltd., Mr. Xie Shuohao, Bamboo Bloom Limited, and Capstone Resources Holding Limited [1] - The proceeds from the subscription will be used for general working capital of the group [1]

Core Viewpoint - Sanofi Pharmaceutical-B (02257) has seen a significant increase in its stock price, with a year-to-date rise exceeding 530%, currently trading at 22.06 HKD with a transaction volume of 29.72 million HKD [1] Group 1: Investment and Shareholding - Sanofi Pharmaceutical recently announced a placement of 17.35 million new shares at a discount of 19.84% to four investors, including Huaxi Biotechnology (Hong Kong) [1] - Huaxi Biotechnology plans to invest approximately 138 million CNY through its wholly-owned subsidiary, acquiring about 9.44% of Sanofi Pharmaceutical's shares post-placement [1] Group 2: Strategic Collaboration - The investment by Huaxi Biotechnology aims to advance Sanofi Pharmaceutical's research and commercialization in the fields of medical aesthetics, aging intervention, and regenerative medicine, particularly focusing on the STP705 targeted fat reduction project and other siRNA-based medical aesthetic assets [1] - Huaxi Biotechnology emphasizes its role not only as a financial investor but also as a strategic partner, indicating potential for further business collaboration between the two companies [1]