Core Viewpoint - The article discusses the conflict between Huaxi Biological and several securities firms regarding the comparison of hyaluronic acid and recombinant collagen protein, with Huaxi asserting that the notion of hyaluronic acid being outdated is a misleading narrative driven by "restless capital" [2][11]. Summary by Sections Company Background - Huaxi Biological, once a darling of the capital market, saw its stock peak at 313.1 yuan and market capitalization exceed 150 billion yuan, but has since experienced a significant decline, with its stock price dropping to 52.61 yuan and market cap to 25.3 billion yuan as of May 21 [3][12]. Market Dynamics - The rise of recombinant collagen protein companies like Juzhi Biological and Jinbo Biological has shifted capital focus, with these companies achieving record highs in stock prices [4][14]. - Huaxi Biological's performance has been declining, particularly in its functional skincare segment, while the recombinant collagen protein sector is experiencing rapid growth [4][20]. Securities Firms' Reports - Huaxi Biological criticized reports from nine securities firms that favor recombinant collagen over hyaluronic acid, claiming these reports mislead the market [6][9]. - Specific reports from Huatai Securities, Guojin Securities, and others highlighted the advantages of recombinant collagen, such as its biological features and safety, which Huaxi disputes [7][8]. Industry Trends - The market for recombinant collagen products in China is projected to grow at a compound annual growth rate of 44.93%, reaching 58.57 billion yuan by 2025 [12]. - Huaxi Biological's sales of hyaluronic acid accounted for 44% of the global market in 2021, but its revenue has been declining due to challenges in its functional skincare business [12][17]. Financial Performance - Huaxi Biological's revenue and net profit have been declining, with 2023 revenue at 6.08 billion yuan and a net profit of 593 million yuan, reflecting a year-on-year decrease of 4.45% and 38.97%, respectively [17][18]. - The company's functional skincare revenue peaked in 2022 but has since dropped, leading to overall performance issues [17][19]. Strategic Response - In response to declining performance, Huaxi Biological is restructuring its management and focusing on core competencies, including a shift in branding and operational strategies [19][20]. - The company has also made acquisitions to enter the collagen market, although its recent acquisition has not yet proven profitable [20]. Competitive Landscape - The article notes that both hyaluronic acid and recombinant collagen have their respective advantages, with hyaluronic acid still holding a competitive edge in certain applications despite market challenges [21].

Core Viewpoint - The article discusses the conflict between Huaxi Biological and several brokerage firms regarding the comparison of hyaluronic acid and recombinant collagen protein, with Huaxi asserting that the notion of hyaluronic acid being outdated is a misleading narrative driven by "restless capital" [1][9]. Group 1: Company Performance - Huaxi Biological's stock price peaked at 313.1 yuan with a market value exceeding 150 billion yuan, but as of May 21, it has plummeted to 52.61 yuan, with a market value of only 25.3 billion yuan, representing a loss of over 120 billion yuan in market capitalization [2][10]. - The company's revenue for 2023 and 2024 was 6.076 billion yuan and 5.371 billion yuan, respectively, showing a year-on-year decline of 4.45% and 11.61% [14]. - The net profit attributable to shareholders for the same years was 593 million yuan and 174 million yuan, reflecting a significant decline of 38.97% and 70.59% [14]. Group 2: Market Dynamics - The market is witnessing a shift in focus from hyaluronic acid to recombinant collagen protein, with companies like Juzhi Biological and Jinbo Biological experiencing significant stock price increases and strong revenue growth [12][17]. - The recombinant collagen protein market in China is projected to grow at a compound annual growth rate of 44.93%, reaching 58.57 billion yuan by 2025 [9]. Group 3: Industry Comparison - Huaxi Biological argues that the claims made by brokerage reports regarding the superiority of recombinant collagen protein over hyaluronic acid are misleading and lack scientific backing [5][18]. - Both hyaluronic acid and recombinant collagen protein have their respective advantages in different applications, with hyaluronic acid still holding competitive strength due to its established market presence [18]. Group 4: Company Strategy - In response to declining performance, Huaxi Biological is restructuring its management and focusing on core competencies, including a renewed emphasis on its strengths in hyaluronic acid [16]. - The company has also made strategic acquisitions, such as a 51% stake in Beijing Yierkang Biological Engineering, to enter the animal-derived collagen protein market, although this subsidiary reported losses in 2024 [17].

Core Viewpoint - Huaxi Biological (688363.SZ) criticizes certain brokerage reports for misleading the market regarding the hyaluronic acid (HA) industry, claiming that these reports promote the idea that HA is outdated and misrepresent its value compared to recombinant collagen [1][2][5] Group 1: Criticism of Brokerage Reports - Huaxi Biological specifically names brokerages such as Western Securities, Anxin Securities, and Xinda Securities, accusing them of publishing misleading conclusions that favor recombinant collagen over hyaluronic acid [1][2][4] - The company argues that these reports distort scientific facts and mislead consumers, damaging the trust in the Chinese biotechnology and medical aesthetics industry [1][6] - Huaxi Biological emphasizes the importance of maintaining a fair competitive environment and the integrity of scientific information in the industry [1][6] Group 2: Market Dynamics and Competition - The criticism from Huaxi Biological is seen as a response to the rising competition from Juzhi Biological (02367.HK), which focuses on recombinant collagen and has been gaining market traction [1][8][12] - Huaxi Biological's performance has been declining, with projected revenues and net profits for 2024 showing significant decreases compared to previous years, while Juzhi Biological has experienced substantial growth [10][12] - The company highlights that the narrative of HA being outdated is a construct of "restless capital" aiming to shift focus to new market trends, which undermines the established value of HA [13][14] Group 3: Industry Support and Response - Following Huaxi Biological's statements, two industry associations, the China Fragrance and Cosmetic Industry Association and the China Aesthetic Medicine Association, issued a joint initiative advocating for scientific integrity and ethical marketing practices [7] - Huaxi Biological reports that many institutions have retracted erroneous reports and some have issued apologies, indicating a recognition of the misleading nature of the previous analyses [6][12] - The company maintains ongoing communication with brokerage firms regarding the accuracy of research reports and their implications for the industry [6][12]

Core Viewpoint - The article discusses the conflict between Huaxi Biological and several brokerage firms regarding the comparison of hyaluronic acid and recombinant collagen protein, with Huaxi asserting that the notion of hyaluronic acid being outdated is misleading and driven by "restless capital" [1][7]. Company Overview - Huaxi Biological specializes in hyaluronic acid-related products and has faced significant stock price and market capitalization declines since reaching a peak in July 2021, with its stock price dropping from 313.1 yuan to 52.61 yuan as of May 21, 2023, resulting in a market cap reduction from over 1500 billion yuan to 253 billion yuan [2][8]. - The company has reported continuous revenue declines, with revenues of 60.76 billion yuan and 53.71 billion yuan for 2023 and 2024, respectively, representing year-on-year decreases of 4.45% and 11.61% [10]. Industry Dynamics - The market has seen a shift in focus towards recombinant collagen protein, with companies like Juzhi Biological and Jinbo Biological experiencing significant stock price increases and revenue growth, contrasting with Huaxi's struggles [2][13]. - The recombinant collagen protein market in China is projected to grow at a compound annual growth rate of 44.93%, reaching 585.7 billion yuan by 2025 [7]. Performance Comparison - Juzhi Biological's revenues for 2022, 2023, and 2024 were 23.75 billion yuan, 35.26 billion yuan, and 55.39 billion yuan, respectively, with year-on-year growth rates around 50% [13]. - Jinbo Biological's revenues during the same period were 3.9 billion yuan, 7.8 billion yuan, and 14.43 billion yuan, with growth rates of 67.15%, 99.97%, and 84.92% [13]. Regulatory and Market Response - Huaxi Biological has reported the brokerage firms to the China Securities Regulatory Commission for allegedly misleading reports that could distort market perceptions [1][3]. - The company has emphasized the need for a healthy industry ecosystem and has engaged with industry associations to advocate for a return to scientific principles in the market [5][7].

Core Viewpoint - Huaxi Biological has publicly criticized several securities firms for promoting collagen products and suggesting that hyaluronic acid is "outdated," indicating a defensive stance amid declining performance and market competition [1][2][3] Company Performance - Huaxi Biological started with hyaluronic acid and holds nearly 50% of the global market share, expanding into medical products, skincare, and functional foods [5][6] - Despite maintaining positive growth during the pandemic years of 2020 and 2021, the company's revenue and profit have declined since 2021, with net profits projected to drop from 9.71 billion yuan in 2022 to 1.74 billion yuan in 2024 [10] - The company's market capitalization has plummeted from over 140 billion yuan in 2021 to 25.3 billion yuan as of May 21, 2025 [10] Market Comparison - In contrast, competitors like Juzhi Biological and Jinbo Biological have seen significant growth, with Juzhi's net profits increasing from 1 billion yuan in 2022 to 20.62 billion yuan in 2024, and Jinbo's from 1.09 billion yuan to 7.31 billion yuan in the same period [14] - Both companies have also achieved substantial stock price increases, with market capitalizations of 87.5 billion HKD and 51.1 billion yuan, respectively [14] Industry Dynamics - The rise of collagen products has created a competitive threat to hyaluronic acid, with market trends favoring new ingredients [15][18] - The demand for collagen is expected to exceed supply, with projections indicating a production of 200,000 tons against a demand of over 220,000 tons by 2025 [19] Challenges Ahead - Despite Huaxi's efforts to defend hyaluronic acid, the company faces challenges due to internal management issues and a tarnished brand image, which may hinder future sales growth [20][21] - The company's recent foray into collagen products has not yet shown significant revenue impact, suggesting ongoing struggles in adapting to market changes [21]

Group 1: Industry Dynamics - The medical beauty industry is experiencing a shift from technology competition to capital narrative, as highlighted by Huaxi Biological's recent criticism of major brokerages for downplaying hyaluronic acid in favor of collagen products [2][7] - The market for hyaluronic acid is becoming increasingly competitive, with over 50 approved Class III medical devices and more than 400 circulating brands in China by 2024, leading to a saturation of supply [8][9] - Emerging alternative materials, such as hydroxyapatite and recombinant collagen, are reshaping the market landscape, with predictions that the collagen market in China will reach 173.8 billion yuan by 2027, with recombinant collagen accounting for over 60% [9][6] Group 2: Company Performance - Huaxi Biological's revenue declined from 6.359 billion yuan in 2022 to 5.371 billion yuan in 2024, with net profit dropping from 961 million yuan to 174 million yuan, and a further 58.13% decrease in Q1 2025 net profit year-on-year [7][10] - Aimei Ke's revenue growth slowed to a historical low of 5% in 2024, with its flagship product "Hi Body" achieving 314 million yuan in sales, but injection product growth rates fell to single digits [7] - Haohai Biological's revenue for 2024 was 2.698 billion yuan, a slight increase of 1.64%, but its ophthalmology and orthopedics businesses faced significant declines due to centralized procurement policies [7] Group 3: Marketing Strategies - The marketing strategies in the medical beauty sector are evolving, with institutions leveraging consumer psychology to shift focus from hyaluronic acid to collagen products, promoting the latter as safer and more effective [5][4] - Social media plays a crucial role in shaping consumer perceptions, with narratives around collagen's benefits and the risks associated with hyaluronic acid injections driving consumer behavior [5][4] - The pricing dynamics show that while hyaluronic acid injections are becoming more affordable, collagen injections remain significantly more expensive, creating a new revenue opportunity for institutions [4][6]

Core Viewpoint - Huaxi Biological, once a giant in the hyaluronic acid market, is facing significant challenges as its stock price has plummeted over 80% since 2021, leading to a market capitalization drop from over 140 billion to around 20 billion [3][15]. Group 1: Company Performance - Huaxi Biological's revenue for 2024 is projected at 5.371 billion, a year-on-year decrease of 11.6%, with a net profit of 164 million, down 72.27% [15]. - The decline in performance is primarily attributed to the rapid downturn in its functional skincare segment, which generated 2.569 billion, accounting for 47.92% of total revenue [17]. - This segment has seen consecutive declines, with an 18.45% drop in 2023 and a further 31.62% decrease in 2024 [18]. Group 2: Market Dynamics - The hyaluronic acid industry is experiencing overall growth pressure, with a general decline in the consumption medical sector, affecting major players like Haohai Biological [28][29]. - The market is characterized by intense price competition, with over 77 brands in the domestic hyaluronic acid market, leading to a lack of differentiation and pricing power [32][30]. - Despite the challenges, both Huaxi Biological and Haohai Biological maintain a gross margin above 70%, indicating that hyaluronic acid remains a profitable business [35]. Group 3: Competitive Landscape - The rise of recombinant collagen as a competing product has gained traction, with a projected market share surpassing hyaluronic acid by 2026, driven by a compound annual growth rate of 52.6% [39]. - The competition in the collagen sector is intensifying, with many companies entering the market, which may lead to a similar competitive environment as seen in the hyaluronic acid market [41][43]. - Huaxi Biological's struggles highlight the need for companies to innovate and establish strong brand identities to avoid falling into price wars and market saturation [48].

Core Viewpoint - The article highlights a conflict in the biopharmaceutical industry regarding the competition between hyaluronic acid and recombinant collagen, with Huaxi Biological criticizing the notion that hyaluronic acid is outdated, which they attribute to capital-driven speculation [1][4]. Company Performance - Huaxi Biological's performance has declined significantly, with projected revenue for 2024 expected to decrease by 11.61% and net profit to drop by 70.59%, resulting in a market capitalization loss of over 100 billion [1][6]. - In contrast, Juzhi Biological has experienced substantial growth, with a projected revenue increase of 57.2% and net profit growth of 42.4% for 2024, leading to a doubling of its market capitalization [1][6]. Market Dynamics - The article discusses the contrasting market performances of Huaxi Biological and Juzhi Biological, indicating a clear divide in the industry, with Huaxi's stock price falling over 80% from its peak of 309.43 yuan per share in July 2021 to 53.08 yuan per share as of May 20, 2025, resulting in a market cap of less than 25.6 billion [9][6]. - Juzhi Biological's stock has seen a significant increase, reaching a peak of 86.45 HKD, representing a cumulative rise of over 44% from approximately 60 HKD at the end of 2024 [8][6].

Core Viewpoint - The article highlights the conflict between Huaxi Biological and several brokerage firms that support Juzi Biological, criticizing the notion that sodium hyaluronate is outdated and emphasizing the ongoing relevance of hyaluronic acid in the beauty and medical aesthetics industry [1][3]. Company Performance - Huaxi Biological's market capitalization has significantly decreased from over 140 billion yuan in 2021 to approximately 25 billion yuan currently, while Juzi Biological's stock has surged nearly 70% in 2024, elevating its founders to the status of the richest individuals in Shaanxi [2]. - In 2024, Huaxi Biological reported its worst performance since going public, with annual revenue of 5.371 billion yuan, a decline of 11.6% year-on-year, and a net profit of 164 million yuan, down 72.27% [2]. - Juzi Biological, in contrast, has shown robust growth since 2019, with 2024 revenue reaching 5.539 billion yuan, a year-on-year increase of 57.17%, and a net profit of 2.062 billion yuan, up 42.06% [2]. Market Trends - The market is increasingly favoring the field of recombinant collagen due to its excellent biocompatibility and biodegradability, with projections indicating that the collagen-based skincare market may surpass that of hyaluronic acid by 2026, with a compound annual growth rate of 52.6% [3]. - Despite the rise of recombinant collagen, hyaluronic acid remains irreplaceable in the medical aesthetics sector, particularly in filling procedures, and Huaxi Biological continues to hold a competitive edge in this area [3]. Industry Dynamics - Several brokerage firms, including Huafu Securities and Debon Securities, have retracted their reports that were criticized by Huaxi Biological, indicating the contentious nature of the market's perception of recombinant collagen [4]. - The development of recombinant collagen is still in its early stages, with high raw material costs and insufficient research on its applications, suggesting that both hyaluronic acid and recombinant collagen may coexist in the market to meet diverse consumer needs [4].

Core Viewpoint - The article discusses the ongoing debate regarding the relevance of hyaluronic acid (HA), with Huaxi Biotech refuting claims that HA is outdated and emphasizing its continued importance in life sciences research [1][2]. Group 1: Market Perspective - Huaxi Biotech directly addresses nine brokerage firms that have published reports suggesting that hyaluronic acid is becoming obsolete, labeling this perspective as a product of "restless capital" creating a false narrative [1]. - The company argues that the rise of the "outdated hyaluronic acid" theory is fundamentally a misrepresentation of a substance that has been central to life sciences for millions of years [1]. Group 2: Research and Development - Since the discovery of HA, the number of related studies has been increasing annually, with a significant surge post-2010, where over 60% of research focuses on cutting-edge areas such as immunity, metabolism, and cell differentiation [1]. - Huaxi Biotech's breakthrough enzyme cutting technology in 2011 has significantly advanced research on hyaluronic acid in fields like cancer, aging, and immunity [1]. Group 3: Future Outlook - The company expresses its commitment to leveraging its foundation in the sugar biology industry to explore deeper realms of life sciences, asserting that hyaluronic acid will always be their starting point [2]. - Huaxi Biotech emphasizes the importance of protecting the industry built over generations and is open to discussions on optimizing scientific and industrial ecosystems [2].