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].

Core Insights - Huaxi Biological Technology Co., Ltd. has achieved a significant breakthrough in the field of bioactive repair components with the public disclosure of a patent for "specific sequence nucleic acid molecules and their application as PDRN" [1] - The new patent introduces a novel specific sequence PDRN (polydeoxyribonucleotide) with stable biological activity, molecular weight, and product quality, marking the third generation of technology in the PDRN field for the company [1] Summary by Sections Patent and Technology Breakthrough - The core achievement of the patent is a new specific sequence PDRN with 100% similarity to the GC content of the human genome, eliminating reliance on animal extraction and ensuring a more stable raw material source [1] - The new technology overcomes traditional animal-derived PDRN limitations, offering controllable sequences and significantly improved purity [1] Applications and Industry Impact - The patent is expected to provide revolutionary solutions for high-end cosmetic repair and medical wound healing sectors, emphasizing three core advantages: controllable sequences, safety, and enhanced efficacy [1] - The previous microbial fermentation-based PDRN production method yielded products with a GC content of 39.5% to 41.5%, closely resembling human GC content at 40% [2] Research and Development Innovations - The company utilized an AI-assisted high-throughput screening approach to identify multiple PDRN sequences from a database of over 60,000 genomic sequences, ensuring high safety and effectiveness in promoting vascular endothelial growth factor (VEGF) expression [2] - The patent also outlines a simple preparation method for specific sequence PDRN, with a fully controllable production process that aligns with sustainable development goals [2] - The establishment of a theoretical and product system linking "sequence and efficacy" will facilitate the industry's transition from random extraction to precise research and development, promoting standardization and high-quality growth in the bioactive component sector [2]

Group 1 - The company, Huaxi Biological, reported that as of August 20, 2025, the number of shareholders is 32,255 [1]

Group 1 - The medical beauty sector increased by 0.18% on November 6, with *ST Meigu leading the gains [1] - The Shanghai Composite Index closed at 4007.76, up 0.97%, while the Shenzhen Component Index closed at 13452.42, up 1.73% [1] - The trading volume and turnover for *ST Meigu were 137,900 hands and 53.13 million yuan, respectively, with a price increase of 3.95% [1] Group 2 - The medical beauty sector experienced a net outflow of 34.96 million yuan from main funds, while retail investors saw a net inflow of 36.62 million yuan [1] - Individual stock performances included *ST Meigu with a 3.95% increase, Aimeike with a 0.38% increase, Huaxi Biological with a 0.52% decrease, and Jinbo Biological with a 2.54% decrease [1] - The net fund flow for *ST Meigu was -3.52 million yuan, indicating a decrease of 6.63% [2]

Core Viewpoint - Guoshou Chengda, a major shareholder of Huaxi Biological, plans to reduce its stake by up to 9.63 million shares, representing no more than 2.00% of the total share capital, following a previous reduction of 5,496,782 shares [1][2] Group 1: Shareholder Actions - Guoshou Chengda currently holds 28.94 million shares, accounting for 6.01% of Huaxi Biological, making it the second-largest shareholder [1] - This marks the second reduction by Guoshou Chengda, which previously sold shares between October 31 and November 12, 2024, at prices ranging from 59.28 to 68.10 yuan per share [1] - Huaxi Biological's controlling shareholder, Huaxi Xinyu, recently completed its first share buyback since the company's listing, acquiring approximately 4.52 million shares for about 257 million yuan, increasing its stake to 60.11% [2] Group 2: Financial Performance - Huaxi Biological's revenue has declined from 6.36 billion yuan in 2022 to 5.37 billion yuan in 2024, with a year-on-year decrease of 18.36% to 3.16 billion yuan in the first three quarters of this year [2] - Net profit for the first three quarters was 252 million yuan, down 30.29% year-on-year [2] - Despite a decline in overall performance, net profit showed improvement in the second and third quarters, increasing by 20.89% and 55.63% respectively, primarily due to effective control of sales expenses [2] Group 3: Strategic Adjustments - In response to ongoing challenges, Huaxi Biological's chairman announced a return to operational management and implemented systematic adjustments in business direction and organizational structure [3] - The company plans to invest 138 million Hong Kong dollars to acquire 11.57 million shares of Saint Pharma, aiming to expand into the small nucleic acid innovative drug sector [3]