Bloomage Biotech(SH:688363) Chang Jiang Shang Bao·2025-04-14 00:00Core Insights - The core issue revolves around the significant decline in the operating performance of Huaxi Biological (688363.SH), attributed to a strategic transformation initiated by CEO Zhao Yan, which has drawn market attention [2][3][5] Financial Performance - In the 2024 annual report, Huaxi Biological reported revenue of 5.371 billion yuan, a year-on-year decrease of 11.61% [5][6] - The net profit attributable to shareholders was 174 million yuan, reflecting a decline of over 70% compared to the previous year [5][6] - The core business, skin science innovation and transformation, saw a revenue drop of 31.62%, accounting for 47.92% of total revenue, down 13.92 percentage points from the previous year [7][11] Business Segments - Huaxi Biological operates three main business segments: raw materials, medical aesthetics, and skin science innovation, with the latter being the core business [2][5] - The raw materials segment continued to grow steadily, while the medical terminal business maintained rapid growth; however, the functional skincare segment experienced a temporary decline [5][6] Strategic Transformation - The company is undergoing a "bone-scraping" style transformation, which includes changes in processes, organizational operations, talent development, and product system construction [2][5] - The transformation has incurred costs, including a significant increase in executive compensation, with the salary of the deputy general manager reaching 6.2213 million yuan, a 5.72-fold increase from the previous year [2][15] Market Context - The hyaluronic acid industry has faced a turning point, with oversupply in the market since 2021, leading to increased competition and a shift in consumer preference towards collagen products [9][10] - Huaxi Biological's strategic adjustments are seen as a response to these market dynamics, with the company aiming to address internal management issues and adapt to changing market conditions [8][13]