Bloomage Biotech(SH:688363) Chang Jiang Shang Bao·2025-07-27 23:36Core Viewpoint - Huaxi Biological, a major player in the medical aesthetics industry, is facing significant turmoil due to allegations of financial fraud and internal disputes, raising uncertainties about its future performance and ability to recover its previous market stature [1][2]. Group 1: Allegations and Internal Conflicts - On July 25, a former employee, claiming to be a whistleblower, accused Huaxi Biological of financial fraud and plans to submit evidence to regulatory authorities [3]. - Huaxi Biological responded on July 26, denying the allegations and stating that the claims are fabricated and defamatory, leading to a police report against the accuser [3][4]. - The company has faced multiple internal complaints in recent years, including accusations of misappropriating shareholder interests and disputes over profit distribution among executives [4][5]. Group 2: Financial Performance - Huaxi Biological has experienced a decline in both revenue and net profit for two consecutive years, with Q1 2025 showing further decreases, reporting a net profit of 1.02 billion yuan [1][9]. - The company's revenue fell from 63.59 billion yuan in 2022 to 53.71 billion yuan in 2024, marking a year-on-year decline of 11.61% [9]. - The proportion of revenue from functional skincare products decreased from 61.83% in 2023 to 47.84% in 2024, while terminal business revenue grew significantly during the same period [9]. Group 3: Market Position and Valuation - At its peak in 2021, Huaxi Biological's market capitalization exceeded 150 billion yuan, but it has since plummeted to approximately 26 billion yuan, resulting in a loss of over 120 billion yuan in market value [1][11]. - The company's stock price as of July 25, 2025, was 53.83 yuan per share, reflecting the significant decline from its previous highs [11].