Bloomage Biotech(SH:688363) 2 1 Shi Ji Jing Ji Bao Dao·2025-12-04 11:47Core Viewpoint - The stock price of Hyaluronic Acid leader, Huaxi Biological (688363.SH), has fallen below its issue price, raising concerns among investors about the company's measures to reverse this trend [1][2]. Group 1: Stock Performance and Market Reaction - On December 4, Huaxi Biological's stock price dropped to 45.25 yuan per share (post-adjusted to 47.62 yuan), below the issue price of 47.79 yuan, indicating a significant market reaction [1]. - The company has seen its market capitalization shrink from over 140 billion yuan at its peak to approximately 22 billion yuan, with a cumulative stock price decline of 10.53% this year [3]. - The stock has reached a historical low of 42.42 yuan per share during the year, reflecting ongoing investor concerns [3]. Group 2: Financial Performance - For the first three quarters of 2025, Huaxi Biological reported revenue of 3.163 billion yuan, a year-on-year decrease of 18.36%, and a net profit of 252 million yuan, down 30.29% [2]. - Despite a 55.63% increase in net profit in the third quarter compared to the previous year, the revenue of 900 million yuan still represented a 15.16% decline, indicating a situation of "profit increase without revenue increase" [2]. Group 3: Shareholder Actions and Market Sentiment - The second-largest shareholder, Guoshou Chengda, plans to reduce its holdings by up to 9.6336 million shares, approximately 2% of the total share capital, further intensifying market concerns [3]. - Institutional investors, including several fund companies, have also been reducing their stakes in Huaxi Biological, indicating a broader withdrawal of capital from the company [3]. Group 4: Industry Challenges and Strategic Responses - Huaxi Biological has been removed from two major indices, including the STAR 50 Index and the FTSE China A400 Index, which may impact its visibility and investor sentiment [4]. - The company faces increased competition, particularly from collagen-based products, which are projected to surpass hyaluronic acid in market share by 2026, with a compound annual growth rate of 52.6% [4]. - In response to these challenges, Huaxi Biological is undergoing organizational restructuring and investing in new biotechnologies, such as PDRN and ergothioneine, to enhance its product offerings and performance [4].