Bloomage Biotech(SH:688363) Xin Lang Cai Jing·2025-12-06 02:59Core Viewpoint - The stock price of Huaxi Biological has fallen below its initial public offering (IPO) price, leading to concerns from investors and a series of measures from the management to address the situation [2][4]. Group 1: Stock Performance and Market Reaction - Huaxi Biological was listed on the STAR Market on November 6, 2019, with an IPO price of 47.79 yuan per share [2]. - The stock reached a peak price of 312.99 yuan, with a market capitalization exceeding 140 billion yuan [3]. - As of December 4, 2025, the stock closed at 45.57 yuan, resulting in a market cap of approximately 22 billion yuan, a decline of nearly 120 billion yuan from its peak [4]. - Institutional investors have been reducing their holdings, with significant sell-offs reported in recent months [4]. Group 2: Financial Performance - In 2024, Huaxi Biological faced a significant decline in performance, with annual revenue of 4.722 billion yuan, down 23.79% year-on-year, and a net profit of 490 million yuan, a drop of 64.18% [5]. - 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 of 252 million yuan, down 30.29% [6]. - The skin science innovation business, previously a growth driver, saw a revenue decline of 33.97% in the first half of 2025, contributing only 40.36% to the main business revenue [7][8]. Group 3: Management Actions and Strategic Changes - In response to the declining performance, the management announced a return to core operations and initiated a comprehensive restructuring of business strategies and talent organization [5]. - Positive signs emerged in Q3 2025, with a net profit of 32 million yuan, reflecting a year-on-year increase of 55.63%, indicating a recovery trend [8]. - The company achieved a reduction in sales expense ratio to 34.26%, the lowest in five years, attributed to optimized brand communication and channel structure [9]. Group 4: Shareholder Actions - The controlling shareholder, Huaxi Xinyu Investment Co., announced a share buyback plan, intending to purchase between 200 million and 300 million yuan worth of shares [10]. - From August 27 to September 30, 2025, the controlling shareholder completed a buyback of 4.5187 million shares, totaling 257 million yuan [10]. - Following the buyback, the controlling shareholder's stake increased from 59.17% to 60.01% [13].