Core Viewpoint - The article discusses the conflict between Huaxi Biological and several brokerage firms regarding the comparison of hyaluronic acid and recombinant collagen protein, with Huaxi asserting that the notion of hyaluronic acid being outdated is a misleading narrative driven by "restless capital" [1][9]. Group 1: Company Performance - Huaxi Biological's stock price peaked at 313.1 yuan with a market value exceeding 150 billion yuan, but as of May 21, it has plummeted to 52.61 yuan, with a market value of only 25.3 billion yuan, representing a loss of over 120 billion yuan in market capitalization [2][10]. - The company's revenue for 2023 and 2024 was 6.076 billion yuan and 5.371 billion yuan, respectively, showing a year-on-year decline of 4.45% and 11.61% [14]. - The net profit attributable to shareholders for the same years was 593 million yuan and 174 million yuan, reflecting a significant decline of 38.97% and 70.59% [14]. Group 2: Market Dynamics - The market is witnessing a shift in focus from hyaluronic acid to recombinant collagen protein, with companies like Juzhi Biological and Jinbo Biological experiencing significant stock price increases and strong revenue growth [12][17]. - The recombinant collagen protein market in China is projected to grow at a compound annual growth rate of 44.93%, reaching 58.57 billion yuan by 2025 [9]. Group 3: Industry Comparison - Huaxi Biological argues that the claims made by brokerage reports regarding the superiority of recombinant collagen protein over hyaluronic acid are misleading and lack scientific backing [5][18]. - Both hyaluronic acid and recombinant collagen protein have their respective advantages in different applications, with hyaluronic acid still holding competitive strength due to its established market presence [18]. Group 4: Company Strategy - In response to declining performance, Huaxi Biological is restructuring its management and focusing on core competencies, including a renewed emphasis on its strengths in hyaluronic acid [16]. - The company has also made strategic acquisitions, such as a 51% stake in Beijing Yierkang Biological Engineering, to enter the animal-derived collagen protein market, although this subsidiary reported losses in 2024 [17].