Core Viewpoint - The article discusses the recent controversy surrounding Juzhibio's product quality and testing methods, particularly related to its flagship brand Kefu Mei, which significantly impacts the company's revenue and stock performance [3][6]. Company Overview - Juzhibio's flagship brand Kefu Mei contributes over 80% of the company's revenue, with 2024 revenue reported at 5.539 billion yuan and net profit at 2.062 billion yuan, where Kefu Mei's revenue alone was 4.542 billion yuan, accounting for 82% of total revenue [6]. - The company was established in September 2001, with a registered capital of approximately 688 million yuan, and operates in various sectors including medical devices and daily chemical products [7]. Recent Controversy - Beauty blogger Dazui Doctor has raised concerns about Juzhibio's testing methods, claiming that the use of biuret could lead to inflated test results due to the presence of sodium polyglutamate in Kefu Mei products [3]. - Following criticism from Huaxi Biological on May 17, Juzhibio's stock price dropped significantly, with a market value decline noted [6]. - The ranking of Kefu Mei on Tmall's 618 promotion list fell from 7th to 12th, indicating a potential loss of consumer confidence [6]. Regulatory Response - The Xi'an Market Supervision Bureau has acknowledged the situation and is conducting investigations, although cosmetic regulation falls under higher authorities [6]. - The Shaanxi provincial regulatory department has also stated that they are looking into the matter [6]. Product Availability - Feedback from consumers indicates that the original version of Kefu Mei's collagen repair essence is no longer available on major e-commerce platforms, while the newer version remains for sale [7]. Intellectual Property and Business Structure - Juzhibio has applied for multiple trademarks related to Kefu Mei, with many successfully registered, and holds over 120 patents, primarily in the fields of recombinant collagen and immune-boosting compositions [9].

Investment Rating - The report maintains a "Positive" outlook on international cosmetics and medical beauty companies for Q1 2025 [2]. Core Insights - The global beauty market is projected to grow at a rate of 4.5% in 2024, a decline from the 8% growth seen in 2023, with significant regional disparities [3][12]. - The North Asia market, particularly China, has shown signs of improvement, but overall performance remains subdued, with North America exhibiting signs of fatigue [3][12]. - International beauty groups are still grappling with performance declines or slower growth, which may become the new normal due to various factors including the pandemic and macroeconomic conditions [3][15]. - Companies are adopting localization strategies and investing in local brands to maintain market share amid fierce competition from domestic brands [3][19]. Summary by Sections 1. Global Beauty Market Trends - The beauty market continues a stable trend from 2024, with Europe outperforming other regions at a 7.5% growth, while North Asia has seen a 2% decline [3][12]. - The international beauty groups are facing a challenging environment with performance fluctuations and strategic adjustments [15]. 2. L'Oréal Performance - L'Oréal's Q1 2025 revenue growth slowed to 4.4%, with the Chinese market remaining flat and tourism retail channels under pressure [3][27]. - The company is actively investing in local brands and expanding its product matrix to compete with domestic brands [3][27]. 3. Estée Lauder Performance - Estée Lauder reported a 9.9% decline in revenue for Q1 2025, continuing a trend of three consecutive quarters of revenue decline [3][51]. - The company is undergoing strategic reforms to address issues related to brand and product positioning [47][51]. 4. Shiseido Performance - Shiseido's revenue decreased by 8.5% in Q1 2025, with its main brand struggling while the ELIXIR brand showed growth [3][18]. - The company is focusing on strategic product launches and price adjustments to enhance profitability [3][27]. 5. Investment Recommendations - Recommended companies include Up Beauty and Proya for their strong brand matrices and growth potential, as well as Marubi for leveraging Douyin traffic [4]. - In the medical beauty sector, companies with strong R&D capabilities and broad product pipelines, such as Aimeike, are highlighted as key investment opportunities [4].

Core Viewpoint - The controversy surrounding the collagen content in the "可复美重组胶原蛋白肌御修护次抛精华" product has raised significant concerns regarding the accuracy of its labeling and the validity of the testing methods used to assess its ingredients [2][5]. Group 1: Product Testing and Claims - A beauty influencer claimed that the collagen content in the product was only 0.0177%, which is below the national standard minimum of 0.1% for non-trace ingredients [2]. - The influencer's testing method, HPLC, is not recognized by current industry standards, leading to questions about the reliability of the results [5]. - 可复美's internal tests reportedly show collagen content between 0.27% and 0.28%, which complies with the labeling regulations [5]. Group 2: Regulatory Compliance and Labeling - According to the "Cosmetic Labeling Management Measures," non-trace ingredients must be listed separately if they are present in amounts greater than or equal to 0.1% [5]. - 可复美 asserts that "soluble collagen" is listed seventh in the ingredient order, which aligns with regulatory requirements [5]. - The influencer's claim that the actual collagen content is 0.0177% raises concerns about potential false labeling practices [5]. Group 3: Market Impact - The product, known as "胶原棒," is a top-selling item for 可复美, with over 1 million units sold through a single link on its flagship store [5]. - The timing of the controversy, just before the "618" shopping festival, could lead to increased returns and cautious behavior from distributors [5].

Core Viewpoint - The controversy surrounding the product testing methods and results of Juzhibio has raised significant consumer trust issues, particularly affecting its KefuMei brand ahead of the critical 618 shopping festival [2][3] Group 1: Allegations and Responses - Beauty influencer "Big Mouth Doctor" has publicly questioned the testing methods used by Juzhibio, specifically the "biuret method," claiming it could lead to inflated results due to the presence of sodium polyglutamate in the products [2] - Juzhibio has denied the allegations and stated that they have commissioned a third-party organization for further testing [2] - The influencer has raised three key scientific questions regarding the presence of recombinant collagen in the products and the absence of glycine, a critical component [2] Group 2: Consumer Impact - The negative publicity has led to a noticeable decline in consumer trust towards KefuMei products, with many consumers expressing doubts in the comments section of major e-commerce platforms [2] - As the 618 shopping festival approaches, the potential impact on KefuMei's sales performance is significant, with concerns that consumer hesitation may persist until third-party test results are released [2][3] Group 3: Urgency for Resolution - The internal testing by Juzhibio was completed on May 24, but the results from the third-party testing have not yet been disclosed, leading to increased public scrutiny [3] - The need for authoritative testing results and clear explanations is critical for restoring consumer confidence and resolving the ongoing controversy [3]

Summary of the Conference Call for Juzi Biotechnology Company Overview - **Company**: Juzi Biotechnology - **Key Brands**: Kefu Mei and Keli Jin Industry Insights - **Market Trends**: The recombinant collagen market continues to show strong growth potential, with no signs of slowing down. The demand for products in this category remains robust, as evidenced by the high growth rates of key products and positive feedback from new product launches [4][10]. Core Points and Arguments - **Product Innovation**: Juzi Biotechnology is driving growth through product iterations, such as the upgrade of collagen peptide to version 2.0, and the introduction of new products like Focus Cream and Honey Repair Cream. These new products have received positive feedback from distribution channels and are expected to become new growth drivers [2][5]. - **Kefu Mei Brand Strengths**: Kefu Mei focuses on efficacy and safety, having established professional trust through medical device certification. The brand is expanding its product line into niche areas such as acne treatment and thermal injury repair, while also enhancing offline direct store presence to improve market performance [2][9]. - **Sales Performance**: Kefu Mei's collagen stick accounts for approximately 30% of total sales and continues to grow rapidly. The new customer acquisition rate is close to 50%, with a repurchase rate significantly higher than the industry average [2][12]. - **Keli Jin Brand Dynamics**: Keli Jin has achieved short-term growth through organizational restructuring and product line optimization. However, long-term growth may face challenges due to potential limitations in collagen technology for anti-aging effects [2][20]. - **Regulatory Challenges**: Sales of Class II medical device products are growing steadily, but the approval process for Class III medical devices is slow, with uncertain timelines for specific approvals despite receiving priority review qualifications for collagen fillers [2][21]. Financial Performance - **Revenue Growth**: Juzi Biotechnology has experienced rapid revenue and profit growth, although the sales expense ratio has increased. The company plans to control this ratio through product combination sales and customer referral strategies [6][7]. Marketing and Competitive Landscape - **Competitive Positioning**: Kefu Mei differentiates itself from competitors by emphasizing safety and efficacy. The brand has established a strong medical aesthetic image through partnerships with hospitals and medical institutions, contrasting with competitors that rely on celebrity endorsements [17][25]. - **Market Competition**: While other brands have launched collagen products, Kefu Mei's unique positioning and established trust in safety and efficacy mitigate significant competitive threats. The market is expanding collectively rather than through direct competition [25]. Product Strategy - **Product Development**: Kefu Mei's strategy includes launching successful single products and then expanding related skincare offerings. The brand also targets various consumer needs with different product forms [11][12]. - **New Product Launches**: The Focus Cream and Zhenyu Secret Repair Cream have distinct market positions, with the latter targeting a high-end consumer segment and addressing specific skin repair needs [18]. Future Outlook - **Growth Projections**: Kefu Mei is expected to achieve a growth rate of 40% to 50% in Q1 2025, with an annual performance forecast of 25% to 28%. The overall performance is anticipated to remain stable due to new product launches and marketing strategies [10][19]. Additional Considerations - **Consumer Sentiment**: Recent controversies regarding product ingredient content are not expected to significantly impact the company's fundamentals, as consumer recognition of product efficacy remains high [3][24]. - **Offline Expansion**: Kefu Mei has begun establishing offline direct stores, with plans to open 40 new locations in 2025. This strategy aims to enhance member interaction and improve market performance [22][23].

Core Viewpoint - The controversy surrounding the skincare brand Kefu Mei, owned by Juzhi Biotechnology, has raised significant concerns about the authenticity of its flagship product, the recombinant collagen essence, which was alleged to contain only 0.0177% collagen, contradicting regulatory standards that require non-trace ingredients to exceed 0.1% [1][2][3] Company Summary - Juzhi Biotechnology, established in 2000, is a leading player in the recombinant collagen market in China, with a revenue growth from 900 million yuan in 2019 to 5.5 billion yuan in 2024, marking a more than fivefold increase [8] - The company reported a revenue of 5.539 billion yuan in 2024, a year-on-year increase of 57.2%, and a net profit of 2.062 billion yuan, up 42.1% [8] - Kefu Mei, the core brand of Juzhi Biotechnology, generated 4.54 billion yuan in revenue in 2024, reflecting a significant growth of 62.9% [9] Industry Summary - The recombinant collagen market in China was valued at 10.8 billion yuan in 2021 and is projected to surge to 219.38 billion yuan by 2030, with a compound annual growth rate of 44.93% [8] - The absence of industry standards for the collagen content in cosmetics has led to regulatory ambiguities, as highlighted by the ongoing controversy [7] - The recent scrutiny of Juzhi Biotechnology's products comes at a time when recombinant collagen is gaining popularity in the cosmetic industry, potentially replacing hyaluronic acid as a preferred ingredient [9]

Core Viewpoint - The controversy surrounding Juzhibio's flagship product, the "Recombinant Collagen Essence," has raised significant concerns about its actual collagen content and potential false advertising, leading to a sharp decline in its stock price and questioning the company's marketing practices [1][3]. Group 1: Product Controversy - A report by the self-media "Big Mouth Doctor" claims that the actual recombinant collagen content in Juzhibio's "Recombinant Collagen Essence" is only 0.0177%, which is below the cosmetic labeling standard of 0.1% [2][3]. - The report also highlights the absence of glycine, a key structural component of collagen, challenging the product's technical authenticity [2]. - Juzhibio has denied these claims, asserting that internal tests show collagen content greater than 0.1% and questioning the validity of the testing methods used by the "Big Mouth Doctor" team [3]. Group 2: Financial Performance and Dependency - Juzhibio's revenue is heavily reliant on its skincare products, with 99.7% of revenue coming from this segment, while health products contribute only 0.3% [5]. - The "Recombinant Collagen" and "Keli Jin" brands account for over 90% of the company's revenue, indicating a significant dependency on these two brands [6][7]. - In 2024, Juzhibio's sales and distribution expenses are projected to be 2.008 billion yuan, while R&D expenses are only 106 million yuan, highlighting a 19-fold disparity [7]. Group 3: Market Impact - Following the allegations, Juzhibio's stock price fell by 8% after the market opened on May 26 [3]. - The affected product has been removed from all sales channels, including major platforms like Taobao, Douyin, and JD [3]. - If consumer backlash leads to collective lawsuits or mass returns, it could severely impact the company's sales performance during key promotional periods, jeopardizing its annual revenue growth targets [6].

Core Viewpoint - The article discusses the controversy surrounding Giant Bio (巨子生物) and its flagship product, Kefu Mei (可复美), which has been accused of potential fraud regarding its collagen content, leading to a crisis of trust among investors and consumers [1][4]. Group 1: Controversy and Market Impact - On May 24, a report from "Dr. Yan's Research Institute" claimed that Kefu Mei's collagen content was undetectable, raising questions about the company's credibility and regulatory compliance [1][4]. - Following the allegations, Giant Bio's stock price fell over 10% on May 26, closing at 73.6 HKD per share, with a total market capitalization of 788.19 billion HKD [4]. - Other companies in the collagen market, such as Jinbo Bio (锦波生物), Marubi (丸美生物), and Furuida (福瑞达), also experienced stock price declines amid the controversy [4]. Group 2: Product and Testing Disputes - The report highlighted three main issues with Kefu Mei: the claimed collagen content was only 0.0177%, below the regulatory threshold of 0.1%, and the absence of glycine, a key amino acid in collagen [9][11]. - Giant Bio defended its product, stating that it complies with national standards and has undergone multiple testing phases to ensure quality [11]. - The lack of standardized testing methods for collagen products in China has been identified as a significant issue, leading to discrepancies in test results from different institutions [12]. Group 3: Industry Context and Growth Potential - The collagen market in China reached 192.4 billion CNY in 2022, with a projected compound annual growth rate of 44.93%, expected to reach 585.7 billion CNY by 2025 [20]. - Companies like Jinbo Bio and Marubi are actively developing their collagen products, with Jinbo Bio reporting a revenue increase of 84.92% in 2024 [20][21]. - The article emphasizes the need for a scientific testing framework and transparent regulatory oversight to address the ongoing challenges in the collagen industry [17][22].

Core Viewpoint - The controversy surrounding the collagen product "Human-Like Recombinant Collagen Essence" from Giant Bio is primarily focused on the alleged discrepancy between the claimed and actual content of recombinant collagen, with accusations of misleading advertising and lack of industry standards for testing [1][4][5]. Group 1: Allegations and Responses - A blogger claimed that the actual recombinant collagen content in the product is only 0.0177%, significantly lower than advertised [1][4]. - Giant Bio responded by stating that their internal tests show collagen content above 0.1%, disputing the blogger's claims and questioning the validity of the testing methods used [1][5][6]. - The blogger criticized Giant Bio for not addressing two key scientific questions in their response and emphasized the need for transparency and accountability [2]. Group 2: Testing Standards and Methodology - The lack of established industry and national standards for testing recombinant collagen in cosmetics has led to disputes over testing methods and ingredient definitions [3][6]. - The blogger used HPLC (High-Performance Liquid Chromatography) to detect amino acid content, finding only 0.0177%, which raises questions about the product's labeling [4][10]. - Industry experts noted that the testing methods used by both parties require proper validation to ensure reliability, and the methods referenced by Giant Bio may not be directly applicable to cosmetic regulations [6][7]. Group 3: Ingredient Definition and Labeling - The core issue also revolves around how recombinant collagen is defined and whether the product contains genuine collagen, as the absence of glycine in the test results raises doubts [8][11]. - The blogger argued that the product's labeling as "soluble collagen" may mislead consumers regarding its actual collagen content, similar to how other cosmetic ingredients can be misrepresented [7][11]. - Giant Bio claimed that their product meets labeling regulations, asserting that the soluble collagen content is above 0.1% and should be listed as a primary ingredient [6][9].

Core Viewpoint - The controversy surrounding Juzhibio's flagship product, Kefu Mei, has raised significant concerns about the authenticity of its collagen claims, leading to a crisis of trust among investors and consumers [1][3][6]. Company Summary - Juzhibio, known as a leader in recombinant collagen, has faced allegations of product falsification, particularly regarding its Kefu Mei product, which reportedly contains only 0.0177% collagen, below the regulatory threshold of 0.1% [3][4]. - The company has stated that all its products are compliant with regulatory standards and have undergone rigorous quality checks [4][6]. - Following the controversy, Juzhibio's stock price fell by 4.04% to HKD 73.6, with a total market capitalization of HKD 788.19 billion as of May 26 [2]. Industry Summary - The demand for aesthetic products, including hyaluronic acid and collagen, has been rising, with major players like Juzhibio and Jinbo Bio seeing growth despite market challenges [2][9]. - The recombinant collagen market in China is projected to grow significantly, reaching CNY 585.7 billion by 2025, with a compound annual growth rate of 44.93% [10][12]. - The lack of standardized testing methods for collagen products has led to discrepancies in product claims and consumer trust issues, highlighting the need for regulatory frameworks in the industry [5][8][12].