Core Viewpoint - The Shimao Tower in Beijing's Chaoyang District was sold at a significant discount, raising questions about the implications of a pharmaceutical company, Yangtze River Pharmaceutical Group, entering the real estate market and the current situation of Shimao Group after multiple asset disposals [1][5]. Group 1: Transaction Details - The Shimao Tower was auctioned for 2.254 billion yuan, which is approximately 70% of its latest assessed value of 3.22 billion yuan [3][4]. - The buyer, Beijing Yangtze River Real Estate Co., Ltd., is a wholly-owned subsidiary of Yangtze River Pharmaceutical Group, which was established in late October 2023 [3][4]. - The building, completed in 2006, has a total area of 70,000 square meters and is located in a prime business district near major transportation and luxury amenities [3][4]. Group 2: Yangtze River Pharmaceutical Group Overview - Yangtze River Pharmaceutical Group, founded in 1971, is a leading player in the domestic pharmaceutical industry, with projected revenues of 73.93 billion yuan in 2024, ranking first among private pharmaceutical companies [4]. - The company has a gross margin of approximately 65% and a net margin of about 18%, both exceeding industry averages [4]. - The group is expanding its footprint in the real estate sector as part of its broader strategy to develop a health management ecosystem, with ongoing projects in key regions [4][5]. Group 3: Shimao Group's Current Situation - Shimao Group, once known for its luxury real estate developments, has been selling assets to recover funds after declaring a default on a $1 billion overseas debt in July 2022 [6][7]. - The company has sold various landmark properties and has been actively restructuring its overseas debt, which amounts to approximately $14.4 billion [7][8]. - In the first half of 2023, Shimao Group reported revenues of 14.827 billion yuan, with a net loss of 8.934 billion yuan, indicating a significant reduction in losses compared to the previous year [8][9].

Core Viewpoint - The article discusses the significant investment by Zhong Shanshan in the recombinant collagen protein sector, highlighting the strategic importance of this market and its potential for growth in the health industry [5][9][10]. Investment Details - Zhong Shanshan invested 3.4 billion yuan in Jinbo Biological, which is recognized as the "first stock" in recombinant collagen protein [5]. - Jinbo Biological's fundraising plan aims to raise 2 billion yuan for the development of a humanized collagen FAST database and product development platform, marking the largest cash private placement in the Beijing Stock Exchange's history [8]. - Zhong Shanshan's total stake in Jinbo Biological could reach 10.58%, making him the second-largest shareholder [8]. Market Potential - Jinbo Biological is a leading company in the domestic recombinant humanized collagen protein market, holding all three existing Class III medical device registration certificates in China [9]. - The market for recombinant collagen protein in China is projected to grow from 58.57 billion yuan in 2025 to 219.38 billion yuan by 2030, with a compound annual growth rate of nearly 45% [9]. Business Context - Zhong Shanshan's wealth primarily comes from his control of two listed companies: Nongfu Spring and Wantai Biological, both of which are facing growth challenges [10]. - Jinbo Biological is seen as a new "gold mine" for Zhong Shanshan, as he seeks new growth opportunities in the health sector [11]. Company Background - Jinbo Biological was founded in 2008 and specializes in the research, production, and application of recombinant humanized collagen protein, with products spanning medical devices and functional skincare [15]. - The company recently received approval for the world's first injectable recombinant type III humanized collagen gel, marking a significant technological breakthrough in the field of biomaterials [15]. Consumer Demand - The demand for recombinant collagen protein is driven by increasing consumer interest in anti-aging products, particularly as the population ages [16]. - Jinbo Biological's high gross margin of 92% and 95.03% for its core medical device business indicates the profitability of this sector [16]. Strategic Positioning - Zhong Shanshan's investment strategy favors high-barrier, high-margin businesses, as evidenced by the performance of his other companies [17]. - The collaboration between Jinbo Biological and Yangshengtang, which has a strong R&D system, is expected to enhance product development and expand the application of collagen-based materials across various sectors [21].