Core Viewpoint - The ongoing debate regarding "recombinant collagen" has raised significant industry and market attention, with the company emphasizing the need to correct misleading perceptions in the capital market that deviate from scientific and industrial fundamentals [1][2]. Group 1: Company Position on Recombinant Collagen - The company argues that recombinant collagen is a minor branch of collagen research and industrial transformation, with the main advancements in protein research being led by life science institutions and pharmaceutical companies, not cosmetic firms [1][2]. - The company highlights that there is currently no international approval for medical devices based on recombinant collagen, indicating the need for longer observation periods in this field [2]. - The company asserts that the growth of its hyaluronic acid business remains stable, with an annual growth rate exceeding 10%, while the recombinant collagen market lacks a mature international market comparable to hyaluronic acid [3][4]. Group 2: Market Dynamics and Performance - The company clarifies that its performance adjustments are not solely due to the rise of recombinant collagen, as its hyaluronic acid business continues to grow, particularly in the pharmaceutical-grade and overseas export segments, which have seen over 20% growth [3][4]. - The decline in overall performance is attributed to a downturn in consumer goods and one-time asset impairment losses, rather than the emergence of recombinant collagen as a competitive force [4]. - The company emphasizes that the concept of "recombinant collagen" is often misrepresented, as it does not meet the academic standards required for biological functionality [5][6]. Group 3: Industry Ecosystem and Communication - The company stresses the importance of establishing a credible foundation for domestic brands, which should not rely on the misuse of academic terms and concepts that mislead consumers [7]. - The company calls for a collaborative effort among industry participants, regulatory bodies, and media to enhance understanding and improve the overall ecosystem, ensuring that scientific and industrial developments are accurately represented [9]. - The company plans to strengthen professional communication with the capital market, recognizing the need for better understanding of the biological sciences among analysts and investors [8].

Group 1: Industry Initiatives - The China Fragrance and Cosmetic Industry Association and the China Association of Plastic Surgery jointly released a health ecosystem initiative for the medical beauty and cosmetics industry, emphasizing the importance of scientific rigor and rational guidance in product efficacy [1] - The initiative calls for promoting public understanding through scientific education and collaboration with authoritative institutions to enhance public awareness of technological paths [1] - It advocates for innovation and diversity in the industry, encouraging cooperation in ingredient innovation, formula optimization, and process breakthroughs [1] - The initiative stresses the need for civilized marketing and honest promotion, aiming to establish objective and fair marketing practices as industry norms [1] - It proposes the establishment of an industry self-discipline system and a self-discipline alliance to evaluate and publicly disclose results of any misleading or uncivil behavior [1] Group 2: Company Positioning - Huaxi Biological published an article addressing misleading conclusions regarding the comparison between collagen and hyaluronic acid, which have been widely circulated in the media [2] - The company clarified that its concerns about collagen products primarily relate to the exaggerated claims of topical collagen skincare products, emphasizing that effective collagen products require injection [2][3] - Huaxi Biological's strategy focuses on leveraging hyaluronic acid to develop synthetic biological capabilities, exploring effective substances in life sciences, while maintaining a unified strategic logic [3] - The company has not promoted collagen as a mainstream technology in consumer products due to insufficient scientific evidence supporting its efficacy in managing aging compared to hyaluronic acid [3] - Huaxi Biological believes that the extracellular matrix (ECM) is the comprehensive research and industrial transformation direction that includes all key substances like hyaluronic acid, collagen, and elastin [3]