Summary of Conference Call on Recombinant Collagen Industry Industry Overview - Recombinant collagen technology has gained popularity in the beauty and skincare industry due to its ability to reduce allergic reactions associated with animal-derived collagen and optimize production costs [1][2] - The industry has seen significant supply-side innovations since 2022, with advancements in gene engineering technology facilitating the commercial production of recombinant collagen [2] Key Companies Jinbo Biotechnology - Jinbo Biotechnology is a leading player in the recombinant collagen medical aesthetics sector, with revenue projected to grow from 160 million yuan in 2020 to 1.44 billion yuan in 2024, achieving a compound annual growth rate (CAGR) of over 70% [1][5] - The company's profit is expected to reach 730 million yuan in 2024, with a CAGR exceeding 100% [5] - Jinbo's new low-temperature gel filler product, approved in 2025, is anticipated to capture market share from animal-derived and regenerative materials [6] - The company plans to implement precise marketing strategies and product innovations to promote new products in the second half of the year [6] Juzhi Biotechnology - Juzhi Biotechnology has made significant strides in the functional skincare sector with products like the "collagen stick" and is expanding into niche markets such as scalp and intimate care [1][7] - The company benefits from national policy support, which has solidified its leading position in the industry [7] - Juzhi has transitioned to direct-to-consumer (DTC) online channels, enhancing sales performance through partnerships with top influencers on platforms like Tmall and Douyin [3][13] Jingbo Biotechnology - Jingbo has achieved progress in the research and certification of recombinant collagen products, accelerating its international market expansion [1][8] - The company has received certifications for functional skincare products in the U.S., Saudi Arabia, and Thailand, contributing to significant revenue growth [8] - Profit forecasts for Jingbo indicate 1.05 billion yuan in 2025 and 1.4 billion yuan in 2026, with a valuation of approximately 30 times earnings in 2025, decreasing to below 25 times in 2026 [9][10] Market Trends and Future Outlook - The acceptance of new products and materials by consumers is increasing, leading to the emergence of industry leaders like Jinbo and Juzhi in the medical aesthetics and functional skincare sectors [4] - The market for recombinant collagen is expected to grow as companies continue to innovate and expand their product offerings [6][7] - The focus on online sales channels and influencer marketing is driving growth in the skincare sector, with Juzhi's online sales showing exceptional performance [3][13] Important Considerations - Future performance indicators to watch include sales growth during the September and October periods, particularly around the Double Eleven shopping festival [16] - The approval of new medical aesthetic products will serve as a significant catalyst for growth, as current valuations primarily reflect cosmetics business performance [16][17] - Jinbo and Juzhi's advancements in recombinant collagen technology position them well for sustained growth in the evolving beauty and skincare market [18]

Group 1: Industry Overview - The recombinant collagen market in China is expected to grow significantly, with retail market size projected to reach CNY 1,145 billion by 2027, reflecting a compound annual growth rate (CAGR) of 41.4% from 2023 to 2027 [3][17][19] - The retail market size for recombinant collagen in 2023 is estimated at CNY 286 billion, with a rapid increase anticipated in the medical aesthetics and functional skincare segments [3][19][20] - The market share of recombinant collagen is expected to surpass that of animal-derived collagen in 2023, reaching 50.5%, and is projected to expand to 62.3% by 2027 [10][11] Group 2: Key Companies - Jinfo Biological is the only company in China with three Class III medical device registration certificates for recombinant collagen, indicating its leading position in the industry [24] - In 2024, Jinfo Biological reported revenue of CNY 1.443 billion, a year-on-year increase of 84.92%, with a net profit of CNY 732 million, reflecting a growth rate of 144.27% [28][32] - Sanyuan Gene, focusing on recombinant collagen products, achieved revenue of CNY 256.54 million in 2024, with a gross margin of 82.16% [29][33]