Core Viewpoint - The article discusses the controversy surrounding Huaxi Biological, a leading player in the medical aesthetics industry, which publicly refuted claims made by nine brokerage firms regarding the obsolescence of hyaluronic acid, asserting that these claims mislead the market and harm the industry [2][5][13]. Group 1: Industry Response - Huaxi Biological received support from two industry associations before making its statement and has reported the misleading content to the China Securities Regulatory Commission (CSRC) [2][12]. - Following Huaxi's public rebuttal, some brokerage firms have deleted their reports, and certain institutions have issued apologies to the company [2][12]. - The brokerage reports in question were primarily focused on the emerging concept of recombinant collagen, which Huaxi argues is being promoted at the expense of hyaluronic acid [5][13]. Group 2: Misleading Claims - Huaxi Biological criticized the brokerage reports for making misleading comparisons between hyaluronic acid and recombinant collagen, claiming that these reports lacked scientific basis and were driven by speculative capital [5][13]. - The company highlighted that the reports suggested hyaluronic acid was inferior to recombinant collagen in terms of safety and efficacy, which Huaxi disputes, stating that such conclusions are not supported by scientific evidence [5][31]. Group 3: Regulatory and Compliance Issues - The article raises concerns about the compliance of the brokerage reports, suggesting that they may not have adhered to the necessary standards for objectivity and scientific backing [20][21]. - Industry experts indicate that the reports should have included relevant data to support their claims, and the lack of such data could lead to regulatory scrutiny [21][22]. - The ongoing regulatory environment is described as increasingly stringent, with past instances of penalties for brokerage firms due to similar issues [26][27]. Group 4: Scientific Basis of Claims - Huaxi Biological argues that both hyaluronic acid and recombinant collagen have their unique applications and benefits, and it is inappropriate to declare one superior to the other without substantial scientific evidence [31][32]. - The company emphasizes that the existing research favors hyaluronic acid in certain applications, particularly in skin hydration and immediate filling, while recombinant collagen may have advantages in tissue repair [31][32].

Core Viewpoint - The article highlights a conflict in the biopharmaceutical industry regarding the competition between hyaluronic acid and recombinant collagen, with Huaxi Biological criticizing the notion that hyaluronic acid is outdated, which they attribute to capital-driven speculation [1][4]. Company Performance - Huaxi Biological's performance has declined significantly, with projected revenue for 2024 expected to decrease by 11.61% and net profit to drop by 70.59%, resulting in a market capitalization loss of over 100 billion [1][6]. - In contrast, Juzhi Biological has experienced substantial growth, with a projected revenue increase of 57.2% and net profit growth of 42.4% for 2024, leading to a doubling of its market capitalization [1][6]. Market Dynamics - The article discusses the contrasting market performances of Huaxi Biological and Juzhi Biological, indicating a clear divide in the industry, with Huaxi's stock price falling over 80% from its peak of 309.43 yuan per share in July 2021 to 53.08 yuan per share as of May 20, 2025, resulting in a market cap of less than 25.6 billion [9][6]. - Juzhi Biological's stock has seen a significant increase, reaching a peak of 86.45 HKD, representing a cumulative rise of over 44% from approximately 60 HKD at the end of 2024 [8][6].

Core Viewpoint - The article discusses the ongoing debate in the capital market regarding the valuation and relevance of hyaluronic acid, with Huaxi Biological refuting claims that it is outdated, labeling such views as a product of "restless capital" [1][3][9]. Group 1: Company Positioning - Huaxi Biological published an article on May 17, 2023, directly criticizing nine brokerage reports that suggested hyaluronic acid is outdated, asserting that this narrative is misleading and harmful to the industry [1][3]. - The company emphasized the importance of voicing its stance to protect the integrity of the hyaluronic acid industry, which has been developed over decades of scientific research [6][9]. - Huaxi Biological's market share in the global hyaluronic acid market was reported at 44% in 2021, with China accounting for 82% of global sales [6]. Group 2: Market Dynamics - The article highlights a shift in capital market interest from hyaluronic acid to recombinant collagen, with companies like Juzhibio gaining significant market traction [10][15]. - Juzhibio's stock price has surged nearly 70% in 2023, positioning it as a leading player in the beauty and skincare sector, while Huaxi Biological and other hyaluronic acid companies have seen declining performance [10][13]. - The market for recombinant collagen is projected to grow at a compound annual growth rate (CAGR) of 44.93%, reaching 585.7 billion yuan by 2025 [16]. Group 3: Industry Trends - The article notes that the beauty and skincare industry is experiencing rapid shifts, with companies needing to adapt to changing consumer preferences and capital market trends [2][15]. - Huaxi Biological has begun to diversify its product offerings, launching multiple collagen products and obtaining medical device registrations to stay competitive [17]. - The competitive landscape for recombinant collagen is intensifying, with various companies entering the market, indicating that maintaining a leading position will be challenging for Juzhibio [16][17].