Core Insights - A competitive battle is emerging in the collagen protein market, highlighting two regional female tycoons, Fan Daidi from Shaanxi and Yang Xia from Shanxi, who are leading their respective companies, Juzhi Biotechnology and Jinbo Biotechnology, into the spotlight [1] Group 1: Market Dynamics - Both companies are shifting focus towards the C-end beauty market, particularly in the live e-commerce space, as evidenced by the rapid rise of the new brand "Tongping" during major shopping events [2][4] - The brand "Tongping" achieved significant sales during the Double 11 event, with a GMV growth rate ranking second in Li Jiaqi's live broadcast, while Juzhi's own brand, Kefu Mei, ranked seventh [2][6] Group 2: Company Performance - Juzhi Biotechnology's stock price has been on a downward trend, hitting a year-low of 40.40 HKD per share, with a total market capitalization dropping to 43.3 billion HKD [2][3] - Jinbo Biotechnology's stock has also faced declines, closing at 256.51 CNY per share with a total market value of 30.032 billion CNY as of October 24 [2] Group 3: Product and Brand Strategy - "Tongping" was launched in September 2024, focusing on technology-driven skincare solutions, with a limited number of core products [5][6] - The brand's rapid growth is attributed to strategic partnerships with top influencers, leading to significant sales during promotional events [6][8] Group 4: Technological and Competitive Landscape - The competition is intensifying as Jinbo Biotechnology transitions from B-end medical devices to C-end functional skincare, indicating a broader shift in the industry [3][11] - Jinbo Biotechnology has provided technological support to "Tongping," utilizing its patented collagen components in the brand's products, showcasing a close relationship between the two entities [9][10] Group 5: Investment and Future Outlook - Jinbo Biotechnology has recently secured investment from Zhong Shanshan, founder of Nongfu Spring, indicating strong backing for its strategic initiatives [11] - The ongoing competition reflects a blurring of lines between pharmaceutical and beauty companies, as the functional skincare market evolves from a blue ocean to a red ocean, with both companies vying for market leadership [11]

Core Viewpoint - The article discusses the competitive landscape in the functional skincare market, focusing on the rivalry between two prominent female entrepreneurs, Fan Daidi from Xi'an and Yang Xia from Shanxi, as they pivot their companies towards the C-end beauty segment, particularly in the context of the recent Double 11 shopping festival [1][12]. Group 1: Market Dynamics - The Double 11 shopping festival has seen a new brand "Tongpin" rapidly rise in popularity, achieving significant sales growth, with its GMV ranking second in Li Jiaqi's live broadcast [1][5]. - Despite the success of Tongpin, the stock price of Juzhi Biological has been declining, hitting a new low of 40.40 HKD per share, with a total market value of 43.3 billion HKD [2]. - Juzhi Biological's stock has faced continuous declines, while Jinbo Biological's stock also fell, indicating a broader trend of market challenges for both companies [2]. Group 2: Brand Development - Tongpin, established in March 2024, focuses on technology-driven skincare solutions and has launched a limited range of products, including five core items [4]. - The brand's rapid sales growth is attributed to its strategic partnerships with top influencers, particularly in live streaming channels [5]. - During the Double 11 event, Tongpin achieved over 20 million RMB in sales, ranking first among new brands on Tmall [5]. Group 3: Corporate Relationships - Tongpin is closely linked to Jinbo Biological, which provides technical support and has several patented ingredients used in Tongpin's products [7]. - Jinbo Biological's founder, Yang Xia, has actively promoted Tongpin, indicating a strategic shift from B-end medical devices to C-end skincare [1][7]. - Jinbo Biological has recently attracted investment from Zhong Shanshan, founder of Nongfu Spring, further solidifying its market position [12]. Group 4: Industry Implications - The competition between Juzhi Biological and Jinbo Biological reflects a broader trend of blurring lines between pharmaceutical and beauty companies in China's functional skincare market [13]. - The outcome of this rivalry will significantly influence the next industry cycle and determine the leading players in the market [13].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a revenue of 860 million yuan for the first half of 2025, representing a year-on-year growth of 42.4%, with a net profit attributable to shareholders of 390 million yuan, up 26.7% year-on-year [5] - The medical device segment showed rapid growth, with revenues of 708 million yuan, a year-on-year increase of 33.41%, while the functional skincare segment grew by 152.39% to 121 million yuan [6] - The company is expanding its market presence through strategic partnerships and product launches, including the introduction of new collagen products [10] Summary by Sections Financial Performance - In Q2 2025, the company achieved revenues of 490 million yuan, a 30.4% increase year-on-year, and a net profit of 220 million yuan, growing 7.4% year-on-year [5] - The gross margin for the first half of 2025 was 90.7%, down 0.9 percentage points year-on-year, while the net profit margin decreased to 45.7% [6][8] Business Segments - Revenue breakdown for H1 2025: Medical devices accounted for 82.5% of total revenue, functional skincare 14.1%, and raw materials 3.1% [6] - The medical device revenue was further divided into single-material and composite-material devices, with respective revenues of 645 million yuan and 63 million yuan, growing 34.70% and 21.52% year-on-year [6] Regional Performance - Revenue by region for H1 2025: North China 365 million yuan (+25.66%), East China 287 million yuan (+72.95%), South China 79 million yuan (+17.88%), and West China 85 million yuan (+79.68%) [7] Cost Structure - The company's selling expenses increased due to higher marketing investments and stock incentive plans, leading to a rise in the selling expense ratio to 21.1% [9] - The total operating expense ratio for H1 2025 was 34.9%, up 2.9 percentage points year-on-year [9] Future Outlook - The company plans to enhance its brand promotion and has adjusted its sales expense forecasts for 2025-2027, with expected net profits of 1.01 billion yuan in 2025 [11] - The introduction of strategic investors is anticipated to strengthen the company's market position and growth potential [11]

Core Insights - The acquisition of Baizhichui by Juyi Group marks a significant step in the company's strategy to expand into the scientific skincare sector, enhancing its multi-brand and multi-category beauty matrix [1][4] - The global functional skincare market is experiencing intense competition, with both international giants and local brands accelerating their presence in this lucrative segment [6][7] Company Overview - Juyi Group, established in 2016 and headquartered in Shanghai, owns two major color cosmetics brands, Judydoll and Jooycee, and has a partnership with Pierre Fabre Laboratories for the René Furterer brand in China [4] - The group reported a retail revenue exceeding 4.2 billion yuan and an income of 3.5 billion yuan in 2024, reflecting a year-on-year growth of 36% [4] Acquisition Details - Baizhichui, founded in 2012 and part of Meiji Biotechnology (Shanghai) Co., focuses on providing solutions for problematic and sensitive skin, emphasizing a "plant + technology" research approach [4][5] - Post-acquisition, Professor Li Yuanhong will continue as Chief Product Officer, overseeing the entire product development process, while co-founder and CEO Sun Hui will serve as a lifetime honorary advisor [5] Market Trends - The global professional skincare market reached a size of $35.77 billion in 2022, with projections to exceed $77.51 billion by 2030, reflecting a compound annual growth rate (CAGR) of 9.9% [6] - In China, the functional skincare sector saw a CAGR of 36.7% from 2017 to 2021, with a market size of approximately 46.43 billion yuan in 2022, marking a year-on-year growth of 22.9% [6] Competitive Landscape - Major global beauty companies like L'Oréal and Estée Lauder are increasingly investing in functional skincare through acquisitions and partnerships, indicating a strategic shift towards professional medical beauty [7][8] - Local brands such as Winona and Juzi Biotechnology are also capturing market share through differentiated strategies, with Juzi Biotechnology reporting a revenue of 5.539 billion yuan in 2024, a year-on-year increase of 57.2% [8]