Core Viewpoint - The article highlights the rapid rise of Jinbo Biotechnology, a company founded by Yang Xia, in the biopharmaceutical industry in Shanxi, showcasing its innovative achievements in recombinant collagen products and its significant market presence after listing on the Beijing Stock Exchange [1][8]. Company Overview - Jinbo Biotechnology was established in 2008 by Yang Xia, who aimed to develop synthetic collagen to reduce the high costs and improve the success rates of organ transplants [3][4]. - The company successfully developed the world's first recombinant type III humanized collagen gel without cross-linking agents, marking a significant technological breakthrough [11][19]. Financial Performance - From 2021 to 2024, Jinbo Biotechnology's revenue increased from 233 million yuan to 1.443 billion yuan, and after its listing in July 2023, the company's market capitalization approached 30 billion yuan, making it a leading stock on the Beijing Stock Exchange [8][19]. Product Development - Jinbo's recombinant type III humanized collagen has identical amino acid sequences to natural type III collagen and is used in various applications, including advanced implant materials and skincare products [6][11]. - The company has developed a range of products, including the "Wei Yi Mei" series, which became the first injectable-grade human collagen product to be commercialized globally [6][8]. Technological Innovation - Jinbo Biotechnology emphasizes original innovation, having established a fully integrated production facility for humanized collagen products, utilizing advanced technologies such as industrial IoT and AI [11][19]. - The company has participated in setting industry standards for recombinant collagen, further solidifying its leadership position in the global market [13][19]. Strategic Partnerships - In June 2023, Jinbo Biotechnology attracted significant investment from strategic partners, including Nongfu Spring and Wantai BioPharma, indicating strong confidence in the company's growth prospects [18]. - The collaboration aims to enhance the company's capabilities and expand its market reach, particularly in the health and beauty sectors [18][19]. Future Outlook - Jinbo Biotechnology plans to continue advancing its research in recombinant collagen technology and expand its product offerings in the healthcare and life care sectors, aiming to become a leading innovative biopharmaceutical company [19][21].

Investment Rating - The report suggests to pay attention to Jinbo Biological's ongoing developments in the collagen protein application field, indicating a positive outlook for the company [1] Core Viewpoints - Jinbo Biological is actively responding to the demand in China's health industry by expanding its product matrix. The company has made significant moves recently, including the launch of new products and strategic partnerships [2][5] - The company has successfully registered its "recombinant type III humanized collagen freeze-dried fiber" as a pharmaceutical excipient, marking a major breakthrough in high-end biomedical materials [7] - Jinbo Biological's functional skincare brands have shown impressive sales growth during the recent "Double Eleven" shopping festival, with a notable increase in revenue from its proprietary brands [12] - The overall market for consumer services on the Beijing Stock Exchange has seen a median price increase of 2.14% in stock prices, indicating a positive trend in the sector [15][18] - The TTM median price-to-earnings ratio for the broader consumer industry has increased to 56.3X, reflecting a growing valuation in the sector [27][30] Summary by Sections Jinbo Biological's Expansion - Jinbo Biological is expanding its product applications in response to the health industry demand, with a focus on collagen products and strategic partnerships with companies like Yangshengtang [2][10] - The company has established a national-level intellectual property operation center for functional proteins, enhancing its competitive edge in the recombinant collagen market [5][6] Market Performance - The median stock price change for consumer service companies on the Beijing Stock Exchange was +2.14%, with 31 out of 39 companies experiencing stock price increases [15][18] - The total market capitalization for consumer service companies rose from 1140.72 billion to 1143.84 billion, indicating a healthy market environment [20][22] Industry Valuation - The TTM median price-to-earnings ratio for the consumer sector has increased from 55.1X to 56.3X, suggesting a positive valuation trend [27][30] - Specific sectors such as food and beverage, as well as professional technical services, have also seen increases in their TTM median price-to-earnings ratios, indicating overall growth in the consumer market [29][32] Announcements - The successful launch of a 150,000 tons/year n-butane maleic anhydride production facility by Ruihua Technology demonstrates advancements in production technology and reinforces its leading position in the industry [35][37]

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].

Core Viewpoint - The recent crackdown on illegal use of Class II collagen injections in the medical beauty industry highlights significant consumer risks, with over 23% of medical beauty institutions violating regulations, and a staggering 68% in beauty salons, leading to severe health consequences for consumers [1][3]. Group 1: Health Risks and Violations - A significant number of medical beauty institutions are found to be using unapproved or counterfeit collagen products, leading to severe health issues such as infections and deformities [3][5]. - A case study of a consumer in Nanchang revealed that she was injected with a lower-quality collagen product than promised, resulting in adverse effects and financial loss [4][5]. Group 2: Comparison of Collagen Types - Class II collagen injections are subject to less stringent regulations, requiring only provincial-level registration, while Class III collagen requires extensive clinical trials and safety data, with a failure rate exceeding 70% [10]. - The production environment for Class II collagen is less controlled, increasing the risk of contamination compared to the sterile conditions mandated for Class III products [11]. - The safety profile of Class II collagen is significantly poorer, with adverse event rates exceeding 32%, while Class III products report serious adverse reactions below 0.8% [13]. Group 3: Regulatory Actions and Consumer Protection - The National Medical Products Administration (NMPA) has initiated a "100-day action" to combat illegal practices in the medical beauty sector, emphasizing the need for compliance and consumer safety [1][23]. - Consumers are advised to verify the authenticity of collagen products through official channels and to be wary of suspiciously low prices, which may indicate the use of Class II products [18][22]. - Legal consequences for using Class II collagen can be severe, with operators facing criminal charges for causing harm, as demonstrated by a recent case where a practitioner was sentenced to 7 years in prison for causing a client's blindness [23].

Core Viewpoint - The speech by Yang Xia, Chairman of Jinbo Biotechnology, emphasizes the company's commitment to original innovation in the development and industrialization of recombinant human collagen, particularly focusing on type III collagen for medical and cosmetic applications [2][4]. Group 1: Original Innovation - Jinbo Biotechnology's academic name for its collagen is type A recombinant human collagen, which is used to develop various medical products and cosmetics, completing a closed-loop production and sales system [4]. - The company has focused on two main areas: life materials based on recombinant human collagen and antiviral products represented by anti-HPV biological proteins [4]. - In 2018, Jinbo Biotechnology discovered that type III collagen has a gene that regulates cell control and information transmission, leading to the world's first large-scale production of injectable recombinant type III human collagen using synthetic biology by 2021 [4][6]. Group 2: Technological Breakthroughs - In 2025, Jinbo Biotechnology received approval for injectable recombinant type III human collagen gel, the first of its kind produced through self-assembly and self-crosslinking technology using synthetic biology, achieving dual functions of filling and repairing against aging [6]. - Compared to traditional filling materials, this product significantly improves safety, manufacturing methods, and mechanisms of action, making it suitable for correcting mid-facial volume loss and contour defects [6][7]. - The company has achieved three breakthroughs: enhancing clinical safety of filling materials, innovating manufacturing methods through AI-driven synthetic biology, and innovating mechanisms of action to promote tissue regeneration and repair [7]. Group 3: Product and Patent Portfolio - Jinbo Biotechnology has established a comprehensive product chain and has obtained 157 patents related to its technologies [6][7].

Core Viewpoint - The core viewpoint of the article is that Jinbo Biotechnology, led by Chairman Yang Xia, is pioneering the industrialization of recombinant human collagen through original innovation, focusing on the development of medical products and cosmetics using this innovative material [4][6]. Group 1: Original Innovation - Jinbo Biotechnology's collagen, known as type III recombinant human collagen, is developed through original innovation, creating a complete production and sales loop [4][6]. - The company has been dedicated to two main areas: life materials based on recombinant human collagen and antiviral products represented by HPV biological proteins [6][9]. Group 2: Technological Breakthroughs - In 2025, Jinbo Biotechnology received approval for the world's first injectable recombinant type III human collagen gel, produced using self-assembly and self-crosslinking technology, which offers dual functions of filling and repairing against aging [8][10]. - The new product significantly enhances the safety of clinical filling materials and introduces innovative manufacturing methods and mechanisms of action compared to traditional fillers [8][10]. Group 3: Product Development and Applications - Type III collagen is primarily found in infants, and adults typically lack this type due to its loss over time, making it a strategic choice for the company [9]. - Jinbo Biotechnology has achieved three major breakthroughs: improving the safety of clinical filling materials, innovating manufacturing methods through AI-driven synthetic biology, and enhancing the mechanism of action for tissue repair and regeneration [10].

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company is expected to benefit from differentiated new products contributing to revenue growth despite profit impacts from upfront expenses [5][7] - The company is a leader in the field of recombinant collagen and is anticipated to transition from a rapidly growing R&D-driven enterprise to an international biocomposite platform company [7] Financial Performance - For the first half of 2025, the company reported revenue of 859 million yuan, a year-on-year increase of 42.4%, and a net profit of 392 million yuan, up 26.6% [7] - The medical device segment achieved revenue of 708 million yuan (up 33.4%) with a gross margin of 95.0%, while functional skincare products saw revenue of 121 million yuan (up 152.4%) with a gross margin of 70.8% [7] - The company forecasts revenues of 2.24 billion yuan, 3.07 billion yuan, and 4.09 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 1.09 billion yuan, 1.51 billion yuan, and 2.05 billion yuan [6][7] Business Developments - The company received regulatory approval for its "recombinant type III humanized collagen gel" injection, marking it as the first of its kind in China targeting mid-face volume loss and contour defects [7] - Strategic collaboration with Yangshengtang aims to build a new ecosystem in the biocomposite materials industry, potentially expanding into orthopedic materials and other health sectors [7] Market Performance - The company's stock has shown a performance of -12% over the last 12 months compared to the Shanghai Composite Index [4]

Core Insights - The company reported significant growth in revenue and net profit for the first half of 2025, with revenue reaching 859 million yuan, a year-on-year increase of 42.43%, and net profit attributable to shareholders at 392 million yuan, up 26.65% [1] - The company has made substantial investments in research and development, with R&D expenses increasing by 85.43% and sales expenses by 67.77%, laying a foundation for future product pipeline development and global market expansion [1] - The company launched a revolutionary new product, the "injectable recombinant type III humanized collagen gel," at the Cannes Film Festival, achieving three major technological breakthroughs [2] Financial Performance - The company achieved operating revenue of 859 million yuan, a 42.43% increase year-on-year [1] - Net profit attributable to shareholders reached 392 million yuan, reflecting a 26.65% year-on-year growth [1] - The net profit after deducting non-recurring gains and losses was 387 million yuan, up 27.56% year-on-year [1] Product Development - The company completed the development of three forms of recombinant type III humanized collagen: freeze-dried fibers, solutions, and gels, opening a new avenue in life materials [1] - The company obtained 14 invention patent authorizations during the reporting period, including 4 international patents [1] - The new injectable gel product utilizes self-assembly and self-crosslinking technology, eliminating reliance on chemical crosslinking agents [2] International Expansion - The company achieved significant milestones in its internationalization efforts, obtaining medical device registration in Thailand and certifications for functional skincare products in the USA and Saudi Arabia [3] - The "117 Rejuvenation Club" strategy aims to deepen channel layouts, with the first batch of medical beauty institutions completing cooperation agreements [3] - The company partnered with Yangshengtang as a strategic investor to enhance collaboration in collagen raw material supply and functional food development [3] Production Capacity - A new production facility for injectable recombinant type III humanized collagen gel was completed in April 2025, designed to meet the high demand for premium products in international markets [3]

Core Viewpoint - Jinbo Biological's strong financial performance in the first half of 2025 highlights its growth potential in the collagen protein market, driven by innovative product development and strategic partnerships [1][2][3]. Financial Performance - In the first half of 2025, Jinbo Biological achieved operating revenue of 859 million yuan, a year-on-year increase of 42.43%, and a net profit attributable to shareholders of 392 million yuan, up 26.65% [1]. - The company plans to distribute a cash dividend of 1.15 billion yuan, equivalent to 10.0 yuan per 10 shares [1]. Revenue Sources - Revenue growth was primarily driven by medical device products, which generated 708 million yuan, a 33.41% increase year-on-year, with a gross margin of 95.04% [2]. - Functional skincare products contributed 121 million yuan, reflecting a significant growth of 152.39% year-on-year, with a gross margin of 70.78% [2]. Research and Development - Jinbo Biological increased its R&D expenditure to 45.8 million yuan, accounting for 5.33% of operating revenue, marking an 85.43% increase compared to the previous year [2]. - The company collaborates with top research institutions, including Fudan University and Sichuan University, to enhance its R&D capabilities [2]. Product Innovation - The company launched the world's first "injection-type recombinant type III humanized collagen gel," approved by the National Medical Products Administration, showcasing its innovative capabilities [3]. - This product utilizes self-assembly and self-crosslinking technology, aimed at correcting mid-facial volume loss and contour defects [3]. Strategic Partnerships - Jinbo Biological has attracted a significant strategic investor, Yangshengtang Co., Ltd., planning to raise up to 2 billion yuan through a private placement [3]. - Following the issuance, Yangshengtang will hold over 5% of Jinbo Biological's shares, enhancing collaboration in R&D, production, and commercialization [3]. Market Outlook - The collagen protein market in China is expected to grow rapidly, with a projected compound annual growth rate of 44.93%, reaching 58.57 billion yuan by 2025 [1][4]. - The increasing focus on skin health and medical aesthetics is driving the demand for recombinant humanized collagen in various applications [4].

Investment Rating - The investment rating for Shanxi Jinbo Bio-Pharmaceutical is maintained at OUTPERFORM with a target price of Rmb 405.10, indicating a potential upside of 26.6% from the current price of Rmb 302.98 [2][19]. Core Insights - In H1 2025, the company's revenue reached Rmb 708 million, representing a year-on-year growth of 42.4%. However, the growth rates for both revenue and profit have slowed down compared to previous periods [3][14]. - The medical device segment's revenue in H1 2025 was Rmb 708 million, up 33.4% year-on-year, driven by the sales of implantable products [3][14]. - The functional cosmetics segment saw a significant increase in revenue, reaching Rmb 121 million, up 152.4% year-on-year, primarily due to the growth of its own brands [3][14]. - The company plans to distribute dividends of Rmb 10 per 10 shares, with a payout ratio of 29.3% [3][14]. Financial Performance - The gross margin for H1 2025 was 90.7%, a decrease of 90 basis points year-on-year, while the net profit attributable to the parent company was Rmb 390 million, up 26.7% year-on-year [4][15]. - The sales expense ratio increased significantly in Q2 2025, leading to a slowdown in profit growth [4][15]. - The company expects its revenue to reach Rmb 2.17 billion, Rmb 2.92 billion, and Rmb 3.72 billion for 2025, 2026, and 2027, respectively, with growth rates of 50.2%, 34.8%, and 27.3% [19]. Product Development and Innovation - The company achieved three major breakthroughs with its new injectable product, which enhances safety and manufacturing processes [6][16]. - The recombinant human-sourced collagen new material project is expected to be terminated, leading to an impairment provision of Rmb 9.11 million [6][16]. Market Expansion - In H1 2025, the company obtained a medical device registration permit in Thailand and established two new subsidiaries for pharmaceutical manufacturing and business expansion in Hong Kong [7][17]. Equity Incentive Plan - The 2025 equity incentive plan impacts approximately Rmb 11 million, with performance targets set for net profits over the next three years [8][18].