Core Viewpoint - Huaxi Biological is facing a trust crisis in the capital market due to continuous shareholding reduction by original shareholders and a significant drop in stock price, which has fallen over 80% from its peak. The company's core skincare business has seen a substantial decline in revenue over the past two years, leading to a notable decrease in both revenue and net profit for the first three quarters of 2025. The company is undergoing a "bone-scraping" reform to improve profitability through cost reduction and efficiency enhancement, while also seeking new growth through external investments. However, the lack of internal growth drivers and the underperformance of core business pose significant challenges for the company's recovery and investment transformation [2][3][4]. Financial Performance - As of November 6, 2025, Huaxi Biological's stock price was 49.8 yuan per share, representing an over 82% decline from its historical peak, with a market capitalization of only 24 billion yuan, down more than 120 billion yuan from its peak [4]. - For the first three quarters of 2025, the company reported revenue of 3.163 billion yuan, a year-on-year decrease of 18.36%, and a net profit attributable to shareholders of 252 million yuan, down 30.29% compared to the previous year [4][5]. - The core skincare innovation business has seen a continuous decline in revenue, with a drop of 8.5 billion yuan in 2023 and a further decline to 2.569 billion yuan in 2025, reflecting a year-on-year decrease of over 30% [5][6]. Business Challenges - The raw materials and medical terminal segments have also experienced declines, with the raw materials business showing a slight decrease of 0.58% in the first half of 2025, and the medical terminal business declining by 9.44% [6]. - The company's cost control measures have led to a reduction in sales expenses, which decreased by 5.14 billion yuan to 1.117 billion yuan in the first three quarters of 2025, resulting in a sales expense ratio of 34.26%, down 31.50% [9][10]. Strategic Initiatives - The company has initiated a brand "slimming" plan, shutting down non-core brands to focus on its main business. It has also made significant external investments, totaling 1.009 billion yuan across seven private equity funds, although these investments have not yet yielded substantial returns [10][11]. - Huaxi Biological has made strategic investments in biotechnology and pharmaceuticals, including a 138 million HKD investment in a Hong Kong-based company, aiming to enhance its platform value in the synthetic biology era [11]. Future Outlook - The company’s ability to recover its core skincare business and convert new investments into actual revenue will be critical for regaining trust in the capital market. The current profit improvements are seen as temporary measures, and without a return to double-digit revenue growth, the company may face further challenges in maintaining profitability [10][12].

Core Insights - The 2025 High-Quality Development Forum for Listed Companies and the 27th Golden Bull Award Ceremony took place in Nantong, Jiangsu, highlighting the theme "Moving Towards New Horizons for a Sustainable Future" [1] - Huaxi Biological, established in 2000, is recognized as a global leader in biotechnology and biomanufacturing, focusing on innovative solutions in aging intervention and tissue regeneration [1] - The Golden Bull Award, initiated in 1999 by China Securities Journal, aims to create a transparent and credible platform for recognizing outstanding listed companies in China's capital market [1] Company Overview - Huaxi Biological has built the world's largest synthetic biological manufacturing platform, offering integrated solutions across pharmaceuticals, medical aesthetics, nutritional science, and dermatology [1] - The company has developed several brands, including Runbaiyan, Kuaidi, Mibeier, Jihuo, and Huaxi Dangkang, showcasing its diverse product offerings [1] Award Details - The Golden Bull Award includes nine categories, such as "Most Investment Value Award," "Golden Bull Outstanding Entrepreneur Award," and "Golden Bull Secretary Award," recognizing excellence in corporate governance and investor relations [2] - The "Golden Bull Secretary Award" specifically honors company secretaries who excel in governance, equity management, information disclosure, and investor relations [2]

Core Viewpoint - The article discusses the challenges faced by Huaxi Biological, particularly its declining performance and the strategic changes initiated by its founder Zhao Yan to revitalize the company after a period of poor financial results [5][19]. Financial Performance - In the first three quarters of 2025, Huaxi Biological reported revenue of 3.163 billion yuan, a year-on-year decrease of 18.36%, and a net profit attributable to shareholders of 252 million yuan, down 30.29% year-on-year [5]. - The decline in profit is attributed to the drop in revenue from the skin science innovation transformation business, previously known as functional skincare products [5][10]. - Despite the overall decline, there was a notable improvement in the second quarter of 2024, with net profit increasing by 20.89% year-on-year, marking the first growth since the second quarter of 2024 [5][6]. Strategic Changes - Zhao Yan returned to the operational front line in March 2024, initiating a comprehensive reform of the company's management, sales expenses, and strategic direction [5][19]. - The company has reduced its sales expense ratio to 34.26%, the lowest in five years, by cutting costs in marketing and promotional activities [6]. - Huaxi Biological is undergoing a transformation process that includes organizational restructuring, talent system adjustments, and marketing model innovations [7][19]. Market Context - The medical beauty market is rapidly changing, with Huaxi Biological's market value dropping significantly from nearly 150 billion yuan at its peak in July 2021 to 25.977 billion yuan by October 29, 2024 [9]. - The stock price has also seen a dramatic decline, falling over 82% from its historical high of 312.99 yuan per share [9][10]. - The emergence of collagen peptide products has shifted investor focus away from hyaluronic acid, leading to a decline in Huaxi Biological's market position [12][13]. Competitive Landscape - Other companies in the hyaluronic acid sector, such as Haohai Biological and Aimeike, have also experienced significant stock price declines, indicating a broader trend in the market [11]. - New entrants focusing on collagen products have gained traction, with companies like Juzhibio and Jinbo Biological reporting substantial revenue growth, further challenging Huaxi Biological's market share [12][13]. Product Performance - The functional skincare product line, once a growth driver, has seen revenue declines exceeding 15% year-on-year in recent quarters, significantly impacting overall performance [6][13]. - The revenue from key brands like Runbaiyan and Kuaidi has also decreased, with projections indicating further declines in 2024 [21].

Core Viewpoint - The return of Zhao Yan, the founder of Hyaluronic Acid Biotech, to the frontline of operations has not yet led to a recovery in the company's performance, which remains in decline despite some signs of improvement in recent quarters [1][3]. Financial Performance - In the first three quarters of 2025, the company reported revenue of 3.163 billion yuan, a year-on-year decrease of 18.36%, and a net profit attributable to shareholders of 252 million yuan, down 30.29% year-on-year [1]. - The decline in profit is attributed to a decrease in revenue from the skin science innovation transformation business, previously known as functional skincare products [1]. - The company experienced its worst performance since its IPO in 2024, prompting Zhao Yan to return to operational management and initiate significant internal reforms [1][3]. - Despite the overall decline, the second quarter of 2025 saw a net profit increase of 20.89% year-on-year, marking the first growth since the second quarter of 2024 [1][2]. Cost Control Measures - The improvement in profit margins is primarily due to cost control, with the sales expense ratio dropping to 34.26% in the third quarter, the lowest in five years [2]. - The company has shifted away from a purely promotional sales model, focusing instead on optimizing brand research and communication, which has allowed for a significant reduction in promotional expenses [2]. Market Position and Stock Performance - The company's market capitalization has significantly decreased from nearly 150 billion yuan at its peak in July 2021 to approximately 25.977 billion yuan as of October 29, 2025, representing less than 20% of its peak value [3]. - The stock price has fallen over 82% from its all-time high of 312.99 yuan per share [3]. Industry Context - The decline in Hyaluronic Acid Biotech's performance is mirrored by other major players in the hyaluronic acid market, such as Haohai Biological and Aimeike, which have also seen significant stock price drops [5]. - The emergence of collagen peptide products has shifted investor focus away from hyaluronic acid, with companies like Juzhibio and Jinbo Biological experiencing substantial revenue growth [5][6]. - The functional skincare segment, which previously saw rapid growth, has faced challenges, with revenue declining over 15% year-on-year in both the second and third quarters of 2025 [2][6]. Strategic Adjustments - The company is undergoing a comprehensive transformation involving organizational structure, talent systems, marketing models, and supply chain collaboration [2]. - Zhao Yan's return to the operational front is seen as a critical move to address the company's recent performance issues and align its strategies with market changes [9][10].

Core Insights - The rise of new consumer brands in Jinan is driven by technological advancements and a focus on meeting consumer needs, showcasing the potential of local industries to innovate and adapt [2][3][4][5][6][7] Group 1: Technological Innovation - Tanghe Tang Biotechnology, a subsidiary of Shengquan Group, has transformed from a traditional industrial player to a high-end food ingredient provider, increasing its revenue from 10 million to over 400 million yuan through the development of a fully automated xylitol production line [3] - Huaxi Biological has shifted from B2B to B2C, investing 3 billion yuan to build the world's largest pilot platform, enabling rapid transformation of research into consumer products and achieving a 44% global market share in hyaluronic acid [4] - The technological breakthroughs in these companies have restructured the supply chain and allowed Jinan's manufacturing sector to penetrate the functional sugar market, with Tanghe Tang aiming for an annual output value of 1 billion yuan in the next 3-5 years [3][4] Group 2: Market Demand and Consumer Focus - Tangpai Group has been addressing the silver economy since 2010, creating a comprehensive supply chain for elderly products, with over 3,000 items integrated into its brand, and establishing the first silver economy center in Shandong [6] - The company has introduced a new consumption model that includes a silver economy center, elderly care display center, and community service stations, ensuring accessibility and affordability of products for the elderly [6] - Weirkan Group has transformed from a traditional meat processing factory to a cold chain service provider, expanding its cold storage capacity from 10,000 tons to 360,000 tons and increasing its distributor network from 200 to over 1,800 [7]

Core Insights - A new wave of consumer brands is emerging in Jinan, focusing on various sectors such as beauty, silver economy products, functional sugars, and cold chain food, driven by technological advancements and market demand [2][5]. Group 1: Company Developments - Huaxi Biological has transitioned from a B2B model supplying hyaluronic acid to a B2C model, investing 3 billion yuan to build the world's largest pilot platform, enhancing its product development capabilities and market responsiveness [4]. - Tanghe Tang Biotechnology, a subsidiary of Shengquan Group, has evolved from a 10 million yuan revenue company in 2008 to over 400 million yuan by leveraging patented technology to produce high-value functional sugars [3]. - Tangpai Group has established a comprehensive supply chain for silver economy products, offering over 3,000 types of products and creating a new consumption model with a focus on elderly care [5]. Group 2: Market Trends - The silver economy is gaining traction in China, with Tangpai Group addressing the supply-demand mismatch by launching 20-30 new products weekly domestically and 100-200 products internationally [5]. - The cold chain logistics sector is being transformed by Weierkang Group, which has expanded its cold storage capacity from 10,000 tons to 360,000 tons, establishing a nationwide distribution network [6][7].

Core Viewpoint - ECM (Extracellular Matrix) is essential for complex life and civilization, as emphasized by Zhao Yan, Chairman of Huaxi Group and Huaxi Bio [3][4]. Group 1: Strategic Initiatives - Huaxi Bio's core brand, Runbaiyan, has named two venues, "Beijing Wukesong" and "Chongqing Yudong," as "Huaxi Bio·Runbaiyan ECM Center," marking a significant branding milestone [5][8]. - This initiative represents a shift from mere brand exposure to a scientific narrative, integrating ECM into urban settings to reflect the concept of "life converging here, civilization being born" [8][9]. - The ECM strategy is a pioneering move that combines research and practical applications, positioning Huaxi Bio as a leader in the anti-aging sector [8][9]. Group 2: Understanding ECM - ECM is a dynamic network composed of components like hyaluronic acid (HA), collagen, and elastin, playing a crucial role in skin development and regeneration [9][10]. - It serves as a mechanical scaffold for skin cells, facilitating growth and providing essential nutrients and support [10]. - ECM also acts as a signaling hub, regulating cell behavior and maintaining normal bodily functions [10][11]. Group 3: Research and Development - ECM has been recognized as a key factor in aging, with recent studies highlighting its role in cellular communication and regeneration [13][14]. - Huaxi Bio has been at the forefront of ECM research, focusing on the potential of HA in anti-aging applications [20][21]. - The company has developed various molecular weights of HA, establishing a solid foundation for ECM regulation [21][23]. Group 4: Market Positioning - The dual venue naming strategy enhances Huaxi Bio's brand visibility and positions Runbaiyan as a pioneer in the anti-aging market [18][39]. - This approach aligns with the "smiling curve" theory, indicating a transition from technological leadership to brand value enhancement [30][32]. - The initiative aims to educate the market about ECM, improving brand perception and establishing Runbaiyan as a scientific leader in the beauty industry [39][40].

Core Insights - Huaxi Biological's core brand, Runbaiyan, has named two venues in Beijing and Chongqing as "Huaxi Biological・Runbaiyan ECM Center" [1] - The ECM Center integrates sports events, performing arts, and leisure commerce, becoming a cultural landmark and urban vitality center [1] - Huaxi Biological is one of the few companies globally that has a comprehensive layout in the ECM (extracellular matrix) field, focusing on the overall synergy of key ECM substances [1] Company Overview - Huaxi Biological is engaged in the research and development of key ECM substances, establishing a unified underlying technology and product planning for oral, external, and medical applications [1]

Core Insights - Huaxi Biological has been selected for the Xinhua News Agency's brand project, aiming for deep collaboration in brand communication, think tank research, and resource integration [1][3] - The partnership is expected to enhance the high-quality development of China's biotechnology industry and showcase the innovation and brand strength of Chinese enterprises [3] Company Overview - Huaxi Biological, established in 2000, is a leading global manufacturer of anti-aging substances, particularly hyaluronic acid [4] - The company has developed a complete ecosystem from raw materials to end products, with business operations extending into pharmaceuticals, medical aesthetics, nutritional science, and dermatology [4] - Huaxi Biological has launched several brands, including "Runbaiyan," "Kuaidi," "Mibeier," "Jihuo," and "Huaxi Dangkang" [4] Industry Context - The collaboration comes at a time when the global biotechnology wave intersects with China's "Healthy China" strategy, highlighting significant development opportunities in the biomanufacturing sector [4] - The Xinhua News Agency's brand project has been operational since 2017, providing professional, systematic, and international services to over a hundred Fortune Global 500 companies and leading enterprises in various industries [4]

Core Viewpoint - Huaxi Biological (688363.SH) is under increasing performance pressure, leading to heightened market scrutiny of its actions [1] Group 1: Headquarters and Brand Operations - Recent market rumors suggested that Huaxi Biological plans to relocate its headquarters from Beijing to Hangzhou, which the company denied, stating it is adjusting its brand operation locations [2] - The company aims to leverage the brand operation ecosystem advantages in East China by consolidating some brand operation centers in the region [2] - Several beauty companies are indeed concentrated in the Jiangsu-Zhejiang-Shanghai area, such as Proya (603605.SH) and Beitaini (300957.SZ) [2] Group 2: Management Changes - Huaxi Biological has undergone significant changes in its board of directors, with key figures like Fan Yuan and Zou Songyan not re-elected [4] - Fan Yuan was notably responsible for the company's functional skincare business [3] Group 3: Product and Marketing Strategy - The company has closed its smaller revenue-generating skincare brand, Runxiquan, while increasing marketing investments in its main brand, Runbaiyan [4] - In August, Runbaiyan announced Zhang Yixing as its first global brand ambassador, which represents a significant marketing expenditure for Huaxi Biological, especially as the company has reduced its sales expenses [5] - For the first half of 2025, sales expenses were reported at 808 million yuan, a year-on-year decrease of 31.44%, accounting for 35.74% of revenue, down over 6 percentage points year-on-year [5] Group 4: Performance Outlook - The effectiveness of these adjustments in boosting Huaxi Biological's skincare product performance is currently under scrutiny [6]