Core Viewpoint - The article discusses the ongoing conflict between Huaxi Biological and several securities firms regarding the market perception of hyaluronic acid versus collagen protein, highlighting Huaxi's efforts to defend its core business amidst declining performance and market competition [1][10]. Company Performance - Huaxi Biological started with hyaluronic acid and currently holds nearly 50% of the global market share, expanding into downstream medical products, functional skincare, and functional foods [4][5]. - Despite the pandemic, Huaxi maintained positive revenue and profit growth until 2021, with a peak market value exceeding 140 billion yuan [5][7]. - From 2022 to 2024, Huaxi's net profit is projected to decline from 9.71 billion yuan to 1.74 billion yuan, with its market value dropping from over 140 billion yuan to 25.3 billion yuan [7]. Market Comparison - In contrast, collagen protein companies like Juzhi Biological and Jinbo Biological have seen significant growth, with Juzhi's net profit increasing from 1 billion yuan in 2022 to 20.62 billion yuan in 2024, and Jinbo's from 1.09 billion yuan to 7.31 billion yuan, reflecting compound annual growth rates of 43.45% and 158.97%, respectively [8]. - Both companies have achieved new stock price highs, with market values of 87.5 billion HKD and 51.1 billion yuan [8]. Industry Dynamics - The article emphasizes that both hyaluronic acid and collagen are essential components that decrease with age, suggesting that both can positively impact skin health [10][12]. - There is currently no official data to determine which component is superior, but the market's shift towards collagen indicates a growing consumer preference for new ingredients [11][12]. - Huaxi's recent acquisition of a stake in a collagen company and the introduction of collagen products indicate its recognition of the market trend, although its current revenue from collagen remains unspecified [13][14]. Future Outlook - The article suggests that regardless of the outcome of the ongoing dispute, Huaxi may continue to face challenges in growing its hyaluronic acid sales while struggling to establish its collagen product line [14].

Core Viewpoint - Huaxi Biological has publicly criticized several securities firms for promoting collagen products and suggesting that hyaluronic acid is "outdated," indicating a defensive stance amid declining performance and market competition [1][2][3] Company Performance - Huaxi Biological started with hyaluronic acid and holds nearly 50% of the global market share, expanding into medical products, skincare, and functional foods [5][6] - Despite maintaining positive growth during the pandemic years of 2020 and 2021, the company's revenue and profit have declined since 2021, with net profits projected to drop from 9.71 billion yuan in 2022 to 1.74 billion yuan in 2024 [10] - The company's market capitalization has plummeted from over 140 billion yuan in 2021 to 25.3 billion yuan as of May 21, 2025 [10] Market Comparison - In contrast, competitors like Juzhi Biological and Jinbo Biological have seen significant growth, with Juzhi's net profits increasing from 1 billion yuan in 2022 to 20.62 billion yuan in 2024, and Jinbo's from 1.09 billion yuan to 7.31 billion yuan in the same period [14] - Both companies have also achieved substantial stock price increases, with market capitalizations of 87.5 billion HKD and 51.1 billion yuan, respectively [14] Industry Dynamics - The rise of collagen products has created a competitive threat to hyaluronic acid, with market trends favoring new ingredients [15][18] - The demand for collagen is expected to exceed supply, with projections indicating a production of 200,000 tons against a demand of over 220,000 tons by 2025 [19] Challenges Ahead - Despite Huaxi's efforts to defend hyaluronic acid, the company faces challenges due to internal management issues and a tarnished brand image, which may hinder future sales growth [20][21] - The company's recent foray into collagen products has not yet shown significant revenue impact, suggesting ongoing struggles in adapting to market changes [21]