Core Viewpoint - The article highlights the risks associated with the illegal use of Epidermal Growth Factor (EGF) in cosmetic procedures, leading to severe complications for patients who seek aesthetic improvements through unregulated injections [1][2][17]. Group 1: EGF and Its Risks - Epidermal Growth Factor (EGF) is a peptide that promotes cell proliferation and is primarily used for wound healing, but its injection into facial tissues can cause uncontrollable tissue overgrowth, leading to deformities and other complications [2][17]. - The Chinese National Medical Products Administration has explicitly prohibited the use of EGF in cosmetic products and injectable medical beauty projects since January 2019 [1][17]. - Many patients, like Wang Yan and Li Meng, have experienced severe adverse effects after receiving EGF injections, including persistent swelling, hard lumps, and facial deformities [10][12][13][25]. Group 2: Illegal Market Dynamics - Despite the regulations, EGF is still marketed illegally as a high-end beauty product, often under various names and sold through informal channels, including social media and unlicensed beauty salons [2][15][18]. - The underground market for EGF involves a complex distribution system where products are repackaged and sold at inflated prices, with costs as low as 20 yuan per gram for the raw material, while retail prices can reach thousands of yuan [20][22][23]. - Many beauty practitioners mislead consumers by claiming that EGF injections are safe and effective, despite the lack of regulatory approval for such uses [17][18][21]. Group 3: Regulatory and Legal Challenges - The article emphasizes the need for stricter regulatory oversight and public awareness to combat the illegal use of EGF in cosmetic procedures, as many consumers remain unaware of the risks involved [27][28]. - Legal recourse for victims of illegal injections is often complicated, with many facing difficulties in obtaining compensation due to the lack of evidence and the disappearance of the practitioners involved [27][30]. - Experts call for enhanced collaboration among regulatory bodies to effectively address the illegal distribution and use of EGF in the beauty industry [27][30].

Summary of Haohai Biology Conference Call Company Overview - **Company**: Haohai Biology - **Date**: September 18, 2025 Key Points Industry and Company Performance - **Revenue Decline**: Haohai Biology's revenue for the first half of 2025 decreased by 34% year-on-year, primarily due to changes in VAT policy affecting hyaluronic acid products, resulting in a profit reduction of approximately 30 million yuan [2][3] - **Overall Revenue**: The company achieved a revenue of 1.304 billion yuan in the first half of 2025, a year-on-year decline of 7% but a quarter-on-quarter increase of about 11% [3] - **Net Profit**: The net profit attributable to shareholders was 210 million yuan, down 10% year-on-year, but up 34% quarter-on-quarter [3] Business Segment Performance - **Aesthetic Medicine Segment**: - Revenue decreased by 9% year-on-year, with hyaluronic acid sales down 17% [2][4] - Human epidermal growth factor sales increased by 14% [2] - High-end hyaluronic acid product "Haimi" saw sales growth exceeding double digits, now accounting for over 40% of the segment [2][7] - **Ophthalmology Segment**: - Revenue decreased by 20% year-on-year, but sales of preloaded aspheric intraocular lenses increased by 74% [2][4] - High oxygen permeability orthokeratology lenses saw an 86% increase in sales [2][5] - **Surgical Segment**: - Revenue grew by 60%, with innovative hemostatic product "Kangrui Gel" contributing 44 million yuan [2][5] - New anti-adhesion surgical products performed well, achieving 40 million yuan in sales shortly after launch [2][24] Product Development and Market Strategy - **High-End Product Focus**: The company is focusing on exporting high-end products, with preparations for "Haimi" and "Haimi Yuebai" underway [10] - **New Product Lines**: The company is expanding its aesthetic medicine offerings, including dermal fillers and light therapy devices, with some products receiving FDA certification [11][12] - **Technological Advantages**: "Haimi" utilizes a unique cross-linking process for smooth injection, while "Haimi Yuebai" employs amino acid cross-linking for safety and effectiveness [9] Market Challenges and Responses - **Impact of VAT Policy**: The adjustment of VAT from 3% to 13% on hyaluronic acid and chitosan products is expected to impact profits throughout 2025, but no similar effects are anticipated in 2026 [2][5] - **Competitive Landscape**: The OK lens segment faced challenges due to competition from new products like defocus frame glasses, leading to a decline in sales [20][21] - **Price Pressure**: The company is increasing R&D investment in mid-to-high-end products to counteract potential price pressures from upcoming procurement policies [15] Future Outlook - **Performance Expectations**: The company remains optimistic about future growth despite current economic uncertainties, focusing on steady marketing efforts and product development [26] - **Market Share Potential**: The domestic multifocal intraocular lens market share is expected to increase due to price adjustments in procurement policies [16] Additional Insights - **Sales of Human Epidermal Growth Factor**: This product has seen significant growth due to its application in aesthetic medicine, with sales increasing since 2024 [13] - **Surgical Product Innovations**: The innovative hemostatic product "Kangrui Gel" has entered the Shanghai medical insurance directory, with plans to expand into other provinces [25] This summary encapsulates the key insights from Haohai Biology's conference call, highlighting the company's performance, strategic focus, and market challenges.