Core Viewpoint - The dispute over the ingredients in medical beauty products is escalating, particularly between Huaxi Biological and Juzhi Biological, with accusations of misleading information and legal threats being exchanged [1][5][6]. Group 1: Company Statements - Huaxi Biological issued a statement supporting Dr. Hao Yu, indicating that they had confirmed the authenticity of the testing reports and would cooperate with regulatory bodies if needed [2][3]. - Huaxi Biological accused Juzhi Biological of using online marketing tactics to undermine competition and suggested that they are prepared for a "real business war" [1][4]. - Juzhi Biological responded by stating that they would pursue legal action against those spreading false information and emphasized their commitment to consumer interests [1][5]. Group 2: Product Controversy - Dr. Hao Yu claimed that the product "Kefumei" from Juzhi Biological contained only 0.0177% of recombinant collagen, which does not meet regulatory standards for labeling as a non-trace component [3]. - Huaxi Biological highlighted that their products have the highest number of medical device certifications in the industry, asserting that there is no evidence to support the safety of recombinant collagen over hyaluronic acid [4]. Group 3: Financial Performance - Juzhi Biological reported significant revenue growth from 2022 to 2024, with revenues of 2.364 billion, 3.524 billion, and 5.539 billion yuan, and net profits of 1.002 billion, 1.452 billion, and 2.062 billion yuan respectively [6]. - In contrast, Huaxi Biological experienced a decline in both revenue and net profit for 2024, with revenues of approximately 5.371 billion yuan (down 11.61%) and net profits of about 174 million yuan (down 70.59%), marking their worst performance since going public [7]. Group 4: Market Reaction - Following the controversy, Juzhi Biological's stock price fell by 18.07% from its peak on May 20, closing at 68.25 HKD per share on June 2, reflecting market concerns over the ongoing disputes [6].

Core Viewpoint - The recent discussions surrounding hyaluronic acid and recombinant collagen in the medical beauty industry have intensified, particularly following Huaxi Biological's publications defending hyaluronic acid's relevance and efficacy over recombinant collagen [1][4][5]. Group 1: Company Response and Market Dynamics - Huaxi Biological has issued statements refuting claims that hyaluronic acid is outdated, emphasizing the importance of both hyaluronic acid and collagen in skin health, and their interdependent roles in extracellular matrix (ECM) function [4][5]. - The company highlighted that it holds the highest number of approved Class III medical device certifications for hyaluronic acid products, asserting that there is no evidence to suggest that recombinant collagen is safer than hyaluronic acid [5]. - The shift in market focus from hyaluronic acid to recombinant collagen has led to a decline in the stock prices and performance of traditional hyaluronic acid companies, while recombinant collagen firms have seen significant gains [6]. Group 2: Financial Performance - Huaxi Biological reported a revenue decline of 11.61% year-on-year, with total revenue of approximately 5.371 billion yuan and a net profit drop of 70.59%, amounting to about 174 million yuan for 2024 [6][7]. - The company’s medical beauty segment showed positive growth, with raw material business revenue increasing by 9.47% to 1.236 billion yuan, while the medical terminal business grew by 32.03% to 1.44 billion yuan [7]. - The significant decline in overall performance was attributed to challenges in the consumer goods segment, which faced intensified competition and strategic adjustments, resulting in a 31.62% revenue drop to 2.569 billion yuan [7]. Group 3: Management Changes and Corporate Governance - In response to internal issues, Huaxi Biological has initiated a major management reform, focusing on addressing corruption and improving corporate governance, with a strict deadline for employees to report any misconduct [9][10]. - The company has undergone significant personnel changes, including the retirement of senior executives and the appointment of new management to align with strategic development needs [10]. - The management reform aims to correct previous lax practices and establish a more robust operational framework for long-term growth [9].