Core Viewpoint - The controversy surrounding the cosmetic brand "Kefumei" and its alleged false advertising of a collagen product has escalated, leading to significant public attention and legal implications for the involved parties [1][3]. Group 1: Company Responses - "Giant Bio" issued a statement acknowledging the apology from the testing agency used by "Dr. Big Mouth" and emphasized that the agency did not authorize the testing report [4]. - "Giant Bio" reiterated that their product contains real recombinant collagen protein and denied any allegations of false advertising or misleading consumers [5]. - "Huaxi Bio" publicly supported "Dr. Big Mouth," stating that the company is an important member of its ecosystem and has invested in related ventures [4]. Group 2: Influencer Background - "Dr. Big Mouth," whose real name is Hao Yu, is a well-known beauty influencer with over 2.8 million followers across various platforms and holds a PhD in chemistry from the University of Hong Kong [3]. - The influencer's allegations against "Giant Bio" regarding the authenticity of their collagen product gained significant traction, even trending on social media [3]. Group 3: Legal and Regulatory Implications - "Giant Bio" announced intentions to pursue legal action against those spreading false information, highlighting the seriousness of the allegations and the potential impact on their brand [4]. - The testing agency involved has demanded that "Dr. Big Mouth" cease using and sharing the disputed test report to prevent further public misinformation [4].

Market Overview - The Hong Kong stock market opened lower, with all three major indices falling over 1%. The Hang Seng Index closed down 1.35% at 23,282.33 points, with a total turnover of HKD 223.52 billion [1] - The Hang Seng China Enterprises Index and the Hang Seng Tech Index both dropped 1.7% [1] Blue Chip Performance - Nongfu Spring (09633) led blue-chip stocks, rising 3.83% to HKD 38, contributing 4.69 points to the Hang Seng Index. Huachuang Securities upgraded the stock to "strong buy" due to its solid growth potential [2] - Other notable blue-chip movements included China Resources Power (00836) up 2.57% and Xinyi Glass (00868) up 2.42%, while Zhongsheng Holdings (00881) and BYD Electronics (00285) saw declines of 3.96% and 3.56%, respectively [2] Sector Highlights - Large tech stocks collectively declined, with Xiaomi down 3.21% and Alibaba down 1.6%. The automotive sector faced significant pressure due to a price war, leading to notable declines in automotive stocks [3][7] - Nuclear power stocks surged following President Trump's signing of executive orders to boost the U.S. nuclear industry. China National Nuclear Power (02302) rose 129.78% [3][4] - The aviation sector showed strong performance, with China National Aviation (00753) up 5.58% and Eastern Airlines (00670) up 3.69% [4] Financial Performance - The civil aviation sector reported strong growth in April, with passenger transport volume increasing by 8.9% year-on-year. Q2 profitability is expected to improve due to high passenger traffic and rising seat occupancy rates [5] - Semiconductor stocks were active, with Huahong Semiconductor (01347) up 2.6% and SMIC (00981) up 0.72% [5] Corporate News - Haiguang Information announced plans to merge with Zhongke Shuguang through a share swap, aiming to enhance its capabilities in high-end computing and core chip design [6] - ZTO Express (00780) reported a 13.2% year-on-year revenue increase in Q1, reaching CNY 4.377 billion, with adjusted EBITDA growing by 41.3% [9] - Jin Chaoyang Group (00878) faced a significant drop of 15.25% after its privatization proposal was rejected [10] - Giant Bio (02367) experienced a decline of 4.04% following negative publicity regarding its product's collagen content [11]

Core Viewpoint - The article discusses the challenges faced by Juzi Biotechnology, particularly regarding allegations of product fraud and the company's heavy reliance on its flagship product, Kefu Mei, amidst increasing scrutiny and competition in the beauty and healthcare industry [1][5][7]. Company Overview - Juzi Biotechnology, founded by Fan Daidi, specializes in recombinant collagen products, with its flagship offerings being Kefu Mei and Keli Jin [1][4]. - The company went public on the Hong Kong Stock Exchange in 2022, achieving a market capitalization of approximately HKD 821 billion (RMB 753 billion) as of May 23, 2025 [4]. Financial Performance - Juzi Biotechnology reported a revenue of RMB 55.39 billion in 2024, marking a 57.17% year-on-year increase, with a net profit of RMB 20.62 billion, up 42.06% [7]. - The contribution of Kefu Mei to the company's revenue rose from 30.3% in 2019 to 82% in 2024, while the second brand, Keli Jin, decreased to 15.2% [7]. Research and Development - The company's R&D expenditure in 2024 was only RMB 1.07 billion, accounting for 1.9% of its revenue, significantly lower than competitors like Huaxi Biotechnology and Jinbo Biotechnology, which spent 7.13% and 4.92% of their revenues on R&D, respectively [8]. - Juzi Biotechnology's core patents are primarily from 2005 to 2013, indicating a slow pace of new product development [8]. Market Challenges - The company is currently facing allegations of product fraud, specifically regarding the efficacy of its recombinant collagen products, which has led to public scrutiny and potential reputational damage [5][6]. - There are concerns about the company's supply chain management and regulatory compliance, particularly following allegations of using banned ingredients in its products [7][8].

Company Overview - Kefu Mei is a well-known brand under Shaanxi Juzhi Biological Technology Co., Ltd, focusing on medical dressings, functional skincare products, and biomaterials, particularly in the field of human-like collagen, holding a leading position in the industry [5] - Juzhi Biological primarily offers recombinant collagen products and operates in the medical aesthetics segment, with brands including "Kefu Mei," "Keli Jin," and "Xin Gan," and successfully went public on the Hong Kong Stock Exchange in 2022 [5] Financial Performance - From 2020 to 2024, Juzhi Biological's revenue figures are projected to be 1.19 billion, 1.55 billion, 2.36 billion, 3.52 billion, and 5.54 billion yuan respectively, showing a consistent year-on-year growth trend [5] - The net profit attributable to the parent company for the same period is expected to be 826 million, 828 million, 1.00 billion, 1.45 billion, and 2.06 billion yuan, also reflecting steady growth [5] - In 2024, Kefu Mei's GMV growth rate is expected to exceed 80%, contributing 4.54 billion yuan in revenue, which accounts for 82% of the total revenue [5] Market Trends - Recombinant collagen, synthesized through genetic engineering, is increasingly replacing hyaluronic acid and animal-derived collagen, becoming a new trend in the medical aesthetics sector [6] - The Chinese recombinant collagen market is projected to grow at a compound annual growth rate of 44.93%, reaching a market size of 219.38 billion yuan by 2030 [6][7] Product Integrity and Compliance - Kefu Mei has firmly denied allegations of product integrity issues, stating that all product development and production strictly adhere to cosmetic regulations and that all ingredient labeling complies with legal standards [1] - The company conducted multiple tests on its products, confirming that collagen content exceeds 0.1%, contradicting claims of a 0.0177% addition [1][3]