Goldman Sachs Group and China International Capital Corporation are co-sponsors of GIANT BIOGENE HOLDING CO., LTD's listing hearing through the Hong Kong Stock Exchange, according to the Hong Kong Stock Exchange.

According to the prospectus, Juzi Bio is a leader in China's professional skin care products based on bioactive ingredients. According to Frost Sullivan, Juzi Biology is the second largest professional skin care company in China in 2021 (retail sales of RMB 6 billion). At the same time, it has been the largest professional collagen skin care company in China (by retail turnover) for three consecutive years since 2019.

In 2021, China's overall skin care market is very fragmented. According to Frost Sullivan, the company's market share in terms of retail sales in 2021 is about 1.1% of China's overall skin care market.

During the performance record period, in this market, Juzi Bio mainly focuses on the market of professional skin care products such as functional skin care products and medical dressings. Professional skin care products are used to solve a variety of skin problems such as skin sensitivity, skin premature senility, chronic eczema and allergies, as well as general skin care for consumers. In 2021, the overall market size of China's professional skin care products in terms of retail turnover will be RMB 56.6 billion. In addition, some of the company's pipeline products are aimed at skin rejuvenation applications.

The flagship brands of Juzi Biological Recombinant Collagen products are the third and fourth best-selling brands in China's professional skin care industry in 2021 (retail sales of RMB 2.9 billion and RMB 2.7 billion, respectively). It is the first company in China to obtain the medical device registration certificate of recombinant collagen products.

On the other hand, Juzi Biology has implemented a two-track sales strategy of "medical institutions + mass consumers" for medical institutions and the mass market. As of the latest practicable date, the company has sold and distributed products to more than 1000 public hospitals, about 1700 private hospitals and clinics and about 300 chain pharmacy brands across China.

In addition, the company has established a national sales network for the mass market through direct sales and distributors, which mainly includes selling directly to consumers ("DTC") through stores on e-commerce and social media platforms (including Tmall, JD.com, Douyin, Xiaohongshu and Pinduoduo) and to e-commerce platforms such as JD.com and Vipshop Holdings Limited, which resell products to customers through their online retail platforms. Juzi's mass-market distribution network covers individual consumers as well as about 2000 Chinese stores in cosmetics chains and supermarkets such as Watsons, Yanli, toners, Ole', Hualian Group and Hema Xiansheng.

Financially, Juzi's income increased from 957 million yuan in 2019 to 1.191 billion yuan in 2020, and further to 1.552 billion yuan in 2021. Revenue from January to May this year reached 723 million yuan, an increase of 202 million yuan over the same period in 2021.

In addition, in 2019, 2020, 2021 and the five months ended May 31, 2022, the company's net profit was 575 million yuan, 827 million yuan, 828 million yuan and 313 million yuan respectively, and the net interest rates for the same period were 60.1%, 69.4%, 53.3% and 43.4%, respectively. As for the overall decline in net interest rates, Juzi Bio said that it is mainly due to increased spending on online sales and marketing activities on e-commerce platforms and social media platforms, in order to continuously expand online sales channels, comply with industry trends and seize market opportunities. As a result, the cost of online marketing has increased.

As for products, the gross profit margin of the company's professional skin care products remained relatively stable in 2019, 2020, 2021 and the five months ending May 31, 2022, which were 84.8%, 86.3%, 87.3% and 85.0%, respectively. Gross profit margins for health food and other products remained relatively stable in 2019 and 2020, at 71.2% and 69.0%, respectively, and then increased to 85.4% in 2021, mainly due to a decline in sales of products with relatively low gross margins, such as beverages and fiber supplements. Gross profit margins for health food and other products remained relatively stable for the five months ending 31 May 2021 and 2022, at 84.6% and 85.8%, respectively.