On August 28, the giant creature of the first share of collagen released its interim performance report for 2023.

As ofIn the six months ended June 30, 2023, the company's income was 1.6057 billion yuan, an increase of 63.0% over the same period last year.

Gross profit is RMB1.351 billion yuan, an increase of 61.2% over the same period last year

The profit of the holder belonging to the parent company is RMB.666.9 million yuan, an increase of 52.5% over the same period last year, with basic earnings per share of 0.67 yuan.

In the highly differentiated cosmetics industry in the first half of the year, giant creaturesThe differential positioning of "collagen" has not been dumped by the changes in the industry, and it has still achieved rapid growth.

OnlyThe brand "Kefumei" contributed 1.23 billion yuan in revenue in the first half of the year.

"collagen" has become a hot word in the capital market this year. It is not only widely used in skin care products, but also has attracted much attention in the application prospect of medical fillers.

Jinbo Bio, the first unit of injecting collagen, was listed on the Beijing Stock Exchange last month.

Compared with the lower threshold of the skin care market, more competitors, the higher threshold of the medical and beauty filling market and higher added value, it seems to be regarded as a more promising subdivision track.

From a product to a category, to a brand

In the first half of this year, the total revenue of Juzi Biology1.606 billion yuan, an increase of 63% over the same period last year; and a net profit of 667 million yuan, an increase of 52.5% over the same period last year.

The strong performance not only exceeded the previous market expectations, but also guided by the annual results.25%, 30%, 30%, 35%.

The main reasons for revenue growth during the reporting period areThree o'clock--Continue to expand product types, the addition of online channels and the creation of star items.

OnlyThe Kefumei brand alone achieved 1.23 billion yuan in revenue, an increase of 101 per cent over the same period last year.

"Recoverable beauty"And"But Lijin"Two core brands contributed to the company.96.4%Operating income.

(Photo source: semi-annual report disclosed by Juzi Biology)

In the increasingly competitive and polarized make-up trackWith the differential positioning of collagen, Kefumei far exceeds similar comparable brands in terms of popularity and sales volume.

(sales of major dressing brand Tmall flagship store, data source: third-party crawler platform, Guojin Securities Research Institute)

InIn the 618 promotion activities, Kefumei's core products have once again proved their strong brand strength.

Recombinant collagen dressing (collagen dressing) ranks first in Tmall wound dressing category and JD.com medical beauty care category.

Human-like recombinant collagen muscle repair sub-essence (collagen stick) sold more than 35 million units in the whole network, and GMV increased by more than 700% compared with the same period last year, ranking first in multi-e-commerce platforms.

However, although the giant creature is still in a period of rapid growth, the market is still worried about the long-term development of the brand, believing that revenue is too dependent on individual large items to drive sales, and the differentiation between recoverable and colijin brands is not obvious enough.

According to the study of wisdom,For this kind of propaganda-led products, product differentiation is very important for pricing, and it is necessary to avoid over-homogenization between brands.Otherwise, it is not only difficult to meet the diversified needs of different consumers, but also reduce the brand matrix effect and limit the long-term development of the company.

Giant creatures are clearly aware of this problem.

In the face of the current situation that the product is relatively single, Juzi Biology launched a new product recombinant collagen muscle to activate and repair essence milk during the reporting period."Collagen Milk"), Recombinant Collagen Activation soothing essence Mask ("Collagen soothing paste")To enrich the product line and expand the combination of different categories.

The new product got positive feedback from the market and reached the top of the new product list many times.

At the same time, its core brands can be restored to the U.S.Product line upgradeTo launch a series of anti-acne and face-clearing series for acne muscle groups (OK series), with "rare ginsenoside monomer components" as the selling point, aims to expand the target group and bring more growth opportunities.

And for another brand,During the reporting period, the revenue of the Kelijin brand reached 320 million yuan, an increase of 6.4% over the same period last year, and the growth rate was more flat than that of Ke Fumei.

At the performance presentation meeting, the company made it clear that the positioning of the anti-aging and anti-old track, trying to repair the track with the United States, to form a more obvious difference.

The main single item is Korijin.Human-like Recombinant Collagen Enablement extract Compact bullet Runner throwing essence ("bang bang") has sold more than 1.7 million pieces online and in all channels during the 618 promotion period.

The net interest rate fell as expected.

In terms of profitability, the gross profit margin of Juzi in the first half of this year85.1%, down 1 percentage point from the same period last year

The net interest rate was 41.5%, down 2.9 percentage points from the same period last year; the adjusted net interest rate was 42.1%, down 4.9 percentage points from the same period last year.

(See wisdom to study the self-made map)

(Photo source: semi-annual report disclosed by Juzi Biology)

Juzi Bio's short-term channel structure adjustment and low profit margins are actually within the expectations of the market.

At present, Juzi Biology is in a critical stage of rapid business expansion.

On the one hand,The market education level of "collagen" is not as good as that of "hyaluronic acid", at this stageIt is necessary to increase marketing and educate consumers.The rate of cost of sales is fromFrom 26.8% in the first half of 2022 to 34.6% in the first half of 2023

On the other hand, the companyIn order to expand new categories and launch new products, R & D investment in key raw materials is essential.It includes the expansion of professional R & D team and the tracking of cutting-edge technologies such as regenerative medicine.

Cut offAt the end of May, 2023, the company had 130 products under research, and the R & D cost increased from 1.9% of 22H1 to 2.1% of 23H1.

However, the year-on-year decline in net profit margin in the first half of this year (2.9 percentage points) is significantly narrower than 22 years (11 percentage points), mainly due to the increase in the proportion of cosmetics business income tends to be stable.

In addition, the expenses at the initial stage of listing are reduced, which drives the rate of management expenses byYear-on-year unchanged in 2022, significantly improved to 2023 year-on-year decline of 2.15 percentage points.

The filling of medical beauty is the next place to compete.

NowGiant creatures are already in"collagen"Skin careTrack acquisitionWasStage naturevictory，No matter in terms of brand influence, consumer awareness or sales，Are well deserved.Faucet.

ButIn the long runRelying solely on collagen skin care products will still face the risk of deteriorating competition.

EspeciallyWhenBig brands at home and abroad enter the field of collagen cosmeticsPowerfulBrand influence and marketing capabilities may affect existingMarketIt's a shock.

ForWasConsolidate technological advantages and maintainPerformanceIncrease，Enter into subdivided areas with higher technical barriers and higher added value--Yimei has become the next track for giant creatures to aim at.

In the medical and beauty market，Although hyaluronic acid has been occupiedRaw materialDominant position，However, the collagen fillers that have sprung up in recent years because of their more natural effects and skin whitening characteristics，It is considered to have broad prospects..

According toFrost & Sullivan estimate，2022-2027SetTo42.4% of CAGR increased to 108.3 billion yuan.

Compared with hyaluronic acid, collagen fillers have lower production capacity and higher production cost, and the preparation technology of recombinant collagen needs to be further broken.，This restricts the expansion of its market share.

It is precisely because of the higher R & D and technical barriers.，Increased barriers to entryAs a result, the supply of collagen in the market is limited and the degree of competition is low.

At present, the approved collagen fillers in ChinaOnlyFrom 4 manufacturers, the recombinant collagen only has the beautiful beauty of Jinbo organism.A family.

According to the Jinbo Biological Bulletin, the product 2021, 2022AlreadyRealize sales revenue 28 million yuan, 117 million yuan.

Giant creatures also want to seize the opportunity and gain a first-mover advantage when the competition pattern is excellent and the industry development is in the early stage. According to the company, the plan is toHe won two types of three types of medical device certificates in mid-2024 and the first half of 2025.

thisFour products include liquid preparations, solid preparations, non-cross-linked gel products and cross-linked gel products, which can meet the needs of different parts and indications.

(Photo source: giant biological prospectus)

TodayThe medical beauty market is dominated by water-light needles.，Only Jinbo Biomeimei has won the certificate of three types of medical devices.

But the market demand for safe and effective collagen fillersSufficient，thereforeTake the lead in achieving technological breakthroughs、Companies that are the first to be approved for listing and can achieve large-scale production will take advantage of the industry.

Juzi Bio in the business of skin care products and medical dressingsThe period from the initial research and development to the terminal listing is short and fast, and the funds can be withdrawn quickly in a short time.Put into research.

As ofOn June 30, 2023, the working capital of Juzi was 1557.5 million yuan, an increase of 17.0% over the 1331.0 million yuan for the year ended December 31, 2022.

In other words, the giantThe advantage in the beauty business is conducive to the research and development of filling products.During the reporting period, giant creatures were added.There were 2 recombinant collagen production lines, 2 cosmetic production lines and 1 medical enterprise production line.

In addition, the professional medical beauty channel resources accumulated by sub-brands will contribute to the promotion of medical beauty products in the future. As of On June 6, 2023, So-young International Inc Zhong Ke Lijin flagship store has authorized 70 selected institutions and more than 100 doctors.

If the medical beauty products of Juzi Biology are successfully approved the year after next, it will complete the switch from pure skin care brand logic to the medical beauty industry, which will bring more room for imagination.