Bloomage Biotechnology Corporation Limited (688363.SH), a leading hyaluronic acid company, continues to face performance pressure. In the first half of 2025, the company's revenue and net profit attributable to shareholders were 2.261 billion yuan and 221 million yuan respectively, declining 19.57% and 35.38% year-over-year.
Looking at second-quarter data, Bloomage Biotechnology's "618 Shopping Festival" performance was lackluster, with quarterly revenue of 1.183 billion yuan, down nearly 20% year-over-year. From a business segment perspective, the flagship dermatological science innovation and transformation business (skincare products) continued to shrink, generating only 912 million yuan in revenue, a decline of over 30% year-over-year.
This performance significantly underperformed the broader industry. In the first half of 2025, China's cosmetics retail sales reached 229.1 billion yuan, growing 2.9% year-over-year. The results also lagged behind many industry peers, such as leading skincare companies Proya (603605.SH) and Wateryang Co., Ltd. (300740.SZ), both of which achieved nearly 10% revenue growth during the same period.
Unlike peers who maintained substantial sales expense levels, Bloomage Biotechnology drastically cut these expenditures. Sales expenses in the first half of 2025 totaled 808 million yuan, down 31.44% year-over-year, representing 35.74% of revenue, a decrease of over 6 percentage points compared to the previous year.
Regarding this strategy, Bloomage Biotechnology stated that price-promotion-based marketing investments across various platforms have been suspended. The company aims to reorganize its brand's efficacy and technology foundation to achieve higher-return customer acquisition models. When asked about timing for resuming investments, the company indicated: "It depends on business adjustment progress, which will vary by brand. The company will restart large-scale market investment only after establishing an optimized communication model that ensures investments align with core brand characteristics and deliver more valuable brand messaging."
Unlike the skincare business, Bloomage Biotechnology is employing a "price-for-volume" strategy to drive sales of hyaluronic acid-based medical aesthetics products. In the first half of 2025, the medical aesthetics business (dermatological medical products) generated 467 million yuan in revenue, down 1.8% year-over-year. However, sales volume of Class III medical devices increased 20% during the same period.
"The slight revenue decline is mainly due to intensifying industry competition and slowing market expansion," Bloomage Biotechnology explained. "The company will continue optimizing product structure and strengthening channel deployment to address changing market conditions."
The accelerating approval pace for medical aesthetics injection devices is gradually deteriorating the competitive landscape, potentially putting additional pressure on upstream material suppliers like Bloomage Biotechnology. On August 22 alone, regulatory authorities approved six Class III medical device certificates covering two core medical aesthetics materials: hyaluronic acid and collagen (animal-derived).
In terms of channel development, Bloomage Biotechnology's medical aesthetics brands are moving from behind-the-scenes to front-stage presence. This year, the company's brands "Runnbaiyann" and "Runzhi" both launched on Meituan's medical aesthetics platform to better reach consumers.
To revitalize performance, Bloomage Biotechnology Chairman Zhao Yan returned to frontline operations early this year. However, the effectiveness of these reforms may require more time to materialize.
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