Harbin Fuerjia Technology Co.,Ltd. (Fuerjia, stock code: 301371.SZ) closed at 23.88 yuan on December 15, 2025, marking a 2.37% daily decline and continuing its overall downward trend. The current share price has halved compared to its IPO price. Year-to-date (as of early December), Fuerjia's stock has fallen approximately 12.11%, reflecting weak performance.
Fuerjia's stock has been in a prolonged bearish phase since its listing at 55.68 yuan per share on August 1, 2023. While it briefly hit a historical high of 80.04 yuan on its debut, the stock entered a downward trajectory shortly after. By August 2024, the price had dropped to 28.39 yuan, nearly halving from its IPO level. The decline persisted into 2025, with shares closing at 25.25 yuan by mid-June and total market capitalization shrinking to 12.89 billion yuan by Q3.
The stock's weakness mirrors deteriorating financials. In 2023, revenue grew 9.29% to 1.93 billion yuan, but net profit attributable to shareholders fell 11.56% to 749 million yuan. The situation worsened in 2024 with 4.32% revenue growth but an 11.77% profit decline. Q3 2025 saw dramatic deterioration - quarterly revenue dropped 17.58% year-over-year while net profit plunged 44.96%, with adjusted net profit nearly halving.
Key business segments show divergent trends: medical device revenue collapsed 48.1% in H1 2025, now representing just 27.6% of total revenue versus 48.8% previously. The company attributes this to "optimizing offline channels." Meanwhile, cosmetics revenue grew 30% to 625 million yuan, but this came at extraordinary cost - sales expenses surged 39.56% to 420 million yuan, consuming 48.7% of revenue. Marketing costs now claim nearly 0.5 yuan of every 1 yuan earned.
Industry experts highlight systemic risks in Fuerjia's heavy marketing approach. With 80.5% of cosmetics sales coming from high-risk digital channels like Douyin livestreaming, the model shows diminishing returns as cost growth outpaces revenue. The company's weak R&D foundation (only 9 invention patents versus 425 at peer Huaxi Bio) leaves it vulnerable in China's increasingly regulated beauty market, where authorities have banned "medical aesthetic mask" claims that previously supported premium pricing.
Facing pricing pressure - with flagship products now discounted over 35% online - Fuerjia must fundamentally reposition from competing on price to demonstrating clinical efficacy through proprietary technologies, according to industry analysts. The path forward requires transforming from a marketing-driven to a technology-driven company, though this transition presents significant challenges given current cost structures and market positioning.
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