Jinbo Biology (832982.BJ), a leading company in the recombinant collagen protein sector, recently released its 2025 interim report showing growth in both revenue and net profit. However, several key indicators reveal underlying challenges including growth deceleration.
According to the interim results, Jinbo Biology achieved revenue of 859 million yuan in the first half of 2025, representing a 42.43% year-over-year increase, with attributable net profit reaching 392 million yuan, up 26.65% compared to the same period last year. Nevertheless, both growth rates hit five-year lows for the corresponding period. Historical data shows that in H1 2023, the company's revenue grew 105.15% year-over-year with net profit growth of 177.66%. Compared to H1 2024's revenue growth of 90.59% and net profit growth of 182.88%, the 2025 first-half performance represents a dramatic decline.
**Core Business Growth Momentum Weakening**
The medical devices segment, which serves as Jinbo Biology's revenue pillar and primarily consists of the recombinant collagen protein injection product "Weiyi Beauty," generated operating revenue of 708 million yuan in H1 2025, up 33.41% year-over-year, significantly slower than the 84.37% growth rate in the same period of 2024. As China's only approved Class III recombinant collagen protein injection, Weiyi Beauty contributed 645 million yuan in revenue during the first half, growing 34.7% year-over-year, compared to 90.59% in H1 2024 – a deceleration of over 65 percentage points, indicating that market penetration of this core product has substantially slowed.
Jinbo Biology's performance slowdown is also reflected in quarterly data. In Q1 2025, the company's revenue and attributable net profit maintained year-over-year growth rates above 60%, at 62.51% and 66.25% respectively. However, in Q2, revenue and net profit growth rates dropped to 30.44% and 7.36% respectively, showing significant deceleration.
Despite the company's claim of adding 1,000 new medical institutions to reach 4,000 total coverage, intensified terminal competition has put pressure on pricing. Currently, regulatory authorities have imposed strict requirements on multiple aspects of Class II and III medical device production, operation, and distribution, while establishing stringent behavioral standards for various segments of cosmetics production and operation, raising industry entry barriers.
Jinbo Biology acknowledged in its financial report that as the medical device and cosmetics industries develop, regulatory authorities may introduce even stricter measures, imposing higher requirements on corporate production operations, practice licensing, and quality standards. If the company cannot meet regulatory requirements and policy demands, it faces the risk of regulatory penalties that could adversely impact business operations.
Overall, medical device revenue accounts for 82.5% of the company's total, while functional skincare products and raw materials businesses combined represent less than 18%. Additionally, the company's gross margin declined from 91.58% in the same period last year to 90.68%.
**Capital Efficiency Concerns Emerging**
Jinbo Biology's surging sales expenses have become a profit-eroding "black hole." In the first half, sales expenses reached 181 million yuan, up 67.77% year-over-year, far exceeding revenue growth rates, with the sales expense ratio increasing 3.18 percentage points to 21.05%.
The company attributed the sales expense increase primarily to higher stock-based compensation amortization expenses and continued brand promotion investments, including increased offline promotional expenses for conferences and exhibitions, as well as online marketing costs.
Although Jinbo Biology emphasized R&D investment and new product development in its report, operating cash flow data reveals potential capital efficiency issues. Operating cash flow net inflows grew only 7.35% to 383 million yuan in the first half, significantly lower than sales expense growth. While the company expands market share through marketing strategies, cash collection speed has not improved synchronously, putting operational efficiency to the test.
In terms of R&D, Jinbo Biology's research and development expenses totaled 45.8 million yuan in H1 2025, up 85.43% year-over-year, representing 5.33% of revenue. Due to adjustments in certain R&D projects, increased impairment provisions for previously invested development expenditures led to asset impairment losses increasing 396.09% compared to the same period last year.
Comparing R&D and sales expenses over recent years, Jinbo Biology has not escaped the industry's "heavy marketing, light R&D" pattern. Financial data shows that from 2020 to 2024, sales expenses were 37.54 million, 55.97 million, 105 million, 165 million, and 259 million yuan respectively, while R&D expenses were 23.77 million, 29.07 million, 45.41 million, 84.98 million, and 71.21 million yuan respectively. R&D expense ratios were 14.74%, 12.45%, 11.64%, 10.89%, and 4.94% respectively, with sales expenses growing significantly faster than R&D expenses and R&D expense ratios showing an overall declining trend.
Additionally, in H1 2025, notes receivable increased 621.59% compared to the beginning of the period, accounts receivable rose 16.93%; inventory as a percentage of total assets increased from 4.7% at the beginning of the period to 6.47%, up 58.68% year-over-year; other current assets decreased 56.33% compared to the beginning of the period. The company recognized asset impairment losses of 10.82 million yuan and credit impairment losses of 3.69 million yuan in H1 2025, with credit impairment losses increasing 1,299.90% compared to the same period last year due to increased bad debt provisions from higher accounts receivable and notes receivable.
**Industry Competition Enters White-Hot Phase**
From an industry development perspective, China's collagen protein product market has shown gradual growth in recent years. According to consulting firm Frost & Sullivan, China's recombinant collagen protein product market will develop rapidly, growing at a compound annual growth rate of 44.93% to reach 58.57 billion yuan in 2025. By 2030, the market is expected to reach 219.38 billion yuan, achieving robust development.
Currently, Jinbo Biology holds all three Class III recombinant collagen protein medical device registration certificates available in China. However, competitors are accelerating efforts to capture market share. Bloomage Biotechnology Corporation Limited (688363.SH), GIANT BIOGENE (02367.HK), and Harbin Fuerjia Technology Co.,Ltd. (301371.SZ) have all applied for Class III recombinant collagen protein medical device products. Furthermore, Bloomage Biotechnology Corporation Limited has achieved full industry chain coverage from raw material R&D to market launch, providing comprehensive support from research, industrial, and market perspectives for collagen protein business development. GIANT BIOGENE has achieved steady performance growth through its "star product-driven + aesthetic medicine pipeline preparation" model.
Since 2025, eight departments including the National Health Commission have jointly launched special rectification actions targeting the aesthetic medicine industry, focusing on combating illegal injection products and false advertising. Against this backdrop, compliance costs are rising and terminal institutions are becoming more cautious in procurement.
Additionally, Meituan's aesthetic medicine data shows that Q1 2025 aesthetic medicine GMV (Gross Merchandise Value) exceeded 38 billion yuan, but customer acquisition costs have also climbed synchronously, with leading institutions' per-customer acquisition costs exceeding 3,000 yuan. Traditional direct customer models have been impacted by information flow advertising, with conversion rates dropping from 12% to 5%. For Jinbo Biology, which is highly dependent on B-end customers such as aesthetic medicine institutions and distributors, rising single-store customer acquisition costs and declining customer repurchase rates at aesthetic medicine institutions may impact its products.
Facing multiple challenges including growth deceleration, single-product profit pressure, and intensifying competition, Jinbo Biology's "high-growth myth" is facing severe tests. How to break through single-product dependence, improve operational efficiency, and accelerate R&D transformation amid stricter regulation and industry consolidation will be key to whether the company can navigate cycles and achieve sustainable development.
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