The former "hyaluronic acid king" is experiencing growing pains in its performance growth.
On August 27, Bloomage Biotechnology Corporation Limited (688363.SH) reported its worst half-year results since listing, with all three core metrics declining collectively: In the first half of 2025, Bloomage Biotechnology achieved revenue of 2.261 billion yuan, down 19.57% year-on-year; net profit attributable to shareholders was 221 million yuan, down 35.38% year-on-year; and non-GAAP net profit was 173 million yuan, down 45% year-on-year.
"Reform" has become Bloomage Biotechnology's keyword. The company defined 2024 as the "year of transformation." At the end of the first quarter of 2025, reforms were further upgraded: Chairman and General Manager Zhao Yan personally took direct management of the "dermatological science innovation and transformation business," directly overseeing the brand and communication management center, BM Muscle Active, and Mibeier brands, attempting to accelerate strategic implementation through direct management intervention.
However, judging from performance feedback, the reform effects have not yet transmitted to the operational level. Regarding the reasons for performance decline, Bloomage Biotechnology attributed it to the year-on-year decrease in revenue from the "dermatological science innovation and transformation business."
**Core Business Becomes a Drag**
Bloomage Biotechnology frankly admitted in its half-year report that "after the general manager's direct management involvement, systematic adjustments were made to business philosophy, business direction, and talent organization models, with related adjustments currently still in the early stages."
It was noted that Bloomage Biotechnology's revenue and net profit growth in the first half of 2025 were at their lowest levels in six years. "As a company with biotechnology at its core, Bloomage Biotechnology continues to increase R&D spending, but has been unable to convert this into corresponding revenue growth in the short term," said Pan Jun, a visiting professor at Donghua University. Under intense competition in online channels, Bloomage Biotechnology's marketing expenses remain high, further compressing profit growth space and putting pressure on cash flow.
Behind the performance decline is the structural collapse of Bloomage Biotechnology's core business: As the main force that once supported the company's performance, the continued shrinkage of the dermatological science innovation and transformation business directly reduced overall revenue scale. In the first half of 2025, the company's dermatological science innovation and transformation business achieved revenue of 912 million yuan, down 33.97% year-on-year, accounting for 40.36% of main business revenue. This business had already declined 31.62% year-on-year in 2024, with the decline further expanding.
In response, the company clearly stated in its half-year report that the dermatological science innovation and transformation business is transitioning from past traffic-driven sales logic to brand communication logic based on rigorous scientific evidence, hoping to achieve a higher customer acquisition model through investment; simultaneously, the company places great emphasis on deep interaction with consumers in high-quality content platforms such as Xiaohongshu and WeChat, ultimately achieving a marketing closed loop of "content seeding—brand building—sales conversion."
**Senior Management Overhaul**
In addition to the core skincare business, Bloomage Biotechnology's other two major business segments—raw materials business and medical terminal business—also experienced varying degrees of decline in the first half. Among them, the raw materials business achieved revenue of 626 million yuan in the first half, down slightly by 0.58% year-on-year; the medical terminal business achieved revenue of 673 million yuan, accounting for 29.77% of main business revenue, down 9.44% year-on-year.
Additionally, Bloomage Biotechnology's R&D projects in the first half decreased by 88 compared to 2024, with R&D investment mainly concentrated in raw materials and medical terminal businesses. In the first half of 2025, through continued in-depth research on the impact of extracellular matrix (ECM) on human aging, Bloomage Biotechnology launched compliant hydrating products "Runbaihan•Bobo" and compliant kinetic essence "Runzhi•Titou." However, the company's new products have not yet brought new growth to the medical aesthetics business.
Meanwhile, Bloomage Biotechnology's senior management structure is also undergoing a "major overhaul." The half-year report shows that during the reporting period, 11 directors, supervisors, and senior executives of Bloomage Biotechnology left their positions. The company held a shareholders' meeting on June 11, 2025, electing members of the third board of directors, and convened a board meeting on the same day to appoint new senior management personnel.
The announcement stated that Bloomage Biotechnology incurred approximately 29 million yuan in management expenses due to organizational structure upgrades, affecting short-term profit and loss but laying a solid foundation for the company's long-term development.
It should be noted that according to information disclosed in the half-year report, Bloomage Biotechnology's wholly-owned Hong Kong subsidiary Julong Limited has formally initiated international arbitration regarding its cooperation agreement dispute with Korean biopharmaceutical company Medytox, with preliminary claim amount reaching 750 million Hong Kong dollars.
Currently, all three arbitrators of the arbitration tribunal have been confirmed, and the tribunal formation procedure is complete. As the arbitration applicant, Julong accused Medytox of failing to provide Type A botulinum toxin products suitable for sale in the Chinese market according to contract agreements, causing the cooperation project to be unrealizable in the foreseeable future and rendering the cooperation purpose void.
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