Is the exclusive dividend gradually approaching its end? Jinbo Biologics has started to slow down

The wind of slowing demand is blowing towards "the first stock of recombinant collagen on the Beijing Stock Exchange."

On August 12, Jinbo Biotechnology (832982.BJ) reported that its revenue and net profit attributable to shareholders for the first half of 2025 were 859 million yuan and 392 million yuan, respectively, representing year-on-year growth of 42.43% and 26.65%.

Although revenue continues to grow, this represents a significant slowdown compared to Jinbo Biotechnology's past performance.

The year-on-year revenue growth for the first half of 2025 has slowed by 48 percentage points compared to the same period in 2024, marking the first time since Jinbo Biotechnology's listing on the Beijing Stock Exchange in July 2023 that the year-on-year revenue growth rate has dropped to 40%.

Such performance has impacted Jinbo Biotechnology's stock price, which fell by 5.33% by the close on August 12.

The slowdown in performance is mainly influenced by the decline in sales of Jinbo Biotechnology's medical device products that use recombinant collagen as the sole material (hereinafter referred to as "Wei Yimei").

For a long time, Wei Yimei enjoyed exclusive market benefits due to holding the only Class III medical device approval for injectable recombinant collagen products, with year-on-year revenue growth at one point exceeding 100%.

However, in the first half of 2025, Wei Yimei's revenue was 645 million yuan, only growing by 34.7% year-on-year, a slowdown of over 70 percentage points compared to the first half of 2024.

Jinbo Biotechnology's "anxiety" over the slowdown in Wei Yimei sales has become apparent.

In July of this year, Jinbo Biotechnology reached a cooperation with Meituan to promote Wei Yimei through an official partnership, launching a 10 billion yuan subsidy.

This comes less than a year after Jinbo Biotechnology publicly accused Meituan of not having authorization for Wei Yimei under the "10 billion yuan subsidy."

However, after Wei Yimei was launched under the "10 billion yuan subsidy," the terminal price has significantly declined.

At the end of July this year, on Meituan's "10 billion yuan subsidy" interface, the first order price for new customers of Wei Yimei at a certain medical beauty institution in Beijing was only 790 yuan, a drop of over 40% compared to last year's subsidized price.

Staff at the medical beauty institution told Xin Feng that after the first order consumption, the subsequent price for Wei Yimei was 1380 yuan per injection, a reduction of over 70% from the guide price of 6000 yuan per bottle.

On the flip side of the slowing growth in the medical beauty business, Jinbo Biotechnology's cosmetics revenue is showing high growth. In the first half of 2025, functional skincare products from brands like "Chongyuan" and "ProtYouth" generated 121 million yuan, a year-on-year increase of 152%.

The performance potential of this business is expected to be further unlocked.

In July of this year, Jinbo Biotechnology brought in Yangshengtang Co., Ltd. (hereinafter referred to as "Yangshengtang"), owned by China's former richest man Zhong Shanshan, with plans to establish a broader sales promotion system.

Yangshengtang's Nongfu Spring (9633.HK) is a leading enterprise in the domestic beverage industry, with a significant advantage in its extensive channel network layout Currently, Nongfu Spring is establishing a nationwide sales network through a first-level distribution model, covering channels such as large supermarkets, convenience stores, and catering groups.

With the help of Nongfu Spring's sales channels, the functional skincare products of Jinbo Bio's brands such as Chongyuan and ProtYouth are expected to enter more market areas.

However, as Jinbo Bio continues to increase its investment in cosmetics, the valuation scarcity of Jinbo Bio as an upstream medical beauty material supplier may face challenges.

Currently, Jinbo Bio's PE (TTM) is around 40 times, while the leading A-share cosmetics company Proya (603605.SH) is only around 20 times.

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