① In terms of new products, the world's first organic crosslinked hyaluronic acid product “Haimei Moon White” developed by Haohai Biotech was successfully approved in July of this year, and the intelligent crosslinked collagen product entered the registration and inspection stage in June; ② sales revenue of artificial lenses declined year-on-year due to a drop in the selected price of volume procurement; ③ the consumer market was exhausted, compounded by an increase in the number of competitors, and the corneal shaping mirror business revenue declined.
“Science and Technology Innovation Board Daily”, August 16 (Reporter Qiu Siyu) Today (August 16), Haohai Biotech, one of the “Three Musketeers of Medicine and Aesthetics,” took the lead in handing over a “report card” for the first half of 2024.
During the reporting period, Haohai Biotech achieved operating income of about 1.404 billion yuan, an increase of 6.97% over the previous year; net profit to mother was about 0.235 billion yuan, an increase of 14.64% over the previous year.
In terms of single-quarter performance, Haohai Biotech achieved net profit of 0.138 billion yuan in the second quarter, up 11.03% year on year and 41.17% month on month.
“Sea Charm” quickly increased revenue from hyaluronic acid products by more than 50% year on year
The market conditions in Haohai Biotech's various business lines are mixed.
During the reporting period, medical beauty and wound care products achieved revenue of 0.634 billion yuan, an increase of 25.72% over the previous year, accounting for 45.22% of total revenue; ophthalmology products experienced a decline, achieving revenue of 0.452 billion yuan in the first half of the year, a decrease of 6.02% over the previous year.
In terms of medical and aesthetic business, by product, Haohai Biotech's hyaluronic acid products achieved sales revenue of 0.417 billion yuan, an increase of 51.3% over the previous year. The main reason for the increase was the rapid increase in the third-generation hyaluronic acid product “Sea Charm”. In addition, revenue from first-generation and second-generation hyaluronic acid products also achieved significant growth.
In terms of new products, the world's first organic crosslinked hyaluronic acid product “Haimei Moon White” developed by Haohai Biotech was successfully approved in July of this year. According to reports, this product has characteristics such as better long-term safety, longer efficacy, and can stimulate local collagen growth.
However, optoelectronic medical and aesthetic revenue did not increase but declined. During the reporting period, the company's RF and laser equipment product line achieved revenue of 0.136 billion yuan, a year-on-year decrease of 11.54%. According to reports, Haohai Biotech's revenue for this product line mainly comes from its subsidiary Ohuamecco. EndyMed, an Israeli listed company owned by Ohuamecco, focuses on RF beauty equipment.
Haohai Biotech said that the relevant regulations issued by the State Drug Administration in 2022 clearly upgrade the regulatory category of radiofrequency treatment equipment products from Class II to Class III medical devices. From April 1, 2024, products related to medical device registration without obtaining a medical device registration certificate in accordance with the law may not be produced, imported, or sold. Haohai Biotech admits that this policy has had a major negative impact on domestic sales of some of the company's products. In July of this year, the State Drug Administration extended the period until April 1, 2026, and the company is proceeding with the registration process for related products.
It is worth mentioning that in recent years, the decline in hyaluronic acid's ability to absorb gold has become a consensus in the medical and aesthetic industry. However, recombinant collagen products have excellent characteristics and are regarded by the industry as the next “hyaluronic acid”, showing similar market potential and application prospects to hyaluronic acid. Haohai Biotech also has plans for this. Financial reports show that the company's intelligently crosslinked collagen products will enter the registration and inspection stage in June 2024.
Revenue from intraocular lenses and corneal reshaping lenses is declining
Contrary to the growth in the hyaluronic acid business, revenue from the ophthalmology business, which includes the cataract surgery product line, myopia prevention, control, and refractive correction product line, declined to varying degrees.
The cataract surgery product line includes intraocular lenses and ophthalmic viscoelastic agents. Haohai Biotech said that due to a sharp drop in the price selected for volume procurement, the company's sales revenue for intraocular lens products declined year-on-year during the reporting period. However, it is worth mentioning that sales of the company's intraocular lens products increased. Sales of mid-range pre-assembled aspherical products and high-end regional refractive bifocal products increased 25% and 12%, respectively, over the same period last year.
The myopia prevention, control and refractive correction product line includes optometry materials and optometry terminal products. The revenue of optical materials in the first half of the year fell slightly by 2.6% year on year. Revenue fluctuations were mainly related to the cyclical impact of downstream manufacturers on the preparation of raw materials. Revenue from optometry terminal products also fell slightly by 2.26% year on year. Haohai Biotech explained that it was mainly due to the decline in revenue from corneal reshaping lens products. Since the second half of last year, the domestic ophthalmology consumer market has been fatigued, and the approval of several new corneal reshaping mirror products has intensified internal competition.
During the reporting period, the company's overall gross margin was 70.51%, a slight decrease compared to 71.04% in the same period last year. In response, Haohai Biotech explained that mainly products such as ophthalmic intraocular lenses, ophthalmic viscoelastic agents, and orthopedic sodium hyaluronate injections were in a new round of national or provincial procurement implementation during the reporting period. Product sales prices declined, which basically offset the contribution of increased sales of hyaluronic acid products to the overall increase in gross margin.
In addition, Haohai Biotech invested 0.125 billion yuan in R&D, an increase of 23.68% over the previous year. In addition to the new hyaluronic acid product “Haimei Moon White” and the recombinant collagen product mentioned above, sodium hyaluronate eye drop products were approved in March of this year. The biogel project for intraocular fillers and the hydrophobic mold astigmatism correction aspherical intraocular lens project entered the registration phase in January and February of this year, respectively.