In the first half of the year, bloomage biotechnology corporation limited once again experienced a decline in revenue and net profit. The company achieved a revenue of 2.81 billion yuan, a year-on-year decrease of 8.61%; and a net profit of 0.342 billion yuan, a year-on-year decrease of 19.51%. Although the raw material business and medical terminal business performed well, the two major new sectors that have been strongly promoted in recent years, functional skincare products and functional food, have shown synchronous declines in growth.
According to the August 24th edition of the star Daily (Special Reporter Gao Qing), the semi-annual performance of bloomage biotechnology corporation limited, one of the 'three hyaluronic acid heroes', was announced on the evening of August 23rd. The financial report shows that bloomage biotechnology corporation limited achieved a revenue of 2.81 billion yuan in the first half of the year, a year-on-year decrease of 8.61%; and a net profit of 0.342 billion yuan, a year-on-year decrease of 19.51%.
This is not the first time that bloomage biotechnology corporation limited has experienced a decline in both revenue and net profit since its listing.
In the 2023 financial report, bloomage biotechnology corporation limited saw a simultaneous decline in revenue and net profit for the first time since its listing, with year-on-year decreases of 4.45% and 38.97%, respectively. However, in the performance of the 2024 Q1, the revenue and net profit of bloomage biotechnology corporation limited showed a rebound trend, with year-on-year increases of 4.24% and 21.39%, respectively.
Bloomage biotechnology corporation limited, which has been performing well, seems to have come to a crossroads, with the choice between growth and regression, and variables at any time.
Bloomage biotechnology corporation limited divides its operations into four sectors: raw material business, medical terminal business, functional skincare product business, and functional food business.
From the operating data of the reporting period, bloomage biotechnology corporation limited achieved a revenue of 0.63 billion yuan in the first half of the year in its raw material business, with a year-on-year growth rate of 11.02%. The overall gross margin of the raw material business (excluding Fosun Pharma) was 70.71%, showing good profitability and cost control level.
After 2-3 years of transformation, the medical terminal business sector has maintained high-speed growth, achieving revenue of 0.743 billion yuan, a year-on-year increase of 51.92%. Among them, the revenue of dermatological medical products reached 0.555 billion yuan, a substantial year-on-year increase of 70.14%, especially the differentiated advantage product, micro-crosslinked baby skin rejuvenation injections, with a revenue increase of over 200% year-on-year.
Although the raw material business and medical terminal business have performed well, bloomage biotechnology corporation limited's two major new sectors have both experienced simultaneous declines in growth. The functional skincare product business achieved revenue of 1.381 billion yuan in the first half of the year, a year-on-year decrease of 29.74%, accounting for 49.29% of the company's main business income.
The controversial functional food sector since its listing achieved revenue of 29.22 million yuan in the first half of the year, a decrease of 11.23% year-on-year.
In 2020, bloomage biotechnology corporation limited's functional skincare product sector experienced explosive growth in revenue, surpassing the raw material products for the first time and taking the top position in the company's revenue. The revenue proportion also rose from 8.79% in 2016 to 72.44% in 2022, making it the deserved “growth engine” of bloomage biotechnology corporation limited at the time.
Why is there a current trend of weak growth? Bloomage biotechnology corporation limited stated that since 2023, the company has actively proposed changes to the functional skincare product business, making phased adjustments to major brands. Currently, the phased adjustments to its major brands are still ongoing, and the effects of the changes still need time to materialize.
Regarding the “slowdown” of the functional skincare product sector, bloomage biotechnology corporation limited further explained that the company's main focus is on team adjustments, internal streamlining, strategy review, and corrective actions, resulting in tighter operational measures and incomplete market expansion, inevitably affecting the short-term operational results.
The functional food business within bloomage biotechnology corporation limited is still in an adjustment and early stage of consumer education within its system. Bloomage biotechnology corporation limited has stated that it has taken active measures, including establishing subsidiaries for a more independent market-oriented operation, to enhance business operation flexibility and vitality.
It must be said that “management” and “change” are the “high-frequency” words in this half-year report of bloomage biotechnology corporation limited, which is difficult not to be associated with the most significant event in the skincare industry in the first half of the year, namely, the series of disputes between the product Quadi original brand founder Zhifanfan and the company.
From the results, currently, bloomage biotechnology corporation limited is still undergoing phase adjustments for its major brands, and the reform effects still need time to show.
Hyaluronic acid track was once known as the "Maotai of women", according to Star's data, as of the time of publication, bloomage biotechnology corporation limited's market cap has evaporated by 42.83% in the past year to 25.462 billion yuan.