According to the third quarter report of 2024 released today, with the support of the core product 'Viyamei', Jinbo Biology (832982.BJ) still maintained high-speed growth in performance, but the growth rates of revenue and net profit attributable to shareholders both slowed down compared to the same period last year.

It is worth noting that the expansion of the sales team and other reasons led to a rapid increase in the company's sales expenses. In addition, Viyamei is also facing risks such as price wars at the end and an increase in competitors. To address this, Jinbo Biology has had to frequently speak out against internet sales platforms.

Tonight, Jinbo Biology released its third quarter report for 2024. In the first three quarters, the company achieved revenue of 0.988 billion yuan, a year-on-year increase of 91.16%, and a net profit attributable to shareholders of 0.52 billion yuan, a year-on-year increase of 170.42%. In the same period last year, the company's total revenue and net profit attributable to shareholders increased by 105.64% and 173.75% year-on-year, respectively.

Looking at the quarters, according to the calculation of journalists from CaiLian News, in Q3, the company achieved a total revenue of 0.386 billion yuan, a year-on-year increase of 92.07%; and a net profit attributable to shareholders of 0.21 billion yuan, a year-on-year increase of 153.96%.

Regarding the growth in revenue, Jinbo Biology mentioned that it was mainly due to the increase in revenue from medical devices. The key products of medical devices are three types of implant products with A-type recombinant human collagen as the core component. At the same time, due to the expansion of the sales team, the increase in sales personnel wages and expenses, and the intensified brand promotion efforts, advertising and promotion expenses have increased. This led to the company's sales expenses climbing to 0.172 billion yuan in the first three quarters of this year, a 55.51% year-on-year increase.

Jinbo Biology's main product Viyamei is facing increasing competitive pressure. On one hand, the product is plagued by price wars. On September 20, Jinbo Biology issued a statement on its official WeChat account addressing the widespread confusion among consumers. They mentioned that Viyamei was included in the 'Billion Subsidy' channel for medical beauty in the Meituan platform under the 'Hydrating Light' promotion. However, some businesses participating in the promotion did not have authorization or purchase directly from authorized channels; the company has sent a letter demanding Meituan to immediately remove Viyamei-related 'Billion Subsidy' promotional pages.

As early as April this year, Jinbo Biology issued a statement of 'two announcements and two deletions', bringing the contradictions between medical aesthetic manufacturers and internet sales platforms to the forefront. The statement directly pointed out that So-Young International had illegally promoted Viyamei at low prices, disrupting market prices. At that time, journalists from CaiLian News found that on some e-commerce platforms like So-Young International, the selling price of Viyamei products from certain institutions was as low as two-fifths of Jinbo Biology's reference average price.

On the other hand, the race for recombinant collagen implant products is becoming increasingly crowded. According to the public transfer prospectus of So-young International (873474.NQ), the company's recombinant type III collagen implant product for facial injection filling is currently in the process of registration application, and is expected to be approved by the end of this year. In addition, So-young International has also laid out a variety of three types of medical equipment including recombinant collagen lyophilized fiber and medical recombinant collagen absorbable repair dressings. At the same time, Giant Biotechnology (02367.HK) has also predicted in an earnings conference that the company's fine line filling products and recombinant collagen lyophilized fiber will obtain registration certificates in the first quarter of next year, but the final decision on the certification of medical beauty products depends on the approval of the NMPA.