Bloomage Biotech Delivers Three-Consecutive-Years Growth
- Chaileedo Press
- Mar 31, 2023
- 3 min read
In 2022, BIOHYALUX and QuadHA at Bloomage Biotech achieved revenues of 1.385 billion yuan ($201.6 million) and 1.368 billion yuan ($199.1 million) respectively. Both of them exceeded one billion yuan.
Today, Bloomage Biotech announced its financial results for 2022. According to the financial results, Bloomage Biotech's revenue reached 6.359 billion yuan ($925.6 million) in 2022, an increase of 28.53% year-on-year. Its net profit increased 24.11% year-on-year from the previous year to 971 million yuan ($141.3 million).
Meanwhile, during the reporting period, its net profit attributable to owners of the parent company, excluding non-recurring gains and losses, increased by 30.06% year-on-year. CHAILEEDO noted that its performance has been growing steadily in the past three years and the net profit increase in 2022 was the highest in the past three years.
Functional skincare products business revenue reached 4.6 billion yuan ($669.6 million)
Public information shows that Bloomage Biotech is a well-known biotechnology company and biomaterials company, mainly focusing on the development and industrialization of functional sugars, proteins, peptides, amino acids, nucleotides, natural active compounds and other bioactives that contribute to life and health. The company's business currently covers bioactive ingredients, medical end products, functional skin care products.
For the growth, Bloomage Biotech clearly pointed out in the financial report, "The overall revenue scale of the company achieved steady growth. The scale effect gradually emerged. The company's profitability was further enhanced. During the reporting period, the whole industry chain integration model was further developed, supported by the underlying research and development capabilities, manufacturing and industrial transformation capabilities. The functional skin care products business continued to grow. "
According to the financial report, Bloomage Biotech functional skincare products business operating income rose 38.80% year-on-year to 4.607 billion yuan ($670.6 million) in 2022. CHAILEEDO found that Bloomage Biotech functional skin care products has achieved three consecutive years of growth. The business accounted for the company's total operating income in 2022 has been more than 70%.
The official website shows that the company currently has several brands BIOHYALUX, QUADHA, MEDREPAIR, Bio-MESO, BLOOMCARE. The product range includes single-use serum, various types of creams and lotions, masks, hand masks, eye masks, sprays, mother and baby care, scalp care and some make-up products.
According to the financial results, the revenue of BIOHYALUX, QUADHA, MEDREPAIR and Bio-MESO were 1.385 billion yuan ($201.6 million), 1.368 billion yuan ($199.1 million), 605 million yuan ($88.1 million) and 898 million yuan ($130.7 million) respectively in 2022. It is worth mentioning that Bio-MESO was the only brand with a growth rate of over 100% this year. It enjoyed year-on-year increase of 106.4%.
In a previous investor communication, Bloomage Biotechlogicals also revealed that "Bio-MESO is a fermented skin care brand with bio-actives as its core ingredient. This year's rapid sales growth, mainly relying on the brown rice series, has resulted in a significant increase in consumer love. Its revenue was driven by the repurchase rate and significant growth."
The financial results also disclosed that ingredients business of Bloomage Biotech achieved revenue of 980 million yuan ($142.7 million) in 2022, an increase of 8.31% year-on-year, accounting for 15.41% of the company's main business revenue. Bloomage Biotech has also disclosed that "three new cosmetic ingredients have been filed in 2022, namely N-acetylneuraminic acid, zinc hydrolyzed hyaluronate and calcium hydrolyzed hyaluronate."
The sales ratio on Douyin (Chinese version of TikTok) increased to about 31%
It is understood that, at present, Bloomage Biotech functional cosmetics are mainly knotted offline and online two channels for its sales. The online channel mainly adopts the direct sales model, including the platform cooperation model and its own platform model.
The offline channel adopts a distributor sales-based model, selling products to distributors who then sell to end customers separately. During the reporting period, Bloomage Biotech perfected its omni-channel deployment by opening offline physical shops and stationing offline counters to achieve multi-scene user reach.
"Sales on Douyin currently account for 31% of the functional skin care business, an increase of 14%." Bloomage Biotech said, "In order to further optimize the channel structure, the company will strategically increase the share of the brand's direct channels, improve the stability of sales in channels such as the official flagship shop, brand live streaming, private domain and offline shops. The company will strategically increase daily sales at the same time, as well as develop differentiation strategies."
As for the main channel building direction, Bloomage Biotech also revealed the future development direction of the functional skin care business. It pointed out that the company would focus on "differential ingredient combinations", "active substance delivery control technology", "active substance efficacy extension in formulations", "biotechnology packaging materials" and "process and technology innovation" to continuously enhance the technological barriers and market competitiveness of its products.
In terms of functional cosmetic branding, on the one hand, Bloomage Biotech will consolidate its heroic single products or series, making them the brand's basic foundation and enhancing user stickiness. On the other hand, the brand will launch new products with more strategic focus to enrich the existing product line.
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