First Stock of Recombinant Collagen on the Beijing Stock Exchange, Jinbo Bio, Released
- Chaileedo Press
- Jul 20, 2023
- 7 min read
In 2022, gross margin performance of Jinbo Bio. has surpassed Bloomage Biotech, Trauer Biotech, and Vazyme. It exceeded the average as well as Giant Bio., which is already listed on the Hong Kong Stock Exchange.
Today (July 20), Shanxi Jinbo Biopharmaceutical Ltd. (stock abbreviation: N Jinbo) goes public in the Beijing Stock Exchange, stock code "832982". The opening price is 117 yuan ($16.3) / share. The total market value of 7.878 billion yuan ($1.1 billion). Thus, "the first stock of recombinant collagen on the Beijing Stock Exchange" was officially established.
Net profit of 181% increase in Q1 of 2023
It is understood that Shanxi Jinbo Biopharmaceutical Ltd. (hereinafter Jinbo Bio.) was established in March 2008. The company's main business is various types of medical devices, functional skin care products, research and development, production and sales based a recombinant collagen products and anti-HPV biological protein products. It has established the whole industry chain business system from the upstream functional protein to the medical equipment, functional skincare products.
As of the signing date of the prospectus, Yang Xia directly holds 64.33% of the shares of Jinbo Bio and is the controlling shareholder and actual controller of the company. Public information shows that the issue price of Jinbo Bio is 49 yuan ($6.8)/share. In fact, in the process of IPO, Jinbo Bio. has twice lowered the company's offering price, from 117 yuan ($16.3)/ share down to 50 yuan ($7)/ share, and then again down to 49 yuan ($6.8) / share, the company's offering price-earnings ratio of 32.44 times.
It is reported that Jinbo Bio. plans to raise 470 million yuan ($65.4 million), of which 200 million yuan ($27.8 million) will be used for the R&D project of recombinant humanized collagen protein new materials and injection products, 150 million yuan ($20.9 million) for brand building and marketing projects, and 120 million yuan ($16.7 million) to supplement the company's working capital.
Successful listing on the Beijing Stock Exchange of Jinbo Bio. is due to its impressive performance. According to Jinbo Bio. financial reports from 2018 to 2022, the company's revenue was 129 million yuan ($18 million), 156 million yuan ($21.7 million), 161 million yuan ($22.4 million), 233 million yuan ($32.4 million), and 390 million yuan ($54.3 million), with year-on-year growth rates of 25%, 21.77%, 3.42%, 44.75%, and 67%, respectively. Net profits were 45.5 million yuan ($6.3 million), 42.18 million yuan ($5.9 million), 32.27 million yuan ($4.5 million), 56.9 million yuan ($7.9 million), and 109 million yuan ($15.2 million), with year-on-year growth rates of 31.57%, -8.7%, -23.8%, 79.62%, and 90%, respectively.
(Data source: Jinbo Bio. Credit: CHAILEEDO)
It is worth mentioning that in the first quarter of this year, the revenue of Jinbo Bio. increased by 98.28% year-on-year to 128 million yuan ($17.8 million), and net profit increased by 180.94% year-on-year to 43 million yuan ($6 million). The net profit of just one quarter is equivalent to the full-year net profit of 2019. It is easy to see that Jinbo Bio. is in a steady growth trend.
Recombinant collagen products account for over 80% of revenue, with gradual improvement in gross margins
It is reported that Jinbo Bio. undertakes main business includes two categories: recombinant collagen protein products and anti-HPV biological protein products. In the field of recombinant collagen protein products, the company's main products include recombinant Type III humanized collagen protein lyophilized fibers, wound and mucosal repair dressings, functional skincare products, etc. Its main products in the field of anti-HPV biological protein products include anti-HPV biological protein dressings.
In terms of revenue composition, the proportion of revenue contributed by recombinant collagen protein products has been increasing year by year. According to the prospectus. From 2020 to 2022, this category of products achieved revenue of approximately 101 million yuan ($14 million), 163 million yuan ($22.7 million), and 334 million yuan ($46.5 million), with proportions of 62.96%, 69.81%, and 85.6%, respectively.
(Credit: from Jinbo Bio.)
Within the recombinant collagen protein category, its functional skincare products achieved revenue of 54 million yuan ($7.5 million), 70 million yuan ($9.7 million), and 66 million yuan ($9.2 million) from 2020 to 2022, with proportions of revenue of 33.89%, 30.1%, and 16.91%, respectively. It is reported that the company's functional skincare products mainly include recombinant collagen protein essence, recombinant collagen protein mask, recombinant collagen protein cream, etc. The company's own brands include 164.88°Jipin, Chongyuan, etc.
Jinbo Bio. stated that its future plans are mainly focused on the R&D of the core material of recombinant humanized collagen protein for various medical and daily skincare scenarios, adopting a development strategy of "biological new materials + medical scenario applications + daily skincare scenario applications", committed to the R&D and industrialization of various types of recombinant humanized collagen protein biological new materials, and continuously expanding their use in various medical and daily skincare scenarios, from surface to body cavities and internally.
It is reported that main business revenue of Jinbo Bio. can be divided into two sales models: OBM and ODM. From the revenue generated by the above two sales models, over 80% of Jinbo Bio. revenue comes from the OBM model. From 2020 to 2022, the company achieved operating revenue of approximately 128 million yuan ($17.8 million), 181 million yuan ($25.2 million), and 344 million yuan ($47.9 million) under this model, with proportions of 79.67%, 77.66%, and 88.12%, respectively.
(Credit: from Jinob Bio.)
It is worth noting that compared to comparable companies in the same industry, the gross margin of Jinbo Bio. is also relatively outstanding. According to the prospectus, compared with five comparable companies in the same industry, in 2022, gross margin performance of Jinbo Bio. has surpassed Bloomage Biotech, Trauer Biotech, and Vazyme. It exceeded the average as well as Giant Bio., which is already listed on the Hong Kong Stock Exchange.
(Credit: from Jinbo Bio.)
The overall high gross margin is related to the high gross margins of Jinbo Bio two main categories of products. Especially in the field of recombinant collagen protein products, according to the prospectus, from 2020 to 2022, the gross margin of this product increased from less than 80% to 86.05%, while the gross margin of anti-HPV biological protein products has remained above 86%. Jinbo Bio. stated that the increase in gross margin in 2021 and 2022 was mainly due to the increased sales proportion of the third category of medical device products, "recombinant Type III humanized collagen protein lyophilized fibers", which has a higher gross margin.
(Credit: from Jinbo Bio.)
In addition, as a high-tech enterprise, Jinbo Bio. attaches great importance to R&D. According to the prospectus, as of the end of the reporting period, Jinbo Biotechnology had a total of 147 R&D personnel, accounting for 23.82% of the total number of employees. In the past three years, the R&D expenditures of Jinbo Bio. have shown an increasing trend year by year. According to the prospectus, from 2020 to 2022, its R&D expenditures were 23.77 million yuan ($3.3 million), 29.07 million yuan ($4 million), and 45.41 million yuan ($6.3 million), accounting for proportions of revenue of 14.74%, 12.45%, and 11.64%, respectively.
In terms of R&D investment ratio, compared with five comparable companies, the R&D investment ratio of Jinbo Bio. in 2020 to 2022 was far higher than the industry average for three consecutive years. Jinbo Bio. stated that this is mainly because the company is a biological material enterprise driven by core innovation in functional protein systems, and the company continues to increase its R&D investment, resulting in significant growth in R&D investment.
(Credit: from Jinbo Bio.)
According to the prospectus, under strong investment in R&D, Jinbo Bio. currently has 41 authorized patents in China, including 31 invention patents.
Recombinant collagen is in a craze
It is reported that there are about 19 major collagen production companies in China, most of which are animal-based collagen companies. Since 2000, recombinant collagen companies are popular, most of which not only have raw material businesses for recombinant collagen, but also actively deploy downstream areas such as medical beauty, skincare, and food.
According to a research report by Everbright Securities, "the collagen market in China has entered a golden growth period. Compared with animal-based collagen, the growth potential of recombinant collagen is greater." According to Frost Sullivan, it is estimated that by 2027, the overall market size of collagen in China will reach 173.8 billion yuan ($24.2 billion), of which the market size of recombinant collagen products will be 108.3 billion yuan ($15.1 billion), accounting for 62.3%.
More importantly, compared with international companies, Chinese companies represented by Giant Bio. and Jinbo Bio. have taken the leading position in academic research and commercialization of recombinant collagen, and have taken the lead. For example, Gaint Bio. was successfully listed on the Hong Kong Stock Exchange, and now Jinbo Bio. has also rung the bell on the Beijing Stock Exchange. In addition, enterprises such as Trauer Biotechnology are in the queue for IPO. Last August, Trautec completed nearly 200 million yuan ($27.8 million) in Series A financing, led by Shiseido’s Ziyue Fund. The popularity of the recombinant collagen sector is evident, and there is a great potential for explosive growth in this field.
In fact, as far as the Chinese domestic market is concerned, the collagen market is expanding and growing faster than the global market. According to data from CHAILEEDO, the market size of recombinant collagen in China in 2022 was 18.5 billion yuan ($2.6 billion), a year-on-year increase of 71.3%. In terms of products, functional skincare products account for 43% of the market size of recombinant collagen, and medical dressings account for 44%. It is expected that by 2023, the market size of functional skincare products of recombinant collagen will surpass medical dressings and reach 14.25 billion yuan ($2 billion).
"China is expected to overtake international brands in the field of recombinant collagen." Many industry veterans have such views. With leading enterprises entering the capital market, upstream and downstream enterprises in the industry chain are constantly deploying recombinant collagen in different fields and application directions, and the Chiense domestic recombinant collagen market is expected to further develop.
For example, Jinbo Bio. successfully developed recombinant type III human collagen, which is currently the only injectable recombinant type III human collagen biological medical material. At the same time, Jinbo Bio. has developed three types of medical device products "recombinant type III human collagen lyophilized fibers" using this material as the only component, which was approved by the National Medical Products Administration for listing in June 2021 for facial wrinkle correction.
As far as Jinbo Bio. is concerned, the biopharmaceutical and biomaterial industry that it is in belongs to is a key development industry in China's 14th Five-Year Plan. In January 2023, the National Medical Products Administration issued Announcement No. 14 of 2023 on the industry standard YY/T 1888-2023 "Recombinant Human Collagen", and the industry standard for recombinant human collagen was officially formed. This has further promoted the benign development of the recombinant collagen sector.
Correspondingly, in the fast-growing sector of recombinant collagen,successful listing of Jinbo Bio also means that it has taken the lead. At the same time, with the help of the capital market, the company is bound to enter a new period of high-speed development.
Comentarios