Hyaluronic Acid Giant Bloomage Biotech Increases by 30% in Net Profit in 2022 H1
- Chaileedo Press
- Jul 23, 2022
- 3 min read
Updated: Aug 25, 2022
Abstract: Chinese leading hyaluronic acid company Bloomage Biotech released its financial report in the first half of 2022, with revenue of USD 434 million, up by 51.62% year on year. High growth is sustained in its functional skincare products business as the sector enters the second era of cosmetics regulations, with technology R&D-type enterprises promising to grow from strength to strength.
On the evening of July 20, Bloomage Biotech released performance bulletin of the first half in 2022.In the first half, Bloomage Biotech's revenue reached USD 434 million, up by 51.62% year on year. The net profit attributable to the owner of the parent company was USD 69 million, up by 30.49% year on year. The net profit attributable to the owner of the parent company before non-recurring profits and losses was USD 60 million, up by 34.04% year on year. Total assets at the end of the year in the report amounted to USD 1.157 billion, an increase of 4.56% compared with the beginning of the period.
In the first half of 2022, Bloomage Biotech continued to steadily advance the "four-wheels-driven" business layout, resulting in its operating revenue achieving a relatively rapid growth. The sales revenue of functional skincare products increased by over 75% year on year, leading to a rapid growth in the company's total revenue. As for raw materials business, the company enjoys robust core barrier and higher market share, hence maintaining a stable growth over the long haul.
Its four major brands have made impressive results, and since 2018, Bloomage Biotech has been expanding its reach to aesthetic medicine, pioneering in functional skincare products across China. At present, the company has formed four brand matrices featured by BIOHYALUX, QUADHA), Bio-MESO, MEDREPAIR. These four brands have survived the initial growth period, forming their own uniqueness with a increasingly solid consumer base. In June, Quadha, with a four-year-long establishment, follows suit by joining the 10-bn-level Chinese brands, following the BIOHYALUS'x sales reaching USD 181 million at the end of last year. The four brands have their own core product, including HA BARRIER CONDITIONING SINGLE USE ESSENCE of BIOHYALUX, Superior Queen Essence Ampoules Serum with HA and Copper Peptide of Quadha, Saccharomyces Rice Radiant Essential Toner of Bio-MESO, MEDREPAIR REJUVENATING REPAIRING MASK of Medrepair, etc.
The Regulations for the Supervision and Administration of Cosmetics put into effect on January 1, 2021 offers more scientific and strict management for raw material, product and safety, furthering the divergence of the whole beauty industry. Factories are becoming standardized, and cosmetic labels require not only to note "total ingredients", but also the corresponding "net content". This forces the whole industry to add efficacy ingredients according to specific standards. Such regulations bring forth opportunities and challenges for the entire market of cosmetics and phase out companies with emphasis on marketing over R&D, allowing technology R&D companies that operate in compliance and embraces changes to gain strength. Bloomage Biotech's investment in R&D increased significantly in the first half of 2022, up by 109.24% year on year to USD 12.0168 million, accounting for 6.49% of its revenue, the highest share within nearly three years.
Recent years witness not just the regulatory shift, but how the market has gone gradually toward functional skincare products. Consumers become more prudent and strict about skin care products for they are more willing to trust the original effect from the ingredients and formulas per se than the elaborate marketing.
In Chinese consumer market of functional skin care product, Bloomage Biotech, Botanee, Jahwa are all leading enterprises within the industry. According to the 2021's financial report, these three companies invested 280 million yuan, 113 million yuan and 163 million yuan in R&D over the past year, accounting for 5.75%, 2.8% and 2.1% of respective revenue. All of them boast their own R&D center, with great competence of each's R&D team. As for the present situation of the market, enterprises with solid R&D strength fare better over the long haul.
Zhao Yan,the chairman of Bloomage Biotech,repeatedly highlights within the company that "behind the rise of Chinese brands is the confidence in their own product, of which the underpinning is confidence in their technology." Bloomage Biotech's R&D team is the epitome of Chinese brand's R&D strength. For some time to come, we are sure that Chinese enterprises represented by Bloomage Biotech will secure their own place in the international arena.
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