FAST NEWS: Giant Biogene gets collagen profit boost
The Latest: Chinese skin-care products maker Giant Biogene Holding Co. Ltd. (2367.HK) reported Monday its net profit jumped 47.3% to 983 million yuan ($138 million) in the first half of this year.
Looking Up: The company’s revenue surged 58.2% to 2.54 billion yuan on its continued addition of new products, expansion of sales channels, creation of star products and stronger marketing.
Take Note: The company’s selling and distribution expenses jumped 60.7% to 892 million yuan, outpacing revenue growth, as it spent heavily on online marketing to promote its online direct sales channels
Digging Deeper: Giant Biogene is China’s largest collagen skin care products maker and has grown rapidly from 957 million yuan in revenue in 2019 to 3.52 billion yuan last year. The company’s gross margin has exceeded 83% for the past five years, reflecting the high profitability of its business. It made its Hong Kong trading debut in late 2022, becoming the first listed company in its category. In May, the company raised a fresh HK$1.63 billion ($208 million) through a share placement to strengthen its core business and ecosystem layout.
Market Reaction: Giant Biogene shares fluctuated slightly on Tuesday, closing up down 0.2% at HK$40.25 by the midday break. The stock now trades in the middle of its 52-week range.
Translation by A. Au
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