FAST NEWS: Giant Biogene initiates dividends as profit jumps

The latest: Chinese skin-care products maker Giant Biogene Holding Co. Ltd. (2367.HK) announced Monday its net profit last year jumped 44.9% to 1.45 billion yuan ($201 million). The company also declared a first-ever final dividend of 0.44 yuan per share, plus a special dividend of 0.45 yuan per share.

Looking up: The company’s revenue jumped 49% to 3.52 billion yuan last year on its addition of new products, expansion of online channels, and the creation of “star products” to strengthen its brand awareness.

Take Note: Its gross margin declined from 84.4% in 2022 to 83.6% last year due to an increase in cost of sales and addition of new products.

Digging Deeper: Giant Biogene is China’s largest collagen skin care products maker and has posted rapid revenue growth from 957 million yuan in 2019 to 3.52 billion yuan last year. Its net profit increased from 575 million yuan to 1.45 billion yuan over that period. 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 field in its category.

Market Reaction: Giant Biogene shares dipped on Tuesday, closing down 2.5% at HK$42.20 by the midday break. The stock now trades in the middle of its 52-week range.

Translation by A. Au

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