On the evening of August 22, Shanxi Jinbo Bio-Pharmaceutical Co., Ltd. (hereinafter referred to as “Shanxi Jinbo”) released its 2024 semi-annual report.
The financial report shows that in the first half of 2024, Shanxi Jinbo achieved operating revenue of 602 million yuan ($84.37 million), a significant year-on-year increase of 90.59%. The net profit attributable to shareholders of the listed company surged by 182.88% year-on-year to 309 million yuan ($43.3 million), while the net profit attributable to shareholders after deducting non-recurring gains and losses was 303 million yuan ($42.47 million), an increase of 193.34% compared to the same period last year.
Regarding the outstanding performance in the first half of this year, Shanxi Jinbo summarized in the financial report that during this reporting period, the company, under the leadership of management, carried out various tasks in an orderly manner according to the annual business plan. This included, but was not limited to, continuously increasing R&D investment, actively developing new products, and striving to expand the market, thereby achieving sustainable revenue growth.
Public information shows that Shanxi Jinbo was established in 2008 and began its IPO journey on June 1, 2020. After three years, it was finally listed on the Beijing Stock Exchange on July 20, 2023, becoming the first “recombinant collagen” stock on the Beijing Stock Exchange and the second “recombinant collagen” stock in China after Giant Biogene.
Currently, Shanxi Jinbo’s business segments are divided into medical devices, functional skincare products, and raw materials. In the first half of this year, the medical devices business, which is a key focus for Shanxi Jinbo, achieved revenue of 530 million yuan ($74.28 million), a year-on-year increase of 91.84%, accounting for about 88% of total revenue. The gross profit margin was 94.43%, an increase of 1.7 percentage points compared to the same period last year.
Regarding the significant growth in revenue from the medical devices division, Shanxi Jinbo explained that this was mainly due to increased sales of single-material medical device products, particularly the key medical device products with Type A recombinant humanized collagen as the core ingredient—implantable products (Class III medical devices).
For example, the recombinant Type III humanized collagen lyophilized fibers in the implantable products focused on correcting periorbital crow’s feet, glabellar lines, and forehead wrinkles in the first half of this year, mainly promoting the self-owned brand “Wei Yi Mei” through direct sales. By the end of the reporting period, it had covered about 3,000 terminal medical institutions.
Meanwhile, the revenue from the functional skincare business recorded 47.97 million yuan ($6.72 million), a year-on-year increase of 53.94%, with a gross profit margin of 64.76%, roughly the same as the previous year. The success of this segment in the first half of this year is attributed to two measures: firstly, developing raw materials tailored to the needs of major customers and developing skincare products with specific functions; secondly, building its own brand around the company’s innovative material advantages.
The revenue from the raw materials business recorded 23.81 million yuan ($3.34 million), a significant increase of 180.07% compared to 4.04 million yuan ($566,200) in the same period last year. This substantial growth in revenue is attributed to Shanxi Jinbo’s expertise in developing and industrializing new functional protein materials through original innovation, particularly Type A recombinant humanized collagen, whose raw material products have strong market competitiveness.
It is understood that Shanxi Jinbo’s raw materials currently include high-end medical implant-grade, medical topical-grade, and cosmetic-grade raw materials. Their customers cover domestic medical device and cosmetics manufacturing companies, and the company is actively expanding its overseas business.
It is noteworthy that in the first half of this year, Shanxi Jinbo’s R&D expenses decreased by 40.00% year-on-year to 24.69 million yuan ($3.46 million), mainly due to the increase in capitalized projects within R&D expenditures. During the reporting period, Shanxi Jinbo mainly improved its core competitiveness in R&D through invention patents and innovative research.
On the one hand, in the first half of this year, Shanxi Jinbo obtained 13 invention patent authorizations, including 2 international invention patents, and completed the atomic structure resolution of 2 human collagen types (8YUK, 8YV3). On the other hand, Shanxi Jinbo also conducted research on new materials of Type III, V, VII, and XVII collagen in different indications, mainly applied in fields such as hair, oral cavity, and skin, thereby enhancing the company’s core competitiveness.
