It

is not surprising that Bloomage Biotech (688363), which is in a period of change, is still in a period of volatility for the time being. On January 24, Bloomage Biotech announced that it is expected to achieve a net profit attributable to the parent company of 146 million yuan to 175 million yuan in 2024, a decrease of 418 million yuan to 447 million yuan compared with the same period last year, a year-on-year decrease of 70.47% to 75.36%. It is estimated that the net profit after deducting non-recurring gains and losses will be 80 million yuan to 109 million yuan, a year-on-year decrease of 381 million yuan to 410 million yuan, a decrease of 77.78% to 83.69%. The net profit attributable to the parent company in the same period last year was 593 million yuan.

If we look at this from this point of view, underestimate or underestimate the commercial potential and development space of Bloomage Biotech, to be honest, it is debatable. Perhaps, there are a lot of people who can't really understand Bloomage Biotech, and more people tend to look at it with temporary market performance or traditional thinking bias. Thirty years in the east of the river, thirty years in the west of the river. For Bloomage Biotech, the market is changing, and the only thing that remains unchanged is to always use the belief of pre-emptiveism to remove the false and retain the true in the dynamic of market competition, not only to seek a domain, but also to seek the overall situation, in order to occupy a place or become the biggest winner in the competition for the stream. In other words, after the big ups and downs, Bloomage creatures, just like a person, squatted down to get better jumping. It's just that Bloomage Biotech is still on the "eve" of bottoming out and jumping again.

Those who are familiar with strategic management and business competition know the essence of David Teece's theory of dynamic capability: dynamic capability is not the ability of an enterprise to play a specific game itself (such as competitiveness in a certain business or the ability to operate in general), but the ability to constantly explore and enter new games to change the game mix in which it participates. Specifically, dynamic capabilities help enterprises change their resource allocation and business scope, so that their core competitiveness can maintain a dynamic fit with changes in the external environment.

If you compare this passage with Bloomage Biotech, it is not difficult to find that after Bloomage Biotech created the legend of hyaluronic acid and the global hyaluronic acid effect, as a biotechnology company driven by synthetic biotechnology innovation, its business logic is no longer defined by the traditional cosmetics business, let alone determined by short-term performance - TA is not a company that only does the present, but a company that does the future; TA is not a company that only makes products, but a company that does industrial chains; TA is not a static company, but a company that continues to build dynamic capabilities, and the latter will bring TA the advantages and ecology of the horizontal and vertical value chain.

Bottom line: short-term or long-term? Do you want to do a product or an industry? Do static or dynamic competition? Answering this question well is actually to understand the core essence of Bloomage Biotech, and it is also the fundamental reason why Bloomage Biotech is different and has a promising future. If Bloomage Biotech can successfully complete the reform and adjustment as planned, the fruits of its quantitative change to qualitative change will be even more expected.

Do long-term - R&D investment first:

From glycobiology to cell biology, Bloomage Biotech has always been in the first place in R&D investment in the beauty industry. So far, no domestic beauty company can compare with it. This is also the core embodiment of its "long-term".

As Zhao Yan, founder and chairman of Bloomage Biotech, said, the corporate development logic of Bloomage Biotech is from science, to technology, to products, and to brand. Science and technology are the basic research and applied basic research that run through the development of Bloomage Biotech, and are the underlying support and core driving force of Bloomage Biotech. It is precisely because of this that Bloomage Biotech has three core capabilities: the first core and bottom support is its R&D and innovation capabilities; The second is the ability to transform results, and the world's largest synthetic biology pilot test results conversion platform has been established; The third is the ability of market transformation, Bloomage Biotech is a whole industry chain platform company, which has opened up the whole process from material discovery, to product transformation and product development, so it can serve global enterprises and consumers with B-B, B-B-C, B-C business.

As we all know, Bloomage Biotech has always been taking scientific and technological innovation as the core driving force, focusing on the two frontier fields of glycobiology and cell biology. Among them, in the field of glycobiology, relying on its long-term research reserves in the field of hyaluronic acid and efficient transformation capabilities, Bloomage Biotech has begun to continuously explore the effects of various glycans on human health, such as heparin, chondroitin sulfate, breast milk oligosaccharides, sialic acid, fucose, dextran, etc., and has successfully built its own sugar library, laying a solid foundation for subsequent scientific research and application. At the same time, Bloomage Biotech lays out cell biology, continues to explore cell-level anti-aging, and realizes the restoration of tissue functions and body functions through the regulation and optimization of cell types and functions, so as to improve the quality of life.

It is understood that at present, Bloomage Biotech has reserved a variety of substance compounding technology to intervene in mitochondrial vitality. Although these long-term investments have not yet had an impact on the performance in the short term, they will provide a strong impetus for the future development of Bloomage Biotech.

Glycobiology and cell biology fall on the skin care business, which is manifested in at least the following four aspects:

First, Bloomage Biotech has leading microbial fermentation technology and enzymatic digestion method, which can realize the large-scale production and precise molecular weight control of hyaluronic acid. In functional skin care products, the small molecule hyaluronic acid produced by these technologies can be absorbed through the skin and directly into the dermis, replenishing moisture to skin cells, enhancing the moisturizing ability of cells, and improving skin condition at the cellular level.

Second, Bloomage Biotech attaches great importance to the basic research of glycobiology and cooperates with universities and other universities. It was found that carbohydrates such as hyaluronic acid activate signaling pathways in skin fibroblasts and stimulate collagen production. The addition of hyaluronic acid to Biohyalux Collagen Firming Cream is based on this research result, which uses its effect of promoting collagen production to maintain the elasticity and toughness of the skin, reflecting the application of basic research in glycobiology in the improvement of extracellular matrix and cell function.

Thirdly, Bloomage Biotech is able to quickly translate glycobiology research results into actual products. For example, the exclusive regenerative medicine technology achievements BloomCell cell nutrient solution and Quadi CT50 cell energy solution provide nutrients for cells, stimulate cell vitality, realize precise regulation of skin cells, and achieve skin tightening and other effects by adjusting and optimizing the cell microenvironment, active molecules target and regulate cell signals, etc., and realize the transformation from basic research to product application.

Fourth, Bloomage Biotech's six R&D platforms, namely synthetic biology R&D platform, microbial fermentation R&D platform, application mechanism R&D platform, pilot transformation platform, cross-linking technology platform, and formula process R&D platform, provide technical support for skin care product innovation. With the help of these platforms, in-depth research into cellular metabolic processes and signaling can lead to the development of products that are more suitable for skin cells. For example, through the dynamic regulation of cell factories, the efficient synthesis of bioactives has been realized, which has provided high-quality raw materials for products such as Biohyalux Collagen Firming Cream and Quadi CT50 Anti-Collapse Series, and promoted the application innovation of cell biology in the field of skin care products.

In addition, Bloomage Biotech's continuous investment in R&D is also the foundation for its layout of regenerative medicine. According to incomplete statistics, Bloomage Biotech has built the Key Laboratory of Bioactive Synthetic Biology in Shandong Province, the first Key Laboratory of Regenerative Medicine Technology and Material Transformation in Hainan Province, and the first Key Laboratory of Quality Control of Cosmetic Raw Materials of the State Food and Drug Administration, and has undertaken a number of major projects at the national, provincial and ministerial levels, including the research on key technologies for green manufacturing and biosynthesis of functional polysaccharides, which is also a major project of the national "14th Five-Year Plan".

Do industry - "a big tree":

Re-acquainting with the power of Bloomage Biotech, "China Fragrance" Rong Media previously wrote an article about the editor-in-chief of Bloomage Biotech: "What a Big Tree". By combing through the road of several strategic upgrades of Bloomage Biotech, it is not difficult to find that Bloomage Biotech is now a platform enterprise of the whole industry chain, integrating large businesses from B-B to B-B-C and then to the C-end. As a world-renowned biotechnology company and bioactive materials company driven by synthetic biotechnology innovation, Bloomage Biotech has become a "big tree", opening up the whole industry chain business system from raw materials to medical terminal products, functional skin care products and functional foods, serving global manufacturing enterprises, medical institutions and end users in the fields of medicine, cosmetics and food, and building a platform-based life and health consumer goods company of the whole industry chain driven by synthetic biotechnology, and is committed to "improving the quality of life, Extend the length of life".

The "capability" and "ambition" of Bloomage Biotech are no longer defined by a simple industry attribute label - neither a simple raw material company, nor a traditional beauty company, but a technology-based, whole industry chain and platform-based company - this company has shaped its own new business model and structural competitive advantage

The former is basic research and applied basic research (6 categories of bioactives such as functional sugars, proteins, peptides, amino acids, nucleotides and natural active compounds, etc.), and the latter is a pilot transformation platform driven by synthetic biology innovation. These two are also the basic support of Bloomage Biotech, which belongs to the "cultivation" attribute of Bloomage Biotech's business model and competitive advantage, as well as the core competence pool and "chassis structure".

"Trunk" is its business model and the business that grows out, that is, B-B raw materials, B-B-C medical terminals, B-C functional foods and B-C functional skin care products. This is also the "self" attribute of Bloomage Biotech's business model and competitive advantage, as well as its core business value and "business structure".

"Leaves" is its ability to empower the development of enterprises and industries, and is committed to sustainable development and jointly creating an overall prosperous future of the industry. On the one hand, it is the road of product diversification and application scenario diversification of Bloomage Biotech, and actively creating new growth lines, and on the other hand, it coincides with the advocacy of Dr. Yan Jiangying, chairman of the China Fragrance Association: co-creation, win-win and symbiosis, which can provide support and empowerment for the surrounding "ecosystem". This is precisely the greatest possible flourishing and forming a "transcendent" attribute.

With the collection and accumulation of the three attributes, Bloomage Biotech has grown into a "big tree", forging ahead on the road of doing industry, and its future must not be arbitrarily judged by the present, but by the future to see the value of the enterprise and the present. To put it more bluntly, we need to re-understand the power of Bloomage Biotech, and its hyaluronic acid effect, evolution and application is the best cognitive "window".

Among them, it is worth mentioning that the potential of hyaluronic acid/hyaluronic acid is far from being tapped, and it is no longer limited to the three major effects of traditional moisturizing, lubrication, and viscoelasticity. Because, from the perspective of glycobiology, the potential information content of glycans represented by HA exceeds the sum of nucleic acids and proteins, and far exceeds that of any other class of macromolecules. The potential information content of sugar opens up a vast new scientific space for carbohydrate research. From the perspective of cell biology, HA is an important regulator of the extracellular matrix, which can transmit signals through receptor interactions on the surface of the cell membrane. The microenvironment of stem cells determines the direction of differentiation and development of stem cells. Therefore, HA can regulate cell proliferation, migration, etc. In addition to moisturizing, lubricating and viscoelastic, HA also has tissue repair, antibacterial, anti-inflammatory, anti-allergic and other effects.

Moreover, the last three of the four industrial revolutions of hyaluronic acid so far have occurred in Bloomage Biotech:

The first industrial revolution was in the United States in the 70s of the last century, when hyaluronic acid was extracted from animal tissues - cockscombs, but due to its high price, it could not be popularized and applied on a large scale. The second industrial revolution is the large-scale production of hyaluronic acid by microbial fermentation, which has greatly reduced the cost by tens to hundreds of times, and applied hyaluronic acid to functional skin care products, medical beauty and other products. This also feeds back the R&D and manufacturing of Bloomage Biotech, so that the supply chain has been further expanded, so Bloomage Biotech became the world's largest hyaluronic acid production and market share enterprise in 2007. The third industrial revolution is that in 2011, Bloomage Biotech achieved precise control of the molecular weight of hyaluronic acid and further expanded the application of hyaluronic acid. For example, small molecules of hyaluronic acid can be used for targeted therapy of cancer; Macromolecular hyaluronic acid has anti-inflammatory potential; In addition, in the field of assisted reproduction, the addition of special molecular weight hyaluronic acid to the culture medium significantly improves the survival rate of fertilized eggs. These in-depth studies on hyaluronic acid show that hyaluronic acid has a very large role in transmitting cell information and regulating cell behavior.

It is based on these explorations that Bloomage Biotech has further opened up the broad market of hyaluronic acid and is expected to create a trillion-level industrial future. Now, Bloomage Biotech has begun to explore the fourth industrial revolution of hyaluronic acid - the precise regulation of polysaccharide substances such as hyaluronic acid by synthetic biotechnology to achieve the regulation of multicellular microenvironment, so as to explore the broad space of aging intervention and regenerative medicine.

For example, China's functional skin care industry is moving from the era of a single technical concept to the era of multi-omics cell environmental regulation, and Huaxi Biotech will focus on building Run Baiyan and Quadi to become the leading brands in this process, and become a national product that makes Chinese confident and proud.

Or Zhao Yan has a good saying: "If we only limit our perspective to a single field, only define ourselves as a raw material supplier that provides functional sugars, and do not explore new ecology, it is difficult to understand the problems related to the quality of life and health." Similarly, if people only look at Bloomage Biotech from a single field or the current short-term performance, it is difficult to understand or understand Bloomage Biotech's strategic vision and development path, let alone its long-term corporate value and social value.

Do kinetic energy - active braking adjustment:

Short-term pressure, long-term is very promisingOf course, Bloomage Biotech's strategic adjustment and reform must also have gains and losses, which will inevitably temporarily affect the fluctuation of performance. For example, as mentioned in Bloomage Biotech's announcement, the main reasons for the change in 2024 annual performance include the impact of the main business and the increase in the cost of management change. The company achieved steady growth in the raw material business, maintained rapid growth in the medical terminal business, and launched two new medical aesthetic products. However, the functional skincare business is affected by market competition and strategic adjustments, and the adjustment continues. In addition, the cost of organizational structure upgrading and compensation system reform caused by management change increased by more than 70 million yuan, and related strategic investment also brought short-term cost increases.

However, it is indisputable that the entire Chinese cosmetics industry is in a period of adjustment and fluctuation, and Bloomage Biotech is naturally in a period of adjustment and fluctuation.

Among them, affected by various factors such as intensified market competition, fluctuations in the industrial cycle and the company's strategic adjustment, the adjustment of Bloomage Biotech's functional skin care products business is still continuing, and it is constantly consolidating various business foundations, such as from process to organization and operation, talent training, product system construction, etc., and the functional skin care products business is expected to bottom out in 2025. At the same time, the sales expenses of Bloomage Biotech's skin care products business in 2024 will decrease compared with 2023, and it plans to build a unique marketing ecology and technology brand in 2025, which is expected to further improve operating efficiency.

It is worth noting that in 2024, the revenue of Bloomage Biomedical's aesthetic business will show a significant increase! You must know that in 2021, when the medical aesthetic business was developing rapidly, Bloomage Biotech took the initiative to step on the brakes to start the reform pilot, and completed the adjustment in 2022, and by 2023, the medical aesthetic business has entered a stage of benign development. From bottoming out to resuming revenue growth, the results of medical aesthetic reform have been highlighted, which also means that people have reason to expect that Bloomage Biotech's skin care business is expected to continue Bloomage Biotech's transformation results: short-term pressure, long-term prospects.

If 2024 is the first year of Bloomage Biotech's transformation, starting from 2025, it will be the beginning of its "steady, accurate, and ruthless" efforts, which is worth looking forward to. Why?

Because, assuming that three words are used to describe the competition and development of enterprises in business, the most suitable is "stable, accurate, and ruthless" - for Bloomage Biotech, its "stability, accuracy, and ruthlessness" is the long-term, industry, and kinetic energy mentioned above.

Among them, the so-called "stability" is to be committed to the long-term, to do the present with the future, to be able to continue to invest in scientific research, and to devote itself to the transformation and application of achievements. This is a very test of whether you can hold your breath and endure ups and downs. The so-called "quasi" is to know the trend and rhythm of the industry, not to stick to the product itself, but to have the ambition and effect of the industry. The so-called "ruthlessness" means that we must not only have our own "dagger", but also have our own "unique skills", constantly explore and enter a new model to change their own resource allocation and business scope, and constantly reconstruct and enhance their core competitive advantages.

These initiatives, uniqueness and innovation naturally make Bloomage Biotech unique, and also determine the height, length and thickness of this enterprise.

In short, Bloomage Biotech has been setting up a new situation, breaking the old one, combining it with a new one, and strategizing a new chapter. TA just needs a cycle, climbing mountain after mountain. As Zhao Yan said: "We must respect every life and make every life alive, this is the original intention of Bloomage Biotech, and the original intention is also the peak, we can only reach that peak by climbing mountain by mountain." The road we are choosing now, although the road is far, it will come, and although it is difficult, it will be done. ”

Come on, Bloomage Biotech!

Transferred from the official account of "Chinese Fragrance".

Editor: Lin Sen