(Yicai) May 22 -- Bloomage Biotechnology, the world’s largest producer of hyaluronic acid, confirmed to Yicai today that it has reported nine securities brokerages to authorities over analyst reports that emphasized the benefits of recombinant collagen over hyaluronic acid for skin rejuvenation.

“We still need to wait for professional departments and regulators to determine whether these brokerage research reports were based on independent analysis or merely quoted content from prospectuses or other company materials,” the Beijing-based biotechnology firm told Yicai. “If any issues are identified, the relevant regulators and stock exchanges will handle them accordingly.”

Recombinant collagen is a lab-engineered version of natural collagen, while hyaluronic acid is a substance known for hydrating the skin and reducing fine lines. Both are widely used in anti-aging products.

The nine brokerages involved include Huatai Securities, SDIC Securities, Sinolink Securities, Western Securities, Cinda Securities, Founder Securities, Ping An Securities, Shengang Securities, and Huafu Securities.

Shares of Bloomage [SHA: 688363] fell 1 percent today, closing at CNY52.08 (USD7.20) in Shanghai -- down nearly 20 percent compared with a year ago. Once a favorite among investors, Bloomage’s market cap has declined sharply from CNY150 billion (USD20.8 billion) in July 2021 to CNY25.3 billion (USD3.5 billion) as of yesterday.

Meanwhile, recombinant collagen producers such as Juzi Bio and Jinbo Bio-Pharmaceutical saw their market capitalizations hit record highs on May 20 and 21, respectively.

In a social media post yesterday, Bloomage cited research reports from four of the brokerages issued between June 2023 and February 2024. Among them, SDIC Securities -- formerly known as Essence International -- wrote in a report on Juzi Bio that recombinant collagen outperformed HA and plant-based ingredients in skin repair and anti-aging efficacy.

Neither the involved brokerages nor Juzi Bio have responded to Yicai’s inquiries.

Bloomage noted that it had communicated with the China Association of Fragrance Flavour and Cosmetic Industries and the China Association of Plastics and Aesthetics ahead of releasing its public statement, and received their support.

On May 19, the two associations jointly issued a document urging the industry and capital market to “return to scientific fundamentals and original business logic” in pursuit of a healthy, rational, and sustainable industrial ecosystem.

Editor: Emmi Laine