After waiting for 5 years, Zhao Yan, the "Queen of Hyaluronic Acid", finally waited for the moment when the ban on the shares of Bloomage Biotech was lifted. However, with the continuous decline in performance, the company's stock price has fallen from the peak to the trough, and in three years, the market value has shrunk from 140 billion yuan to the current 28.6 billion yuan, and the market value of 100 billion yuan has disappeared. At this time, the shares of the controlling shareholder with a market value of nearly 17 billion yuan are listed and circulated, what does it mean for Bloomage Biotech? The second shareholder, China Life Chengda, does not seem to want to think too much about it, and has disclosed its shareholding reduction plan in advance.

Although she is 58 years old when the ban is lifted at the tens of billions level, Zhao Yan, who is known as the "Queen of Hyaluronic Acid", always appears in public with her iconic medium-long hair and double ponytail. In 2019, with the cooperation of Bloomage Biotech (688363. SH), her story has also become a business legend talked about in the capital market. In her early years, after graduating from East China Normal University with a major in biology, Zhao Yan successfully stayed in school and became a teaching assistant. But she was not satisfied with the stable life of teaching and educating people, and at the age of 23, she chose to go to the sea to do business and join the army of gold panning in Hainan. Through trading, clothing and other businesses, he earned the first pot of gold in his life, and then went to Beijing to devote himself to the real estate industry. What many people don't know is that the well-known Beijing Wukesong Stadium is one of Zhao Yan's industries. In 2000, by chance, Zhao Yan came into contact with hyaluronic acid manufacturer Freda Biotech, and at that time, the company was not operating well and continued to lose money. Zhao Yan, who was born in biology, has a deeper understanding of the statement that "1 hyaluronic acid molecule can lock 1,000 water molecules". She sees that if hyaluronic acid is widely used in the cosmetics sector, it will be a huge market. She decisively invested 12 million yuan and became the controlling shareholder of Freda Biotechnology, which is the predecessor of Bloomage Biotechnology. Under the operation of Zhao Yan, the company quickly won the battle and became the world's largest manufacturer of hyaluronic acid raw materials.

With the listing of Bloomage Biotech, Zhao Yan's worth skyrocketed. Up to now, Huaxi Xinyu, which is indirectly controlled by it, holds 284 million shares of listed companies, accounting for 58.86% of the company's total share capital. After a 60-month restriction period, on November 6, all the shares of Bloomage Biotech held by Bloomage Xinyu will be lifted from listing and circulation. Based on the closing price of 59.36 yuan per share on November 4, the market value of this part of the equity is as high as 16.8 billion yuan. At present, there is no obvious indication that Zhao Yan has the idea of reducing her holdings in Bloomage Biotech.

The second shareholder doesn't want to wait, but China Life Chengda doesn't plan to continue to hold on. China Life Chengda holds 34,433,300 shares of Bloomage Biotech, accounting for 7.15% of the company's total share capital, making it the second largest shareholder after the controlling shareholder Bloomage Xinyu and the largest shareholder of outstanding shares. In February 2019, China Life Chengda entered through equity transfer at a consideration of 34.85 yuan per share and 1.2 billion yuan, and the post-investment valuation of Bloomage Biotech was 15 billion yuan. Behind the success of national life is Chinese life. After 3 years of waiting, on November 7, 2022, the shares held by China Life Chengda were listed for circulation. Although, for a long time, the share price of Bloomage Biotech has remained above 100 yuan, China Life Chengda has not shown any idea of reducing its holdings, probably trying to wait for another high point. However, it backfired. Since 2023, Bloomage Biotech's share price has generally fallen sharply, and during the period, it has repeatedly hit new lows. On September 18 this year, it even hit a record low of 44.72 yuan per share.

At this time, Guoshou Chengda finally couldn't sit still. On October 9, through the disclosure announcement of listed companies, it is planned to reduce its holdings by no more than 12.042 million shares, not exceeding 2.50% of the company's total share capital, through centralized bidding and block trading. The reduction period is from October 31, 2024 to January 28, 2025. Based on the current stock price, the market value of the equity that China Life Chengda intends to reduce is about 700 million yuan. Compared with China Life Chengda, Yingrui Wuyuan's investment in Bloomage Biotech can be described as a huge profit. In June 2018, Yingrui Wuyuan increased the capital of Bloomage Biotech with a registered capital of 18.13 yuan, and obtained 33.0894 million shares of the company at a cost of 600 million yuan, becoming the third largest shareholder after listing, holding 6.89% of the shares. In November 2020, Yingrui Wuyuan's shareholding was lifted and its holdings were rapidly reduced. From December 24, 2020 to February 22, 2021, it reduced its holdings of 8.64 million shares and cashed out 1.524 billion yuan at 142.19-203.90 yuan, and from June 29, 2021 to July 16, 2021, it reduced its holdings by 4.8 million shares and cashed out 1.380 billion yuan at 264.366-314.278 yuan. Subsequently, Yingrui Wuyuan continued to intensively reduce its holdings, and at the end of 2021, it disappeared from the list of the top ten shareholders of Bloomage Biotech.

From a hyaluronic acid raw material supplier to a product developer, in the fierce market competition, focusing on the core advantage of hyaluronic acid, Bloomage Biotech's business focus has also undergone many upgrades and iterations. Around 2017, the company quickly entered the C-end market, launched its own brand of functional skin care products and functional foods, and directly talked to end consumers. Bloomage Biotech defined 2020 as the first year of the company's brand, and quickly achieved the brand out of the circle through various activities, advertising, and cooperation with Li Jiaqi and other head anchors. During the year, the company invested 125 million yuan in advertising expenses and 493 million yuan in online promotion service fees. For the whole year, the functional cosmetics business achieved 1.346 billion yuan, a year-on-year increase of 112.19%, surpassing raw materials and becoming the company's largest source of revenue. In 2021 and 2022, Bloomage Biotech's functional skin care products business continued to maintain high growth, achieving revenue of 3.319 billion yuan and 4.607 billion yuan respectively, contributing more than 70% to the company's operating income. It has created several major skin care product brands such as Runbaiyan, Quadi, Medrepair, and BM Muscle Active, among which Runbaiyan and Quadi both achieved annual sales of one billion.

Thanks to the outbreak of the functional skin care products business, Bloomage Biotech's performance is gratifying. From 2019 to 2022, the company's operating income increased from 1.886 billion yuan to 6.359 billion yuan, and the net profit attributable to the parent company increased from 586 million yuan to 971 million yuan. But in 2023, the situation will take a turn for the worse, and the growth myth of Bloomage Biotech will come to an abrupt end. In that year, the company's operating income fell by 4.45% year-on-year, and the net profit attributable to the parent company fell by 38.97%. In the current period, functional skin care products achieved revenue of 3.757 billion yuan, 850 million yuan less than the previous year. For the sudden landslide, Bloomage Biotech has made a deep reflection: the exterior is because of the general environment; Internal organizational management lags behind business development. This year, the company's business situation has not improved. In the first half of the year, the functional skin care products business achieved revenue of 1.381 billion yuan, which was 585 million yuan less than the same period last year. In the first three quarters, the company achieved operating income of 3.875 billion yuan and net profit attributable to the parent company of 362 million yuan, down 8.21% and 29.62% year-on-year respectively. Especially in Q3, the net profit attributable to the parent company fell by 77.44%, which was tragic and abnormal. At its peak, Bloomage Biotech held the moon with the halo of "King of Hyaluronic Acid". In July 2021, the company's share price touched a record high of 313.10 yuan (before the right to reset), with a market value of more than 140 billion yuan. As the stock price continues to fall, the market value is now only 28.59 billion yuan (closed on November 4).

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