On April 10, Bloomage Biotech (688363) released its 2024 annual report. According to the report, the company achieved annual revenue of 5.371 billion yuan. Among them, the revenue of raw material business was 1.236 billion yuan, a year-on-year increase of 9.47%, and the revenue of medical terminal business was 1.440 billion yuan, a significant increase of 32.03%; The revenue of skin science innovation and transformation business was 2.569 billion yuan

According to the report, Bloomage Biotech is currently in a critical period of transformation, and is gradually solving a number of key operation and management problems, returning to an entrepreneurial organization and reshaping the entrepreneurial spirit. Although the management change and strategic upgrade have brought short-term performance pressure, in the long run, these measures are expected to greatly improve the company's operating quality and bring greater incremental development space.

Specifically, in 2024, Bloomage Bio's raw material business will continue to maintain strong market competitiveness, achieving revenue of 1.236 billion yuan, a year-on-year increase of 9.47%. In terms of revenue structure, the sales revenue of raw materials in the domestic and international markets increased, of which the revenue of raw materials in the international market was 608 million yuan, a year-on-year increase of 17.65%, and in terms of gross profit margin, the overall gross profit margin of the raw material business (excluding Place) was 65.57%, an increase of 0.86% year-on-year, and the gross profit margin of pharmaceutical-grade hyaluronic acid raw materials was 87.56%, which remained stable and at a high level in the industry.

In terms of application fields, the pharmaceutical materials raw materials business has continuously transformed from a single substance sales model to a substance combination and service combination sales model based on customer needs and market trends, continued to consolidate product barriers, and achieved steady growth during the reporting period. The care products raw materials business benefited from the continuous improvement of the solution business and maintained its growth momentum, and the number of cooperative customers and the depth of cooperation increased during the reporting period according to the different existing substances and application scenarios. The Nutrition & Health Ingredients business adheres to the global development strategy, continues to output innovative solutions around market hotspots and customer needs, and continuously enriches the product matrix. During the reporting period, the sales revenue of innovative hyaluronic acid products and other bioactives increased steadily, accounting for more than 16%, and the bioactive substance platform enterprise was further formed.

In the field of medical terminal business, Bloomage Biotech still maintains its own high-tech barriers, and its business continues to grow significantly, achieving revenue of 1.44 billion yuan, a year-on-year increase of 32.03%. Among them, the revenue of skin medical products exceeded the 1 billion mark for the first time, reaching 1.073 billion, a significant increase of 43.57% year-on-year, of which the company's differentiated advantage category micro-cross-linked Runzhi doll needle revenue increased by more than 100% year-on-year, covering more than 5,000 institutions; The company adheres to the family-based combination application of products, and the revenue of Runzhi fillers has increased by more than 30% year-on-year, covering more than 3,000 institutions.

It is understood that Bloomage Biotech focuses on facial rejuvenation by continuously improving the product system, and strives to create layered anti-aging aesthetics. During the reporting period, the number of medical aesthetic institutions covered by the company was 7,000, a year-on-year increase of more than 30%. It is worth noting that in the consumer goods business, since 2023, Bloomage Biotech has taken the initiative to carry out changes to consumer goods-related businesses. At present, the company has changed the name of "Personal Consumer Health Business Line" to "Skin Science Innovation Transformation Business Line". Bloomage Biotech said that as a biotechnology company, the development logic of all its consumer goods brands and products needs to be based on the application of life science research in the skin field, and iterate the brand along the evolution basis of macroomics.

At present, Bloomage Biotech has made in-depth adjustments to the team capabilities and organizational structure, reorganized the brand positioning and scientific research foundation of some brands, and clarified the direction of brand development; Based on macroomics, the development of iterative brand core technology, based on rigorous scientific demonstration to consolidate brand communication, etc. In 2024, the revenue of this business will be 2.569 billion yuan. It is reported that the business line will start from the cutting-edge research of basic biology, focus on glycobiology and cell biology, and transform scientific research and innovation into consumer-grade solutions.

In addition, Bloomage Biotech's functional food business has also been renamed as Nutritional Science Innovation Transformation, and the business will achieve revenue of 82 million yuan in 2024, a year-on-year increase of 40.97%. During the reporting period, the company reorganized the strategic objectives and product planning of the business, and made it clear that with the mission of "prolonging healthy life and curing diseases", focusing on the four core directions of "nutrition and immunity, nutrition and metabolism, nutrition and anti-aging, nutrition and emotion", and continued to make an in-depth layout in the field of general health.

It is worth noting that during the reporting period, Bloomage Biotech built and continuously improved the product planning and development management system with market and customer needs as the core, introduced the IPD R&D management system, and is committed to shortening the product development cycle and improving the efficiency of R&D achievement transformation and market performance by opening up the market and R&D links. The company has built a global R&D platform, coordinated and strengthened the ability to gather innovative resource elements, and continued to build an innovative key technology system for biomanufacturing, focusing on the R&D, innovation and manufacturing of six types of bioactive substances related to human health: functional sugars, proteins, peptides, amino acids, nucleotides and natural active compounds, covering the entire industrial chain from cell construction to commercial application. As of the end of 2024, Bloomage Biotech has 5 national high-tech enterprises and 1 provincial specialized and special new enterprise.

In 2024, Bloomage Biotech will invest 466 million yuan in R&D, a year-on-year increase of 4.46%, and R&D investment will account for 8.68% of operating income; Leading position in the industry. As of December 31, 2024, the company has applied for 1,047 patents (including 826 invention patents), of which 587 patents have been authorized (including 377 Chinese invention patents and 15 foreign invention patents). The newly obtained invention patents focus on the basic research and applied basic research of the two major types of bioactives of functional sugars and amino acids, and build the company's core scientific and technological capabilities, and continue to lead the independent innovation of the biotechnology industry.

Through the eight R&D platforms, Bloomage Biotech is also continuously developing potential bioactives, enriching the raw material product matrix, and continuously strengthening the basic research and applied basic research of bioactives, providing more solutions for downstream customers and promoting the continuous growth of raw material business.

In addition, in terms of industrial layout, during the reporting period, Bloomage Biotech's pilot test achievement transformation platform is also continuing to be built and improved, the pilot test platform has 64 pilot production lines, with the advanced design concept of "modular" and "drawer", integrating concept verification, process research and development, pilot verification, inspection and testing, and industrial application, and providing one-stop R&D services for enterprises, scientific research institutes and universities in the field of biomanufacturing, such as cosmetics, food, medicine and medical devices. Promote the rapid development of the biomanufacturing industry.

It is worth noting that at present, Bloomage Biotech is taking the third strategic upgrade as an opportunity, starting from the frontier research of basic biology, focusing on the two major directions of glycobiology and cell biology, relying on the industrial transformation advantages in the field of synthetic biology, to provide scientific solutions for life and health, including bioactive raw materials, drugs and medical device products, skin science innovation transformation products and nutritional science innovation transformation products, prolonging healthy life through biotechnology and leading a new era of cell-level anti-aging.

2024 is the "first year of change" for Bloomage Biotech, and the overall transformation it has carried out will reshape the business process with a change culture by playing a set of "combination punches", covering all levels from strategic planning to R&D, to business operations and human resource management, and strategically aligning all business lines and business segments. In the latest speech of Zhao Yan, chairman and CEO of Bloomage Biotech, he said that the company is currently facing the reshaping of the business organization, and it is necessary to "return to the entrepreneurial organization", cultivate the entrepreneurial spirit, and reconstruct the new combat effectiveness to adapt to future competition by awakening the innovation gene of the organization and improving the organizational efficiency.