Giant Biogene Holding Co., Ltd. (2367.HK) Announces 2025 Annual Results: Key Insights for Investors

Summary of Financial Performance for FY2025

• Revenue: RMB 5,518.5 million for the year ended 31 December 2025, almost flat year-on-year (YoY) compared to RMB 5,538.8 million in 2024 (-0.4%).
• Gross Profit: RMB 4,433.4 million, down 2.5% YoY.
• Net Profit: RMB 1,914.7 million, down 7.1% YoY.
• Adjusted Net Profit (non-IFRS): RMB 1,959.9 million, down 8.9% YoY.
• Basic EPS: RMB 1.83 (down 12.9%).
• Diluted EPS: RMB 1.81 (down 12.1%).
• Dividend: Board proposes final dividend of RMB 0.5390 per share and special dividend of RMB 0.6714 per share (aggregate c. RMB 1,290 million), subject to shareholder approval at the 2026 AGM.

Key Operational and Strategic Developments

1. Research and Development Excellence

• R&D spending was RMB 88.8 million, 1.6% of revenue. Over 140 research projects were active at year-end.
• The Group has filed for or been granted a total of 209 patents, with 42 new patents in 2025 alone.
• Notably, the Company’s Recombinant Type I α1 Subtype Collagen Freeze-dried Fibers and Composite Solution received Class III medical device approval in China, marking a strategic move into the skin rejuvenation market for 2026. Pipeline development and regulatory submissions are expected to accelerate.
• Multiple invention patents were secured for collagen applications (Types I, IV, VI, XVII) and for ginsenoside applications in health supplements, demonstrating ongoing innovation.
• The Company played a significant role in drafting industry standards and received multiple government recognitions and grants.

2. Product and Brand Updates

• KOMFYMED furthered its strategy of integrating medical devices with functional cosmetics. Its product matrix now includes medical device series and five functional skincare series, each with a leading product in its category.
• The Collagen Stick 2.0 (with proprietary Type IV collagen) won key industry awards and will see continued brand investment and new product launches in 2026.
• The Collgene brand launched Mask King 3.0, achieving strong market feedback and further reinforcing its anti-aging category leadership.
• The Ke Yu brand was repositioned as a “one-stop health lifestyle toolkit,” launching new facial, oral, and scar care products, and strengthening its presence in family health care.

3. Channel Expansion and Sales Breakdown

• Offline presence: By year-end, products were in ~1,700 public hospitals, ~3,000 private clinics, 130,000+ pharmacies, and 6,000+ CS/KA stores. KOMFYMED opened 32 branded stores, expanding outside Northwest China.
• Online strategy: DTC flagship stores on Tmall, Douyin, and others contributed RMB 3,402.1 million (61.6% of revenue), a 5.2% YoY decrease due to price competition and external headwinds. However, self-operated live streaming began to offset pressure from KOL-driven sales.
• Sales to e-commerce platforms: Revenue from online direct sales to JD.com and Vipshop grew 34.8% to RMB 508.5 million (9.2% of revenue).
• Offline direct sales: Increased 32.2% to RMB 224.7 million (4.1% of revenue).
• Distributor sales: RMB 1,383.2 million (25.1% of revenue), a 1.5% YoY decrease, reflecting tighter pricing controls.
• International expansion: KOMFYMED entered Watsons Singapore/Malaysia, Shilla Duty Free Korea, and North American online channels.

4. Brand Promotion and Social Responsibility Initiatives

• KOMFYMED and Collgene engaged in major industry events, academic partnerships, and sustainable initiatives (e.g., empty bottle recycling, rural education support).
• Ke Yu was revitalized with new branding and community engagement activities.
• Group supported over 10 public welfare and environmental protection activities in 2025.

Financial and Capital Position

• Cash and Cash Equivalents: RMB 6,306.2 million (+56.5% YoY).
• Strong Net Cash Position: No interest-bearing borrowings, no pledged assets, and no material contingent liabilities or bad debt risks.
• Capital Expenditures: RMB 428.1 million, primarily for new factories and equipment. Capital commitments at year-end: RMB 316.4 million.
• Gearing Ratio: Not applicable (no debt).
• Employee Base: 2,201 staff (41% manufacturing, 9.6% R&D, 30.6% sales/marketing, 18.5% admin), with robust recruitment and training programs.
• Share Incentives: Active RSU, Share Option, and Share Award Schemes to attract and retain talent.

Corporate Actions and Capital Market Activities

• Share Buyback: 5.2 million shares repurchased in December 2025 (not yet cancelled), intended to enhance EPS and reflect management confidence.
• Dividends: Final and special dividends totaling RMB 1.2104 per share recommended for 2025.
• Fundraising:
  • May 2024: HK\$1,627 million raised via top-up placing. 90% for core business and ecosystem, 10% for working capital.
  • April 2025: HK\$2,294 million raised via top-up placing. 90% for core business/expansion, 10% for liquidity. As of 31 Dec 2025, a significant portion remains unutilized, supporting future growth investments.
• Use of Proceeds from IPO and Placings: All IPO proceeds fully utilized as planned. Placing proceeds being deployed per disclosed intentions; large cash reserves provide strategic flexibility.

Outlook for 2026 and Beyond

• The Company aims to return to growth in 2026, with heightened focus on value creation across R&D, product innovation, brand building, and channel management.
• Accelerated pipeline of innovative raw materials and medical devices, with continued investment in synthetic biology and expansion into the serious and consumer medical/health sectors.
• Emphasis on replicable blockbuster product development, authentic and efficient brand promotion, and a dual-brand strategy (B2C and C2B).
• Online strategy: Deepening owned brand operations, building a network of KOLs, and creating a sustainable sales ecosystem.
• Offline strategy: Consolidating nationwide coverage of both professional and mass-market channels.
• Emerging businesses: Launch of new medical aesthetics brand (Giant Medical Aesthetics), incubation of new brands such as Leeyen, and continued overseas expansion.

Key Risks and Shareholder-Important Matters

• Intensified industry competition and external headwinds (including price competition and traffic uncertainties on online platforms) impacted short-term growth in 2025, and may continue to affect performance and share price volatility in 2026.
• The Company’s focus on self-operated channels and pricing discipline may compress revenues in the short term but is aimed at long-term brand and margin sustainability.
• Significant R&D approvals (especially for Class III medical devices) and new product launches can be material catalysts for future share price movement.
• Strong cash reserves and disciplined capital deployment provide a buffer against macroeconomic or competitive shocks.
• Dividend policy remains robust, with both regular and special dividends proposed, signaling confidence in cash flows and business outlook.
• No material acquisitions, disposals, or contingent liabilities reported.
• Compliance: The Company notes deviation from Code Provision C.2.1 (Chairman and CEO roles not separated); justified as beneficial to continuity but remains a point for governance consideration.

Important Dates for Shareholders

• AGM: 28 May 2026
• Record Date for AGM: 28 May 2026 (Register closed 22–28 May 2026)
• Record Date for Final & Special Dividends: 8 June 2026 (Register closed 3–8 June 2026)
• Dividends Payout (expected): On or around 25 June 2026

Conclusion

Giant Biogene enters 2026 with solid financial footing, an extensive R&D and innovation pipeline, resilient brands, and a strategic focus on sustainable value creation. Despite a challenging 2025, the Company’s commitment to technology-driven growth, product excellence, and prudent capital management positions it for renewed growth and potential share price appreciation as it executes its pipeline and strategic initiatives.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consider their own investment objectives and risk tolerance before making investment decisions. The information herein is based on publicly available disclosures by Giant Biogene Holding Co., Ltd. as of 19 March 2026. Future events or subsequent disclosures may materially change the outlook and financial position of the Company.

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