China’s Former Richest Doubles Down on Jinbo Biotech: Expansion of Upstream Supply in Medical Aesthetics Amid Persistent Irregularities

Recently, Jinbo Biotechnology, known as the 'first stock of recombinant collagen protein' on the Beijing Stock Exchange, announced that it plans to issue no more than 7.1756 million shares to Yangshengtang, representing 6.24% of the company's total share capital before the issuance. The offering price is RMB 278.72 per share, with a total fundraising amount of up to RMB 2 billion. The proceeds will be used for projects such as the FAST database and product development platform for humanized collagen protein. This application has been accepted by the Beijing Stock Exchange.

Not long before this, Yang Xia, the controlling shareholder and actual controller of Jinbo Biotechnology, transferred 5.7533 million shares to Hangzhou Jiushi, accounting for 5% of the company's total share capital, for a total of RMB 1.403 billion. It is understood that the actual controllers of both Yangshengtang and Hangzhou Jiushi are Zhong Shanshan.

According to the Forbes China Rich List, in 2024, Zhong Shanshan successfully retained his position as the richest person in mainland China with a net worth of USD 50.8 billion; entering 2025, the Forbes Global Billionaire List shows that his ranking among mainland Chinese tycoons fell behind Zhang Yiming.

It is worth noting that Jinbo Biotechnology is the second biotechnology firm Zhong Shanshan has heavily invested in after Wantai BioPharmaceuticals. Behind this investment lies the fact that Wantai BioPharmaceuticals, once a leading domestic HPV vaccine company, experienced a continuous decline in performance starting from 2023, which has made the market pay even closer attention to Zhong Shanshan’s new entry into Jinbo Biotechnology and the underlying medical aesthetics sector.

From the perspective of the broader industry environment, in recent years, the demand for medical aesthetics in China has shown a strong and diversified development trend. The iterative innovation of upstream product technologies and the continuous expansion of indications for existing products have continuously enriched market supply, jointly driving the vigorous development of China’s medical aesthetics industry. The recombinant collagen protein product market, in particular, is currently in a phase of rapid growth.

Regarding the development prospects of upstream products in medical aesthetics, Jin Xing, founder and CEO of So-Young International, expressed an optimistic view during an interview with reporters from the 21st Century Business Herald: “In reality, the number of medical product registration certificates approved by the state across various categories is increasing. The great enrichment of downstream products not only provides consumers with more choices but also inevitably promotes price stratification, attracting more consumers into the medical aesthetics market, which is very helpful for forming the scale effect in the medical aesthetics market.”

At the same time, Jin Xing emphasized, “The key to solving many current problems in the industry lies in making medical aesthetic services affordable and accessible to the general public. Based on overseas market experience, only when legitimate medical aesthetics become cost-effective can ‘illegal medical aesthetics’ be fundamentally eradicated.”

Supply Expansion Demonstrates Growth Momentum

Behind Zhong Shanshan’s significant investment in Jinbo Biotechnology lies the robust growth potential exhibited by the recombinant collagen protein sector. According to Frost & Sullivan data, the market size of China’s recombinant collagen protein products reached RMB 19.24 billion in 2022 and is expected to continue expanding at a compound annual growth rate (CAGR) of 44.93%. By 2025, the market size is projected to exceed RMB 58.57 billion, and by 2030, it is anticipated to climb to RMB 219.38 billion.

In April this year, JBP Biotechnology once again obtained the third-class medical device registration certificate (hereinafter referred to as the "Class III certificate") for its product 'Injectable Recombinant Type III Humanized Collagen Gel.' This marks the third Class III certificate that JBP Biotechnology has received for recombinant collagen products, following the 'Recombinant Type III Humanized Collagen Lyophilized Fibers' in 2021 and the 'Recombinant Type III Humanized Collagen Solution' in 2023.

According to an analysis by Everbright Securities, JBP Biotechnology's possession of all three domestic Class III certificates for recombinant collagen signifies that the company will continue to maintain a strong position in the field of recombinant collagen for medical aesthetics. It also indicates that even with new entrants in the future, JBP will remain a leader in terms of regulatory certifications.

JBP Biotechnology’s rapid growth reflects the vibrant state of the upstream medical aesthetics product market. As domestic aesthetic consumers increasingly develop self-awareness and personalized aesthetic preferences, demand for aesthetic solutions continues to grow, driving a wave of medical aesthetic products such as hyaluronic acid, collagen, botulinum toxin, and regenerative agents to enter the market. In just the first half of 2025, multiple medical aesthetic products received Class III certificates, offering more compliant options for the market.

For instance, Bloomage Biotechnology launched two compliant products in the first half of the year: Runbaiyan·Boba (a sodium hyaluronate solution with lidocaine for facial skin improvement), the first compliant hydrogel in China, and Runzhi·Tito (a composite sodium hyaluronate injection solution - M-type) designed as a bioactive agent. In July, Bloomage further introduced Runzhi·Yaoran (a cross-linked sodium hyaluronate gel injection), the first domestically produced mid-face filler indicated for use in China.

In the closely watched 'baby face needle' segment, since 2025 there has been a surge of new product launches. Three baby face needle products from companies including Lepu Medical, Xihong Pharmaceutical, and Aewit Biotechnology (as distributor) have successively been approved for market entry. The sector now features a competitive landscape with nine approved products and several others under development, enriching market supply.

However, with continuous entry of new players into areas like collagen, regenerative therapies, and botulinum toxin, industry insiders note that the aesthetic medicine sector tends to favor novelty. After a period of time post-launch, product prices may drop significantly, meaning that new concepts can provide short-term stimulation and drive for the entire industry.

Regarding this, Jin Xing stated, 'The aesthetic medicine market sees different trending treatments almost every year. For example, Thermage and Ultherapy were popular in previous years, followed by thread lifts and earlier still, facial fat grafting. However, we've noticed that some of these trends have short lifespans, fading from the market after two or three years, while others become evergreen treatments.'

In Jin Xing’s view, long-lasting evergreen treatments typically possess three characteristics: clear treatment mechanisms, effective outcomes, and minimal side effects. 'Botulinum toxin is a classic evergreen product, and radiofrequency treatments like Thermage and ultrasound-based procedures also fall under this category.'

He further analyzed using the example of baby face needles, 'The mechanism of action for baby face products is straightforward: stimulating the body's own collagen regeneration through biodegradable PLLA (poly-L-lactic acid) microspheres. If the particle size of the microspheres is sufficiently uniform and their surfaces are adequately smooth, combined with professional injection techniques by physicians, excellent treatment results can be achieved. Not only are risks and side effects minimized, but the technical requirements for doctors are relatively low. Therefore, baby face hydrogels have the potential to become an evergreen track with continuously expanding market scale.'

Challenges remain in the aesthetic medicine sector – how to break through?

As the range of compliant products in the upstream medical aesthetics sector continues to expand and market supply becomes increasingly diverse, the issue of 'how to ensure delivery quality between products and consumers' has gradually become prominent — the prevalence of illegal institutions and counterfeit or substandard products is becoming a key bottleneck constraining the healthy development of the industry.

Data shows that in 2024, there are only 20,000 legally registered medical aesthetic institutions nationwide, while the number of illegal institutions (including unlicensed clinics and beauty salons operating beyond their scope) has reached 22,000, surpassing the number of compliant institutions for the first time. More critically, the circulation of counterfeit and substandard products has become increasingly severe; currently, only 35% of the injectable products on the market are genuine, posing significant challenges to consumer safety and rights protection.

According to Jin Xing, the excessively high cost of medical aesthetic services is the main reason for the rampant growth of 'illegal medical aesthetics' in China. 'The pricing of many medical aesthetic procedures in China is relatively high, creating a noticeable price gap with illegal alternatives. This disparity provides fertile ground for the continued spread of illegal practices, making it one of the key reasons why they are difficult to eradicate.'

Jin Xing further analyzed the chain of problems caused by high prices: 'On the one hand, the cost of some medical aesthetic procedures in China exceeds those in South Korea and Hong Kong, leading many high-end consumers, even in an era of transparent information, to still opt for overseas treatment. On the other hand, the existence of exorbitantly priced procedures reinforces the public perception of the industry as being highly profitable. However, the reality is that most medical aesthetic institutions operate at low profit margins and even face significant operational pressures.'

More alarmingly, high costs are driving some consumers to knowingly choose illegal medical aesthetic services. 'Previously, we mistakenly assumed that consumers chose illegal services because they could not distinguish between compliant and non-compliant institutions. However, extensive research shows that consumers can clearly differentiate between legitimate and illegitimate providers,' said Jin Xing. The real issue lies in the fact that the price of legitimate services exceeds consumer budgets, forcing them to take risks and choose illegal options when faced with urgent needs.

Taking dermal fillers as an example, according to Jin Xing, the recommended retail price for such products currently ranges from RMB 12,800 to RMB 18,800. In contrast, the same product costs approximately RMB 3,800 in South Korea and RMB 4,200 in Hong Kong, both significantly lower than in mainland China.

'To completely eliminate illegal medical aesthetics in China, the price of compliant services must be reduced to an affordable level for consumers, enabling widespread access to legitimate services. Only then can we fundamentally squeeze out the survival space of illegal providers and promote the healthy development of the industry,' said Jin Xing. So-young International's 'Miracle Youthful Face 3.0,' priced at RMB 2,999, represents a significant attempt to bring the cost of dermal fillers back to reasonable levels.

In fact, how to maintain safety standards during a period of rapid market growth has been emphasized by multiple clinical doctors interviewed by the 21st Century Business Herald: 'Consumers should fully understand the characteristics of the products they choose, evaluate the doctor’s injection experience and technical skills, and strictly adhere to post-procedure instructions regarding massage, contraindications, and follow-up visits. More importantly, attention must be paid to the ‘three legitimacy’ criteria: product certification, medical institution accreditation, and doctor qualifications to avoid unnecessary risks associated with choosing low-cost or non-compliant institutions.'

Source: 21st Century Business Herald reporter

Author: Han Liming

Han Liming

27K Views