New Stock Outlook | With a loss of 133 million yuan in two years, how can Yenmei Bioscience, which is insolvent, tell a new story of regenerative medical materials?

In recent years, regenerative medicine, as an emerging discipline, has attracted much attention. The theoretical and technological applications of regenerative medicine for the replacement, repair, reconstruction, or regeneration of various tissues and organs in the human body have experienced rapid development. According to Statista data, the global regenerative medicine market size was approximately $16.9 billion in 2021 and is projected to reach $95.5 billion in 2030, with a compound annual growth rate of 21.22% during this period. Regenerative materials are a subdivision within regenerative medicine, and the industry has broad development prospects. In this subdivision, Oriental Yanmei (Chengdu) Biotechnology Co., Ltd. (hereinafter referred to as Yanmei Biotechnology) submitted a listing application to the Hong Kong Stock Exchange on May 12, with China International Capital Corporation as its exclusive sponsor. A loss of approximately 133 million yuan in two years Revenue from top five customers accounts for over half The prospectus shows that Yanmei Biotechnology was established in 2016 and is primarily engaged in the research and development, production, and commercialization of regenerative medical devices and special medical food for regenerative medicine. The company focuses on the development, transformation, and application of regenerative medical materials, as well as the research and development of specific full-nutrient formula foods. Since its establishment, Yanmei Biotechnology has completed three rounds of financing. The most recent one was a 90 million yuan financing completed in April this year, with a cost per share of 9.76 yuan and a post-investment valuation of 1.5 billion yuan. As of May 5, 2025, the company has 13 main regenerative medical material injection candidate products (all classified as Class III medical devices), including the core product XH301 and the candidate product XH321 for the treatment of female stress urinary incontinence. Among the 13 candidate products, two of them have entered the registration review stage. In the regenerative medical material medical dressing and patch product line, the company has obtained registration approval for seven products classified as Class II medical devices. Additionally, one candidate product XH322 for post-breast cancer surgery breast reconstruction using cross-linked ECM is in the preclinical stage. As of the same date, the company's special medical food product line includes two products approved by the National Market Supervision Administration and seven candidate products under development. According to the development progress of the products, the company expects to launch two products in China by 2025 and continues to introduce new injection products in the next three years. The company states that it will continue to collaborate with leading and reputable industry partners to establish compliant and well-managed sales channels through strategic cooperation licenses or other means to better commercialize its products. Looking at the financial performance, during the reporting period from... In the IPO prospectus, Oriental Yanmei Biotechnology stated that its failure to achieve or maintain profitability would reduce the company's value and may impair its ability to raise funds, maintain research and development work, expand business, and continue operations. Optimistic market growth for CRMI materials injections As people increasingly value health and quality of life, they are no longer satisfied with traditional anti-aging and disease treatment methods. They are willing to try more advanced and effective regenerative treatment methods. According to data from the National Bureau of Statistics, the per capita disposable income of Chinese residents is increasing year by year, improving people's accessibility to regenerative products and driving an increased demand for regenerative medical material injections. According to Frost & Sullivan's data, the market size of CRMI material injections expanded from 200 million yuan in 2019 to 2.9 billion yuan in 2023, with a compound annual growth rate of 96.6% during this period. The regenerative medical material injections market is expected to generate revenues of 18.5 billion yuan by 2032, with a compound annual growth rate of 21.5% from 2024 to 2032. With an optimistic industry growth outlook, Yanmei Biotechnology continues to focus on the field of regenerative medical materials. It has the ability to transform regenerative medical material technology into mature products that meet market demands. As a regenerative medical material technology platform company, its strong product portfolio currently includes two main product lines: regenerative medical material injections and regenerative medical material medical dressings and patches. During the reporting period, Yanmei Biotechnology did not generate any revenue from its regenerative medical material injection candidate products; revenue from the sales of regenerative medical material medical dressings and patches was 3.6 million yuan each, accounting for 27.9% and 24.9% of the company's revenue in the same period. However, as the demand for regenerative medical material injections is expected to increase due to the optimistic industry growth prospects, Yanmei Biotechnology's continued dedication to the field positions it well to capitalize on this market trend.As the market matures, market penetration continues to increase and competition intensifies, the growth rate of the market for regenerative medical materials, medical dressings, and patches will gradually slow down.Specialized medical food is also a key business of Eastern Beauty. The market size of specialized medical food is expected to increase from 27 billion RMB in 2019 to 60 billion RMB in 2023, with a compound annual growth rate of 17.2% during this period. The specialized medical food market is projected to generate revenue of 23.8 billion RMB by 2032, with a compound annual growth rate of 15.9% from 2024 to 2032. Currently, the company has obtained approval and commercialization for two specialized medical food products, and seven other candidate products are in the application or research and development stage, including three specific patient full-nutrient formula foods. In terms of business associations, there is technical synergy between Eastern Beauty's regenerative medicine and specialized medical food businesses. Regenerative medicine material research and development technology can be applied to optimize specialized medical food formulas, and the industrial experience of specialized medical food can also contribute to the clinical transformation of medical devices. If the listing is successful, Eastern Beauty will obtain funding for technology research and development and product commercialization, and its development dynamics in the medical and health field are worth paying attention to.