Jingyan Biotech Files IPO Prospectus: From Medical Aesthetics Distributor to Innovator, Covering Over 3,000 Clinics

For the foreseeable future, the medical aesthetics industry is expected to maintain steady growth, a view that has become a near-universal consensus within the sector. According to Frost & Sullivan statistics, China’s medical aesthetics penetration rate was only 3.6% in 2019, significantly lower than the rates in Japan (11%), the United States (16.5%), and South Korea (20%). This indicates that China’s medical aesthetics market still holds substantial room for future expansion.

Although the industry is developing rapidly, for enterprises and platforms in the mid-to-downstream segments, the continuous rise in customer acquisition costs and irregular practices by some companies have intensified market competition, while the low net profit margin of terminal services remains difficult to improve.

Another phenomenon in the medical aesthetics industry is that upstream supply largely dictates the demands of both institutions and consumers, as most procedures offered by medical aesthetics clinics rely heavily on upstream support. Consequently, a growing number of entrepreneurs are flocking to the upstream segment of the medical aesthetics industry, which features higher technological and regulatory barriers as well as stronger profitability. Jingyan Biotechnology Co., Ltd. (hereinafter referred to as “Jingyan Biotechnology”) is one such player.

Since 2010, Liu Guotian has been engaged in the medical aesthetics industry for 11 years. During this period, he held positions at leading medical aesthetic pharmaceutical manufacturers such as Imeik and Huadong Medicine, where he was responsible for product distribution and marketing promotion. His extensive experience in the industry has enabled him to recognize the critical importance of the upstream sector to the overall development of the medical aesthetics industry, as well as its future growth prospects. Although China’s medical aesthetics industry started relatively late and the upstream segment still exhibits certain deficiencies, this also indicates that there remains substantial room for development in China’s upstream medical aesthetics market.

In 2018, Jingyan Biotech was officially established. After conducting market research on medical aesthetic procedures and products, Liu Guotian focused on thread lifting and actively initiated a partnership with the U.S.-based QUILL brand. At that time, QUILL threads already held a 40% share of the global barbed suture market.

For most people who are not interested in medical aesthetics, the term "thread lifting" is undoubtedly unfamiliar. Thread lifting is a latest minimally invasive procedure that achieves facial contour lifting and tightening, as well as overall facial rejuvenation, by directly implanting absorbable collagen threads into the skin to lift it. Due to its minimal trauma and rapid recovery, thread lifting has gradually become one of the dark horses in the field of medical aesthetic treatments.

It is understood that the US QuickLift suture, launched by Shunke Medical Devices (USA), Inc., is an absorbable and metabolizable suture material. Its innovative bidirectional 360° barbed design enables more uniform distribution of wound tension, smoother approximation of incision edges, and reduced scarring. In 2004, the “360° Spiral Barbed Technology” of the US QuickLift suture was granted a U.S. national invention patent. Owing to its product performance and quality assurance, the US QuickLift suture received FDA approval in 2007 and NMPA certification in 2011.

US QuickLift Threads

On one side stood a multinational corporation, and on the other, a newly established startup. Leveraging its exceptional marketing team and years of accumulated resources, Jingyan Biotech successfully facilitated collaboration between the two parties. It co-founded the US QUILL Thread Lift Academy and the Jingyan Medical Aesthetics Academy, providing domestic and international academic exchange platforms and professional technical training to accelerate the growth of young physicians. Since then, Jingyan Biotech has become one of the key partners of US QUILL threads in China.

All of this clearly relies on the support of team strength. In terms of the team, the core team of Jingyan Biotechnology has at least ten years of work experience in the medical aesthetics industry, covering not only product marketing but also rich clinical experience, which lays the foundation for Jingyan Biotechnology's subsequent efforts in product research and development. The direct sales team has even managed to cover more than 3,000 medical aesthetic institutions across China, ensuring the market promotion of the products.

For Jingyan Biotech in its early stages, successfully securing the distribution rights for the U.S.-made QuickLift threads further expanded and solidified its channel resources, while the resulting stable market presence provided the company with a unique competitive advantage. Meanwhile, Jingyan Biotech was concurrently engaged in the research and development of medical aesthetic products, launching skincare solutions designed for use by medical aesthetic institutions in their daily skin care treatments.

In terms of R&D, Jingyan Biotech is also striving to further expand the application scenarios covered by its products. In October 2019, Jingyan Biotech acquired Shanghai Luman Trading Co., Ltd. as a wholly-owned subsidiary. Through this acquisition, Jingyan Biotech established a partnership with VERTICE, a renowned Israeli mesotherapy brand, to jointly develop medical aesthetic products and to handle their promotion and distribution in the Chinese market.

Currently, the kinetic energy solution, slimming solution, scalp repair essence, and ultra-hydrating skin booster series, jointly developed by Jingyan Biotech and Yitisi, have been successfully launched. In addition, Jingyan Biotech is actively advancing the regulatory approval process for injectable products primarily based on hyaluronic acid and botulinum toxin.

Yitisi Series Products

For the medical aesthetics industry, the importance of hyaluronic acid and botulinum toxin is self-evident. According to the annual global survey on cosmetic procedures released by the International Society of Aesthetic Plastic Surgery (ISAPS), the top five non-surgical cosmetic treatments in 2019 were botulinum toxin, hyaluronic acid, hair removal, non-surgical fat reduction, and intense pulsed light (IPL) skin rejuvenation. Hyaluronic acid is currently the best-selling medical aesthetic treatment in China. Although botulinum toxin ranks slightly behind hyaluronic acid in sales volume, it holds significant market growth potential, as only four botulinum toxin products have been approved for use in China to date.

Through more than a decade of deep industry engagement, Jingyan Biotechnology has amassed extensive resources of high-quality physicians and established an advisory board comprising over one hundred leading domestic and international experts in minimally invasive aesthetic procedures and cosmetic skincare. Meanwhile, the company’s team continuously engages with cutting-edge overseas products and technologies, thereby ensuring the smooth advancement of its R&D initiatives.

From its initial focus on the market to its current emphasis on R&D, Jingyan Biotech has achieved remarkable commercial success within just three years of its establishment. Looking ahead, the company harbors even greater ambitions.

First, establish in-house laboratories to intensify product research and development and innovation. In the coming period, Jingyan Biotech will prioritize independent R&D as its core strategic focus, while continuously introducing and mastering cutting-edge technologies to build its own innovative brand.

Second, establish manufacturing facilities to ensure product commercialization and supply. Production capacity is clearly a key factor in determining market share. In response to the growing demand in the medical aesthetics market, Jingyan Biotech will further expand its production capacity by building its own factories and production lines.

Third, we will actively advance product registration and approval processes, continuously launching high-quality products to the market.

Going forward, Jingyan Biotech will continuously strengthen and supplement its efforts across all operational segments based on the aforementioned objectives. In addition, capital injection is a critical need for the company at this stage. It is understood that Jingyan Biotech has already initiated its Series A financing round, with the proceeds to be used to better support the advancement of its various business divisions.