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Can Ginsenosides Be the Second Engine After Collagen?

2026-10-23

Why the Question Matters Now

Giant Biogene's financials explain the urgency: 2026 H1 revenue fell 6.3% to 2.918 billion yuan; net profit fell 20.5% to 940 million. The recombinant collagen business — brands Comfy and Klijin contribute over 80% of revenue — is maturing. Investors are asking: where is the second engine?

The company's answer: rare ginsenosides.

The Parallels That Make the Bet Rational

Giant Biogene's collagen success followed a path the ginsenoside business is now copying:

1. Deep technology ownership — self-developed, patented core ingredient
2. Scale production — hundred-kilogram rare-saponin capacity mirrors collagen's manufacturing moat
3. Regulatory milestones — CK's cosmetic registration parallels collagen's early approvals
4. Multi-brand, multi-format rollout — the same 'inner + outer' architecture

The company explicitly frames it this way: the goal is not one hit product, but a repeatable ingredient-to-market pipeline.

The Gaps That Make It Hard

1. Category maturity: collagen had established consumer awareness; rare saponins start from near-zero
2. Evidence depth: collagen's skin science is extensive; ginsenoside topical evidence is earlier-stage
3. Revenue reality: health foods and other segments are under 0.3% of revenue — the second engine is pre-ignition
4. Market conditions: Citi reports Q3 online beauty sales growth slowing — launching into a cooling market

What Success Requires

• A hero product with proven repurchase — the Comfy playbook started with one product that worked
• Clinical-grade evidence for flagship claims, beyond registration minimums
• Channel patience: the Li Jiaqi livestream launch is reach; retention is the real test
• Time: collagen took a decade. Shareholders willing to fund year five are the exception, not the rule

The Takeaway

The second-engine strategy is rational, the assets are real, and the timeline is long. For the industry, Giant Biogene's attempt will become the reference case for whether Chinese biotech can replicate ingredient-to-brand success across actives — watch repurchase data through 2027.

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