Understanding the Market | GIANT BIOGENE falls over 3% again, down more than 20% from historical highs, controversy over the ingredients of its KefuMei products continues to escalate
GIANT BIOGENE's stock price fell over 3% again, retreating more than 20% from its historical high, currently reported at HKD 65.9, with a trading volume of HKD 982 million. The controversy over the ingredients of its product KefuMei continues to escalate, with a statement released on June 1 apologizing to the testing agency and stating that they will pursue legal responsibility for the rumor-mongers. Huaxi Biology expressed opposition to the name game regarding this controversy, emphasizing product quality issues. Morgan Stanley pointed out that GIANT BIOGENE will release more evidence from independent institutions to clarify consumer concerns
According to Zhitong Finance APP, GIANT BIOGENE (02367) has fallen over 3% again, with the current stock price down more than 20% from its historical high. As of the time of writing, it has dropped 3.44%, trading at HKD 65.9, with a transaction volume of HKD 982 million.
On the news front, the controversy surrounding the ingredients of GIANT BIOGENE's product KefuMei continues to escalate. On the evening of June 1, GIANT BIOGENE's WeChat official account released a statement titled "GIANT accepts the apology from the testing agency used by 'Big Mouth Doctor' (Hao Yu), but will pursue legal responsibility for the rumor-mongers." The statement mentioned that regarding the controversy over "KefuMei" not containing recombinant collagen, on May 30, the company received an apology statement from the testing agency used by "Big Mouth Doctor" (Hao Yu), which clearly stated, "Our company not only does not agree with this practice but has never granted any form of authorization," and strictly demanded that "Big Mouth Doctor" (Hao Yu) "immediately cease the use and forwarding of the 'Test Report' to avoid causing more serious misguidance to the public."
Additionally, according to the latest reports, Huaxi Bio responded on June 3 regarding the controversy over recombinant collagen with GIANT BIOGENE, stating that it opposes the name games like "recombinant" collagen, not the scientific research and industrial transformation of collagen itself. The company places more importance on the interaction between HA and collagen in ECM and pointed out that the credibility of domestic brands should not be built on the abuse of concepts, hoping the industry can return to product quality issues and seek solutions. Morgan Stanley recently pointed out that GIANT BIOGENE will release more evidence and test results conducted by independent agencies to clarify consumer concerns
