How Much Recombinant Collagen Is Actually Present? Giant Biogene’s Kefumei Faces Fake Claims Controversy, Company Denies Fraud

date
27/05/2025
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GMT Eight
Giant Biogene (02367.HK) closed down 4.04% at HK$73.6 after viral claims that its Kefumei products contain only 0.0177% recombinant collagen sparked widespread concern.

On the evening of May 24, Kefumei’s official WeChat account issued a stern statement addressing recent online rumors claiming “Giant Biogene’s Kefumei products tested negative for recombinant collagen.” The company firmly denied the false accusations of “serious fraud by Giant Biogene” and “undetectable recombinant collagen,” stating it has collected relevant evidence and will initiate legal proceedings soon to hold those spreading rumors accountable under the law.

The Kefumei statement emphasized that, as a national high-tech enterprise specializing in recombinant collagen, Giant Biogene strictly complies with all relevant regulations throughout product R&D and manufacturing. All ingredient labeling follows legal standards and is approved by regulatory authorities. The company applies a triple verification system—raw material inspection, production quality control, and final product testing—to ensure product safety and quality, denying any fraud or concealment of ingredients.

Recently, a fashion and beauty influencer on Weibo, @DrBigMouth—who is certified as the former head of scientific communication at L’Oréal and holds a chemistry PhD from the University of Hong Kong—posted a video alleging “Giant Biogene’s suspected fraud, recombinant collagen is undetectable.” The related topic trended last weekend with the hashtag #Kefumei, reaching 130 million views.

The influencer claimed testing showed the actual recombinant collagen content in Kefumei’s recombinant collagen essence was only 0.0177%, while the product label categorized collagen as a “non-trace ingredient,” which legally should be added at 0.1% or more, questioning compliance. The influencer also raised concerns about the absence of glycine—an essential component of collagen—in the product and criticized the “mini molecule collagen” terminology used in Kefumei and Keligen products as a scientific misrepresentation and exaggerated marketing.

Possibly influenced by this news, Giant Biogene (02367.HK) closed at HK$73.6 per share on May 26, down 4.04%, though it has gained 47.49% year-to-date.

Giant Biogene is a rising star in biotechnology, founded in 2000, with businesses spanning functional skincare, medical devices, functional foods, and special medical formula foods. Its well-known brands include Keligen and Kefumei; Kefumei, established in 2011, is a professional skincare brand addressing skin issues. Listed on the Hong Kong Stock Exchange in 2022, Giant Biogene is dubbed the “first collagen stock.” The prospectus noted that from 2019 to 2021, Giant Biogene was China’s largest professional collagen skincare product company.

The controversy mainly revolves around recombinant collagen testing methods.

Kefumei’s May 24 statement said the company immediately tested the products using methods referenced from the Pharmacopoeia of the People’s Republic of China and the YY/T 1947-2025 “Recombinant Collagen Dressing” medical industry standard, finding collagen content exceeding 0.1% across multiple batches, which contradicts the viral claim of 0.0177%. Acknowledging that internal results might not dispel consumer doubts, the company has engaged multiple authoritative third-party labs to conduct further tests using various methods; results will be published once available.

Kefumei also noted that no industry or national standards currently exist for recombinant collagen content in cosmetics, so testing referenced medical industry standard YY/T 1947-2025. The viral accusations used a method not included in this standard, lacking rigorous methodological validation, thus yielding unreliable results. The company added that the accuser has neither requested the recombinant collagen raw material from Giant Biogene nor obtained it, making the testing method’s validation impossible.

However, the influencer posted again early May 26, arguing Giant Biogene chose a potentially interference-prone Kjeldahl nitrogen method amid complex product formulas, which is scientifically controversial and misleading to consumers.

Regarding future sample submissions mentioned by Giant Biogene, the influencer questioned that product samples can be directly purchased from official stores for testing, implying no need for raw material submission. The influencer further noted Giant Biogene failed to respond to two core issues: “Why is glycine, the core amino acid of collagen, undetectable?” and “Does naming dipeptides ‘mini molecule collagen’ distort scientific concepts?”

Cosmetics business expert and Meiyun Space e-commerce founder Bai Yunhu told The Paper on May 26 that both Kefumei and the influencer have reasonable points, with the key issue being whether core ingredient content meets product labeling standards. Bai also said, as a leading company frequently discussed on social media and with a rising stock price, Giant Biogene should provide more substantial evidence to prove product compliance.

An aesthetic medicine industry professional with nearly 15 years’ experience told The Paper that both medical aesthetics and beauty skincare industries suffer from excessive marketing claims, long criticized by insiders and consumers. Despite this, market enthusiasm for beauty outweighs demand for scientific rigor. Consumers should prioritize nationally recognized, reputable brands and avoid misleading marketing.

The professional also noted that domestic regulation of consumer medical and beauty markets is relatively strict, so consumers need not overly worry about product safety. Such disputes could promote more transparent, standardized industry practices, reducing unnecessary consumer anxiety.

On testing disputes, the expert said that both parties’ methods are technically sound, so official results should not be dismissed in favor of third-party testing blindly. Some third-party labs may issue certificates improperly for profit, requiring cautious judgment from consumers and industry players.

Giant Biogene’s 2024 financial report showed annual revenue of RMB 5.539 billion, a 57.2% increase year-on-year; net profit was RMB 2.062 billion, up 42.4%. Kefumei brand revenue exceeded RMB 4.5 billion, up 62.9%, while Keligen brand revenue was over RMB 800 million, up 36.3%. Combined, these two brands contribute over 95% of Giant Biogene’s revenue, with Kefumei accounting for more than 80%.

Despite rising revenue and profit, high sales expenses remain a focus. The report showed Giant Biogene’s sales and distribution expenses reached RMB 2 billion, up 72.5% year-on-year. R&D expenditure was RMB 107 million, increasing 42.1%, accounting for 1.9% of revenue. The company explained the sales expense increase was mainly due to investments in online direct sales marketing to support business growth and brand influence.

The report also outlined plans to increase R&D investment, enhance capabilities in recombinant collagen and rare ginseng saponins, advance medical aesthetics by developing and clinically applying Class III medical devices, expand main brands’ reach and marketing, launch innovative products, and actively develop international markets.

According to an April report by CITIC Securities, the recombinant collagen industry continues technical and process advances, achieving breakthroughs in types XVII, IV, and multiple-type combinations following types I and III. Leading companies are maturing their closed-loop capabilities in structural analysis, fermentation, productization, and commercialization. Additionally, China’s recombinant collagen is accelerating globalization, with raw materials, cosmetics, and devices going abroad. However, the report also warns of risks including technology and process failures, new product development shortfalls, shifting consumer preferences, competition eroding profitability, and regulatory changes.

Quality and efficacy in medical aesthetics are long-standing issues. Bai Yunhu told The Paper that while consumers expect effective products, they also worry about quality and efficacy, creating opportunities for some companies. Industry regulation is tightening, pressuring smaller players, and driving a natural selection process.