Cosmetic Ingredient Maker JAKA Biotech Reaches $390 Million Valuation in IPO

Just two weeks after peptide supplier Winkey Technology went public on the Beijing Stock Exchange (BSE), another Chinese cosmetic active ingredient supplier has completed its stock market listing. On August 11, Shanghai JAKA Biotech Co., Ltd. officially began trading on the BSE under stock code 920165.

In its initial public offering, JAKA Biotech issued 7.24 million new shares at 19.26 yuan per share, raising gross proceeds of approximately 139 million yuan ($19.3 million USD) and net proceeds of 115 million yuan ($16.0 million USD). The offering combined a 10% strategic placement with a 90% public online offering. Net proceeds will fund a 50-ton annual capacity expansion project focused on functional plant extracts.

On its trading debut, JAKA Biotech opened at 60.95 yuan, up 216.5% from its offering price. The stock reached an intraday high of 61.48 yuan, pushing the company's total market capitalization to approximately 2.80 billion yuan ($390 million USD).

Revenue Grows for Three Years as Natural Ingredients Drive Margin

Founded in 2015, JAKA Biotech develops, manufactures, and sells active ingredients for the cosmetics industry. Its primary product portfolio spans two business lines: green natural raw materials, such as botanical soothing agents, Sensocalm, and asiaticoside; and synthetic products, including bio-fermented beta-glucan and chemically synthesized ethyl ascorbic acid.

JAKA Biotech initiated pre-IPO tutoring in December 2023 with initial plans for a Shenzhen listing before adjusting its target to the BSE amid changing domestic equity market conditions. The company listed on China's National Equities Exchange and Quotations (NEEQ) in March 2025, moved to its Innovation Tier in May, and gained BSE listing approval in May 2026. The full listing process spanned roughly 13 months.

Financial filings reveal steady top-line growth over recent years. JAKA Biotech recorded revenues of 183 million yuan in 2022, 218 million yuan in 2023, 242 million yuan in 2024, and 263 million yuan in 2025. Although annual revenue growth slowed from 19.1% in 2023 to 8.34% in 2025, net profit attributable to parent company shareholders recovered from a 12.8% decline in 2023 to deliver double-digit growth in 2024 (57 million yuan) and 2025 (66 million yuan).

Growth continued into early 2026. In the first quarter, JAKA Biotech posted 75 million yuan in revenue (+20.2% year-over-year) and 19 million yuan in net profit (+34.3%). For the first half of 2026, the company projects revenue between 144 million and 155 million yuan (+18% to +27%) and net profit between 35 million and 38 million yuan (+21% to +30%).

Natural raw materials form the company's financial core. In 2025, the natural ingredient unit generated 173 million yuan, representing 65.7% of main business revenue—a share that has expanded steadily over three years. Synthetic products generated 90 million yuan, or 34.3% of primary revenue, continuing a downward trajectory.

Profitability profiles also differ markedly across divisions. Overall gross margin across core operations remained around 63% over the past three years. However, natural plant extracts generated a 78.1% gross margin in 2025, compared to 36.9% for synthetic offerings.

JAKA Biotech supplies prominent beauty brands and contract manufacturers, including Proya, Shandong Freda, Waterdrop, Bloomage Biotech, Inoherb, Lin Qingxuan, Chando, and OEM giant Cosmax. As Chinese beauty leaders outline global strategies, major domestic brands and OEM partners have repeatedly ranked among JAKA Biotech's top five customers.

Underutilized Capacity and Lower R&D Ratio Present Ongoing Challenges

Despite stable top-line growth, JAKA Biotech faces operational questions as a newly listed public company.

Capacity utilization remains below potential. Between 2023 and 2025, capacity utilization for green natural raw materials ranged from 49.9% to 68.3%. The bio-fermentation facility operated at lower levels, holding near 20% capacity across the same three-year period.

Allocating all net IPO proceeds to a new 50-ton plant extract project prompted repeated inquiries from BSE regulators regarding expansion necessity and demand visibility. JAKA Biotech stated that the new project targets higher-purity functional botanical extracts that require specialized processing lines, adding that preliminary discussions with key brand clients support future demand projections. However, as of the prospectus filing date, land-use rights for the expansion facility had not been fully finalized, creating potential risks of timeline delays.

In addition, JAKA Biotech's R&D expenditure ratio has gradually declined from 8.45% in 2023 to 7.89% in 2024 and 7.37% in 2025. Its 2025 R&D spending ratio fell below the industry average of 8.75% and trailed direct competitors such as Bloomage Biotech (11.24%), Winkey Technology (10.59%), and HUIWEN BIOTECH (10.84%).

While the public listing provides fresh capital and market visibility, optimizing existing plant capacity and reversing the decline in R&D intensity remain key execution priorities for JAKA Biotech in China's evolving active ingredient sector.