Company Profile

During the Period, Shenguan Holdings (Group) Limited (the “Company”) and its subsidiaries (collectively the “Group”) rigorously advanced special initiatives for steady product quality improvement under the core guiding principles of “strengthening standardised management and consolidating new product quality”. The focus was on the quality control for the six products of the collagen sausage casings series, namely “fried”, “crispy”, “fresh”, “tender”, “bright” and “colorful”, while further increasing the proportion of high-end sausage casing products. High-end sausage casing products, including the six series accounted for approximately 40% of the sales in the first half of the year. The Group continued to carry out the technical transformation in intelligent production to comprehensively improve production and work efficiency; Budget management was earnestly implemented to effectively reduce production costs. At the same time, the Group intensified its market expansion efforts in new business areas such as collagen food products, collagen skincare products and polymer collagen medical biomaterials, and actively advanced the clinical trials and product licence application process for medical aesthetic products.

Collagen Sausage Casings

During the Period, market receptiveness of the six new products of the collagen sausage casings series significantly improved following our promotional efforts. In addition, through technological innovation, equipment upgrades and resources investment, the production processes were optimized. Improvements were made in all aspects from raw material procurement to packaging, and production efficiency was enhanced. In addition, the Group expanded its channels for importing raw materials and increased the number of domestic purchasing points to ensure stable supply. At the same time, the Group implemented standardized management of equipment and spare parts to reduce costs and enhance efficiency, and strengthened food safety and environmental protection.

Polymer Collagen Medical Biomaterials, Collagen Food Products andCollagen Skincare Products

During the Period, the Group also recorded significant growth in sales in business segments other than collagen sausage casings, representing an increase of approximately 93% as compared to the six months ended 30 June 2024 (the “Prior Period”). The Group performed particularly well in the polymer collagen medical biomaterials segment, with significant increases in production volume, sales, and profits. The endotoxin content of the Group’s medical collagen raw materials extracted through its proprietary technology was only 0.01EU/ml, which is better than the FDA’s standard of 0.5EU/ml in the USA. The approval information for the Class III medical device product licence for “collagen bone filling biomaterials (artificial bone) (膠原蛋白骨填充材料(人工骨))” is currently being refined. The “dental medical collagen sponge (牙科醫用膠原蛋白海綿)” has completed clinical trials and is scheduled to enter the regulatory submission process in the second half of the year. Other research and development projects are also progressing steadily, with all initiatives advancing according to plan.