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Shenguan Holdings Taps into the Health Industry Outlines a New Blueprint for Collagen Applications

On October 12, 2016, Shenguan Holdings (Group) Limited held its 7th listing anniversary celebration cum new product launch event at Langham Place, Guangzhou.

Under the theme of “Great Health Great Future”, Shenguan Holdings Group debuted during the event series of products with collagen as the key raw materials, ranging from food products, skincare products to health care products for mothers and infants. The Group launched its collaboration with platforms like Tencent and Rayli as well, highlighting the determination of Shenguan Holdings Group to develop in the health industry.

Strategic transformation, introducing a new blueprint for the health industry

The past seven years after listing was the fast-growing period of Shenguan Holdings. Its collagen casing production capacity has hit the top of the world, and has become “the number one sausage casing in China." Collagen casing products produced by Shenguan Holdings currently owns a market share of 80 per cent in China’s collagen market in which the space for growth is about to be saturated. Faced with a market bottleneck, Shenguan Holdings turns risks into opportunities and actively seeks diversified development and adopts the strategy of product diversification in hard times.

Ms Zhou Yaxian, the Group’s Chairlady and President said in the new product launch event, “In addition to casing production, collagen can indeed be widely used in the health industry.” After the acquisitions of several companies, Shenguan Holdings has innovatively upgraded its collagen applications and rapidly launched its original collagen products.
COLL-FULL is a cosmetics brand under Shenguan Holdings, which showed up for the first time at the new product launch event. The mask sheet of its collagen face mask is the first mask sheet ever in the world which is made of collagen, possessing the beauty effects of collagen and achieving the functions of brightening, moisturizing, repairing, firming, wrinkle preventions and nourishing. The debut of COLL-FULL masks is an essential and far-reaching step for Shenguan Holdings to tap into the consumer market of skincare products.

In the field of collagen food, Shenguan Holdings unveiled Meday Collagen Chips, and introduced a brand new way of collagen intake through innovative technologies. The crispy and lip-smacking chips are made of collagen, which will hardly make one fat.

In addition, Nutrition Supplement for Pregnant Women and Toddlers which was developed by Ferguson (Wuhan) Biotech Company Limited (15% interests held by Shenguan). The newly-launched “1000 Days Nutrition Package for Pregnant and Infant Care” is the first nutrition supplement products for infants in the market targeting their first 1000 days, which builds a solid foundation for the development of infants’ mental health.
During the process of strategic transformation, Shenguan Holdings outlined the health industry chain with an expansion of collagen technologies to the fields of food, health care products, skincare products, medicine and medical materials, developing advanced and leading collagen products which best meet consumer demand.

It is believed that Shenguan Holdings will continue to extend the industry chain with core collagen technologies as the core to promote the development of strategic emerging biomaterials industries and strive in the areas of collagen medical devices, bio-robot materials, 3D-printing biomaterials and bioenergy, promoting technological innovation and industry mix adjustment and upgrades.

Insights into the Chinese market where collagen market has great potential

Collagen has a long history of application in developed countries in Europe and America and has become a very common daily beauty supplements. Scientific researches have also become mature. As strategic emerging biomaterials in the 21st century, there is a huge demand for collagen in health and medical sectors. As quality of life in the country continues to improve, demand for collagen in China keeps growing as well.

According to relevant statistics, as of last year, China's overall collagen market has reached 100 billion yuan, with an annual growth rate of 40-60 per cent. Professional institutions predict that in the coming five years, China will become the collagen market with the largest sales volume in the world. Potential of the collagen market in China is undoubtedly gigantic.

Ms Zhou Yaxian revealed that a number of collagen products developed by the Group had already been included in the Catalogue of Key Products and Services in Strategic Emerging Industries of the nation. The pioneering attempts of Shenguan Holdings to tap into the health industry with collagen as its core coincided with the development strategies of the nation, highlighting the great market insights of Shenguan Holdings.

In fact, Shenguan Holdings’ prospective market insight regarding collagen began to take shape 36 years ago. In 1979, Shenguan Holdings began its research and development on collagen casings. In 1989, Shenguan produced the first Chinese collagen casing and became the first enterprise to receive patents on collagen casing technologies. The unique collagen extraction technology of Shenguan Holdings broke the prolong blockade of foreign technologies and filled the gaps for the country.

Innovation as the driving force while quality determines the future

"Innovation is an infinite driving force for business development.", said Ms Zhou Yaxian regarding the autonomy and innovation of an enterprise. Focusing on the development of core collagen technologies, Shenguan Holdings has received 43 patents, completed over 90 research projects and obtained more than 20 awards on technological advancement..

Over the years, Shenguan Holdings has always been promoting technological innovation and the optimization and upgrades of products through continuous investment on research and development, as well as personnel training. Shenguan Holdings currently has 3,200 members of staff, with 329 of them working for research and development.

In the domain of collagen production, Shenguan Holdings has been leading the development of the collagen industry in the nation through technological innovation, from a blank domestic market with only high-end imports which was under foreign control, to self-innovation and development which mastered core collagen technologies. It has even participated in the drafting and revision of the national and industry standards on collagen casings. Sheunguan’s success promoted the general and large-scale application of collagen casings in China’s meat industry, which is well-recognized by the industry and has eventually become the most valuable brand in the Chinese meat industry.

The application of collagen in the health industry has brought Shenguan Holdings a great opportunity for development. As introduced by Ms Zhou Yaxian, “Many of our innovative R&D technologies are the first in the country with no precedents. After passing the national examination, Shenguan Holdings has become a standard record, which is indeed the national standard.”
Looking ahead to the future, Shenguan Holdings will adhere to the vision of innovative development. With core collagen technologies as the core and collagen casing industry as the basis, Shenguan Holdings will build a safe, reliable and standardized raw material base of the health industry, and proactively promote the development of collagen Industry 4.0. Through the technological upgrades and innovative applications of collagen, the Group will strive in the collagen industry and achieve breakthroughs in technology, products and ideas etc. in order to lead the domestic collagen casing industry to the topmost of the world.