Jiangsu wuzhong(SH:600200) Xin Lang Cai Jing·2025-07-22 10:28Core Viewpoint - The exclusive distribution rights for AestheFill, the first imported "youthful injection" in China's competitive regenerative medical beauty market, have changed due to a termination notice issued by REGEN to its distributor, Datou Medical [1][7]. Group 1: Company Actions - REGEN terminated the exclusive distribution agreement with Datou Medical due to multiple breaches, including the unauthorized transfer of distribution rights to its controlling shareholder, Jiangsu Wuzhong Aesthetic Biotechnology [4][5][7]. - Following the termination, REGEN has instructed Datou Medical to cease all operations as the exclusive distributor and will not accept any further orders from them [7][8]. - Jiangsu Wuzhong has publicly disputed REGEN's claims, asserting that no transfer of exclusive rights occurred and that the agreement did not stipulate that administrative penalties could trigger termination [8][11]. Group 2: Financial Implications - AestheFill generated over 300 million yuan in revenue for Jiangsu Wuzhong within eight months of its launch in April 2024 [7]. - The termination of the distribution agreement could significantly impact Jiangsu Wuzhong's revenue and profitability in the second half of the year, as the company had relied on AestheFill for financial recovery [16][17]. - Both companies have faced declining performance, with Jiangsu Wuzhong's stock price dropping to 1.70 yuan per share, while AestheFill's parent company, Aimeike, saw its stock rise by over 6% following the announcement [7][17]. Group 3: Market Dynamics - The AestheFill product is expected to undergo a rebranding to "Zhenai Su Fei" in the Chinese market, with REGEN planning to establish a direct sales team to enhance brand image and market positioning [12][20]. - The competitive landscape in the regenerative medical beauty sector is intensifying, with nine products already certified in the domestic market, indicating potential opportunities for other players amid the ongoing disputes between Jiangsu Wuzhong and Aimeike [20].