Chang Jiang Shang Bao·2025-08-12 23:20Core Viewpoint - The dispute over the exclusive agency rights for the "童颜针" (AestheFill) between *ST Suwu and the medical beauty giant Aimeike has escalated, with *ST Suwu seeking arbitration and claiming significant financial losses due to alleged breaches of contract [2][5][6]. Group 1: Company Actions and Legal Proceedings - *ST Suwu's subsidiary, Datou Medical, has filed for arbitration with the Shenzhen International Arbitration Court regarding a breach of contract by Regen, seeking to confirm its exclusive agency rights for AestheFill and claiming preliminary damages of 1.6 billion yuan [2][6]. - The arbitration request was accepted by the Shenzhen International Arbitration Court on August 7, 2025 [5]. - *ST Suwu has publicly accused Aimeike of "capital bullying" and "serious damage to business ethics" in its defense [2][8]. Group 2: Financial Context and Company Performance - *ST Suwu is facing severe financial difficulties, including risks of forced delisting due to financial fraud allegations, with a reported inflated revenue of 1.77 billion yuan from 2020 to 2023 [3][9]. - Aimeike, which acquired 85% of Regen for $190 million in March 2025, is also experiencing declining financial performance, with revenue and net profit growth rates dropping to single digits in 2024 [3][12]. - Aimeike's market capitalization has decreased from over 180 billion yuan at its peak to approximately 60 billion yuan, reflecting a loss of over 120 billion yuan [4][14]. Group 3: Market Implications and Future Outlook - The ongoing dispute over the AestheFill agency rights is critical for both companies, as AestheFill is seen as a potential growth driver for Aimeike amidst its declining performance [10][11]. - The market has reacted negatively to the news, with *ST Suwu's stock price experiencing consecutive trading halts following the announcement of the termination of its agency rights [8]. - The outcome of the arbitration and the future of the AestheFill product in the Chinese market remain uncertain, with significant implications for both companies and their stakeholders [4][15].