Core Viewpoint - Jiangsu Wuzhong is divesting its wholly-owned subsidiary, Shanghai Wuzhong Meixue Biotechnology, for 80 million yuan, indicating a strategic shift to focus on its core pharmaceutical business and reduce investment in the medical aesthetics sector [1][2]. Group 1: Company Actions and Strategy - Jiangsu Wuzhong plans to transfer 100% equity of Shanghai Wuzhong Meixue to Shanghai Qingyu Biotechnology for 80 million yuan, based on the subsidiary's asset valuation [1]. - The company confirmed a reduction in R&D investment in the medical aesthetics segment, aiming to concentrate on its pharmaceutical core business [1][2]. - The medical aesthetics division, established in 2021, has a sales team of 55 covering 537 medical aesthetic institutions [3]. Group 2: Financial Performance - The medical aesthetics segment generated 3.3 billion yuan in revenue in 2024, a staggering increase of 4225.65% year-on-year, contributing 20% to Jiangsu Wuzhong's total revenue of 16 billion yuan [4]. - The company had previously secured exclusive distribution rights for the AestheFill product until August 2032, which significantly boosted revenue [3][4]. Group 3: Legal and Regulatory Issues - Jiangsu Wuzhong is currently involved in arbitration with REGEN over a breach of the exclusive distribution agreement, seeking to confirm the validity of the agreement and potential damages of 1.6 billion yuan [6]. - The company faces reputational damage due to allegations of securities law violations, which have impacted the sales of AestheFill in mainland China [5][6]. Group 4: Historical Context - Jiangsu Wuzhong's stock was delisted on December 31, 2025, due to inflated revenue figures totaling 1.8 billion yuan over four years, which constituted about 20% of reported income during that period [7].