Core Viewpoint - A legal dispute has arisen over the exclusive distribution rights of the AestheFill product, with *ST Suwu's subsidiary, Datou Medical, seeking arbitration against Aimeike's subsidiary, Regen, for breach of contract and claiming damages of up to 1.6 billion yuan [2][3]. Group 1: Legal Dispute - Datou Medical has filed for arbitration with the Shenzhen International Arbitration Court, accusing Regen of breaching the exclusive distribution agreement for AestheFill [2][3]. - Regen's reasons for termination include alleged unauthorized transfer of distribution rights and violations of securities laws by *ST Suwu's executives, which they claim have harmed the product's reputation [3][4]. - *ST Suwu refutes these claims, asserting that no transfer of rights occurred and that the agreement does not allow for termination based on administrative penalties against its executives [3][4]. Group 2: Financial Performance - AestheFill has generated over 3 billion yuan in sales within just eight months, achieving an 82% gross margin, significantly contributing to *ST Suwu's turnaround from losses [2][6]. - In 2024, AestheFill's sales revenue reached 326 million yuan, accounting for 20.42% of *ST Suwu's total revenue, with a gross profit of 269 million yuan, representing 34.80% of the company's gross profit [6]. - The medical aesthetics segment of *ST Suwu reported a revenue increase of 4225.65% year-on-year, with a gross margin of 82.26% in 2024 [6]. Group 3: Market Context - AestheFill, known as the "童颜针" (youthful needle), is a high-margin product that has quickly gained market share in the aesthetic medicine sector, despite its higher price compared to similar products from Aimeike [6][7]. - Aimeike's revenue growth has slowed significantly, with a projected 2024 revenue of 3.026 billion yuan, reflecting a growth rate of only 5.45%, down from over 47% in 2023 [5]. - The overall medical aesthetics market in China is expected to grow at a rate of 10% to 15% in the coming years, indicating a competitive landscape for companies like Aimeike and *ST Suwu [5].

Core Insights - The company reported a stable growth trend in Q1 2025, with revenue of 10.736 billion yuan, a year-on-year increase of 3.12%, and a net profit of 915 million yuan, up 6.06% [1] - The pharmaceutical industrial sector continues to be a key growth driver, with core subsidiary China East Pharmaceutical achieving revenue of 3.621 billion yuan, a 6.52% increase, and a net profit of 843 million yuan, up 12.20% [2] - The company is focusing on innovation, with over 80 projects in its pipeline, and has significantly increased R&D investment by 49.60% to 880 million yuan in Q1 2025 [4] Business Segments - The innovative drug sales in the pharmaceutical industrial sector are gaining momentum, particularly with the expansion of reimbursement indications for the Bai Ling series products [2] - The CAR-T product, Zewokaiolun, has shown strong sales performance, with over 200 certified medical institutions and 154 effective orders placed by the partner company [3] - The company’s self-developed GLP-1 receptor agonist, HDM1002, has entered the final stages of clinical trials, indicating a robust pipeline in the endocrine field [5][6] Medical Aesthetics - The medical aesthetics segment is showing resilience, with the subsidiary Sinclair achieving approximately 238 million yuan in revenue, a 24.37% increase from the previous quarter [9] - The company has a portfolio of 40 high-end medical aesthetic products, with 26 already launched globally, indicating a strong market presence [9] - New products in the medical aesthetics field, including injectable products, are expected to drive further growth in 2025 [10] Future Outlook - The company aims to leverage its innovative capabilities and product differentiation to expand its market share in the medical aesthetics sector, which is projected to grow steadily [12] - The pharmaceutical industrial sector is expected to maintain a strong growth trajectory, supported by ongoing market expansion and product pipeline development [12] - The overall performance in Q1 2025 reflects the company's commitment to innovation and growth, positioning it for future success in the pharmaceutical and medical aesthetics industries [12]