Core Viewpoint - The major shareholder, Langzi Co., Ltd., has completed its share reduction plan for Ruoyuchen Technology Co., Ltd., reducing its stake to approximately 4.36% and officially exiting the list of significant shareholders holding over 5% [1] Group 1: Shareholding Changes - Langzi Co., Ltd. reduced its holdings in Ruoyuchen from over 5% to 4.36%, retaining 13.55 million shares [1] - Langzi Co., Ltd. initially acquired a 20% stake in Ruoyuchen in 2015 for 110 million yuan [2] - Since September 2022, Langzi Co., Ltd. has been continuously reducing its holdings, cashing out nearly 500 million yuan by September 2025 [2] Group 2: Financial Performance - In the first half of 2025, Langzi Co., Ltd. reported a net profit of 274 million yuan, a year-on-year increase of 64.09%, but the profit excluding gains from share reductions was only 136 million yuan, a decrease of 2.70% [2] - Revenue from Langzi Co., Ltd.'s medical beauty business in the first half of 2025 was 1.333 billion yuan, down 6.1% year-on-year, with significant reliance on its Milan Baiyu brand [2] Group 3: Business Operations and Challenges - Langzi Co., Ltd. is actively pursuing acquisitions in the medical beauty sector, recently announcing a cash acquisition of 67.5% of Chongqing Milan Baiyu Shiguang Medical Beauty Hospital for 92.475 million yuan [3] - The company faces significant financial pressure, with short-term loans increasing from 684 million yuan at the beginning of 2024 to 1.314 billion yuan by year-end [4] - Langzi Co., Ltd. is required to pay back taxes and penalties totaling approximately 30.82 million yuan, which is expected to reduce the company's net profit for 2025 by about 3.082 million yuan, representing 15% of the projected net profit for 2024 [4]

Core Viewpoint - In the first half of 2025, Aimeike reported its worst interim results since its listing, with both revenue and net profit declining significantly, indicating potential underlying issues in product iteration and competitive barriers [1][2]. Financial Performance - Aimeike's revenue for the first half of 2025 was 1.299 billion yuan, a year-on-year decrease of 21.59%, while the net profit attributable to shareholders was approximately 789 million yuan, down 29.57% year-on-year [1][2]. - The company's revenue and net profit have been on a downward trend since the first half of 2023, with revenue figures of 1.459 billion yuan, 1.657 billion yuan, and 1.299 billion yuan for the first halves of 2023, 2024, and 2025 respectively, showing changes of 64.93%, 13.53%, and -21.59% [2]. - The gross profit margin and net profit margin also declined, with gross profit margin at 93.44%, down 1.47 percentage points year-on-year, and net profit margin at 60.9%, down 6.78 percentage points year-on-year [1][9]. Product Performance - The two main business segments, solution products (including "Haitai") and gel products (including "Ruhua Tianzi"), both experienced revenue declines, with solution products generating 744 million yuan (down 23.79%) and gel products generating 493 million yuan (down 23.99%) [1][6]. - These two segments account for over 90% of Aimeike's revenue, highlighting potential risks related to product innovation and competitive positioning [1]. Inventory and Operational Efficiency - Aimeike's inventory situation is concerning, with inventory size reaching 82 million yuan, a year-on-year increase of 42.69%, and inventory turnover days extending to 163.77 days, an increase of 49 days compared to the previous year [9]. Market Dynamics and Competitive Landscape - The injection beauty market in China is primarily driven by hyaluronic acid and botulinum toxin products, with high entry barriers due to regulatory requirements, which historically provided Aimeike with a competitive edge [10]. - However, increasing competition and a growing number of approved hyaluronic acid products have diminished Aimeike's first-mover advantage, prompting the company to seek growth through acquisitions and product line expansions [10][11]. Acquisition Strategy - Aimeike has pursued aggressive acquisitions to expand its product offerings, including a notable acquisition of a Korean botulinum toxin company and a recent acquisition of REGEN Biotech, which includes the well-known "童颜针" product [12][13]. - The high premium paid for acquisitions reflects a broader trend of growth anxiety among Chinese medical beauty companies, raising concerns about goodwill risks associated with such strategies [13].