Core Viewpoint - Aimeike, a leading player in the medical aesthetics industry, is facing significant challenges with its performance, reporting a decline in revenue and net profit for the first half of 2025 [1][2]. Financial Performance - Aimeike reported a revenue of 1.299 billion yuan, a year-on-year decrease of 21.59% [2]. - The net profit attributable to shareholders was 789 million yuan, down 29.57% year-on-year [2]. - Basic earnings per share decreased to 2.62 yuan, reflecting a 29.57% decline [2]. - The net cash flow from operating activities was 655 million yuan, down 43.06% year-on-year [2]. - The company announced a cash dividend plan, proposing to distribute 12 yuan per 10 shares, totaling approximately 362 million yuan, which accounts for 45.9% of net profit [2]. Product Performance - Aimeike's core products, including the "Hi Body" solution and "Ru White Angel" gel, have shown weak performance, with revenue from solution injection products declining by 23.79% to 744 million yuan and gel injection products down 23.99% to 493 million yuan [3][4]. Industry Context - The company attributes its poor product performance to intensified competition and industry transformation, with an increase in medical beauty product registrations leading to a more competitive landscape [4]. - The market is experiencing a clear division between high-end and mass-market segments, with new materials for injection products gaining attention [4]. - UBS has downgraded Aimeike's profit forecasts for 2025-2027 by 10% to 16% due to expectations of underperformance in 2024 and ongoing macroeconomic uncertainties [4]. Strategic Moves - Aimeike has made strategic moves, including acquiring 85% of South Korean REGEN for 190 million USD to gain production rights for "Youthful Needle" [5]. - The acquisition aims to alleviate production capacity constraints and enhance the product matrix with REGEN's offerings [5]. - The company is also expanding its product diversity by developing weight loss products, with clinical trials underway for semaglutide and deoxycholic acid injection products [5].

Core Insights - Aimeike's revenue and net profit have significantly declined in the first half of 2025, with revenue dropping by 21.59% to 1.299 billion yuan and net profit decreasing by 29.57% to 789 million yuan, marking the most severe performance challenge since its listing [2][3][4] Financial Performance - The company's operating cash flow also saw a substantial decline, down 43.06% to 655 million yuan [2][3] - Basic earnings per share fell to 2.62 yuan, a decrease of 29.57% compared to the previous year [2][3] - The weighted average return on equity decreased by 6.52 percentage points to 10.10% [3] Product Performance - Core products, including the solution-type product "Haitai" and gel-type product "Ruhbai Tianzi," experienced poor performance, with solution-type products generating 744 million yuan (down 23.79%) and gel-type products generating 493 million yuan (down 23.99%) [4][5] - The overall gross margin for solution-type and gel-type products remained high at 93.15% and 97.75%, respectively, despite the revenue decline [5] Industry Context - The medical aesthetics industry is facing intensified competition due to an increase in product registrations and a shift in consumer demand, leading to a more fragmented market [6][4] - The emergence of new materials for injection products, such as polylactic acid and polycaprolactone, has become a focal point in the industry [4] Strategic Moves - Aimeike has made strategic acquisitions, including the purchase of 85% of South Korean REGEN for 190 million USD, aiming to enhance its product offerings and address production capacity issues [9] - The company is also expanding its product line to include weight management products, with clinical trials underway for semaglutide and deoxycholic acid injections [10][11]