Core Viewpoint - Aimeike, once hailed as the "beauty medical leader," is facing severe challenges since its IPO, with continuous declines in both revenue and net profit over four consecutive quarters, reflecting deeper operational crises amid intensified market competition [1][2][4]. Financial Performance - In Q3 2025, Aimeike's revenue decreased by 21.27% year-on-year to 1.865 billion yuan, while net profit attributable to shareholders fell by 34.61% to 1.093 billion yuan [2][4]. - The company has experienced a downward trend in revenue and net profit since Q4 2024, with respective declines of 7%, 17.9%, 25.11%, and 21.27% for revenue, and 15.47%, 15.87%, 41.75%, and 34.61% for net profit in the last four quarters [4][6]. Inventory and Efficiency - Aimeike's inventory scale has been increasing, with a 41.66% year-on-year growth in inventory size to 96 million yuan in the first three quarters of 2025, while inventory turnover efficiency has significantly declined, with turnover days extending to 185 days, an increase of 56 days compared to the previous year [6][7]. Product Performance - The decline in Aimeike's performance is primarily attributed to the poor sales of its two core products: solution and gel injection products, which saw revenue drops of 23.79% and 23.99% respectively in the first half of 2025 [6][7]. Strategic Acquisitions - To seek growth, Aimeike has engaged in high-premium acquisitions, including a notable acquisition of REGEN Biotech for approximately 1.9 billion USD, which resulted in a significant increase in goodwill to about 1.651 billion yuan [7][10]. - The acquisition has led to legal complications, including a 1.6 billion yuan arbitration case related to the exclusive distribution rights of AestheFill, a key product from REGEN [10][11]. Market Dynamics - The injection beauty market in China is characterized by high competition and increasing numbers of approved products, which has diminished Aimeike's first-mover advantage in the hyaluronic acid injection sector [7][8]. - The company has been actively expanding its product line through mergers and acquisitions to maintain its competitive edge in the injection beauty field [8][9].

Core Viewpoint - The entry of Waldencast Acquisition Corp. into the injectable aesthetic market through the acquisition of Novaestiq Corp. signifies a strategic expansion for the company, particularly for its brand Obagi Medical, into a rapidly growing segment of the beauty industry [1][3][4]. Group 1: Acquisition Details - Waldencast has acquired Novaestiq, gaining exclusive rights to sell the Saypha® series of hyaluronic acid injection gels in the U.S. [1][7]. - The transaction allows Obagi Medical to extend its product offerings from professional skincare to dermal filler treatments, with the U.S. dermal filler market projected to reach $2 billion by 2029 [3][4]. - The specific terms of the acquisition were not disclosed, but it marks Waldencast's first foray into the injectable aesthetic sector [3][4]. Group 2: Market Context - The U.S. is the largest market for injectable aesthetics, accounting for approximately 20.8% of global treatment procedures, with a significant increase in hyaluronic acid treatments [18][19]. - The competition in the injectable aesthetic market is intensifying, with major beauty brands like L'Oréal and Shiseido also entering the space [22][24]. - The global injectable market is primarily dominated by hyaluronic acid and botulinum toxin, with hyaluronic acid showing a 5.2% year-on-year growth [18][19]. Group 3: Brand Performance - Obagi Medical has experienced rapid growth since its entry into the Chinese market in 2018, with annual revenue growth rates exceeding 400% from 2019 [15]. - However, due to the separation of its Chinese operations during the 2022 merger, Obagi's performance in China has declined significantly [15]. - In the latest quarter, Obagi Medical reported a 7.1% year-on-year revenue increase, contrasting with a decline in its sister brand Milk Makeup, which saw a 15.1% drop [17]. Group 4: Future Outlook - The potential for Saypha® in the injectable market is promising, but it will face substantial competition as more players enter the field [19][26]. - The emergence of new materials for injectable aesthetics, such as agarose and hydroxyapatite, indicates a diversification in product offerings, which could intensify competition [26][27]. - Success in the injectable aesthetic market will depend on Obagi's ability to establish unique technological advantages and maintain a strong brand presence [27].