Core Viewpoint - The article highlights the rapid growth of the medical beauty market, particularly focusing on the product "Wei Yi Mei" from Jinbo Biotechnology, while also exposing the rampant issues of counterfeit products and unregulated practices within the industry [3][4][12]. Group 1: Product Overview - "Wei Yi Mei" is a flagship product of Jinbo Biotechnology, leveraging recombinant collagen technology, and has seen significant sales growth from 25,000 bottles in 2021 to 576,000 bottles in 2023, maintaining over 300% growth [3]. - The global sales of the first injectable recombinant humanized collagen freeze-dried fibers have surpassed 2 million units [3]. Group 2: Market Dynamics - The retail market size for recombinant collagen medical beauty injections in China reached 4.3 billion yuan in 2023, accounting for 6.4% of the total medical beauty injection market, with projections to grow to 14.3 billion yuan by 2027 [4]. - The retail market for recombinant collagen medical dressings also reached 11 billion yuan in 2023 [4]. Group 3: Industry Issues - The article reveals that the market is plagued by counterfeit products, with only 35% of medical beauty injectables in circulation being genuine, leading to over 30% of consumer complaints related to product quality [12]. - Numerous unauthorized medical institutions are offering services related to "Wei Yi Mei," often at prices significantly lower than the official retail price, which raises concerns about product authenticity [8][10]. Group 4: Regulatory Concerns - The article emphasizes the need for consumers to recognize "regular doctors, regular institutions, and regular products" as a defense against medical beauty risks [10]. - The rise of "medical beauty fast-track training classes" has contributed to the proliferation of unqualified practitioners, further endangering consumer safety [16][17].

Investment Rating - The report maintains a "Buy" rating for the company [2][8]. Core Insights - The company recently launched its new product, HiveCOL, which is a recombinant type III human collagen gel, aiming to redefine anti-aging standards and lead natural aesthetics [5][8]. - HiveCOL is designed to fill tissue volume loss quickly and promote the adhesion, migration, and proliferation of fibroblasts, ensuring sustained ECM regeneration for at least six months [8]. - The product targets high-consumption medical beauty consumers, with a peak sales potential exceeding 10 billion yuan, based on market analysis [8]. Financial Data and Profit Forecast - Total revenue is projected to grow from 1,443 million yuan in 2024 to 3,952 million yuan by 2027, with a compound annual growth rate (CAGR) of 22.5% [7][10]. - Net profit attributable to the parent company is expected to increase from 732 million yuan in 2024 to 1,934 million yuan in 2027, reflecting a CAGR of 25.6% [7][10]. - The company's gross margin is forecasted to remain high, around 90%, indicating strong profitability [7][10].

Core Viewpoint - Jiangsu Wuzhong is facing a significant setback due to the unilateral termination of its exclusive agency rights for the AestheFill product by Regen Biotech, which the company claims is an act of "malicious breach of contract" by its partner Aimeike [2][8]. Group 1: Agency Dispute - Jiangsu Wuzhong's subsidiary, Datuo Medical, received a termination notice from Regen Biotech regarding the exclusive distribution agreement for AestheFill [2][4]. - Regen Biotech alleges that Datuo Medical violated the agreement by transferring the agency rights to its parent company, Jiangsu Wuzhong Meisheng Biotechnology [4]. - The termination has led to Regen Biotech refunding payments for undelivered orders, further complicating Jiangsu Wuzhong's financial situation [2]. Group 2: Financial Impact - AestheFill, known as the "童颜针" (youthful needle), was a key product for Jiangsu Wuzhong, contributing significantly to its revenue and profit [13]. - In 2024, Jiangsu Wuzhong reported a revenue of 1.599 billion, with AestheFill sales accounting for 326 million, representing 20.42% of total revenue [13]. - The loss of exclusive agency rights could drastically reduce Jiangsu Wuzhong's income and profit, as AestheFill was a major driver of its financial recovery [13]. Group 3: Company Performance and Challenges - Jiangsu Wuzhong has struggled with poor financial performance, reporting losses in multiple years since 2018 [11]. - The company is also facing potential delisting due to significant financial irregularities, including inflated revenues and profits from 2020 to 2023 [14]. - The stock price of Jiangsu Wuzhong has declined by 4.71%, closing at 1.62 yuan, reflecting investor concerns over its financial stability [14].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 20% within the next six months [19]. Core Viewpoints - The launch of new regenerative products positions the company as the only compliant holder of dual regenerative injectables in China [2]. - The company is transitioning from single product offerings to comprehensive aesthetic treatment solutions, addressing the evolving demands in the aesthetic medicine market [4]. - The company has established a robust product pipeline and distribution network, with over 60 products developed and a presence in more than 6,200 aesthetic institutions across 370 cities [5]. - The traditional pharmaceutical business is stabilizing, with a focus on innovative drugs, including the upcoming launches of key products [6]. Financial Performance and Forecast - Revenue projections for 2025-2027 are adjusted to 2.32 billion, 3.44 billion, and 4.73 billion RMB, respectively, with growth rates of 22%, 48%, and 37% [6]. - The net profit forecast for the same period is 63 million, 528 million, and 783 million RMB, with corresponding growth rates of 129%, 736%, and 48% [6]. - The expected price-to-earnings ratio for 2026 is 22 times, reflecting a positive outlook on profitability [6].

Core Viewpoint - The dispute between Jiangsu Wuzhong and Aimeike over the exclusive agency rights for the AestheFill product highlights the intense competition in the medical aesthetics industry, particularly regarding the popular "childlike" injection products [1][33]. Group 1: Company Disputes - Jiangsu Wuzhong and Aimeike are involved in a conflict over the exclusive distribution rights of the AestheFill product, with Aimeike's subsidiary REGEN Biotech, Inc. sending a termination notice to Jiangsu Wuzhong's subsidiary, Datou Medical [1][2]. - Datou Medical was granted exclusive agency rights for AestheFill in China until August 28, 2032, but allegations have arisen regarding the transfer of these rights to Jiangsu Wuzhong's controlling shareholder [6][7]. - Jiangsu Wuzhong claims that the termination notice's reasons are factually incorrect and asserts that the exclusive distribution agreement remains legally binding [25][32]. Group 2: Financial Implications - Jiangsu Wuzhong is facing significant financial challenges, including a projected net loss of approximately 60 million to 40 million yuan for the first half of 2025 [26]. - The AestheFill product has been a key driver for Jiangsu Wuzhong's financial recovery, with sales revenue from AestheFill contributing significantly to the company's overall income [28][30]. - Aimeike's revenue from its injection products, including its own childlike injection, has shown growth, indicating that regaining AestheFill's agency rights could further enhance its financial performance [30]. Group 3: Industry Context - The medical aesthetics market is becoming increasingly competitive, with multiple players entering the field, including cosmetic companies and new entrants like JD Health [36][37]. - The dispute reflects broader trends in the industry, where companies are vying for market share in the lucrative childlike injection segment, which has seen a surge in demand [33][36]. - The outcome of this dispute will likely impact the market positions and future prospects of both Jiangsu Wuzhong and Aimeike within the medical aesthetics sector [32][33].

Core Viewpoint - The termination of the exclusive distribution agreement for the AestheFill product between *ST Suwu and Aimeike significantly impacts *ST Suwu's financial stability, as this product accounts for a substantial portion of its revenue and profit [2][6]. Group 1: Company Actions and Reactions - *ST Suwu received a termination notice from Aimeike regarding the exclusive distribution rights for AestheFill, which is critical to its revenue stream [2][3]. - Aimeike's acquisition of Regen and subsequent actions to reclaim distribution rights indicate a strategic move to consolidate control over high-margin products [2][4]. - In response to the termination, *ST Suwu's subsidiary, Datou Medical, is pursuing legal action to contest the termination and is considering reporting Aimeike's actions to regulatory authorities [3][4]. Group 2: Financial Implications - AestheFill contributed approximately 3.26 billion yuan to *ST Suwu's revenue in 2024, accounting for about 20% of total revenue, and over 2.69 billion yuan in gross profit, representing more than one-third of the company's profits [5][6]. - In the first quarter of 2025, AestheFill generated 1.13 billion yuan in sales and 0.92 billion yuan in gross profit, making up 35.55% and 45.77% of the company's respective totals [5][6]. - The loss of exclusive distribution rights is expected to lead to a significant decline in *ST Suwu's medical aesthetics segment revenue and profit in the latter half of the year [6]. Group 3: Market Dynamics - The competitive landscape for aesthetic products in China includes seven licensed products, with AestheFill being a key player among both imported and domestic offerings [5]. - Aimeike and *ST Suwu are both targeting the regenerative injection market, indicating a direct competition for market share in high-growth segments [4][5]. - The market for AestheFill is particularly strong in China, where it has achieved record sales, highlighting the importance of maintaining distribution rights for both companies [6].

Core Viewpoint - The medical aesthetics industry is undergoing a significant restructuring of its agency rights, highlighted by the recent dispute between REGEN and *ST Suwu over the exclusive agency rights for the injection product Aisufei, which has substantial financial implications for both companies [1][4]. Financial Impact - Aisufei, known as the "youthful needle," generated sales of 326 million yuan in its first year of launch in 2024, with a gross profit of 269 million yuan [1]. - Following the announcement of regulatory penalties against *ST Suwu for financial misconduct, the company's stock price has dropped significantly, losing over 600 million yuan in market value [7]. - In contrast, despite facing growth pressures, Aimeike's stock price increased by 3.85% during the same period, reflecting investor confidence in its fundamentals [7]. Legal and Regulatory Context - The regulatory penalties against *ST Suwu, including a 10-year ban for its chairman, triggered the agency rights dispute, as REGEN cited breaches of contract due to the company's illegal activities [4][6]. - The legal interpretation of the exclusive agency agreement is central to the dispute, with *ST Suwu arguing that there was no transfer of rights, while REGEN claims that the reputation damage from *ST Suwu's actions justifies contract termination [7]. Market Dynamics - The change in agency rights is leading to a rapid reshuffling of distribution channels, with REGEN's subsidiary now taking over the distribution of Aisufei [8]. - Aimeike plans to adopt a direct sales model, enhancing its control over pricing and service standards, which is crucial for maintaining the product's premium positioning [8]. - The market for regenerative injectables is expanding at a compound annual growth rate of 29%, indicating a significant growth opportunity for companies that can effectively navigate the changing landscape [9]. Industry Transformation - The dispute reflects a broader shift in the medical aesthetics industry from a loosely regulated agency model to a more integrated and compliant operational structure [6][9]. - The loss of the medical aesthetics segment poses a challenge for *ST Suwu, which must find ways to sustain its listing status amid declining market support [9].

Core Viewpoint - Jiangsu Wuzhong (ST Suwu) faces significant challenges as its subsidiary, Datou Medical, loses exclusive distribution rights for AestheFill in mainland China due to a termination notice from Regen Biotech, which may lead to a substantial decline in revenue and profits for the company [1][6]. Company Summary - Jiangsu Wuzhong's subsidiary, Datou Medical, received a termination notice from Regen Biotech, ending its exclusive distribution agreement for AestheFill, a key product in the high-end medical aesthetics market [1][3]. - The exclusive distribution agreement was initially signed in August 2022, granting Datou Medical rights until August 2032, with Regen promising no legal obstacles to the agreement [3]. - AestheFill significantly contributed to Jiangsu Wuzhong's financial recovery, with projected sales of 10 million units in 2024 and a net profit of 70.48 million yuan, marking a 197.97% increase year-on-year [3][4]. - Following the termination notice, Jiangsu Wuzhong's stock fell to 1.7 yuan per share, a 5.03% drop, reducing its market capitalization to 1.211 billion yuan [2]. Industry Summary - The medical aesthetics industry, particularly the "童颜针" (youthful injection) market, is rapidly growing, with the market size approaching 600 million yuan in 2023 [7]. - The competitive landscape is intensifying, with multiple companies vying for market share, including the recent entry of new products and brands [7]. - The loss of AestheFill's distribution rights could significantly impact Jiangsu Wuzhong's position in the medical aesthetics sector, raising concerns about its future growth and market presence [7].

Core Viewpoint - The leading medical aesthetics company, Aimeike, has decided to reclaim the exclusive agency rights for the product "Aisufei" in China from *ST Suwu, which previously held the rights through its subsidiary, Datou Medical. This decision has sparked a strong reaction from *ST Suwu, which accuses Aimeike of violating antitrust laws and acting unethically [2][4]. Group 1: Company Actions and Reactions - Aimeike's subsidiary REGEN has terminated the exclusive agency agreement for Aisufei, a regenerative aesthetic injection product, citing violations by Datou Medical [2][4]. - *ST Suwu has publicly condemned Aimeike's actions, claiming they are unethical and calling for government intervention [2][4]. - Aimeike's global market head stated that the termination is a legitimate action to protect their rights and that they refuse to partner with companies that engage in fraudulent activities [5][6]. Group 2: Financial Implications - Aisufei is expected to generate significant revenue, with projected sales of 326 million yuan and a gross profit of 269 million yuan in 2024 [2]. - Following the termination of the agency rights, *ST Suwu's revenue and profits from its medical aesthetics segment are likely to decline significantly in the second half of the year [7]. - Aimeike reported a revenue of 3.026 billion yuan in 2024, with a year-on-year growth of 5.45%, while its net profit saw a slight increase of 2.2% [8]. Group 3: Legal and Regulatory Context - The exclusive agency agreement was originally set to last until August 28, 2032, but Aimeike claims that *ST Suwu's violations justify the termination [3][4]. - The China Securities Regulatory Commission has penalized *ST Suwu for various violations, including inflated revenue reporting, which has raised concerns about its operational integrity [4][5]. - Aimeike has indicated that if disputes arise, they will rely on legal frameworks to resolve them, emphasizing the importance of compliance and ethical conduct in business partnerships [5].

Core Viewpoint - The exclusive distribution rights of *ST Suwu's subsidiary, Datou Medical, are set to be revoked by Aimeike, which could significantly impact *ST Suwu's medical aesthetics business revenue and profits in the second half of 2025 [5][6][15]. Group 1: Company Actions and Implications - Aimeike's subsidiary, REGEN Biotech, Inc., sent a termination notice to Datou Medical on July 18, 2023, to revoke its exclusive distribution rights for the AestheFill product in mainland China [5][9]. - If the termination is finalized, Datou Medical will be unable to sell AestheFill products, leading to a substantial decrease in revenue and profit for *ST Suwu's medical aesthetics segment [6][15]. - In 2024, AestheFill contributed 326 million yuan to *ST Suwu's total revenue, accounting for 20.42%, and in Q1 2025, it generated 113 million yuan, representing 35.55% of the company's revenue [6][16][17]. Group 2: Legal and Regulatory Context - *ST Suwu has denied any breach of contract and plans to take legal action to protect its rights [6][20]. - The termination notice cites that Datou Medical allegedly transferred its exclusive distribution business to its parent company, Jiangsu Wuzhong Meisheng Biotechnology Co., Ltd., which violates the agreement [21][22]. - Recent regulatory issues have plagued *ST Suwu, including administrative penalties for violations of securities laws, which could lead to significant consequences, including potential delisting [24][26].