Core Viewpoint - The acquisition of Regen Biotech, Inc. by Aimeike has led to a fierce commercial dispute with Jiangsu Wuzhong, the exclusive distributor of AestheFill in mainland China, following Regen's unilateral termination of the distribution agreement [1][2]. Group 1: Company Developments - Jiangsu Wuzhong announced that it has initiated arbitration against Regen after the latter revoked the exclusive distribution rights of AestheFill, with the arbitration case accepted on August 7, 2025 [1]. - Aimeike stated that it has not yet received any arbitration documents from the Shenzhen International Arbitration Court and will respond accordingly once received [1]. - Following the announcement of the dispute, Jiangsu Wuzhong's stock price fell by over 41% from 1.79 yuan per share to 1.04 yuan per share, while Aimeike's stock remained relatively stable [1]. Group 2: Historical Context - The exclusive distribution rights for AestheFill were granted to Jiangsu Wuzhong's subsidiary, Datou Medical, in August 2022, with the product approved for sale in mainland China in January 2024 [2]. - Aimeike's acquisition of control over Regen was completed on June 30, 2025, leading to the emergence of conflicts regarding the distribution agreement [2][3]. Group 3: Financial Implications - AestheFill has shown strong market performance, generating sales of 3.26 billion yuan in its first year and contributing significantly to Jiangsu Wuzhong's recovery, with a net profit of 70.48 million yuan in 2024, a 197.97% increase year-on-year [5][6]. - Jiangsu Wuzhong has invested over 400 million yuan in the clinical registration and market expansion of AestheFill, and the loss of distribution rights could severely impact its financial stability [6]. Group 4: Industry Insights - The dispute highlights the ongoing tension between brand owners and distributors in the medical aesthetics industry, where distributors often face uncertainties regarding their rights and the stability of their partnerships [7]. - The potential fallout from this dispute could lead to increased insecurity among distributors, which may negatively affect the marketing and sales performance of medical aesthetic products [7].

Core Viewpoint - The dispute over the exclusive agency rights for AestheFill between Jiangsu Wuzhong and Aimeike has escalated, with Jiangsu Wuzhong initiating arbitration against REGEN for breach of contract after REGEN terminated their exclusive distribution agreement [1][2]. Group 1: Arbitration and Legal Actions - Jiangsu Wuzhong announced on August 11 that it has filed for arbitration with the Shenzhen International Arbitration Court regarding REGEN's breach of contract, seeking to confirm the validity of the exclusive agency agreement for AestheFill until August 28, 2032 [1][2]. - The arbitration request includes demands for REGEN to supply AestheFill products as per the agreement, and if not supported, for REGEN to compensate Jiangsu Wuzhong for losses estimated at RMB 1.6 billion [1][2]. Group 2: Financial Impact and Market Position - As of August 12, Jiangsu Wuzhong's stock price was reported at RMB 1.08 per share, with a market capitalization of RMB 768 million, while Aimeike's stock was at RMB 188.45 per share, with a market capitalization of RMB 57.02 billion [1]. - AestheFill, which was launched in April 2024, contributed over RMB 300 million in revenue to Jiangsu Wuzhong within eight months, highlighting its significance to the company's financial recovery [4][9]. Group 3: Company Strategies and Responses - Following the termination of the agreement, Jiangsu Wuzhong initiated the "W Sunshine Guardian Plan," providing free repair treatments to clients who previously received AestheFill treatments, while also offering training support to partner institutions [11]. - Aimeike has begun selling AestheFill under a new brand name "Zhen Ai Su Fei" in the domestic market, indicating a shift in branding strategy post-dispute [11]. Group 4: Background and Context - The agency rights dispute has roots in Aimeike's acquisition of REGEN in March 2025, which raised concerns about the future of AestheFill's distribution rights [8]. - The legal conflict is compounded by both companies facing performance pressures, with Aimeike's revenue growth slowing significantly and Jiangsu Wuzhong previously reporting six consecutive years of net losses [9].