Core Viewpoint - The recent change in the medical device registration agent for Aisufei Tongyan Needle from Datou Medical to Lizhen Biotechnology has raised concerns in the medical aesthetics industry regarding the future of its agency rights [1][2]. Group 1: Agency Rights and Market Impact - Datou Medical, a subsidiary of Jiangsu Wuzhong Pharmaceutical Development Co., holds exclusive sales rights for Aisufei in mainland China until August 28, 2032, as confirmed by *ST Suwu [1][3]. - The exclusive sales rights are protected by a legally binding agreement, which states that there are no risks of cancellation or termination during the effective period [1][4]. - The market is speculating whether Aimeike's acquisition of Regen will affect *ST Suwu's exclusive sales rights, despite current assurances that these rights remain intact [1][2][3]. Group 2: Financial Performance and Projections - Aisufei's sales in China are projected to account for approximately half of its global sales, making it the top international brand in the aesthetic needle category [2][4]. - In 2024, *ST Suwu's revenue from medical aesthetics is expected to reach 330 million yuan, representing about 21% of total revenue, marking a significant turnaround after six years of losses [2][4]. - The potential profits from Aisufei's sales during the remaining eight years of the agency agreement could amount to a substantial figure, far exceeding the 190 million USD acquisition cost of Regen by Aimeike [4][5]. Group 3: Legal and Brand Implications - If Regen were to breach the agreement and reclaim agency rights, *ST Suwu could seek damages equivalent to all potential profits during the agency period, which could have devastating financial implications for Regen [4][5]. - The core value of medical aesthetic products lies not only in their composition but also in the long-term brand recognition and trust built with distribution channels [5][6]. - A legal dispute over agency rights could lead to Aisufei being perceived as a "controversial product," potentially damaging its market position and consumer trust [5][6]. Group 4: Strategic Considerations for Aimeike - Aimeike must consider the potential impact on its capital market image if the core product of the acquired Regen faces significant sales risks and instability in overseas channels [6]. - The disruption of Regen's global agency network due to issues in China could hinder Aimeike's international expansion strategy, which relies on Regen's resources [5][6].