Core Viewpoint - *ST Suwu is in a critical situation regarding the legal dispute over the exclusive agency rights for AestheFill, a product of REGEN Biotech, which has escalated to arbitration [2][3]. Group 1: Legal Dispute - DaTou Medical, a subsidiary of *ST Suwu, has filed for arbitration to confirm its exclusive agency rights for AestheFill and demands continued supply from REGEN [3]. - If DaTou's exclusive rights are not confirmed, it seeks compensation of approximately 1.6 billion yuan from REGEN, with the right to adjust this claim [3]. Group 2: Company Background and Financials - *ST Suwu acquired indirect control of DaTou for 166 million yuan and has invested over 400 million yuan in the clinical registration and market expansion of AestheFill [4]. - In 2024, AestheFill was approved for sale in China, contributing to *ST Suwu's revenue of 330 million yuan, a more than 40-fold increase from the previous year, accounting for 21% of total revenue [4]. Group 3: Regulatory Issues - In February 2025, *ST Suwu was investigated by the CSRC for information disclosure violations, leading to a fine of 10 million yuan and penalties for its chairman [5]. - Following the investigation, REGEN unilaterally terminated the exclusive agency agreement with DaTou, citing violations of the agreement and reputational damage due to *ST Suwu's regulatory issues [5]. Group 4: Market Reaction - As of August 12, *ST Suwu's stock price was 1.08 yuan per share, with a market capitalization of 768 million yuan, while Aimei Ke's stock was 188.45 yuan per share, with a market capitalization of 57 billion yuan [7].

Core Viewpoint - The dispute over the exclusive agency rights for the "童颜针" (AestheFill) between *ST Suwu and Aimeike highlights the lucrative nature of the medical beauty industry, particularly the significant revenue generated by AestheFill for *ST Suwu, which could be jeopardized by the termination of the agency agreement [1][2][8]. Group 1: Agency Dispute - Aimeike announced the termination of the exclusive distribution agreement for AestheFill, which affects *ST Suwu's subsidiary, Datuo Medical, potentially leading to a loss of significant revenue [2][3]. - The reasons for the termination include alleged violations of the agreement by Datuo Medical and serious legal issues faced by *ST Suwu's executives, which have impacted the reputation of AestheFill in China [3][5]. - *ST Suwu refuted these claims, asserting that there was no transfer of agency rights and that the termination was unjustified, indicating potential legal actions against Aimeike [5][6]. Group 2: Financial Impact - AestheFill contributed over 3 billion yuan in revenue to *ST Suwu within a year, representing a 4000% increase in the medical beauty segment's performance [1][8]. - If the agency agreement is terminated, *ST Suwu anticipates a significant decline in revenue and profit from its medical beauty segment, with AestheFill projected to account for 20.42% of total revenue in 2024 [8][11]. - Aimeike's corresponding product, "濡白天使," has also shown strong performance, with revenues increasing from 385 million yuan in 2021 to 1.216 billion yuan in 2024, indicating robust growth in the medical beauty market [13]. Group 3: Market Dynamics - The medical beauty injection market, particularly for products like AestheFill, is expected to grow rapidly, with projections estimating a market size of 11.52 billion yuan by 2027 and a compound annual growth rate of 54.73% from 2021 to 2025 [9]. - The competition in the "童颜针" market is intensifying, with multiple players entering the space, including products from Aimeike, Korean REGEN, and others, indicating a crowded and competitive landscape [15].

Core Viewpoint - *ST Suwu is facing significant challenges, including potential delisting risks due to regulatory violations, loss of exclusive distribution rights for its key product AestheFill, and the freezing of its major shareholder's shares, leading to a precarious financial situation [2][8]. Group 1: Regulatory and Legal Issues - On July 13, *ST Suwu received a notice from the China Securities Regulatory Commission regarding administrative penalties for false reporting in its annual reports from 2020 to 2023, indicating a risk of forced delisting [2]. - The company’s major shareholder, Suzhou Wuzhong Investment Holding Co., has had 123 million shares frozen by the Suzhou Intermediate People's Court, raising concerns about the stability of the company's share structure [7][8]. Group 2: Loss of Distribution Rights - On July 18, *ST Suwu's subsidiary, Datou Medical, received a termination letter from Regen Biotech, ending its exclusive distribution agreement for AestheFill in mainland China [3][4]. - Regen Biotech, now controlled by domestic medical beauty giant Aimeike, cited violations of the distribution agreement by Datou Medical, claiming that the distribution rights had effectively been transferred to its parent company, Wuzhong Medical [4][5]. Group 3: Financial Impact - AestheFill is a critical product for *ST Suwu, contributing approximately 3.30 billion yuan in revenue for 2024, with AestheFill sales alone accounting for 3.26 billion yuan, representing 20.42% of total revenue [6]. - The company previously indicated that the profitability for 2024 would largely depend on the sales of AestheFill, which has been a significant driver of its financial performance [6]. Group 4: Market Reactions and Future Outlook - Following the series of negative events, *ST Suwu's stock has experienced a continuous decline, hitting a limit down for nine consecutive trading days, with a closing price of 1.54 yuan per share, nearly halving compared to the same period last year [2]. - The company has initiated a response plan to address the distribution rights dispute and is prepared to take legal action if necessary [4][6].