Core Viewpoint - *ST Suwu has experienced a significant decline in both revenue and net profit in the first half of 2025, primarily due to a substantial impairment provision for trade receivables, despite high growth in its medical beauty segment. The loss of exclusive distribution rights for its key product, AestheFill, poses a serious challenge for the company's future performance [2][3][7]. Financial Performance - In the first half of 2025, *ST Suwu reported revenue of 636 million yuan, a year-on-year decrease of 27.08% [3]. - The net profit attributable to shareholders was a loss of 44.42 million yuan, a decline of 281.63% compared to the previous year [3]. - The operating cash flow was negative at -885 million yuan, down 680.0% year-on-year [3]. - Basic earnings per share stood at -0.062 yuan [3]. Business Segment Analysis - The pharmaceutical business, as the traditional core segment, generated revenue of 358.10 million yuan, a decline of 53.81% year-on-year [4]. - The medical beauty segment achieved revenue of 268.19 million yuan, a remarkable increase of 234.73% year-on-year [5]. - The gross profit from the pharmaceutical segment was 184.66 million yuan, down 32.09% year-on-year, while the medical beauty segment's gross profit was 220.44 million yuan, up 231.94% year-on-year [5]. Key Product and Market Changes - The exclusive distribution rights for AestheFill were unilaterally terminated by Regen Biotech, which poses a significant risk to *ST Suwu's revenue stream [7]. - The termination was attributed to alleged violations of the distribution agreement and financial misconduct by *ST Suwu [7][8]. - The product AestheFill will be rebranded as "Zhen Ai Su Fei" in the Chinese market, further complicating *ST Suwu's ability to maintain its market position [8]. Stock Market Activity - Despite the declining performance and potential delisting risks, *ST Suwu's stock has seen unusual trading activity, with significant price increases observed in late August 2025 [8][9]. - The stock price fluctuated, with a notable drop of 1.71% and 5.22% on August 28 and 29, respectively, bringing it close to the warning line of 1 yuan [9].

Core Viewpoint - The dispute over the exclusive agency rights for AestheFill between *ST Suwu and REGEN has escalated into legal proceedings, with *ST Suwu's subsidiary, Datou Medical, filing for arbitration to confirm the validity of the exclusive agency agreement and seeking significant compensation for alleged losses [1][2][3]. Group 1: Legal Proceedings and Dispute - Datou Medical has initiated arbitration at the Shenzhen International Arbitration Court, which was formally accepted on August 7, requesting confirmation of the exclusive agency agreement and continuation of supply obligations, along with a compensation claim of up to 1.6 billion yuan for various losses [2][3]. - The partnership between Datou Medical and REGEN began in August 2022, granting Datou Medical exclusive distribution rights for AestheFill in mainland China until August 20232 [2]. - Following the acquisition of 85% of REGEN by Aimei Ke in March 2025, the relationship between the two parties soured, leading to REGEN's termination of the agreement citing breaches by Datou Medical [3]. Group 2: Financial Impact and Product Significance - AestheFill is a key product for *ST Suwu, contributing significantly to its financial performance, with sales revenue reaching 326 million yuan in 2024, accounting for 20.42% of the company's total revenue [4]. - The product's gross profit for 2024 was 269 million yuan, representing 34.8% of the company's total gross profit, indicating its critical role in the company's recovery from previous financial difficulties [4]. - In the first quarter of 2025, AestheFill's sales revenue increased to 113 million yuan, making up 35.55% of the company's revenue, with gross profit rising to 92 million yuan, which accounted for 45.77% of total gross profit [4]. Group 3: Market Dynamics and Industry Implications - The dispute over AestheFill's agency rights highlights the competitive nature of the medical aesthetics industry, where control over distribution channels and pricing can significantly impact revenue and profit margins [6]. - The situation reflects a broader trend in the industry, where companies often rely on blockbuster products to drive performance, indicating a pursuit of short-term profit maximization [6].