Group 1 - The company has completed the acquisition of a controlling stake in REGEN, with the domestic product "Zhen Ai Su Fei" already launched for sale, and attention is on the sales ramp-up during the transition period [1] - The company has received approval for Minoxidil topical solution, and it is expected that 2026 will see a concentrated launch of new pipelines such as botulinum toxin, with a focus on the progress of these new products in the domestic market [1] - The company has completed its first cosmetic raw material filing, with the core ingredient "Glycyrrhetinic Acid A" sourced from the Chinese herb licorice, which can be used as a skin protectant and moisturizer in cosmetics [1] Group 2 - The traditional product segment is under short-term pressure due to low market sentiment and intensified competition, with Q3 revenue expected to continue its downward trend [2] - For the first three quarters of 2025, revenue was 1.865 billion, down 21.49%, and net profit attributable to the parent company was 1.093 billion, down 31.05% [2] - In Q3 2025, revenue was 566 million, down 21.27%, and net profit attributable to the parent company was 304 million, down 34.61% [2] Group 3 - The company’s performance remains under pressure due to low industry sentiment and increased competition, with a focus on the sales ramp-up of "Zhen Ai Su Fei" during the transition period [3] - The new REGEN factory in South Korea has successfully commenced production, expected to release incremental capacity this year and expand into markets in the Middle East and Southeast Asia [3] - The company is anticipated to experience a concentrated launch of new pipelines in 2026, with attention on the progress of these new products and their market release rhythm [3]

Core Insights - Shenzhen Pengai Medical Aesthetic Hospital celebrated its 20th anniversary, coinciding with the 45th anniversary of the Shenzhen Special Economic Zone, highlighting its growth alongside the city's development [1][2] - The hospital aims to continue advocating for "three regulations, safe beauty" and to enhance its medical technology and service details, focusing on lifecycle management of aesthetic services [1] - The "Shangxing Aesthetics" project was launched in collaboration with Aimeike, emphasizing a positive spirit and cultural significance beyond mere external beauty [2] Company Development - The celebration included participation from over 40 supply chain enterprises, showcasing Pengai's resource integration capabilities within the medical aesthetics industry [2] - The hospital's general manager, Pan Yousheng, reflected on the growth from inception to becoming a regional benchmark, emphasizing a commitment to safety and quality in aesthetic services [1][2] - A recognition ceremony was held for employees with over 15 years of service, underscoring the company's appreciation for long-term dedication [2] Future Strategy - Pengai Hospital views its 20th anniversary as both a milestone and a new starting point, pledging to drive progress in the Chinese medical aesthetics industry with a focus on customer-centricity and technological support [2] - The company aims to collaborate with excellent partners to create a more brilliant future in the next twenty years [2]

Group 1 - The ongoing dispute over the "AestheFill" product involves Aimei Ke's subsidiary REGEN Biotech, which has been restricted from selling the product in mainland China until arbitration is resolved [1][2] - Aimei Ke confirmed that the recent decision is a procedural matter and does not constitute a final arbitration ruling, indicating that REGEN may still sell AestheFill in mainland China [2][3] - The product AestheFill has been out of stock for two months, affecting downstream medical beauty institutions, although Aimei Ke attributes the shortage to distributor sales strategies [2][3] Group 2 - AestheFill has been rebranded as "Zhen Ai Su Fei," but many institutions still refer to it as "Ai Su Fei," leading to confusion in the market [2][3] - There is a significant price discrepancy between the two names, with "Ai Su Fei" priced as low as 8,700 yuan per 200mg unit, while "Zhen Ai Su Fei" is priced around 21,000 yuan for the same quantity [3] - The ability of Aimei Ke to stabilize the sales and pricing of AestheFill remains uncertain and will require further observation [3]

Core Insights - The company's H1 2025 performance fell short of expectations, with revenue of 1.299 billion yuan, down 21.6%, and net profit attributable to shareholders of 789 million yuan, down 29.6% [1] - The Q2 2025 results also showed a decline, with revenue of 636 million yuan, down 25.1%, and net profit attributable to shareholders of 346 million yuan, down 41.8% [2] Financial Performance - H1 2025 revenue breakdown: - Solution revenue: 744 million yuan, down 23.8% - Gel revenue: 493 million yuan, down 23.99% - Lyophilized powder revenue: 19 million yuan - Facial embedding line revenue: 3.32 million yuan, down 4.6% - Other main business revenue: 39 million yuan, up 38.9% [3] - H1 2025 gross margin: 93.44%, down 1.5 percentage points, with declines in gross margins for solution, gel, facial embedding line, and other main businesses [3] - H1 2025 expense ratios: - Sales expense ratio: 11.1%, up 2.6 percentage points - Management expense ratio: 5.34%, up 1.3 percentage points - R&D expense ratio: 12.05%, up 4.5 percentage points - H1 2025 net profit margin: 60.77%, down 6.9 percentage points, and adjusted net profit margin: 55.6%, down 10.2 percentage points [3] Pipeline Progress - The product AestheFill has been renamed "Zhen Ai Su Fei" and officially launched in the Chinese market, with ongoing efforts in team building, channel expansion, and packaging optimization [4] - The company is collaborating with REGEN to expand globally, with an initial focus on increasing market share in South Korea [4] - Regulatory updates include submissions for botulinum toxin and minoxidil lotion, currently under review, and new product registrations for other treatments [4] - Clinical trials are ongoing for several products, with the second-generation embedding line expected to enter registration by 2025 [4] Investment Outlook - The company is expected to face short-term pressure on performance due to low industry sentiment and intensified competition in Q2 [4] - The introduction of a low-threshold light medical beauty chain model by a competitor may stimulate industry demand, with the company positioned to benefit as a leading player [4] - With the adjustment of distribution rights and the gradual rollout of its own pipeline, the company anticipates a concentrated launch period for new products like botulinum toxin in 2026, projecting net profits of 1.6 billion yuan and 2 billion yuan for 2025 and 2026, respectively, corresponding to PE ratios of approximately 38x and 29x [4]

Group 1 - The arbitration regarding the agency rights of AestheFill in mainland China has seen a significant development, with the emergency arbitrator rejecting the request from Datou Medical to revoke the exclusive authorization of Lizhen (Xiamen) Medical Technology Co., Ltd. as the agent [1] - The emergency arbitrator confirmed that REGEN Biotech, Inc. must continue supplying AestheFill products to Datou Medical and cannot deny its status as the exclusive distributor [1] - The decision aims to balance the interests of both parties while ensuring a stable supply of AestheFill products in the Chinese market, minimizing the impact of the dispute on the end market and consumers [1] Group 2 - Despite the ongoing arbitration, the legal status of Lizhen (Xiamen) as the exclusive agent for AestheFill in mainland China remains intact, potentially weakening Datou Medical's claims of illegal deprivation of exclusive distribution rights [2] - REGEN's main reason for seeking to terminate the cooperation agreement with Datou Medical is the latter's transfer of agency business to its controlling shareholder, which violates the exclusivity agreement [2] - The product AestheFill has been renamed to "Zhenai Suofei" and continues to be supplied normally, indicating that the arbitration dispute has not materially affected sales [2] Group 3 - *ST Suwu is facing multiple delisting risks, including false reporting of revenue and profits, which could lead to mandatory delisting due to significant violations [3] - The stock price of *ST Suwu has repeatedly fallen below 1 yuan, putting it at risk of delisting due to its low market value [3] - The company is also dealing with major operational and governance risks, including unresolved large fund occupation issues by its controlling shareholder and ongoing litigation regarding exclusive agency agreements for core aesthetic products [3]

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].