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].

Core Viewpoint - The exclusive distribution rights for AestheFill, the first imported "youthful injection" in China's competitive regenerative medical beauty market, have changed due to a termination notice issued by REGEN to its distributor, Datou Medical [1][7]. Group 1: Company Actions - REGEN terminated the exclusive distribution agreement with Datou Medical due to multiple breaches, including the unauthorized transfer of distribution rights to its controlling shareholder, Jiangsu Wuzhong Aesthetic Biotechnology [4][5][7]. - Following the termination, REGEN has instructed Datou Medical to cease all operations as the exclusive distributor and will not accept any further orders from them [7][8]. - Jiangsu Wuzhong has publicly disputed REGEN's claims, asserting that no transfer of exclusive rights occurred and that the agreement did not stipulate that administrative penalties could trigger termination [8][11]. Group 2: Financial Implications - AestheFill generated over 300 million yuan in revenue for Jiangsu Wuzhong within eight months of its launch in April 2024 [7]. - The termination of the distribution agreement could significantly impact Jiangsu Wuzhong's revenue and profitability in the second half of the year, as the company had relied on AestheFill for financial recovery [16][17]. - Both companies have faced declining performance, with Jiangsu Wuzhong's stock price dropping to 1.70 yuan per share, while AestheFill's parent company, Aimeike, saw its stock rise by over 6% following the announcement [7][17]. Group 3: Market Dynamics - The AestheFill product is expected to undergo a rebranding to "Zhenai Su Fei" in the Chinese market, with REGEN planning to establish a direct sales team to enhance brand image and market positioning [12][20]. - The competitive landscape in the regenerative medical beauty sector is intensifying, with nine products already certified in the domestic market, indicating potential opportunities for other players amid the ongoing disputes between Jiangsu Wuzhong and Aimeike [20].

Core Viewpoint - Jiangsu Wuzhong (ST Suwu) faces a significant setback as its subsidiary, Datou Medical, receives a termination notice from Regen Biotech, ending their exclusive distribution agreement for AestheFill in mainland China, which may lead to a loss of market position and revenue [2][11]. Group 1: Company Developments - Jiangsu Wuzhong's subsidiary, Datou Medical, had secured exclusive rights for AestheFill in August 2022, with expectations of significant revenue contributions [5][6]. - AestheFill was projected to generate substantial profits, contributing 3.26 billion yuan in sales and 2.69 billion yuan in gross profit for Jiangsu Wuzhong in 2024 [6]. - Following the termination notice, Jiangsu Wuzhong's stock plummeted by 5.03%, reducing its market capitalization to 1.211 billion yuan [3]. Group 2: Market Context - The aesthetic medicine market, particularly the "童颜针" (youthful needle) segment, is rapidly growing, with the market size approaching 600 million yuan in 2023 [16]. - Increased competition in the market is evident, with multiple products receiving approval, intensifying the struggle for market share [16]. - The loss of AestheFill's distribution rights could significantly impact Jiangsu Wuzhong's revenue and market strategy in the aesthetic sector [16]. Group 3: Legal and Strategic Responses - Jiangsu Wuzhong has initiated a response plan and is in active communication with Regen, considering legal action to protect its interests [11][13]. - The company has publicly condemned Regen's unilateral termination of the agreement, asserting that it violates the contractual spirit and could disrupt market order [11][13].