Imeik Technology Development Co.,Ltd. (300896.SZ), a leading domestic medical aesthetics company, is facing growing pains. The company's latest 2025 annual report reveals a simultaneous decline in both revenue and net profit. According to Imeik, this is due to increasing competition as more products gain regulatory approval, alongside a significant tax impact from the restoration of the 13% value-added tax rate, replacing the previous simplified 3% rate. The report shows a 247.49% increase in the ending balance of taxes payable compared to the beginning of the period, and a 60.91% rise in taxes and surcharges for the current period.
In recent years, China's medical aesthetics industry has entered a new phase characterized by rapid development and deep adjustment simultaneously. Prosperity on the supply side signifies intensified competition, posing new challenges for Imeik. Last year, sales of Imeik's flagship products declined year-on-year, and its comprehensive gross profit margin also fell, closely linked to the increasingly fierce competition. Furthermore, after acquiring South Korea's REGEN, new products are still in the market cultivation phase, yet the company is already embroiled in an agency rights lawsuit. Imeik's ability to navigate these challenges will determine its future prospects.
This marks the first simultaneous decline since Imeik's listing. Established 22 years ago and listed on the Shenzhen Stock Exchange in September 2020, Imeik has grown into a leading provider of innovative medical aesthetic products in China. Its performance surged consistently after its IPO, reaching a peak in revenue and net profit in 2024, before declining significantly in 2025.
On March 20, Imeik released its 2025 annual report, presenting its first "negative growth" report card since going public: revenue was approximately 2.453 billion yuan, a decrease of 18.94% year-on-year, and net profit attributable to shareholders was about 1.291 billion yuan, a sharp decline of 34.05% year-on-year.
Revenue from its former "cash cow" products—solution-based injectables (Haiti) and gel-based injectables (Rebuti Angel)—both fell by over 26%, with their gross profit margins also dropping by more than 0.6 percentage points. Although Imeik's gross profit margin remains high at 92.7% (down 1.95 percentage points year-on-year), its selling expenses surged by nearly 40% to 387 million yuan, attributed to increases in labor costs, advertising expenses, and conference fees.
Regarding the disappointment over the dividend distribution (a proposed dividend of 0.8 yuan per 10 shares, far lower than the previous year's 3.8 yuan per 10 shares), Imeik stated that dividends are necessarily linked to performance; stronger performance leads to higher dividends, while weaker performance results in lower payouts, as the company must ensure operational stability and hopes investors remain rational. An industry analyst suggested that Imeik's dividend plan disappointed the market, and the combination of unmet high dividend expectations and declining performance deals a double blow to investor confidence. From a cash flow perspective, net cash flow from operating activities fell by 31.29% year-on-year, while net cash flow from financing activities plummeted by 131.04% due to increased dividend payments, indicating the company is facing a dual squeeze of "harder earnings and higher spending."
The analyst further noted that solution-based and gel-based injectables, as Imeik's two main revenue pillars, both experienced declining sales volumes. This situation of falling volume and price stems from competing products breaking the previous monopoly.
Indeed, Imeik has repeatedly emphasized that "competition is becoming increasingly fierce," noting that while Haiti was initially the company's exclusive neck wrinkle product, the market has gradually seen more similar offerings emerge.
The analyst pointed out that solution-based products, centered on Haiti, long enjoyed market红利 from the neck wrinkle repair segment. However, the approval of a similar competing product from a rival company in October 2024 directly分流ed market share. Competition in the gel-based product segment is even more intense. Since 2025, four competing "baby face" stimulator products from other companies have gained approval, bringing the total number of such products on the market to nine, shifting the landscape from a "few players" to "multi-party competition."
Revenue from freeze-dried powder injectables was approximately 208 million yuan, accounting for only 8.48% of total revenue. Compared to solution-based injectables, which represent about half of revenue, and gel-based injectables, accounting for over 30%, the freeze-dried powder category is still in its early stages.
The analyst indicated that the new freeze-dried powder products are not yet sufficient to support a new growth curve. More critically, it remains uncertain whether this product can become a new moat. The medical aesthetics industry features short product life cycles and rapid iteration, making it difficult for any single new product to replicate the exclusive monopoly position once held by Haiti. In the regenerative aesthetics track, although Imeik has formed a product matrix, its differentiated advantage has been diluted facing the intense competition from nine rival products.
The core reasons for Imeik's 2025 performance decline can be attributed to three factors: intensifying industry competition, weak consumer demand, and a gap during the transition between old and new products. Quarterly performance showed a sequential decline, with the fourth quarter's revenue dropping to 588 million yuan and net profit to 198 million yuan, with the year-on-year decline rate widening further. At the macro level, the overall growth rate of the medical aesthetics industry has slowed from over 20% in 2023 to about 10% in 2024, with decreases in both consumption frequency and average customer spend加剧ing market pressure.
Simultaneously, behind the performance decline lies a松动ing of the company's moat. On one hand, competing products have broken Haiti's exclusive monopoly in the neck wrinkle segment, and competition in the regenerative aesthetics track has intensified, leading to volume and price declines for core products. On the other hand, Imeik's new growth drivers have not yet reached scale; for instance, the newly added freeze-dried powder products generated small revenue last year, insufficient to offset the decline of mainstay products.
More严峻ly, after spending $190 million to acquire an 85% stake in South Korea's REGEN, Imeik has become entangled in a major arbitration dispute with the former agent, Jiangsu Wuzhong, creating uncertainty about the successful ignition of this new engine.
REGEN operates production and R&D bases in Daejeon and Wonju, South Korea, primarily producing the AestheFill and PowerFill products, which enjoy high recognition in the international medical aesthetics market. In 2025, Imeik's revenue declined across all seven domestic regions to varying degrees. Revenue from East China, which contributes the highest proportion, decreased by 17.63% year-on-year, while Central China and Northeast China saw declines of approximately 30% and 40%, respectively.
Notably, overseas revenue surged dramatically by 2858.24%, which Imeik attributes mainly to the acquisition of REGEN. However, overseas revenue still constitutes only 1.91% of total revenue, insufficient to support overall performance.
The analyst believes that behind the appearance of explosive overseas growth lies the reality of an extremely low base—overseas revenue in 2024 was almost negligible. The 2025 growth primarily stems from the consolidation effect post-acquisition of REGEN, rather than a breakthrough in exporting its own products. The synchronous decline across domestic regions reflects a nationwide spread of weak terminal consumer demand, rather than regional fluctuations. The situation is indeed serious for Imeik: its domestic foundation is动摇ing, overseas contributions are minimal, and a pattern of internal and external challenges is emerging.
Imeik has high hopes for REGEN, stating the acquisition marks a key step in building an overseas R&D, production, and sales network, successfully打通ing a critical link to the international market, and representing a substantive breakthrough in its globalization strategy, beneficial for long-term competitiveness. However, in August 2025, Jiangsu Wuzhong announced that its subsidiary had filed for arbitration with the Shenzhen Court of International Arbitration regarding REGEN's alleged违约, initially claiming losses of 1.6 billion yuan.
Imeik stated that due to violations of the exclusive distribution agreement by the original distributor for the AestheFill product in mainland China, REGEN terminated the agreement and revoked all relevant authorizations in July 2025. Regarding this distribution contract dispute, both parties have filed arbitration claims and counterclaims, which have been accepted; the arbitration case is still under review.
In the analyst's view, the arbitration risk related to REGEN could be a major obstacle to Imeik's globalization. Imeik's core intention in acquiring REGEN was to leap from a "local leader" to a "global player." AestheFill, as the first approved imported "baby face" stimulator in mainland China, achieved sales of 326 million yuan in 2024, and its global distribution network could facilitate the overseas expansion of Imeik's products. However, the acquisition triggered a major arbitration dispute with the former agent, who is claiming 1.6 billion yuan in compensation. If Imeik loses the arbitration, it could face substantial compensation, and more critically, the ownership of the AestheFill distribution rights in mainland China could change, directly impacting the company's regenerative aesthetics strategy. However, as the arbitration has not yet commenced, the outcome remains highly uncertain.
Regarding this pending lawsuit, Imeik expressed confidence, noting it has hired a highly professional legal team to handle the case, and is currently awaiting the arbitration court's result, after which it will issue an announcement.
Facing these challenges, founder Jian Jun is attempting to重塑 the company's value through "technology + globalization." R&D investment increased to 360 million yuan in 2025, up 18.45% year-on-year. Its marketed products include injectable hyaluronic acid-based series, injectable polylactic acid series, and PPDO facial threads, among others. Additionally, new products that have obtained drug registration certificates, such as a minoxidil topical solution and injectable botulinum toxin type A, will be gradually launched.
To date, Imeik and its subsidiaries have obtained 12 Class III medical device product registration certificates from the NMPA, 9 Class II medical device product registration certificates, and 2 drug registration certificates. Its main products include hyaluronic acid-based injectable dermal fillers, polylactic acid injectable dermal fillers, and PPDO facial threads. During the reporting period, Imeik completed the CNAS supervision review and scope expansion, further broadening its laboratory's accreditation to cover food, pharmaceuticals, cosmetics, and medical devices.
Notably, Imeik has a rich pipeline of products under development, expanding from early biomaterial application technology to biological products and chemical drugs, including a second-generation facial thread for soft tissue lifting and a semaglutide injection for chronic weight management. Regarding semaglutide, Imeik revealed it is currently in the clinical trial stage.
The acquisition of REGEN, which打通es an overseas production and sales network, aligns with Imeik's emphasis on持续推进ing its internationalization strategy and accelerating the construction of a system covering the R&D, production, and sales of medical aesthetic products both domestically and internationally. Strategies like investment, M&A, and external integration are not wrong, but as the domestic medical aesthetics market shifts from incremental to存量 competition, whether Imeik can leverage its high-margin reserves to win this turnaround battle remains to be seen over time.
Jian Jun, the 63-year-old chairman of Imeik, resigned from a stable job in the early 1990s to engage in international trade in the US and Panama. She跨行ventured into entrepreneurship at 41, focusing intensely on technology, and launched China's first composite hyaluronic acid product in 2009, breaking the import monopoly, demonstrating her determination. The aforementioned Haiti product also resulted from her unconventional approach—choosing the neck wrinkle track when others focused on facial fillers. After Haiti's approval in 2016, it became a super cash cow, establishing Imeik's leading position. Despite the performance decline in 2025, Jian Jun still chose to acquire the leading South Korean "baby face" stimulator company, aiming to transform the overseas expansion slogan into tangible assets. Will this bet yield success after the storm?
A healthcare strategy consultant believes that the core medical aesthetics business faces sustained pressure for continuous growth and requires transformation. Opportunities exist in domestic substitution for cosmetics, but the era of high profit margins has passed, necessitating more refined cost control.
According to the analyst, Imeik's high-margin myth has faded, as the growth rate of its expenses far exceeds the decline in revenue, directly eroding profit space. R&D is indeed the only way to break through the internal卷; successful launches of new products like botulinum toxin and semaglutide could open up new growth spaces. Overseas expansion is a key path to breaking through the ceiling; REGEN's global distribution network covers 34 countries and regions, potentially providing a springboard for Imeik's product internationalization. However, risks are also significant—high-value M&A brings potential goodwill impairment risks, new product launch cycles are long and uncertain, making it difficult to reverse the downturn in the short term.
The analyst further suggested that the future market will show a分化 pattern where the strong get stronger and the weak are eliminated. Companies with full-category layout capabilities, continuous innovation, and global channels will survive and grow, while those reliant on a single hit product will be淘汰ed. For Imeik to establish itself in this changing landscape, it must complete the transition from a "product-based company" to a "platform-based company."
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