The aesthetic medicine industry, once a major growth driver fueled by the rise of "she economy" consumption, is now undergoing a period of adjustment. Many companies in the sector are experiencing varying degrees of performance weakness. Imeik Technology Development Co., Ltd., a leading player often referred to as the "Aesthetic Medicine Maotai," has not been immune to this trend.
The company recently released its 2025 financial results, revealing a challenging year. Annual revenue fell by approximately 19% year-over-year, while net profit attributable to shareholders dropped by about 34%. This marks the first simultaneous decline in both revenue and profit since the company's IPO in 2020. This performance downturn has significantly impacted the company's market valuation. As of the market close on April 17, 2026, Imeik's market capitalization stood at 34.66 billion yuan, a substantial decrease from its previous peak above 100 billion yuan.
A detailed review of the financial report indicates that, aside from broader industry pressures, the performance was primarily dragged down by declining revenue from core products and a significant increase in sales, management, and other expenses. Jian Jun, Imeik's Chairperson, known in the industry as the "Hyaluronic Acid Queen," now faces the challenge of steering the company through its most difficult period since going public.
What strategies is the management team employing to navigate this situation? On one hand, Imeik is pursuing global expansion through acquisitions. However, by the end of 2025, overseas business contributed less than 2% of total revenue, indicating a limited impact on overall performance thus far. On the other hand, the company is venturing into new areas such as weight-loss medications, but these segments are characterized by intense competition. It is evident that Imeik's short-term performance remains heavily dependent on its traditional core business.
The 2025 annual report shows that Imeik achieved revenue of 2.453 billion yuan, down 18.94% year-over-year. Net profit attributable to shareholders was 1.291 billion yuan, a decrease of 34.05%. From its IPO in 2020 through 2024, the company maintained growth, although the pace of profit growth slowed from 43.93% to 5.33%. The year 2025, however, saw this growth trend come to a halt.
The performance decline is rooted in the performance of its core products. In 2025, revenue from solution-based injectable products and gel-based injectable products fell by 27.48% and 26.82%, respectively, primarily due to increased industry competition. The sales volume for these two product categories declined by 19.28% and 22.07% in 2025, compared to growth of 23.44% and a decline of 11.24% in 2024, respectively. This sharp slowdown is particularly notable for the solution-based products. The flagship product in this category, "Hyaluronic Acid," had long dominated the neck wrinkle repair market due to its first-mover advantage. Some analysts suggest that the revenue decline for this product line signals the end of an era where upstream aesthetic medicine companies could rely on a single blockbuster product to monopolize a niche market. As the market红利 for Hyaluronic Acid in the neck wrinkle segment diminishes, Imeik faces increasing competition from new entrants. For instance, in July 2024, a similar product from Bloomage Biotech received approval, and in August 2025, a product from the Changzhou Institute of Materia Medica was also approved for market.
The simultaneous deceleration of these two major product lines directly pulled down the company's overall revenue. While a new freeze-dried powder injectable product was commercialized in 2025, contributing 208 million yuan in revenue (8.48% of the total), its current scale is insufficient to offset the decline in core product sales. Furthermore, Imeik's return on equity dropped significantly from 27.02% in 2024 to 16.47% in 2025, a clear indicator of weakened profitability.
Beyond the drop in core product revenue, soaring expenses significantly eroded profits. In 2025, despite flat revenue, costs surged across the board, squeezing profit margins. Sales expenses increased by 39.72% to 386.7 million yuan, driven by higher personnel costs, advertising, and conference expenses. Management expenses rose by 48.62% to 182.5 million yuan, attributed to consultancy and legal fees related to mergers and acquisitions, as well as increased personnel costs. Financial expenses shifted from a net income of 31.28 million yuan in 2024 to a net支出 of 7.502 million yuan in 2025. Overall, Imeik's 2025 performance illustrates the challenges faced by industry leaders when weak consumer demand coincides with a growing number of competitors, creating pressure from both sides.
Imeik is not alone in its struggles. Other companies in the aesthetic medicine sector, such as Haohai Biological, Giant Biogene, Bloomage Biotech, and Jinbo Bio, also reported declines in revenue and profit or significantly slowed growth for 2025. Imeik has stated that, facing macroeconomic volatility and more cautious consumer spending, the industry is undergoing a critical transition from "scale expansion" to "quality refinement," gradually returning to its medical essence.
Looking ahead, how does Imeik plan to recover? Its internationalization strategy is a key focus. In 2025, Imeik's controlling subsidiary, Imeik International, acquired an 85% stake in South Korea's REGEN Co., Ltd. for $190 million in cash, gaining two products with a global market foundation: AestheFill and PowerFill. The company views this acquisition as a critical step in building overseas R&D, production, and sales networks, successfully creating a key link to the international market. By the end of 2025, overseas revenue reached 46.84 million yuan, an increase of over 45 million yuan from the end of 2024. While progress is evident, overseas business still accounts for only 1.91% of total revenue, indicating significant room for growth. One of Imeik's 2026 operational plans is to focus on overseas M&A and equity investments, accelerating product registration and market expansion abroad by promoting synergy between domestic and international R&D, production, and sales systems. Expanding overseas is a logical strategic move for a leading company in an increasingly saturated domestic market. However, Imeik's international foray faces challenges. The REGEN acquisition carries risks, including an ongoing arbitration dispute between the product's former distributor in mainland China and REGEN, the outcome of which could affect future commercial sales of AestheFill. There is also a potential risk of goodwill impairment. Goodwill ballooned to 1.641 billion yuan at the end of 2025, up by over 1.3 billion yuan from the end of 2024; any future impairment could further erode profits.
Concurrently, Imeik is diversifying its product portfolio. The company has built a differentiated product system centered on hyaluronic acid, polylactic acid, and Type A botulinum toxin. The exclusively代理ed Type A botulinum toxin product received its drug registration certificate in January 2026 and is seen as a potential growth driver. In recent investor communications, the company also stated it would accelerate the launch of pipeline products, including new items in weight management and hair health. According to the annual report, as of the end of 2025, Imeik's semaglutide injection project was in clinical trials, a deoxycholic acid injection for weight loss was also in clinical trials, and a minoxidil liniment project received its registration certificate in September 2025. Nevertheless, Imeik's botulinum toxin and weight-loss drug ventures face fierce competition. Reports indicate that seven botulinum toxin products have already been approved in China. Furthermore, Innovent Biologics' weight-loss drug Mazdutide was approved in June 2025 and is gradually being commercialized. Prior to this, global giants like Novo Nordisk's semaglutide and Eli Lilly's tirzepatide, as well as Hansoh Pharma's pegylated loxenatide in China, had already received market approval.
In summary, whether through overseas expansion or the development of new products, Imeik's transformation faces significant challenges. The aesthetic medicine industry is shifting from prioritizing scale to focusing on quality. For leading companies that previously benefited from booming demand and capital influx, the real test has just begun. The extent to which these strategies will contribute to Imeik's future performance growth remains to be seen.
Comments