In an effort to enhance its cosmetics business, Imeik Technology Development Co., Ltd. has made a significant move into the realm of cosmetic ingredients. On October 21, the company announced through its official WeChat account that it has completed its first registration of a new cosmetic ingredient, “Glycyrrhetinic Acid A,” derived from the traditional Chinese plant licorice, serving as a skin protectant and moisturizer in cosmetics.
Imeik stated, “This marks a solid step in the company’s strategic layout in the cosmetics field, showcasing our determination and strength in the beauty and health sector.” Known for its hyaluronic acid injections, the medical aesthetic giant is actively expanding into cosmetics. The company plans to increase its R&D investment and leverage its technological advantages accumulated in the medical aesthetics sector to foster innovative development in cosmetics.
However, this strategic shift comes amid a slowdown in growth and intensifying competition within the medical aesthetics industry, drawing the capital market's attention to Imeik's transformation strategy.
Financially, Imeik is under considerable pressure. In the first half of 2025, its revenue and net profit recorded their first simultaneous decline since going public, with primary product growth stagnating. The company reported revenue of 1.299 billion yuan, a year-on-year decrease of 21.6%, and a net profit of 789 million yuan, down 29.6%. Notably, revenue from solution and gel products, which together account for 95% of total revenue, fell by around 24%.
In light of stagnant growth in core products and increasing competition, Imeik has embarked on a comprehensive transformation, termed “multi-line operation.” The strategy includes diversifying products and expanding pipelines. Imeik has launched a new bone filler product “Geckra” and is accelerating the development of A-type botulinum toxin (currently registered) and semaglutide injection (under clinical trials).
Moreover, Imeik is pursuing cross-border acquisitions, having acquired 85% of South Korea’s REGEN for $190 million, gaining access to its AestheFill and PowerFill products, signaling its transition to a “global industry participant.” The company has also ventured into the upstream ingredients and skincare sector, achieving the registration of its first cosmetic raw material and previously patented a high-efficacy whitening peptide.
However, such transformation often carries risks. The acquisition of REGEN, while potentially expanding global reach, has led to complicated agency disputes. The former Chinese agent, Jiangsu Wuzhong, has filed for arbitration claiming 1.6 billion yuan in damages, impacting the market promotion of AestheFill in China. Additionally, this acquisition has resulted in approximately 1.316 billion yuan in goodwill, posing a potential impairment risk.
Industry insiders express concerns regarding Imeik’s ventures into botulinum toxin and semaglutide, noting that while these markets are vast, they are already fiercely competitive. “The botulinum toxin market has several well-known brands, while the semaglutide sector has original research drugs and numerous domestic enterprises already established, leaving Imeik, as a ‘latecomer,’ without a first-mover advantage. The effectiveness of its future commercialization remains to be seen,” they stated.
Despite its evident advantages, the challenges Imeik faces are substantial. In the competitive landscape of cosmetic ingredients, described as a battle for beauty “chips,” data shows a 77.8% year-on-year increase in new cosmetic ingredient registrations in the first half of the year, with over 80 new ones added. Other major players such as Proya, Beautime, and Fule Jian have completed their new ingredient registrations ahead of Imeik.
According to incomplete statistics, at least 27 beauty ingredient-related companies have received investments totaling over 10.7 billion yuan from January to August this year. Esteemed companies like L’Oréal, Proya, and Shiseido are strategically investing in or partnering within the upstream ingredient sector.
An industry analyst from a brokerage firm highlights three strategic considerations driving domestic beauty giants to invest in upstream ingredients: building core technological barriers, responding to increasing consumer attention to “ingredients,” and seizing opportunities for domestic alternatives. “Active ingredients are becoming key to brand differentiation; owning patented components means having unique selling points in fierce market competition,” the analyst noted.
While Imeik's entry into this sector showcases both distinct advantages and challenges, its medical background provides a foundation for high efficacy expectations, aiding its penetration into the “medical-grade skincare” segment. Additionally, the focus on Chinese herbal ingredients aligns with current cultural trends.
However, the practical challenges are more pressing. Imeik lacks experience in managing the supply chain for cosmetic raw materials, large-scale production, and B2B market channels, meaning transitioning from registration to commercialization will require time. New ingredient registrations come with a three-year monitoring period, along with stringent regulatory demands, posing additional hurdles because the market leans towards “heavy registration and light application,” making it necessary for downstream brands to be both willing and capable of using these ingredients.
The analyst further noted that Imeik will directly face established rivals with early advantages and international giants that are speeding up localization efforts and may even launch new results ahead in the Chinese market. “Imeik has obtained a ticket to the cosmetic ingredients market, but the competition is just beginning. Ultimately, success will depend on whether it can transform technology into widely accepted commercial products,” they concluded.
Comments