Imeik Technology Development Co.,Ltd. delivered its first semi-annual report showing declines in both revenue and net profit since going public. On the evening of August 18, Imeik released its 2025 interim report, showing that the company achieved operating revenue of 1.299 billion yuan in the first half of the year, down 21.59% year-on-year; net profit attributable to shareholders of listed companies was 789 million yuan, down 29.57% year-on-year; non-GAAP net profit fell even more significantly by 33.7%. It was noted that Imeik's two core business segments both encountered difficulties across the board in the first half of the year, with solution-type injection products generating revenue of 744 million yuan, down 23.79% year-on-year; gel-type injection products achieved revenue of 493 million yuan, down 23.99% year-on-year. To reverse the declining trend, Imeik chose to increase R&D investment and expand through acquisitions. In the first half of the year, Imeik's R&D investment increased by 24.47% year-on-year, and in March, the company acquired an 85% stake in Korean company REGEN to strengthen its position in the "baby face needle" market. However, the integration challenges and distribution rights disputes following the REGEN acquisition have also brought many uncertainties to new business development.
**Revenue and Net Profit Both Decline Year-on-Year**
Imeik once achieved remarkable success in the aesthetic medicine industry and was known as the "aesthetic medicine Moutai." From 2016 to 2020, its revenue grew from 141 million yuan to 709 million yuan, and net profit increased from 53 million yuan to 440 million yuan, with revenue growing fivefold and net profit increasing more than eightfold.
However, entering 2024, Imeik's growth pace began to slow significantly. The 2024 annual report showed that Imeik achieved operating revenue of 3.026 billion yuan, up 5.45% year-on-year; net profit attributable to the parent company was 1.958 billion yuan, up 5.33% year-on-year, with growth rates falling to single digits. In the first quarter of 2025, Imeik delivered a report card showing declines in both revenue and net profit, with decreases exceeding 10%. Operating revenue was 663 million yuan, down 17.9% year-on-year; net profit attributable to the parent company was 444 million yuan, down 15.87% year-on-year. In this interim report, the decline further expanded.
Imeik told reporters that the company's revenue and net profit experienced certain fluctuations, mainly due to phased impacts from adjustments in the aesthetic medicine industry and consumer environment. "We believe this is a normal adjustment in the industry development process. The company is taking this opportunity to optimize operations, strengthen core capabilities, and lay a solid foundation for long-term development."
From the perspective of main business segments, Imeik's two core product lines - solution-type and gel-type injection products - both lost momentum across the board. In the first half of 2025, Imeik's solution-type injection products achieved revenue of 744 million yuan, down 23.79% year-on-year; gel-type injection products generated revenue of 493 million yuan, down 23.99% year-on-year.
Among these two categories, the core solution-type product "Hyacorp" is the first Class III medical device product in China certified by the National Medical Products Administration for correcting moderate to severe neck wrinkles. The core gel-type product "Liweri Angel" is the first approved dermal filler containing poly-L-lactic acid-ethylene glycol copolymer microspheres both domestically and globally. Imeik once dominated the aesthetic medicine market with these two star products, but now faces multiple challenges.
"Hyacorp" was approved for market launch in December 2016 as China's first composite injection material specifically for neck wrinkle repair, once enjoying exclusive market access. However, with the market entry of Huaxi Biologic's "Runjige Gege," it directly broke Imeik's monopoly position in the neck wrinkle treatment field. As competing products further increase their market presence, "Hyacorp's" performance growth may face further pressure.
"Liweri Angel" faces even greater competitive pressure, with intense competition in the regenerative injection market. It faces established competitors like Sino Biopharm's Suneva and Sinclair Pharma's Ellanse, which were also launched in 2021 and have already captured certain market shares. New products like Profhilo and Sculptra continue to receive approval and enter the market, while companies like Hugel Bio and Shihuang Pharma have regenerative injection products under development, intensifying price war risks.
Medical consumer industry analyst Zhang Congwen noted that although "Liweri Angel" and "Hyacorp" have certain brand influence and user base in the market, in such an intensely competitive environment, Imeik needs to continuously innovate and improve product quality to consolidate its market position. Additionally, how to maintain profits in price wars is also a major test for Imeik.
**Acquisition Expansion and Increased R&D Investment**
To address the challenge of sluggish growth in core products, Imeik attempted to create new growth points through acquisition expansion and increased R&D investment.
In terms of R&D, in the first half of 2025, Imeik's R&D investment reached 157 million yuan, up 24.47% year-on-year, accounting for 12.05% of operating revenue. The company completed 22 patent applications in the first half of the year, with multiple products in registration application or clinical trial stages. Botulinum Toxin Type A for injection has been submitted for registration application and is under review, and the weight management product semaglutide injection is also in clinical trials. Additionally, Imeik's new product "Sculptra" was launched for domestic sales in May this year.
Imeik stated that since "Sculptra" launched in May, it has gained market attention with the unique bone-filling advantages of PVA microspheres, receiving positive feedback from institutional doctors and consumers. Currently in the market introduction phase, Imeik is expanding awareness through key partnerships and promotional activities to gradually open up the market for the product.
In addition to increased R&D investment, Imeik also expanded its product line through acquisitions.
On March 10, 2025, Imeik acquired an 85% stake in REGEN company through Imeik International. According to public information, REGEN is a Korean aesthetic medicine product company with approved products mainly including Aesthefill and PowerFill. Among these, Aesthefill is a regenerative injection product mainly used for facial anti-aging and skin filling. It received approval for the Chinese market in January 2024, becoming China's first imported "baby face needle," priced at 19,800 yuan per injection.
Through acquiring Korean company REGEN, Imeik can not only obtain REGEN's core products and technology but also leverage its overseas sales channels to open up global expansion possibilities. However, market opinion largely considers that Imeik "overpaid" for this acquisition.
According to Imeik's previous announcement disclosure, Imeik International's purchase of an 85% stake in REGEN company was valued at $190 million (approximately 1.386 billion yuan), while REGEN's revenue and net profit in the first nine months of 2024 were only 72.23 million yuan and 29.50 million yuan, respectively.
Whether this acquisition with a 13x premium can bring corresponding performance growth remains to be observed over time. In the first half of 2025, Imeik's goodwill increased by 1.316 billion yuan, rising from 278 million yuan at the beginning of the period to 1.594 billion yuan at the end of the period. If REGEN's performance falls short of expectations, goodwill impairment risks will further impact Imeik's profitability.
**"Baby Face Needle" Dispute**
More troublesome is that although Imeik successfully acquired REGEN company, Jiangsu Wuzhong had already obtained exclusive sales agency rights for Aesthefill in China as early as 2022, setting the stage for subsequent disputes over agency rights between the two parties.
Zhao Heng, founder of medical strategy consulting firm LatitudeHealth, pointed out that in the eyes of consumers and investors, corporate stability and credibility are crucial, and any legal disputes may cause external concerns, thereby affecting the company's market performance. Additionally, Imeik must face market scrutiny of the effectiveness of its internationalization strategy. The high-priced acquisition of REGEN company is viewed as a key step in Imeik's accelerated global expansion, but agency rights disputes and potential goodwill impairment risks undoubtedly add uncertainty to this strategy.
In July this year, REGEN unilaterally terminated the exclusive distribution rights of Datou Medical, a controlling subsidiary of Jiangsu Wuzhong, leading Imeik into agency rights disputes with Jiangsu Wuzhong. On August 11, Jiangsu Wuzhong announced that Datou Medical had filed an arbitration application with the Shenzhen Court of International Arbitration regarding related disputes, which was accepted, involving compensation of 1.6 billion yuan.
On July 20, REGEN stated in a letter to Chinese customers that the trade name for Aesthefill products sold in mainland China would be changed to "Zhen'ai Sculptra." Previously, it was learned from Imeik that "Zhen'ai Sculptra" has already begun sales in China, but the arbitration result is currently unknown.
Behind the "baby face needle" dispute, both Imeik and Jiangsu Wuzhong face performance pressure. In 2024, Jiangsu Wuzhong turned profitable thanks to Aesthefill. In 2024 and the first quarter of 2025, Aesthefill sales revenue was 326 million yuan and 113 million yuan, respectively, accounting for 20.42% and 35.55% of the listed company's revenue. Prior to this, Jiangsu Wuzhong had reported non-GAAP net losses for six consecutive years and had inflated revenue by 1.8 billion yuan over four years, standing on the brink of delisting.
Regarding the "baby face needle" agency rights dispute, Imeik responded: "The dispute is currently in legal proceedings, so it's inconvenient to comment on specific details. The company has always adhered to the principle of legal and compliant operations, committed to maintaining market order and protecting the rights of partners. This matter has not caused significant impact on the company's core business, and all business activities are proceeding normally. The company will legally protect its own and all parties' legitimate rights and interests."
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