Korean dermal fillers have sparked a life-or-death showdown between two major listed companies in China.
On July 18, 2025, Datou Medical, a subsidiary of Jiangsu Wuzhong (*ST Suwu), received a termination notice from Korean company Regen, demanding the revocation of exclusive distribution rights for AestheFill dermal fillers in mainland China. Just two weeks prior, Regen had been acquired by Imeik Technology Development Co.,Ltd. for 1.386 billion yuan, securing an 85% controlling stake.
This means Jiangsu Wuzhong has lost its core product that contributed 35.55% of revenue and 45.77% of gross profit in the first quarter. As of August 25, its stock price has plummeted over 40% since the termination, with market capitalization remaining at only 768 million yuan, teetering on the edge of delisting.
Regen cited two major reasons in the termination notice:
Business Violation Transfer: Accusing Datou Medical of transferring distribution rights to its parent company Wuzhong Aesthetics;
Escalating Reputation Risk: Jiangsu Wuzhong was penalized by securities regulators for financial fraud, triggering delisting risk warnings that could damage the product's image.
Imeik Technology further stated that Datou Medical's breach caused economic and reputational losses, declaring that "termination is a legal right."
On August 7, Datou Medical filed for arbitration with the Shenzhen Court of International Arbitration, seeking damages of up to 1.6 billion yuan, including: 400 million yuan in clinical registration and market development costs already invested; customer breach compensation due to supply disruption; expected profit losses from the remaining 8-year exclusive agency period.
In a "Solemn Declaration," Wuzhong accused Imeik Technology of **"capital bullying and reneging on promises,"** resulting in "thousands of employees' livelihoods hanging by a thread and thousands of partner institutions suffering heavy losses."
AestheFill—China's first imported dermal filler—commands terminal prices of 18,000-22,000 yuan per unit with gross margins exceeding 82%, becoming Jiangsu Wuzhong's only growth pillar: contributing 326 million yuan in revenue in 2024, helping the company achieve its first profit turnaround in six years; Q1 2025 sales revenue reached 113 million yuan, accounting for over one-third of total company revenue. With distribution rights now stripped away, Wuzhong's medical aesthetics empire has suddenly collapsed.
Imeik Technology's acquisition of Regen was no coincidence. Its flagship products "Hyacorp" and "Ruibai Angel" saw revenue decline over 23% in the first half of 2025, with lackluster performance growth.
Incorporating AestheFill into its direct sales system (new distributor Lizhen Biology is a wholly-owned subsidiary of Regen) allows complete profit chain control from production to terminal sales while avoiding internal competition with its own dermal filler "Ruibai Angel." Data from SoYoung platform shows AestheFill has been renamed "Zhenlove·Sculphi" and sales are now managed by Imeik Technology's channel team.
Industry Earthquake: Distribution Model Collapse and Hundred-Billion Market Reshuffling The Fragile "Distribution Rights Moat"
This battle reveals inherent flaws in the distribution model: Jiangsu Wuzhong invested 400 million yuan to develop markets, covering 537 medical aesthetics institutions, but core technology remained in Korean hands; once the brand owner is acquired by competitors, distributors' channels and investments instantly vanish.
Chinese medical aesthetics industry distributors face widespread anxiety—will they become the next to be "optimized"?
Jiangsu Wuzhong has been found by securities regulators to have inflated 2020-2023 revenue by 1.771 billion yuan, with its chairman fined 15 million yuan and banned from securities markets for 10 years, facing high forced delisting risk.
Half-year reports predict losses of 40-60 million yuan, with no hope of profit recovery after losing dermal filler rights. Its substitute product Yingfuyuan (Class II medical device) cannot be used for injections, with profitability far below Class III devices like dermal fillers, unable to reverse the decline.
The Shenzhen Court of International Arbitration's ruling will focus on two core issues:
Termination Legality Dispute: Can Regen terminate contracts citing Jiangsu Wuzhong's financial fraud as "reputational damage"?
1.6 Billion Yuan Claim Basis: Should Jiangsu Wuzhong's 400 million yuan market investment costs be compensated?
Legal experts note that if Imeik Technology is found guilty of "malicious breach," compensation amounts could exceed its $190 million cost of acquiring Regen.
This dermal filler distribution rights battle represents both Jiangsu Wuzhong's life-or-death defense and Imeik Technology's crucial move to break through growth bottlenecks, while epitomizing value redistribution in China's medical aesthetics industry chain. As upstream giants leverage capital and technology to crush distributors, the industry will shift from "channel dominance" to "technology supremacy."
Regardless of arbitration outcomes, cracks in business ethics and contractual spirit are irreparable. Should Imeik Technology prevail, other medical aesthetics listed companies with distribution businesses must beware of similar fates; should Jiangsu Wuzhong successfully claim damages, it may provide breathing room for vulnerable small and medium-sized channel operators.
Note: This article incorporates AI assistance
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