Imeik Technology Development Co., Ltd. (300896.SZ), once hailed as the "Aesthetic Maotai," faces its toughest challenge since listing as its Q3 2025 results extend a year-long slump. Revenue fell 21.27% YoY to RMB1.87 billion, with net profit plunging 34.61%, marking four straight quarters of double-digit declines. Inventory levels surged 41.66% to RMB96 million while turnover days extended by 56 days to 185, signaling operational inefficiencies.
The deterioration stems from dual headwinds: slowing demand for core hyaluronic acid injectables (solution-type sales down 23.79%, gel-type down 23.99% in H1) and intensifying competition in China’s medical aesthetics market. Gross margins contracted 1.5pp to 93.4%, with net profit margins dropping 8.1pp to 58.6%.
Seeking growth, Imeik pursued aggressive M&A, including March’s $190 million (RMB1.39 billion) acquisition of Korea’s REGEN Biotech at a 1,344% premium—China’s largest cross-border aesthetics deal. REGEN’s flagship "Youth Needle" product AestheFill, already approved in China since 2024, added RMB1.65 billion in goodwill. However, the deal triggered a RMB1.6 billion arbitration with Jiangsu Wuzhong’s subsidiary Dato Medical over terminated distribution rights.
Earlier acquisitions—Korean botox producer Huons Bio (2021), collagen specialist Peiqilong (2022), and anti-aging device maker Jeisys (2023)—have yet to offset core product declines. Notably, botox approval delays pushed Huons’ China launch to end-2025.
With its high-barrier R&D model challenged by proliferating domestic competitors, Imeik’s turnaround hinges on integrating pricey acquisitions while navigating legal quagmires—a precarious path for the former industry darling.
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