The "medical aesthetics leader" with a market cap of hundreds of billions, IMEIK Technology (300896.SZ, hereinafter referred to as "the company"), does it also have its own anxieties?

Recently, the company released its annual report, dividend plan, and acquisition proposal. While continuing to maintain growth, the market has noticed a slowdown in the company's growth rate, leading to related discussions.

In fact, the medical beauty industry has just recently moved past the phase of domestic substitution. The essence of the industry is something that each company is contemplating and acting upon. The answer that the company has taken the lead in providing is to continuously work on product strength, aiming to strengthen its competitive advantage through external acquisitions and research and development innovation.

Around 2003, Jian Jun, far across the ocean, encountered a "small matter" that changed his fate. In a foreign land, he accidentally witnessed a girl receiving a hyaluronic acid injection, and the deep and shallow wrinkles on her face gradually faded, restoring her radiant appearance. In that instant, Jian Jun's business instincts were ignited, as if he could see a blue ocean eagerly awaiting development.

The subsequent story is about Jian Jun returning to China to start her entrepreneurial venture, Aimeike. In a modest old pharmaceutical factory in Changping District, Beijing, the company began developing facial fillers. At that time, European, American, and Korean companies firmly controlled the technology and products of hyaluronic acid. The breakthrough came in 2009 when the company successfully developed the composite hyaluronic acid product "Yimei," breaking the import monopoly in one fell swoop.

The starting point for any medical aesthetics enterprise is built on the product strength of domestic alternatives. This product strength encompasses both individual products whose efficacy rivals that of imported ones and the defensive moat formed by a combination matrix. From 2012 to the present, the company has successively launched products such as "Bonita," "Hyaluronic Acid," "Jinlian," and "Rou Tian Shi," covering varieties like hyaluronic acid injectable fillers and facial thread lifts.

These domestic medical beauty products not only "hard control" consumers to drive the company's rapid performance growth but also maximize sentiment in the capital market. In 2020, the company successfully listed on the Shenzhen Stock Exchange, with its market value once exceeding 100 billion yuan, earning the title of "the Maotai of medical beauty."

Being crowned with the title "Mao" is enough to demonstrate its value, but whether the company can navigate through industry cycles is currently under market speculation. In 2024, the company's operating revenue and net profit attributable to the parent company were 3.026 billion yuan and 1.958 billion yuan, respectively, with year-on-year growth rates of 5.45% and 5.33%. This marks the first time in the company's five years of being listed that its growth rate has dropped to a single digit. The slowdown in growth has led the market to ponder two thoughts. First, even core flagship products have their cycles. Second, the essence of the medical aesthetics industry is whether it is a long-term thick snow slope or a short-term small wave.

So far, solution products represented by "HiT" and gel products represented by "RuBaiAngel" have consistently accounted for over 98% of the company's revenue. In 2024, the revenues from injection products such as solutions and gels were 1.744 billion yuan and 1.216 billion yuan respectively, representing year-over-year growths of 4.4% and 5.01%.

Among them, the highlight moment of "Hi Body" may mark a pause. In 2024, the sales volume, production volume, and inventory volume of the company's solution products are 6.3463 million units, 6.8792 million units, and 856,500 units, respectively, with year-on-year growth of 23.44%, 39.67%, and 91.4%.

Is the medical aesthetics industry a long slope with thick snow, and does it ultimately come down to the product?

In 2021, "Ru White Angel" was officially launched. From 2022 to 2024, the revenue of the company's gel products was 638 million yuan, 1.158 billion yuan, and 1.216 billion yuan, with sales reaching 739,600 units, 1,006,800 units, and 893,600 units respectively. Compared to the continuous explosive growth of "Hi Body" in the years following its launch, the growth performance of "Ru White Angel" has led the market and the company to reconsider a question: Do medical beauty products have the ability to transcend cycles?

In fact, since its launch, "Ru White Angel" has entered into exceptionally fierce competition. Similar products on the market include St. Boma's Ai Wei Lan, Huadong Medicine's Yi Yan Shi, and Jiangsu Wuzhong's Ai Su Fei, the latter two of which were introduced from overseas. For a long time, "Hi Body" enjoyed the market all to itself.

In other words, the company's high growth in the past was based on the scarcity of its products. However, to capture consumers' minds, it is necessary to adapt to trends and continuously provide new value, in order to create amazing products that inspire desire and achieve sustainable survival through economic cycles. Comparing the products, the RUBISk Angel, YSL, and Aesthetic Fi maintenance periods for one vial are 18-24 months, 18-24 months, and 24 months respectively, with corresponding prices of 12,800-14,800 yuan/vial, 16,800-19,800 yuan/vial, and 19,800 yuan/vial respectively.

After undergoing competition, the company's understanding of medical beauty products is gradually deepening, realizing the need to solidify its competitive edge in the high-end sector. In March of this year, the company announced its intention to acquire a controlling stake in South Korea's REGEN for $190 million (approximately 1.38 billion yuan). The core product of this target is the Ai Su Fei, which Jiangsu Wuzhong exclusively代理 in China. In the first three quarters of 2024, the sales revenue of this product reached 195 million yuan.

In response, Aimeikang told the Investors Network: "The company plans to acquire a controlling stake in South Korea's REGEN, aiming to further strengthen its global layout in the regenerative medical aesthetics field by integrating leading international technical resources. The transaction has not been completed yet, and relevant matters need to comply with the laws and regulations of various countries as well as transaction procedures."

Jiangsu Wu Zhong publicly responded that the exclusive agency rights for Aesthe菲 in China is valid until August 28, 2032, and there have been no changes to the agency rights as of now. (Note: The company name "艾塑菲" is partially obscured, so it's represented here as "Aesthe菲". If you can provide the full name, it would be better for an accurate translation.)

At the same time, Aimeike emphasized to The Investor Network: "As a gel-type regenerative injectable, Rube Angel is different from Aisufei in lyophilized form (which needs to be reconstituted into a suspension) in terms of dosage form, ingredients, and application scenarios. This acquisition aims to strengthen the company's layout in the field of regenerative products and is expected to become a global leader in regenerative medical aesthetics; combined with many products under Aimeike, it can provide seekers of beauty with more diverse and better-effect solutions, meeting their needs for treatment on the face, body and other parts."

After five years of entering the capital market, Aimeike has gradually established its growth logic on the external expansion of products, thereby supporting its longer-term development goals.

In 2022, the company increased its capital by 20 million yuan to acquire a 40% stake in Ai Mei Chuang, which specializes in products such as hydrabrasion devices and sterile injection needles. In 2023, the company invested 350 million yuan to acquire the entire equity of Pei Qi Long Biopharmaceutical, entering the field of animal collagen. At the same time, the company signed a distribution agreement with South Korea's Jeisys Medical, securing the exclusive distribution rights for radiofrequency and ultrasound devices in mainland China. In 2024, the company continued to increase its investment in Ai Mei Chuang, gaining controlling ownership of the latter.

The consecutive acquisitions reflect the company's strategic efforts to deepen its international presence. At the same time, the company is also focused on strengthening R&D innovation. In 2024, the company's R&D expenses reached 304 million yuan, a year-on-year increase of 21.41%, accounting for over 10% of its revenue. Since its listing, the company has implemented five rounds of cash dividends, totaling 2.38 billion yuan. After the execution of the 1.145 billion yuan cash dividend plan announced in this annual report, the company's cumulative dividend payments will exceed the funds raised through its IPO.

As of 2024, the company's monetary funds amounted to 1.515 billion yuan, a year-on-year decrease of 17.36%, primarily due to the purchase of wealth management products. During the reporting period, the company's cash outflows for investments reached 12.867 billion yuan, a year-on-year increase of 135.8%, with holdings in multiple enterprises. Among these, the company's investment in Boan Biotech has been listed on the Hong Kong Stock Exchange, and a fair value of 45 million yuan was recognized for the equity during the reporting period.

In response, Allergan stated to Investors.com: "The company has ample cash flow and stable financial resources, and improves the efficiency of fund utilization through diversified financial management. All investments undergo rigorous risk assessments and comply with the company's internal control systems and regulatory requirements." (Produced by SW Finance).