The myth of high growth at Aesthetic Medical is no more: revenue and net profit growth rates have fallen into single digits for the first time, with both of its two core products under pressure.

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On September 28, 2020, Aimeike was listed on the ChiNext with a market value of 40.8 billion yuan. Within nine months, its stock price quadrupled, and by March 2021, it became the third stock after Kweichow Moutai to reach a thousand yuan per share, with a peak market value exceeding 170 billion yuan. Known as the “Medical Aesthetics Moutai,” this company wrote a legend in the capital market with a super-high gross profit margin of 94.85% and a net profit margin of 60% during the golden age of medical aesthetics.

Aimeike’s success hinges on a moat built by three types of medical device registration certificates. Its flagship product, “Hi-Body,” as the first domestic neck wrinkle repair injection, has maintained a long-term monopoly since approval in 2016. From 2017 to 2020, revenue from solution products soared from 34 million yuan to 447 million yuan, with an average annual compound growth rate of 129%. This “market monopoly + pricing power” model perfectly replicates the core logic of Kweichow Moutai. However, as similar competitors emerge, Aimeike’s high-growth myth is gradually coming to an end.

The high-growth myth is fading—revenue and net profit growth rates have fallen to single digits for the first time

The annual report disclosed on March 19 shows that in 2024, Aimeike achieved operating revenue of 3.026 billion yuan, a sharp drop from 47.99% growth in 2023 to just 5.45%. Net profit attributable to shareholders was 1.958 billion yuan, with growth falling from 47.08% to 5.33%. This is the first time since 2016 that the company’s annual revenue and net profit growth rates have fallen into single digits.

Particularly concerning is that in Q4, the company’s revenue was 650 million yuan and net profit was 372 million yuan, down 7% and 15.47% year-over-year, marking the first quarterly decline since listing. Looking at previous quarterly data, signs of growth slowdown had already appeared. In Q1 2024, revenue growth was 28.24%, and net profit growth was 27.38%; in Q2, revenue growth slowed to 2.35%, and net profit growth was 8.03%; in Q3, revenue growth was 1.10%, and net profit growth was 2.13%. Overall, growth has been declining quarter by quarter in 2024.

Cash flow analysis shows that in 2024, the net cash from operating activities was 1.927 billion yuan, a decrease of 1.38% year-over-year, marking the first YoY decline in history. The reasons include a significant increase in operating expenses and rising inventory. Operating expenses in 2024 included sales expenses of 277 million yuan and R&D expenses of 304 million yuan, both hitting record highs. However, the marginal effect of sales expenses driving revenue growth is weakening, as both sales and R&D expenses grew faster than revenue in 2023 and 2024.

R&D expenses have maintained double-digit YoY growth over the past three years, but new products have yet to generate scaled revenue and are unlikely to bring substantial short-term benefits. Inventory at the end of 2024 was 7.2843 million yuan, accounting for 0.87% of total assets, an increase of 0.14%. End-of-period inventory of goods was 32.0488 million yuan, up about 45% YoY, indicating a slowdown in terminal sales.

“Hi-Body” struggles to turn volume into price—“Ru Bai Tian Shi” growth is weak

Looking at product specifics, as the first domestic neck wrinkle repair product, Aimeike’s “Hi-Body” was once the company’s “cash cow.” After listing in 2017, sales skyrocketed from 119,700 units to 5.14 million units in 2023, accounting for over 70% of revenue at one point. However, the 2024 annual report shows that solution injections centered on “Hi-Body” had total sales of 6.3463 million units, up 24.44% YoY, but revenue only increased by 4.4% to 1.744 billion yuan.

The average factory price dropped from 325 yuan per unit in 2023 to 275 yuan, a 15.4% decrease, while inventory increased sharply by 91.40%. Since Huaxi Bio’s approval of the neck wrinkle repair product “Run Zhi Ge Ge” in July 2024, market competition has been reshaping, and Aimeike’s strategy of price cuts to boost volume has shown limited effectiveness.

From the revenue composition, in 2024, the company’s solution injection products centered on “Hi-Body” generated 1.743 billion yuan, accounting for 57.64% of total revenue, while the gel injection products centered on “Ru Bai Tian Shi” earned 1.216 billion yuan, making up 40.18%. These are the company’s main pillars.

“Ru Bai Tian Shi” (including cross-linked hyaluronic acid gel with L-lactic acid-ethylene glycol copolymer microspheres) obtained Class III medical device registration in June 2021. Its revenue grew rapidly over the following years and was seen as a second growth curve. However, in 2024, “Ru Bai Tian Shi” also showed signs of growth fatigue, with sales volume only 893,600 units, down 11.24% YoY, and revenue growth from 81.43% in 2023 to just 5.01%.

From an industry perspective, the pressure on Aimeike’s two core products reflects increasing market competition, industry expansion slowing, and stricter regulation. Hyaluronic acid was once the “golden track” in medical aesthetics but has now become highly competitive. By 2024, over 50 Class III medical devices for hyaluronic acid had been approved domestically, with more than 400 brands circulating, leading to increased choices for medical aesthetic clinics and weakening upstream bargaining power.

Looking at industry growth, the overall medical aesthetics market slowed significantly in 2024 due to macroeconomic factors. According to estimates by Allergan and Deloitte, the overall growth rate was about 10%, still double-digit but a sharp slowdown from 20% in 2023. Regulatory authorities also intensified approval processes for “medical device three certificates” and cracked down on illegal clinics, increasing upstream channel rectification pressure.

Aimeike’s predicament essentially mirrors the industry’s transition from explosive growth to maturity. As the industry enters its second half, the era of “easy profits” will be a thing of the past. Currently, about 98% of Aimeike’s revenue still depends on hyaluronic acid products. Among the 10 R&D projects mentioned in the annual report, only “BoniDa 2.0” for chin augmentation was approved by the end of 2024, but this is mainly an extension of existing products, not a revolutionary innovation.

Among the company’s pipeline products, toxins and collagen face fierce competition, making it difficult to develop blockbuster products like “Hi-Body.” The high-priced acquisition of an 85% stake in Korea’s REGEN for 1.386 billion yuan may or may not open a new growth curve. Under the new competitive landscape, Aimeike still faces many challenges to maintain its leading position in the industry.