Aimeike's high-growth myth is over: revenue and net profit growth rates drop to single digits for the first time, with two core products both 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, and within nine months, its stock price quadrupled. By March 2021, it became the third stock after Moutai to reach a thousand yuan per share, with a peak market value surpassing 170 billion. 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.

The core secret to Aimeike’s success lies in the moat built by three types of medical device registration certificates. Its flagship product, “Hi-Body,” the first domestic neck wrinkle repair injection, has maintained a long-term monopoly since approval in 2016. Between 2017 and 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 Moutai. However, as similar competitors continue to emerge, Aimeike’s high-growth myth is gradually coming to an end.

**　The high-growth myth is fading: revenue and net profit growth rates first drop to single digits**

The annual report disclosed on March 19 shows that in 2024, Aimeike achieved operating revenue of 3.026 billion yuan, with a sharp drop in year-over-year growth from 47.99% in 2023 to 5.45%; net profit attributable to the parent 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 noteworthy is that in Q4, the company’s single-quarter revenue was 650 million yuan and net profit was 372 million yuan, down 7% and 15.47% year-over-year respectively, marking the first quarterly decline since listing. Looking at previous quarterly data, Aimeike’s growth slowdown was already evident. 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, the growth rate has been declining quarter by quarter in 2024.

From the cash flow perspective, in 2024, the net cash flow from operating activities was 1.927 billion yuan, a year-over-year decrease of 1.38%, marking the first decline in comparison to the previous year. 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 2023 and 2024 saw sales expense growth rates higher than revenue growth.

R&D expenses have maintained double-digit year-over-year growth over the past three years, but new products have not yet generated scaled revenue and are unlikely to bring substantial short-term benefits. Regarding inventory, at the end of 2024, the company’s inventory was 7.2843 million yuan, accounting for 0.87% of total assets, an increase of 0.14 percentage points; inventory of finished goods was 32.0488 million yuan, up about 45% year-over-year, indicating a slowdown in terminal sales.

**　“Hi-Body” struggles to turn volume into price—“Ru Bai Angel” growth remains weak**

Looking at product performance, 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, for the entire year, solution injection products centered on “Hi-Body” sold 6.3463 million units, up 24.44% year-over-year, 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 per unit, a 15.4% decrease, while inventory increased sharply by 91.40%. This indicates that since Huaxi Bio’s neck wrinkle repair product “Run Zhi Ge Ge” was approved in July 2024, the market competition landscape has been reshaped, and Aimeike’s strategy of price cuts to increase volume has had limited effect.

From the revenue structure, 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 product “Ru Bai Angel” contributed 1.216 billion yuan, accounting for 40.18%, making them the main pillars of the company.

“Ru Bai Angel” (including cross-linked hyaluronic acid sodium gel with L-lysine lactate microspheres) obtained Class III medical device registration in June 2021. Its revenue grew rapidly over the following years and was seen as the company’s second growth curve. However, in 2024, “Ru Bai Angel” also showed signs of growth fatigue, with sales volume only 893,600 units, down 11.24% year-over-year, and revenue growth sharply declining from 81.43% in 2023 to 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 now it faces severe internal competition. By 2024, over 50 Class III hyaluronic acid medical device approvals had been granted domestically, with more than 400 brands circulating, leading to more choices for medical aesthetic clinics and weakening upstream manufacturers’ bargaining power.

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

Aimeike’s predicament essentially mirrors the transition of the medical aesthetics industry 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. The 2024 annual report mentions 10 R&D projects, with only the “Benida 2.0” for chin augmentation approved at the end of 2024. However, 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 85% of 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 in maintaining its leading position in the industry.