In recent years, jiangsu wuzhong (600200.SH), which has been experiencing a continuous decline in pharmaceutical business, saw a significant increase in Q3 net income with the launch of the medical beauty product AestheFill, gradually demonstrating the strategic effect of "pharmaceutical + medical beauty".

Today, according to the financial report released by jiangsu wuzhong, the company achieved revenue of 1.647 billion yuan in the first three quarters, an increase of 9.58% year-on-year, with a net income attributable to the mother of 45.0806 million yuan, an increase of 311.54% year-on-year.

Financial media reporters noted that jiangsu wuzhong's performance began to improve from Q2. In 2023, jiangsu wuzhong achieved revenue of 2.24 billion yuan, an increase of 10.55% year-on-year, and an attributable net income of -71.95 million yuan, an increase of 5.67% year-on-year; in 2024 Q2, jiangsu wuzhong achieved a net income attributable to the mother of 19.4 million, an increase of 2679.03% year-on-year; in 2024 Q3, jiangsu wuzhong achieved a net income attributable to the mother of 20.626 million, an increase of 225.41% year-on-year.

In the report, jiangsu wuzhong attributed the significant increase in Q3 net income to the sale of the medical beauty and bio-pharmaceutical sector's polylactic acid facial filler AestheFill, which started generating profits from April of that year.

It is reported that the "outstanding" polylactic acid facial filler AestheFill is a product sold by jiangsu wuzhong as an agent. This product, developed by the well-known South Korean medical beauty company REGEN Biotech, Inc., is a "medical aesthetic regenerative injection" composed of PDLLA microspheres and carboxymethyl cellulose sodium. This product obtained the National Medical Products Administration's "Medical Device Registration Certificate" on January 22, 2024, and was first launched in South Korea in 2014.

In the first three quarters of 2024, jiangsu wuzhong's medical beauty and biopharmaceutical business accumulated total operating income of 0.199 billion yuan, an increase of 4175.12% compared to the same period last year, with a main business gross profit of 0.163 billion yuan, an increase of 6465.52% compared to the same period last year.

On the other hand, jiangsu wuzhong's pharmaceutical sector is continuously shrinking. In the first three quarters of 2024, the company's pharmaceutical business achieved total operating income of 1.14 billion yuan, with pharmaceutical industry sales of 0.465 billion yuan and pharmaceutical commerce sales of 0.675 billion yuan, a decrease of 12.42% compared to the same period last year, and a main business gross profit of 0.386 billion yuan, a decrease of 3.24% compared to the same period last year.

In 2023, jiangsu wuzhong pharmaceutical development's pharmaceutical industry gross margin decreased by 10.76 percentage points compared to the previous year, while the cost of goods sold increased by 52.13%.

Evidently, jiangsu wuzhong is attempting to make efforts in the "medical aesthetics" sector, to "compensate" for the decline in its pharmaceutical sector.

At the performance briefing held earlier, the director of jiangsu wuzhong pharmaceutical development stated that they will implement the "pharmaceutical + medical aesthetics" development global strategy. It was revealed that "the company is actively promoting the preclinical research and development of recombinant collagen freeze-dried fibers, recombinant collagen implant, lidocaine propitocaine cream, and deoxycholic acid injections. The company's HARA hyaluronic acid is in the process of compiling clinical trial data, and the company's PDRN compound solution product has also entered the clinical trial phase."