BEAUTYFARM MED (02373) experienced a sharp decline of over 8% in early trading. At the time of writing, the stock was down 6.5%, trading at HKD 18.3 with a turnover of HKD 5.4688 million.

The downturn follows recent comments from the company's CEO, Lian Songyong, at the 2025 performance briefing. He stated that the medical aesthetics industry is facing overall consumption pressure and uncertain competitive dynamics in 2025. The company emphasized its commitment to a high-end value-driven strategy, avoiding price wars, and focusing on the anti-aging segment and high-net-worth clientele. While BEAUTYFARM MED reported growth in both the volume and value of its VIP customer base and an increase in its base customer numbers, it acknowledged that the growth rate of its medical aesthetics business is constrained by the broader industry environment.

Notably, in early May, seven government departments jointly issued the "Measures for the Administration of Medical Representatives," which will take effect on August 1. The previous trial measures will be simultaneously repealed. This new regulation is expected to profoundly impact the compliant promotion of medical aesthetic products and reshape the industry's ecosystem.

Hualong Securities noted that the new regulations will promote a return to academic and compliance fundamentals within the medical aesthetics sector, accelerate the elimination of non-compliant entities, contribute to the healthy and orderly development of the medical aesthetics market, and safeguard consumer rights.