Langzi Co., Ltd. Milan Boyu Postoperative Injury and Other Complaints Frequent; Non-recurring Gains Inflate Performance as Stock Price Plummets 75%

Yangtze Business Daily ● Yangtze Business Reporter Zhang Lu

As International Consumer Rights Day “3.15” approaches, compliance and consumer safety in the medical aesthetics industry are once again the focus of public attention.

As a representative company in the A-share medical aesthetics sector, Langzi Co., Ltd. (002612.SZ) has accelerated its chain expansion in recent years, with brands like Milan Baiyu and Jingfu rapidly growing. The company was once viewed by the market as a high-growth target. However, behind its glamorous expansion, operational and compliance risks have erupted sharply around the “3.15” milestone.

Yangtze Business Daily has found that recently, complaints against Langzi Co., Ltd.'s flagship brand Milan Baiyu have been frequent. As of March 15, 2026, there have been 137 related complaints on the Black Cat Complaint Platform [Download Black Cat Complaint App], involving improper medical procedures, post-surgical injuries, misleading advertising, refusal to refund, and other issues. Some institutions have also been exposed for violations and penalties.

In terms of performance, Langzi Co. is expected to see a significant increase in net profit attributable to shareholders in 2025, with growth exceeding 245.3%. The main reason for this profit surge is the disposal of shares in the affiliated company Ruoyuchen, which recognized approximately 725 million yuan in investment income. Excluding this non-recurring gain, the net profit after non-recurring items would be only between 220 million and 290 million yuan.

In the secondary market, as of March 13, the stock price of Langzi Co. has fallen 75.47% from its historical high, with market value shrinking significantly.

Milan Baiyu frequently receives complaints

Public information shows that Langzi Co. was established in 2006 and listed on the Shenzhen Stock Exchange Main Board in 2011. Starting from high-end women’s clothing, it has gradually transformed into a diversified fashion industry group covering women’s wear, medical aesthetics, and baby products.

As the flagship brand in Langzi’s medical aesthetics segment, Milan Baiyu is positioned as a high-end brand. In the first half of 2025, it achieved revenue of 660 million yuan, accounting for 49.38% of the company’s total medical aesthetics revenue, nearly supporting half of the segment.

However, behind its rapid scale expansion are declining medical quality, frequent consumer disputes, and prominent compliance issues.

Since 2026, multiple institutions under Milan Baiyu have appeared on consumer complaint “blacklists.” On January 30, a consumer on the Black Cat Complaint Platform reported that after receiving a Black Gold Super Photonic treatment at Milan Baiyu in Shenzhen, their face immediately became red and swollen, with blisters and inflammation appearing the next day. After scabbing, there was obvious pigmentation, and the skin became unusually sensitive. The consumer repeatedly requested the clinic to provide key parameters such as treatment energy, pulse width, and number of pulses, as well as complete medical records, but was refused on the grounds of “internal data.” The clinic never proactively followed up post-surgery, and repeatedly delayed reasonable requests for repair and compensation. The consumer proposed a compensation of 50,000 yuan, but no agreement has been reached so far.

On March 7, Chongqing Milan Baiyu was complained about for using project upgrades as a gimmick to induce customers to switch from basic gold microneedling to high-priced procedures without informing of the risks, and recharged 50,000 yuan. Post-surgery, the consumer’s face showed severe redness and papules, but the institution could not provide formal contracts or invoices. On March 8, Shenzhen Milan Baiyu was again complained about; the consumer’s rhinoplasty results were poor, and after recharging 10,000 yuan, the clinic refused to refund the balance and restricted account use, allegedly setting “霸王条款” (unfair terms).

As of March 15, 2026, Yangtze Business Daily found that the complaints related to Milan Baiyu on the Black Cat Complaint Platform totaled 137, covering core cities like Chengdu, Chongqing, and Shenzhen. Issues mainly involved improper medical procedures, post-surgical injuries, false advertising, inducement to recharge, and refusal to refund.

Behind these issues is Langzi Co.’s lack of proper compliance management of its medical aesthetics institutions.

Since 2025, several Milan Baiyu institutions have repeatedly received regulatory fines for violations such as illegal advertising and unstandardized medical procedures.

In September 2025, the core institution Sichuan Milan Baiyu was fined for tax violations from 2021 to 2023, with tax arrears of 22.27 million yuan, plus late fees totaling over 30 million yuan, exposing internal control weaknesses.

Industry insiders point out that the medical aesthetics industry combines medical attributes with consumer attributes, and safety and compliance are non-negotiable bottom lines. The frequent complaints and regulatory penalties reflect that Langzi Co., in its chain expansion, prioritizes opening new stores quickly and marketing performance over medical quality and compliant operations, adopting a rough growth model.

Growth fatigue in the medical aesthetics business

The frequent outbreaks of non-compliance and consumer complaints are only superficial phenomena of Langzi Co.’s extensive expansion. The deeper hidden risk is that its core medical aesthetics business has shown clear signs of growth fatigue, with profit quality under continued pressure.

In January, Langzi Co. released a forecast for 2025, expecting net profit attributable to shareholders of 900 million to 1.05 billion yuan, a year-on-year increase of 245.3% to 302.8%. However, this impressive growth is not due to improved core operations but heavily relies on non-recurring gains from asset disposals.

The company explicitly stated that the profit surge was mainly due to the disposal of part of its shares in the affiliated company Ruoyuchen and converting remaining shares into trading financial assets. The investment income and fair value changes recognized from this capital operation amounted to about 725 million yuan. Excluding this non-recurring profit, the estimated net profit for 2025 would be only between 220 million and 290 million yuan.

More concerning is that the growth momentum of the company’s strategic core—its medical aesthetics business—has significantly weakened.

In the first half of 2025, revenue from the medical aesthetics segment declined by 6.1% year-on-year. The core institutions Sichuan Milan Baiyu and the acquired Wuhan Wuzhou both experienced negative growth, with Wuhan Wuzhou dropping as much as 19.1%. The previously highly anticipated Zhengzhou Jimei achieved only 29.81% of its performance commitment, far below expectations.

The profitability of the medical aesthetics segment is also weak. In the first half of 2025, the gross profit margin was 54.42%, significantly lower than women’s clothing at 63.45% and baby products at 61.76%.

The women’s clothing business, which was the foundation of the company, reported revenue of 990 million yuan in the first half of 2025, down 2.4% year-on-year, and its share of total revenue shrank to about 35%, completely ceding the top spot. The green baby products segment earned 430 million yuan, down 3.4%.

As of the close on March 13, Langzi Co. was trading at 17.56 yuan per share, down 75.47% from its peak of 71.60 yuan on June 1, 2021, with market value significantly reduced from its high.

Editor: ZB