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How Will State Capital’s Entry Reshape BeiBeiMei’s Strategy?

“China’s Leading Milk Powder Brand” BeiBeiMei May Change Hands.

On the evening of March 18, BeiBeiMei announced that its controlling shareholder, Zhejiang XiaoBeiDaMei Holdings Co., Ltd. (hereinafter “XiaoBeiDaMei Holdings”), has signed a Restructuring Investment Agreement with Jinhua Zhenhe Enterprise Management Partnership (Limited Partnership) (hereinafter “Jinhua Zhenhe”). If XiaoBeiDaMei Holdings successfully completes the restructuring, the actual controller of BeiBeiMei will be changed to the Jinhua State-owned Assets Supervision and Administration Commission.

Looking back at this restructuring process, as early as July 16, 2025, XiaoBeiDaMei Holdings filed a pre-restructuring application and related materials with the Jinhua Intermediate People’s Court of Zhejiang Province, citing “liquidity tension, inability to repay maturing debts, and clear lack of repayment capacity.” In February this year, XiaoBeiDaMei Holdings launched a public recruitment of restructuring investors. By the deadline, Jinhua Zhenhe became the sole interested investor.

Tianyancha shows that Jinhua Zhenhe was established on February 2, 2026, with a total investment of 880 million yuan. Zhejiang Jin Hui Yang Guang Asset Services Co., Ltd. and Jinhua Mingheng Enterprise Management Partnership (Limited Partnership) are shareholders, holding 2.28% and 97.72% respectively. Through transparency, both are linked to Jinhua State-owned Assets Supervision and Administration Commission and Zhejiang Financial Development Group, jointly established as Jinhua Financial Holding Investment Co., Ltd.

Public information indicates that BeiBeiMei was founded in 1992 and was once one of the leading domestic milk powder brands. In 2010, its market share reached 10.8%, ranking first among domestic brands, and it was listed on the Shenzhen Stock Exchange the following year.

However, the good times did not last long. Due to strategic missteps, the company’s performance declined year after year starting in 2014. Financial data repeatedly showed “performance reversals,” and in April 2025, BeiBeiMei corrected multiple periodic reports, receiving a warning letter from the Zhejiang Securities Regulatory Bureau.

In fact, BeiBeiMei’s difficulties are also related to the founder Xie Hong’s withdrawal. After going public, Xie Hong resigned from all positions, and the company entered a turbulent period, changing its chairman three times within three years. Frequent management changes led to strategic instability. Meanwhile, the company blindly diversified into finance, insurance, and other fields, gradually weakening its core business and destabilizing its foundation.

Subsequently, in 2016, BeiBeiMei reported a net loss of 780 million yuan. Due to two consecutive years of net losses, the company was marked with the “ST” warning for delisting risk by the stock exchange.

In 2018, Xie Hong returned and promoted internal reforms, gradually stabilizing performance. From 2022 to 2024, BeiBeiMei’s revenue was 2.51 billion, 2.53 billion, and 2.77 billion yuan respectively, still far below the peak revenue of over 6 billion yuan.

Additionally, media reports indicate that since 2023, BeiBeiMei’s controlling shareholder XiaoBeiDaMei Holdings has faced concentrated debt issues, with multiple instances of transferring or auctioning pledged BeiBeiMei shares to repay loans, ultimately leading to bankruptcy restructuring.

In the first three quarters of 2025, BeiBeiMei’s revenue decreased by 2.6% year-on-year to 2.03 billion yuan, while net profit increased by 48.1% to 110 million yuan.

It is worth noting that even with the hope of state capital’s involvement, BeiBeiMei’s current operations remain under pressure. In the first three quarters of 2025, net cash flow from operating activities was 103 million yuan, a significant 68.67% decline year-on-year.

On March 19, a reporter reached out to BeiBeiMei for an interview regarding the restructuring, but received no response as of press time.

Once a top player in domestic milk powder, this company now faces a crossroads. Dairy industry expert Song Liang pointed out that if state capital takes over, BeiBeiMei’s cash flow and production capacity will be strongly supported. Jinhua Zhenhe has promised to maintain stable operations while optimizing the asset-liability structure, helping the company overcome funding constraints, expand market presence, and innovate in R&D. This will gradually shift the company away from relying solely on traditional business. “The infant and child industry still has huge potential. State capital’s involvement not only addresses the immediate crisis but also injects strong confidence for BeiBeiMei’s future resource integration and market competition.”

Xiaoxiang Morning Post, Chili Finance, Li Xuanzi

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