Beingmate May Change Ownership

On March 18, “First in Milk Powder” Beinei announced that its controlling shareholder, Zhejiang Xiaobei Damei Holding Co., Ltd. (hereinafter referred to as “Xiaobei Damei Holding”), has signed a “Restructuring Investment Agreement” with Jinhua Zhenhe Enterprise Management Partnership (Limited Partnership) (hereinafter referred to as “Jinhua Zhenhe”) and submitted a restructuring application to Jinhua Intermediate People’s Court on March 18, 2026. If approved, the actual controller of Beinei will change from founder Xie Hong to the Jinhua State-owned Assets Supervision and Administration Commission.

The debt crisis of the controlling shareholder Xiaobei Damei Holding has been ongoing for a long time. As early as June 2024, the Shenzhen Stock Exchange issued an inquiry letter due to the major shareholder’s financial difficulties, revealing that its asset-liability ratio had exceeded 90%. To ease financial pressure, Xiaobei Damei Holding has frequently pledged its shares of Beinei since 2016. As of the announcement date, the pledged shares of Beinei by Xiaobei Damei Holding accounted for 98.85% of its holdings.

According to the “Restructuring Investment Agreement,” Jinhua Zhenhe should pay a restructuring investment of 856 million yuan. To ensure the success of the restructuring, a smooth transfer of control, and the sustainable development of Beinei, Jinhua Zhenhe also agrees to provide an additional 30 million yuan to help the company’s actual controller and related parties resolve related guarantee debts.

Regarding the impact of this restructuring, the company stated in the announcement: “The company has independent and complete business operations and autonomous management capabilities. In terms of business, personnel, assets, organization, and finance, it is independent from the controlling shareholder. The above matters of Xiaobei Damei Holding will not have a significant impact on the company’s daily production and operation. The company’s production and operation are normal.”

Beinei was founded by Xie Hong in 1992 and was once one of the leading domestic milk powder brands.

Third-party data shows that in 2010, Beinei’s infant formula market share reached 10.8%, ranking first among domestic brands, and it was listed on the Shenzhen Stock Exchange in 2011.

In terms of performance, Beinei is expected to maintain stable operations through 2025. In the first three quarters of 2025, Beinei achieved operating revenue of 2.033 billion yuan; net profit attributable to shareholders of the listed company reached 106 million yuan, a year-on-year increase of 48.07%; and net profit after non-recurring gains and losses was 86.18 million yuan, up 76.23% year-on-year.