From partners to lawsuits, Beingmate has been involved in over 100 million yuan legal cases due to industrial hemp cooperation | Company Public Opinion Watch

Once the “Number One Domestic Milk Powder Stock” Bei Bei Mei has recently run into trouble. Originally aiming to open a new revenue stream with the concept of industrial hemp, the “second growth curve” didn’t materialize, but instead triggered a lawsuit worth over 100 million yuan.

The story begins on the evening of February 24th, when Bei Bei Mei issued a notice stating there was a new development in its patent dispute with partner Heilongjiang Fengyou. Initially, Bei Bei Mei sued the other party, demanding the return of 50 million yuan in earnest money plus interest, totaling 56.85 million yuan. Unexpectedly, the other side counterclaimed, seeking compensation of 77.25 million yuan. The back-and-forth has involved over 130 million yuan.

These two were originally partners, so how did it come to this? It all started in 2021. At that time, Bei Bei Mei’s performance was not great, and they were eager to find new opportunities. They set their sights on the then-popular industrial hemp cannabidiol (CBD), hoping to acquire related patents to develop milk powder that could alleviate pregnant women’s anxiety. Heilongjiang Fengyou had the cultivation and extraction technology, so the two quickly reached an agreement, signing an exclusive license and joint development contract. Bei Bei Mei also paid a hefty 50 million yuan deposit.

However, problems arose after the payment. Bei Bei Mei claimed that the other side refused to provide key licensing documents and technical data, making product development impossible. Heilongjiang Fengyou, on the other hand, denied this, stating they had provided everything required, obtained the patents, and even reserved a 20-year exclusive operation right for Bei Bei Mei, without collaborating with any third parties. Instead, Bei Bei Mei took the materials but failed to act, breaching the agreement first. Heilongjiang Fengyou also said they had invested a significant amount of money upfront to ensure large-scale production, with estimated losses exceeding 77 million yuan.

Ultimately, the root of this dispute lies in policy issues. Bei Bei Mei initially wanted to develop milk powder using CBD, but according to domestic regulations, such substances must pass safety assessments by the National Health Commission and cannot be added to infant formula. They had hoped for policy relaxation, but it never materialized. The patents they purchased became useless, and the cooperation naturally fell apart.

This isn’t Bei Bei Mei’s first falling out with partners. In December last year, they also had a dispute with a major distributor, involving mutual lawsuits and claims, with amounts exceeding 200 million yuan.

Performance-wise, Bei Bei Mei has somewhat recovered in recent years, with a significant increase in net profit in the third quarter last year. However, compared to their past glory and industry leaders today, the gap remains clear. Now, with this lawsuit, if the counterclaim succeeds, the additional compensation of over 77 million yuan could be another heavy blow to Bei Bei Mei, which is still trying to climb back.

Southern+ Reporter Zhou Zhongyu

【Author】 Zhou Zhongyu

【Source】 Southern Media Group Southern+ App