Beingmate Restructuring: State Capital Plans to Take Control, the "Redemption" and "Rebirth" of an Old-Brand Milk Powder Giant | Company 100%

On March 23, 2026, a ruling from the Intermediate People’s Court of Jinhua City in Zhejiang Province marked a key move in a months-long capital drama. The court officially ruled to accept the reorganization application filed by Zhejiang Little Bei Da Mei Holding Co., Ltd., the controlling shareholder of Beingmate (002570.SZ). According to the previously disclosed plan, Jinhua Zhenhe will take control by contributing 856 million yuan in restructuring investment funds. This means that if the reorganization is completed successfully, the actual control of this industry giant with a 34-year history—once hailed as the “No. 1 domestic milk powder stock”—will be transferred from founder Xie Hong to local state-owned assets.

This is not an ordinary equity transfer. It is both a phased summary of Beingmate’s past more than ten years of turbulent fate and a starting point for re-anchoring its direction for development over the next ten years.

01

Glory and Decline:

A history of the rise and fall of the “No. 1 domestic milk powder stock”

To understand the profound significance of this reorganization, it is necessary to first review the winding path Beingmate has taken.

1. The golden age, rising to the top of domestic brands

Beingmate’s story began in 1992. With a precise positioning of “developed specifically for Chinese babies,” founder Xie Hong carved out a way forward in the milk powder market, surrounded by strong competitors. Its real breakthrough came in 2008. When the melamine incident severely damaged China’s dairy industry and consumer confidence hit rock bottom, Beingmate—unaffected by the incident—quickly filled the market gap through solid product quality and a sharp market response, winning valuable trust. In 2011, Beingmate successfully listed on the Shenzhen Stock Exchange, becoming the genuine “No. 1 domestic milk powder stock.” In 2013, the company’s revenue reached a historical peak of 6.1 billion yuan, topping the summit of domestic brands.

2. The lost-decade predicament of decline

However, after the peak, the situation took a sharp turn for the worse. Starting in 2014, Beingmate’s revenue slid from the high of 6.1 billion yuan to 2.764 billion yuan in 2016. For many years afterward, its revenue remained basically flat with no obvious growth. This long period of stalled growth was the result of the intertwining of internal governance issues and a shareholder debt crisis:

• Wounds in internal governance: strategic wavering and frequent leadership changes. Soon after going public, key figure Xie Hong stepped down due to health reasons. The company then entered a period of turmoil with frequent changes in chairman and general manager. Strategically, the company repeatedly swung between “diversification” and “focusing on core business.” As early as years ago, Beingmate proposed a whole-industry-chain layout, involving multiple categories such as infant and child products and toys. After listing, it also attempted to launch children’s liquid milk and co-branded diapers. However, instability in management directly prevented the strategy from being effectively executed, resulting in chaotic channel management and a continuous erosion of brand strength.

• Shareholder debt crisis: the most severe crisis came from the controlling shareholder. Due to its own debt problems, Little Bei Da Mei Holding, the major shareholder, pledged or froze its 98.85% shares in Beingmate. Its own assets were left with only “three cars and office equipment,” becoming the “Sword of Damocles” hanging over the listed company.

3. Self-reform and a dawn of performance

Although mired in trouble, Beingmate did not give up on self-rescue. In 2018, Xie Hong returned to take back the helm and began implementing a series of reforms. The company proposed a profit self-discipline strategy of “only earning 5%,” aiming to create high value-for-money products through extreme cost control and supply-chain optimization, in response to the trend of consumer tiering. Meanwhile, it rebuilt the channel model and compressed sales expenses. Financially, these measures proved effective.

Financial reports show that the company’s operations have moved out of the low point and are showing a sustained improving trend: it achieved a turnaround to profitability in 2023, and in 2024, net profit attributable to the parent company increased year over year by 116.92% to 103 million yuan. Especially worth noting is that in the first three quarters of 2025, with revenue down slightly by 2.59%, net profit attributable to the parent company reached 106 million yuan, up sharply by 48.07% year over year. The growth rate of net profit after excluding non-recurring items was even higher at 76.23%, indicating a strong restoration of the profitability of the core business and notable effectiveness in expense management.

Beingmate’s net profit attributable to the parent company and growth rate

Data source: Wind

However, the controlling shareholder’s debt crisis is like a “time bomb” that could explode at any moment, severely constraining the company’s financing ability, market confidence, and long-term strategic investment, making the hard-won foundation of its recovery very fragile.

02

Reorganization breakdown:

A precise “surgical operation”

The timing of state-owned capital’s entry is not accidental; it is based on the reorganization being launched amid the performance recovery already taking shape at Beingmate. This reorganization, precisely on the basis of the fundamental turnaround in fundamentals, initiates the process of removing the last—and most stubborn—set of external historical baggage. As it were, “the east wind has arrived, and the shackles are removed.”

The target of this reorganization is the controlling shareholder “Little Bei Da Mei Holding,” not Beingmate itself, the listed company. This positioning is crucial. It means the surgical knife cuts precisely to the root of the problem—debt “tumors” at the shareholder level—while avoiding harm to the listed company’s “body.” In its announcements, Beingmate emphasized multiple times that the company is completely independent from the controlling shareholder in terms of business, personnel, assets, and finances, and that this reorganization will not have a major impact on day-to-day production and operations. This provides a reassuring signal to the market: the reorganization addresses historical issues in the capital structure, not operational problems.

According to the plan, Jinhua Zhenhe will contribute 856 million yuan to fully settle all debts of the controlling shareholder, and will additionally provide 30 million yuan to address issues related to related-party guarantees. In return, Jinhua Zhenhe will obtain 100% equity of Little Bei Da Mei Holding, thereby becoming the actual controller of Beingmate.

The most core highlight of this reorganization lies in its newly designed governance paradigm of “state-owned holding + stable operation by the founding team.” The state-owned party clearly commits that after the reorganization, it will maintain stable operations for Beingmate, support employee equity incentive plans, and the shares it receives will be locked for 36 months. This sends a clear message: when state-owned capital moves in, it intends to act as a “strategic investor” and a “stabilizer.” The company’s day-to-day operations are expected to continue to be led by the original management team with Xie Hong at the core.

This is a deep coupling based on complementary strengths between both sides.

03

Reorganization benefits:

Multiple layers of value reshaping and a foundation for future growth

This successful reorganization will clear the biggest obstacle on Beingmate’s path to development and inject entirely new momentum for growth. Its benefits are multi-layered and systematic, marking the company’s transformation from a private brand driven by the founder to a new corporate entity driven by “state-owned credibility + market operation,” supported by institutional guarantees and a broader network of resources.

1. A leap in strategic positioning: from the “mother-and-infant ecosystem” to a “nutrition platform covering the full life cycle

Before state-owned capital took over, Beingmate had already shown strategic intent that went beyond traditional infant formula milk powder business. The company initially built three major business modules: “mother-and-infant ecosystem, nutrition for the whole family, and a better life.” However, the market has always had doubts about the sustainability of its strategy.

The entry of state-owned capital provides this strategic intent with critical “institutional safeguards” and “credit empowerment.” Its strategic value lies in eliminating the biggest uncertainty that constrains the company’s long-term strategic execution through a “capital-to-stability” approach. On this basis, the company’s strategic positioning achieves a clear leap: expanding from serving infants at a single node to covering the closed-loop demand for nutrition across the full life cycle of “infants, women, and seniors.” With the backing of a state-owned background, this long-term strategy—one that requires ongoing trust accumulation—gains unprecedented stability and credibility.

2. Credit endorsement and a revaluation of brand value: the core premium of state-owned capital’s entry

In the infant and child formula milk powder industry, where requirements for safety and trust are extremely high, brand credibility is a core competitive barrier. The most direct and profound change brought to Beingmate by state-owned capital’s entry is the reconstruction of its brand credit system.

Previously, even though Beingmate had 45 registered formulas for new national standards and had a gross margin higher than industry giant Yili (Beingmate’s gross margin was 45% in the first three quarters of 2025), the controlling shareholder’s debt issues cast a shadow over the company, continuously affecting dealers and end consumers’ confidence. State-owned capital’s entry is equivalent to stamping the “government credit” seal on the Beingmate brand. Such credit endorsement directly enhances the company’s ability to command brand premiums, providing core assurance for marketing and pricing support for its high-end product lines (such as the “Ai Jia” and “Jing Ai” series). Consumers tend to have higher trust expectations regarding product quality, safety, and regulatory compliance for state-owned controlled enterprises, which helps Beingmate build a differentiated trust advantage—especially in offline markets and among conservative consumer groups.

3. A systematic upgrade in resource acquisition capability: from “financing for survival” to “industry synergy”

Strategy implementation cannot happen without resource support. Before state-owned capital’s entry, Beingmate’s resource acquisition fell into a passive situation. The 856 million yuan restructuring funds injected by Jinhua Zhenhe primarily function to resolve all debts of the controlling shareholder in one step, completely cutting off the risk transmission chain and thereby significantly improving the listed company’s asset quality and financing credibility.

Even more far-reaching is the opening of resources for industry synergy. With a state-owned background, it can more easily connect with national strategies such as “Healthy China 2030,” and may receive direct policy support and resource tilt in areas such as research and registration for functional nutrition foods and market access. This shift—from pure market-based financing to an upgraded resource acquisition capability combining “capital + industry + policy”—is a solid foundation enabling the strategic leap.

04

Conclusion

At this new starting point empowered by state-owned capital, Beingmate’s future picture is gradually becoming clearer.

In a market where the top players’ structure is stable, Beingmate’s differentiated path after the reorganization lies in: using state-owned credit as a “anchor” to raise the baseline of brand trust; using goat milk powder and nutrition for the whole family as a “spear” to open up growth tracks in specific segments; and using stable governance and repaired finances as a “shield” to ensure the long-term execution of strategy. Its goal is not to surpass giants in the overall market share in the short term, but to establish relative advantages in particular product lines, consumer groups, and regional markets, achieving high-quality growth.

Looking ahead, a Beingmate that has shaken off constraints stemming from the shareholder level, backed by the state-owned tree, and with a clearly defined strategy undoubtedly has even broader room for imagination. Its future depends not only on whether it can hold its position in the red ocean of infant formula, but also on whether it can successfully tell the “nutrition for the whole family” story and carve out new territory in the blue ocean of the silver economy. This path is still full of challenges; but at least, the cloud that has hovered over it for many years has dispersed, and a new voyage has already sounded its horn and set sail.

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