Beingmate loses 334 dealers in H1, pivots to family nutrition after state-owned takeover

Restructuring Plan Approved, State-Owned Entity to Take Control

On June 2 of this year, Beinmei announced that the restructuring plan of its controlling shareholder, Xiaobei Damei Holdings, had been approved by the Jinhua Intermediate People's Court. According to the announcement, restructuring investor Jinhua Zhenhe will acquire a total of 13.35% equity control in the company through a direct purchase of 100% of Xiaobei Damei Holdings' shares, along with shares held by its concert party, Jinhua Yuanheng. Upon completion of the restructuring, Beinmei's actual controller will change to the Jinhua State-owned Assets Supervision and Administration Commission.

During a recent investor survey, Beinmei stated that the controlling shareholder's restructuring is progressing smoothly. Representatives of the restructuring investor for Xiaobei Damei Holdings have indicated that they will strictly adhere to modern corporate governance systems and board norms, fully trust and empower the existing management team, insist on letting professionals handle their respective areas of expertise, and strictly protect the legitimate rights and interests of minority shareholders to ensure standardized corporate governance and transparent decision-making.

Strategic Focus: Four Business Modules and Four Business Models

In response to investor inquiries about the company's latest strategic layout following the state-owned capital injection, Beinmei's senior management stated that the company will continue to focus on four business modules: "maternal and infant ecosystem, whole-family nutrition, whole-family health, and quality living." It will adopt four business models—"OBM, ODM, OEM, and brand licensing"—to actively build a second growth curve, ultimately transforming Beinmei into a technology-driven professional consumer goods company. Additionally, Jinhua's "15th Five-Year Plan" has listed the life and health industry chain as a key industry. The company believes that nutritional food represents a new growth point within this framework and expects to benefit continuously from future cooperation.

Challenging Market Environment

It is worth noting that this communication took place against a challenging backdrop: declining birth rates in China, an infant formula industry currently undergoing both stock competition and structural upgrades, and Beinmei itself navigating the critical juncture of controlling shareholder restructuring and a change in actual controller.

When asked, "Given the declining birth rate in China, how does the company plan to increase revenue and maintain reasonable profit growth?" Beinmei responded that, building on its infant formula business, it will further expand into products for children aged 0–3, including diapers and other non-food growth essentials. At the same time, it will fully develop nutritional products targeting the needs of middle-aged and elderly consumers.

Beinmei noted that industry concentration continues to rise, and the competitive focus has shifted from price wars to comprehensive capabilities in formula research, omni-channel services, and brand building.

Financial Performance and Dealer Network Shrinkage

According to Beinmei's semi-annual report for 2026, the company's first-half revenue was RMB 1.292 billion, down 4.63% year-on-year. Net profit attributable to the parent company was RMB 71.38 million, down 3.60% year-on-year. Deducted non-recurring net profit was RMB 51.54 million, a decline of 18.47% year-on-year. Gross margin fell to 38.45%, a decrease of 6.82 percentage points year-on-year.

Notably, the number of dealers shrank significantly. In the first half of 2026, Beinmei's total dealer count dropped from 1,579 at the end of 2025 to 1,245, a net decrease of 334 dealers in six months, or 21.15%. The company attributed this to channel fragmentation caused by the连锁化和联盟化 of offline maternal and child retail, supply chain exclusivity, and the closure of small independent stores, leading to a sharp decline in the number of effective distribution outlets. However, an unavoidable fact is that, amid the overall pressure on the maternal and child industry, revenue contributed by Beinmei's dealers/direct-supply customers plummeted 40.07% year-on-year.

In contrast, the revenue share from the exclusive distribution/general distributor model reached 65.18%, with gross margin rising to 29.98%.

During the survey, the company stated that the two models complement and promote each other. The dealer/direct-supply model primarily follows the company's overall marketing strategy and brand activities, while the flexibility of the exclusive distributor model helps the company better expand into lower-tier markets and meet differentiated demands across various market channels.

Stock Performance

On the secondary market, Beinmei's stock has continued to weaken this year, with a year-to-date decline of nearly 30%. As of the afternoon of September 24, the stock was trading at RMB 4.40 per share, with a total market capitalization of RMB 4.752 billion.

Source: Duchuang Finance (Originally published by Shenzhen Business Daily · Duchuang)