Beingmate Major Shareholder Restructuring Accelerates, Zhejiang Jinhua State-owned Assets Expected to Take Control

Is AI Xie Hong expected to step back from management after the state-owned assets take control?

“First in milk powder” Beimei Co., Ltd. (referred to as “Beimei,” 002570.SZ) may change ownership.

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

Previously, Xiaobei Damei Holdings filed a pre-restructuring application with Jinhua Intermediate Court in July 2025, citing liquidity issues, inability to repay due debts, and a clear lack of repayment capacity but still possessing restructuring value. On January 30, 2026, its pre-restructuring plan was approved by the creditor meeting. As of the announcement date, Xiaobei Damei Holdings held 130 million shares of Beimei, about 12.3% of the total share capital, with 98.9% of these shares pledged or frozen.

On February 5 this year, Xiaobei Damei Holdings announced a public recruitment and selection of restructuring investors. By March 4, only Jinhua Zhenhe had registered, which is controlled by the Jinhua Municipal State-owned Assets Supervision and Administration Commission. The announcement states that Jinhua Zhenhe will pay approximately 860 million yuan for restructuring investment and provide an additional 30 million yuan to help resolve related debts.

Beimei was founded by Xie Hong in 1992 and was once one of the leading domestic milk powder brands. According to third-party data, in 2010, Beimei’s infant formula market share reached 10.8%, ranking first among domestic brands, and it was listed on the Shenzhen Stock Exchange in 2011. However, after going public, Xie Hong resigned from all positions at Beimei due to health reasons. Beimei’s performance peaked in 2013 and then gradually declined.

After Xie Hong returned in 2018, Beimei launched a series of internal reforms. From 2022 to 2024, Beimei’s revenue was 2.51 billion, 2.53 billion, and 2.77 billion yuan, with net losses of 180 million, 47.45 million, and 100 million yuan respectively. In the first three quarters of 2025, revenue decreased by 2.6% year-on-year to 2.03 billion yuan, while net profit increased by 48.1% year-on-year to 110 million yuan, indicating a gradual stabilization.

However, since 2023, issues related to the debt of Xiaobei Damei Holdings (formerly Beimei Group), the controlling shareholder, have erupted. There have been multiple instances of transferring or auctioning pledged Beimei shares to repay loans, ultimately leading to bankruptcy restructuring.

According to the plan, after signing the “Restructuring Investment Agreement,” it will be submitted for creditor approval and approved by the Jinhua Intermediate Court. If Xiaobei Damei Holdings’ subsequent restructuring succeeds, the actual controller of Beimei will change accordingly, and Beimei will bid farewell to the founder era. It remains unclear whether Xie Hong will continue to serve at Beimei.

According to the “Restructuring Investment Plan” submitted by Jinhua Zhenhe, if the restructuring is successful, the new company will maintain stable operations of Xiaobei Damei Holdings and Beimei Co., Ltd., continue to support legal and compliant employee stock ownership plans, optimize assets, debt structure, and operational capacity, and preserve core asset value. The announcement states that Beimei has independent and complete business operations and autonomous management capabilities, and in terms of business, personnel, assets, organization, and finance, it is independent from the controlling shareholder. The related changes are not expected to significantly impact the company’s daily production and operations.

Independent dairy industry analyst Song Liang told reporters that after years of development, Beimei still has value in functional nutrition, infant formula production, and R&D. If the controlling shareholder’s debt issues are resolved, it will also greatly benefit Beimei’s future development.