Liangmianzhen, once the undisputed king of Chinese oral care and a symbol of homegrown manufacturing prowess, is facing a moment of existential crisis. The company, known internationally as the first Chinese brand to successfully incorporate traditional herbal medicine into toothpaste, recently announced a suspension of stock trading as its controlling shareholder, the Liuzhou Industrial Investment Development Group, prepares for a potential transfer of power. This move signals a desperate search for a strategic lifeline for a brand that was once a staple in every Chinese household.
The timing of the ownership reshuffle coincides with a catastrophic 2025 financial report that reveals a staggering 87.86% plunge in net profit, which plummeted to a mere 9.85 million yuan ($1.36 million). While the company attributes much of this decline to the volatile fair value of its equity investments—specifically its holdings in Citic Securities—the underlying operational data paints a far more grim picture of a legacy brand losing its bite in a saturated market.
Despite a marginal increase in total revenue, Liangmianzhen’s core household toothpaste segment is struggling with an alarming inventory glut. Production of household toothpaste rose by nearly 4%, yet sales dipped by 3.5%, leading to a 20% surge in unsold stock. These figures highlight a classic struggle for 'time-honored' Chinese brands: an inability to adapt to a 'red ocean' market where younger consumers increasingly favor premium, personalized, and aesthetically driven international brands or nimble digital-first domestic startups.
Governance at the firm is also in a state of flux, following a series of high-level resignations and a sweeping board reshuffle earlier this year. The departure of key financial and strategic executives suggests deep-seated friction regarding the company's direction. As state-owned assets in Liuzhou seek an exit or a new partner, Liangmianzhen’s future now rests on whether a new controller can modernize a brand that has spent too long relying on nostalgia and a stagnant product portfolio.