Liuliume, the nostalgic brand that defined childhood snacking for a generation of Chinese consumers, is finally on the cusp of an IPO. After a seven-year journey marked by three failed attempts across both Shenzhen and Hong Kong exchanges, the company cleared a major hurdle on May 26, 2026, passing its hearing with the Hong Kong Stock Exchange. While the brand remains the market leader in fruit snacks with a 4.9% market share, its path to the public market reveals a company struggling to adapt to a rapidly evolving consumer landscape.
The core of Liuliume's struggle lies in the shifting health consciousness of the Chinese middle class. Its signature preserved plum snacks, once the bedrock of the company’s revenue, are facing a structural decline. High in sugar and sodium, these traditional candied fruits are increasingly at odds with the 'low-sugar, low-salt' health trend. Sales of plum snacks fell by nearly 15% in 2025, marking the first time the category's contribution to total revenue dropped below the 50% threshold.
To compensate for the fading 'old engine,' Liuliume has aggressively pivoted toward prunes and plum-based jellies. While these categories have seen impressive growth rates—with jelly revenues surging nearly 70% in the last year—this growth has come at a steep price. To compete in the crowded 'healthy snack' space, the company has been forced to slash prices. Profit margins for its jelly products plummeted from 49.2% to 45.4% within a year, reflecting a strategy of trading profitability for market share.
Furthermore, the brand is grappling with a power shift in retail distribution. Liuliume is migrating away from traditional distributors toward high-traffic membership warehouses and specialized discount snack chains. While these channels have boosted volume, they have simultaneously eroded the company's bargaining power. Customized product lines for these retailers have dragged down gross margins, while extended payment cycles have left the company with a precarious cash position, with cash reserves falling by over 56% in a single year.
As Liuliume prepares to use its IPO proceeds for capacity expansion and brand rebuilding, the fundamental challenge remains one of innovation. In an era where consumers demand both health benefits and value, a reliance on aggressive pricing and nostalgic marketing may not be enough. The company's future now depends on whether it can transform from a purveyor of sugary childhood treats into a sophisticated health-food player capable of defending its margins against aggressive retail giants.