A cornerstone of Japan’s cosmetic legacy in China is nearing a major structural shift. Beijing Liyuan, the long-term Chinese partner in the Shiseido Liyuan Cosmetics joint venture, has listed its 35% stake for sale on the Beijing Assets and Equity Exchange. With a floor price set at 199.5 million yuan ($27.5 million), the move signals a potential divorce in one of the industry’s most historic cross-border partnerships.
Formed in the early 1990s, the joint venture was the cradle for Aupres, a brand once synonymous with high-end prestige in Chinese department stores. For decades, Aupres enjoyed the fruits of China’s first wave of premium consumption. However, the rise of agile domestic 'C-beauty' brands and the total dominance of e-commerce platforms have eroded the brand's traditional stronghold in physical retail.
Financial disclosures reveal a deepening crisis for the venture. While 2025 saw a full-year net loss of 41.3 million yuan, the situation worsened in the first five months of 2026, with losses already exceeding 53 million yuan on revenue of just 234 million yuan. Industry insiders point to strategic missteps, such as offering deep discounts to top-tier livestreamers that cannibalized offline sales, as a primary driver of the brand’s declining equity.
This divestment coincides with a broader retrenchment by Shiseido in the Chinese market. The Japanese conglomerate recently liquidated its Guangdong subsidiary and shuttered digital storefronts for its niche 'Maquillage' brand. As Shiseido undergoes its most significant global organizational overhaul in years, the retreat from legacy joint ventures underscores a shift toward a more streamlined, though perhaps more defensive, posture in the world’s second-largest economy.