Summary of Key Points
Liangmianzhen, the leading brand in hotel toothpaste, has recently undergone a major change in its board of directors. Five directors whose terms were set to expire in 2029 and one vice president have all resigned. The reason for this is the upgrade of the controlling shareholder from the Liuzhou State-owned Assets Supervision and Administration Commission to the Guangxi Zhuang Autonomous Region State-owned Assets Supervision and Administration Commission. The newly appointed directors mostly come from the Guangxi state-owned assets system. Liangmianzhen is currently facing difficulties with its hotel toothpaste business, which is loss-making and has thin profits: in the first half of the year, it sold 712 million units of travel toothpaste, but at only 0.086 yuan per unit, with no price increase in over a decade, indicating a decline in the profitability of its core business. Additionally, the hotel industry is sluggish, and policies are promoting a green transformation (replacing small toothpaste with larger bottles), while competitors such as Yunnan Baiyao and Tianqi are increasing in number. In the future, the involvement of the provincial state-owned assets could bring resource support, but there are also uncertainties, such as possible business integrations (e.g., merging with Tianqi's daily chemical business, which is also under Guangxi state ownership) or changes in direction (reducing focus on hotel toothpaste and increasing investment in medical or household toothpaste).
I. Collective Resignation of the Board of Directors: Not a Failure, but a Change in Owners
The resignation of the directors is not due to poor performance; rather, it is because the controlling shareholder has changed. Liangmianzhen was previously under the management of the Liuzhou State-owned Assets Supervision and Administration Commission, but in early August this year, the Guangxi provincial state-owned assets supervision and administration commission took over control. It is common for management to change after a change in controlling shareholders, as the new owners want to appoint people they trust to manage the company. The six newly appointed non-independent directors mostly have backgrounds in Guangxi state-owned assets; for example, Nong Haixin was once the general manager of the Guangxi Sugar Industry Group, and Wang Chengwang comes from Guangxi State-owned Capital. Therefore, this change is essentially a transfer of personnel after a change in ownership, not a resignation due to fault on the part of the directors.
II. Why Isn't the Leading Hotel Toothpaste Brand Making Money? The More It Sells, the More It Loses
Liangmianzhen is the absolute leader in the hotel toothpaste market, having sold 712 million units in the first half of the year, yet it incurred a loss of over 3 million yuan in its hotel channel business. The problem lies in the "low price per unit": each toothpaste is priced at only 0.086 yuan, a price that has not increased in over a decade. In contrast, household toothpaste brands like Yunnan Baiyao and Shenban sell for 25-75 yuan per unit, making Liangmianzhen's hotel toothpaste much cheaper. Why is this? Because hotel customers are becoming more concentrated (chain hotels account for 41% of sales), and hotels pressure suppliers to lower prices to reduce costs. The general manager of Liangmianzhen's Jiangsu company once said, "Sales are increasing, but profits are almost non-existent; we're almost just doing the physical transportation work."
III. The Hotel Toothpaste Business Is Getting Harder: Three Major External Pressures
Liangmianzhen's difficulties are not self-inflicted but are part of broader industry issues:
1. Sluggish Hotel Industry: Fewer new hotels are opening, and existing hotels are cutting costs to improve efficiency, affecting Liangmianzhen's orders and profits.
2. Policy-driven Green Transformation: The government encourages hotels to use larger bottles or rechargeable bathroom products, reducing demand for small toothpaste and leading to industry restructuring.
3. Competition from Rivals: Yunnan Baiyao began to enter the hotel channel market in 2023, and brands like Tianqi and Shuke are also competing for market share, squeezing Liangmianzhen's market position.
IV. With New Owners, Can Liangmianzhen Turn Things Around? Opportunities and Uncertainties Coexist
The involvement of the provincial state-owned assets brings resource advantages, but whether these can solve the company's fundamental problems is uncertain:
- Opportunities: The new owners could provide more policy and financial support to help Liangmianzhen expand into new markets or upgrade its products.
- Uncertainties: Tianqi, also under Guangxi state ownership, also operates in the toothpaste business, and there could be an integration of the two companies' daily chemical businesses to avoid internal competition. Additionally, given the low profitability of the hotel toothpaste business, the new owners might decide to reduce investment in this area and focus on more profitable household or medical toothpaste products (Liangmianzhen already has a medical division).
In summary, Liangmianzhen will definitely undergo significant changes, but whether it can turn things around depends on how the new management team addresses these challenges.
V. Impact on the Hotel Toothpaste Market: A Potential reshaping of the Landscape
As the industry leader, if Liangmianzhen adjusts its business strategy after this change (e.g., by reducing investment in hotel toothpaste), it could create more opportunities for other brands. If it merges with Tianqi, it could form a stronger state-owned daily chemical group, potentially changing the competitive landscape. For hotels, this could mean fewer supplier options or higher procurement costs, as leading brands may raise prices, leaving smaller hotels with fewer choices.
(Note: The references to "non-recurring net profit of less than 4.3 million yuan in 2025" and "operating data for Q2 2026" may be errors; the interpretation assumes they refer to recent performance.)