The “Soul” of Zhongxuegao Sold: A Layman’s Explanation of Brand Survival, Death, and Legal Separation
Hello everyone, I’m your financial journalist. Recently, due to a comment from Luo Yonghao, the once-popular ice cream brand “Zhongxuegao” has made it onto the hot search lists again. But this time, it’s not because of the taste of its ice cream, but because its “assets” – its brand, trademarks, and patents – have been compulsorily auctioned by the court and the transfer has been completed.
In simple terms, the Zhongxuegao brand no longer legally belongs to the original company; it has been sold to a mysterious individual buyer. The original company is busy canceling its old accounts, completely cutting ties with this brand.
What exactly happened behind the scenes? Why would a once-popular online brand with annual sales of 1 billion yuan end up in this situation? And who is this person who bought the “soul” of Zhongxuegao for 21.1 million yuan? Next, I’ll break down these five key aspects in plain language.
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1. What happened? Zhongxuegao’s “name” and “design” were sold together
First, let’s clarify what was actually auctioned. The “508 intangible assets” mentioned in the news may sound abstract, but they are quite specific.
You can think of a company as a person. This person’s physical assets (factories, machinery, inventory of ice cream) may still be with the original company, but what was auctioned were this person’s “ID card” and “appearance”:
- 492 registered trademarks: These are the words “Zhongxuegao” and the iconic tile-shaped logo. Anyone wanting to use the name Zhongxuegao now has to ask the new buyer.
- 8 authorized patents: Mainly design patents, such as the unique tile shape and packaging design.
- 8 copyrights: This may include slogans, promotional images, videos, and other creative content.
Key conclusion: On May 7, 2026, these 508 assets were successfully auctioned as a package on the JD Judicial Auction platform. On June 4, the court officially confirmed that the ownership of these items belonged to the buyer. This means that, legally, the original Zhongxuegao company no longer has the right to use its own brand name.
2. Who bought Zhongxuegao? A mysterious “individual”
The most intriguing aspect of this auction is the identity of the buyer:
- Price: 21.1 million yuan. For a company that was once valued at several billion yuan, this price might not seem high, but for a brand that had gone bankrupt and owed nearly 800 million yuan in debts, being able to sell it for tens of millions indicates that there is still interest in the brand’s residual value in the market.
- Identity: The buyer is a individual, not a large company or investment institution. Only anonymized information (such as the surname “Zhang” and the name being blurred) has been disclosed; the full name, background, or future plans for the brand are unknown.
Why an individual?
Typically, brand acquisitions are done by capital parties or industry giants. The appearance of an individual buyer could be due to several reasons:
1. Nostalgic enthusiast or collector: Some people collect well-known brands; they might buy it just to “own” the brand, without the intention of large-scale commercial operation.
2. Small entrepreneur or team representative: It could be a small team bidding under an individual’s name, planning to take over and re-operate the brand or hold it as an asset.
3. Risk avoidance or special purpose: An individual’s identity can be more flexible than a company’s, but it also means relatively weaker financial strength and risk resistance.
Key point: We don’t know what the buyer plans to do with the brand yet. Will they produce more ice cream? Or will they license it to other manufacturers? Or perhaps just leave it idle? These are all unknowns.
3. Why did the original company “cut ties”? The legal “decluttering” process
The news mentions that the administrators are clearing and canceling various social media accounts previously registered under Zhongxuegao, stating that future actions will have nothing to do with the original company. This might seem harsh, but it’s a standard procedure in bankruptcy processes and a necessary step to protect the original company (and its creditors):
- What is a “node announcement”?
Lawyer Xu Hao explained that this marks the official end of the disposal of the intangible assets. It’s like moving out of a house: once the items are moved out and the keys handed over, the original owner (the original company) can no longer enter.
- Why cancel old accounts?
Because the brand (trademarks) no longer belong to the original company. If the original company continues to use Zhongxuegao’s accounts for advertising or sales, it would be considered infringement of the new buyer’s rights. To avoid legal disputes, the original company must stop using these accounts and cancel them.
- The significance of the disclaimer:
The administrators emphasize that “all actions and consequences of the buyer are unrelated to the original company” to **isolate risks*. If the new buyer uses the Zhongxuegao brand for illegal activities (like selling inferior products or false advertising), and consumers or regulatory authorities hold them accountable, the original Zhongxuegao company can use this disclaimer to say, “This brand is no longer mine; I’m not responsible.” This is crucial for protecting the original company’s remaining assets and ensuring fair debt repayment.
4. Why did Zhongxuegao end up this way? From a “ice cream sensation” to bankruptcy
Looking back at Zhongxuegao’s journey, it was a typical example of a new consumer trend in China, but it also illustrates the pitfalls of “high start, low finish”:
- Peak moments (2018-2021):
Zhongxuegao quickly became popular with its “tile-shaped” design and “luxury” positioning, selling ice cream at much higher prices than regular ice cream, earning the nickname “Ice Cream Assassin.” In 2021, its sales exceeded 1 billion yuan, and it received several rounds of financing, with a valuation of several billion yuan. It represented the capital’s fervent pursuit of “consumption upgrades” at that time.
- Turning point (2022-2024):
- Public backlash: The “Ice Cream Assassin” label caused public dissatisfaction, with complaints about poor value for money and excessive marketing.
- Operational difficulties: Its luxury positioning led to low repurchase rates, high expansion costs, and increased competition from giants like Yili and Mengniu, causing sales and profits to decline.
- Debt crisis: After multiple financings, the company accumulated heavy debts. By July 2025, it entered bankruptcy proceedings with only 186 million yuan in assets and 782 million yuan in debts, resulting in insolvency.
Key lesson: Zhongxuegao’s failure highlights the vulnerability of new consumer brands under the model of “high valuation, high marketing, and low repurchase rates.” When consumer behavior becomes more rational, concepts and marketing alone are not enough to sustain long-term profitability; supply chain management, cost control, and product quality are essential.
5. What’s the future? Brand revival or complete disappearance?
The sale of Zhongxuegao’s intangible assets doesn’t necessarily mean the brand will disappear, but its future is uncertain:
- Possibility 1: Brand revival (low probability):
If the new buyer has strong supply chain resources, financial strength, and a good team, they might try to revive the Zhongxuegao brand and launch new products. However, given the damaged reputation and decreased consumer trust, this path is very challenging.
- Possibility 2: Brand licensing or idleness (medium probability):
The new buyer might not produce the products themselves but license the brand to other manufacturers for a fee. Alternatively, they could hold the brand as an asset, waiting for market changes or a potential resurgence in brand value.
- Possibility 3: Gradual fadeout (high probability):
If the new buyer has no clear plans for the brand or the results are poor, the Zhongxuegao brand might gradually be forgotten by consumers and become a historical term.
Implications for the industry:
1. Brands are not omnipotent: Brands can bring short-term attention, but long-term success depends on product quality and customer loyalty.
2. The professionalism of bankruptcy processes: The Zhongxuegao case shows how modern bankruptcy laws fairly and efficiently dispose of corporate assets, protecting the interests of all parties.
3. Rational consumer behavior: Consumers are increasingly focused on value for money; blindly pursuing luxury and conceptual products will be unsustainable.
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In summary:
The sale of Zhongxuegao’s “soul” marks the legal separation of a once-popular new consumer brand. The original company completed a crucial step in its bankruptcy process, protecting the interests of its creditors. The mysterious individual buyer now holds the future of the Zhongxuegao name.
For the general public, this is more than just a business case; it’s a reminder: in the wave of consumerism, we need to remain rational and not blindly buy into concepts. For entrepreneurs, a brand is an asset, but it also comes with responsibility. Only by focusing on quality products can a brand truly thrive in the long term.
As for whether Zhongxuegao’s ice cream will still be available and what its taste will be like, that will depend on the new buyer’s decisions. Let’s wait and see.