Hello! I'm your financial news analysis assistant. The news about "Southern Black Sesame" is indeed a mix of emotions. It's not just a story of a company's rise and fall; it's also a microcosm of China's first generation of "national brands" struggling to survive in the tide of the times.
To help you understand the intricacies behind it more easily, I've broken down this long article into five key parts and explained them in plain language:
How did this brand become less popular? Why was the company sold? Will things get better with the new owners?
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Part 1: From "National Memory" to "Midlife Crisis": The Glories and Decline of an Old Brand
Core Summary: Southern Black Sesame was once a childhood memory for several generations. It grew from a small workshop in Guangxi to a listed company, thanks to a catchy advertisement and its delicious taste. However, in recent years, it has faced a typical "midlife crisis": declining revenue, continuous losses, unsold old products, and failed attempts at new businesses.
Detailed Explanation:
1. The Beginning of Glory:
The story starts in 1984 when three unrelated entrepreneurs, Wei Qingwen, Li Hanrong, and Li Hanchao, started a small workshop in Yulin, Guangxi. Their clever strategy was to divide the tasks clearly: Wei Qingwen focused on branding and marketing, while the Li brothers managed production and finance.
1991 was a turning point. With the popularity of the TV drama "Longing," the advertisement "A rich aroma, a touch of warmth" became a national hit. At that time, Black Sesame paste was synonymous with "high-end health," and Southern Black Sesame dominated the market. The company went public in 1997 and completed a backdoor merger in 2004, becoming the "first stock in the black sesame industry."
2. The Crisis:
But after the glory came a long decline:
- Revenue Shrinking: Revenue dropped from 4.025 billion yuan in 2021 to 2.465 billion yuan in 2024, a decrease of nearly 40%.
- Continuous Losses: From 2021 to 2024, the company accumulated losses of 128 million yuan and was still in the red in 2025.
- Overstocking: In 2025, the revenue from its main product, the drink series, decreased, but inventory increased by 150%. This indicates that products were unsold and piled up in warehouses.
3. The Collapse of Trust:
The biggest blow to consumers was the "ingredient list scandal." People bought Black Sesame paste for its health benefits, only to find that black sesame was fourth on the list, with rice, grain powder, and glucose listed first. It was like buying "pure milk" that turned out to be watered down. This deception shattered the trust the brand had built over the years.
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Part 2: Why Did It Become Less Popular? Not Because the Market Changed, but Because of Poor Management
Core Summary: Many think younger people don't like Black Sesame anymore, but that's not the case. Black sesame balls have become internet hits, and even celebrities are selling them. The problem with Southern Black Sesame is that it failed to adapt to younger consumers and made reckless moves with its core business.
Detailed Explanation:
1. The Market Isn't the Problem; the Approach Is: The market for Black Sesame is still strong. For example, He Jiajin started his own factory to make black sesame balls, and Li Yapeng sells them on live broadcasts. Lao Jinmo Fang sold 1 billion yuan worth in one year. This shows there's still a large market for Black Sesame, especially in the snack and health categories targeting younger people.
Southern Black Sesame, however, failed to capitalize on these trends. Its "black health" snack segment grew by 182% in the first half of 2026, but the sales were only 66 million yuan, compared to Lao Jinmo Fang's much higher figures. The company continued to rely on traditional retail channels, while younger consumers were turning to short-video platforms to buy black sesame balls.
2. Reckless Expansion: When its core business was struggling, the company made foolish investments:
- Logistics Park: It spent 256 million yuan on a logistics park, which later proved to be a waste of money.
- E-commerce Company: It acquired "Liduoduo" for 700 million yuan but lost money after the deal expired.
- Energy Storage Batteries: In 2023, it even considered investing 3.5 billion yuan in new energy batteries, but gave up less than a year later.
It's like a chef who, instead of improving cooking, tries taxiing or real estate, ending up with no good food and losing all the money.
3. The Real Problem: The outdated concept of "heatwater consumption and winter health" is the real issue. As health products became more like snacks (black sesame balls, powder), Southern Black Sesame remained stuck in the old mindset of "drinking a bowl to keep warm in winter," which led to its market failure.
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Part 3: The 942-Million Yuan Sale: Not a Cash Out, but a Last-Ditch Attempt
Core Summary: In 2025, the founding family sold 20% of the company to Guangxi State-owned Assets for 942 million yuan, giving up control. It was seen as a way to cash out, but in reality, it was due to a debt crisis and historical violations.
Detailed Explanation:
1. Why the Sale? The family had pledged a lot of their shares for financing and couldn't repay the loans. If the shares were auctioned, the price would be even lower, and the company would be in chaos. Selling the shares to state-owned assets for 942 million yuan allowed them to repay debts and address historical issues, the most dignified and low-risk option at the time.
2. Historical Burdens: Besides debts, the company had other problems. From 2020 to 2023, it transferred funds to its controlling shareholder, resulting in 83.44 million yuan in "non-operating fund misuse." In June 2025, the Guangxi Securities Regulatory Bureau issued a warning to Wei Qingwen and others.
Under these pressures, the family could no longer manage the company effectively.
3. The Smart Deal: Although they sold 20% of the shares, they retained about 17%. They gave up voting rights but kept the right to dividends. This arrangement solved the control issue while allowing them to continue receiving profits.
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Part 4: The Three-Year Performance Pact: A Sword of Damocles Over Their Heads
Core Summary: After the state-owned assets took over, they imposed strict performance targets on the founding family: annual net profits must meet certain levels from 2026 to 2028, or they must make up the shortfall with cash. The first half of 2026 showed improvement, but the second half remains challenging.
Detailed Explanation:
1. The Harsh Terms of the Pact:
- Targets: Net profits of 95 million, 105 million, and 115 million yuan for 2026, 2027, and 2028, respectively; non-recurring net profits (excluding one-time gains) must be at least 68 million yuan each year.
- The Challenge: These targets are 20% to 47% higher than the company's best performance. For a brand with declining revenue for four years, meeting these targets is incredibly difficult.
- Penalty: If not met, the family must pay the shortfall out of their own pockets.
2. A Good First Half, but...: In the first half of 2026, revenue increased by 28.47% to 1.192 billion yuan, and net profit after deducting non-recurring items was 31.28 million yuan (a turnaround from loss). The numbers look good, but:
- Progress Lagging: The annual target for non-recurring items is 68 million yuan, and only 31.01 million yuan was achieved, just over 45%. The company still needs to earn an additional 37 million yuan in the second half.
- Temporary Factors: The growth was partly due to the Spring Festival season, cost cuts, and stable raw material prices. Whether these factors will continue is uncertain.
3. New Challenges: After the state-owned assets took over, problems arose:
- The former chairman resigned in January 2026.
- In April 2026, the company and founder Wei Qingwen were investigated by the Securities Regulatory Commission for alleged violations of information disclosure laws.
These new issues show that changing owners didn't erase the company's past mistakes. The new management faces both performance pressure and legal and governance challenges.
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Part 5: Conclusion: Sentiment Can't Save a Brand, but Memories Are Real
Core Summary: Southern Black Sesame's story is a typical example of China's old national brands. It shows that brand value doesn't equate to competitiveness, and sentiment alone isn't enough. In today's rapidly changing consumer landscape, old brands must "rejuvenate" or be left behind by the times.
Detailed Explanation:
1. A Mirror of Many Old Brands: Southern Black Sesame's struggles reflect those of many other old national brands:
- Outdated Products: Lacking innovation after decades.
- Slow Response: Failing to adapt to the internet and new consumption trends.
- Reckless Expansion: Diversifying into unprofitable areas.
- Poor Governance: Family-based management and weak compliance.
2. A Lesson for Us: We miss the warmth and nostalgia the brand brought. This emotional value is real, but in business, it's fragile. If products are unappealing, unaffordable, or poorly marketed, sentiment won't withstand market forces.
3. Looking to the Future: Now, Southern Black Sesame is under state ownership, which brings more standardized governance and financial stability, but also stricter performance requirements. For consumers, it doesn't matter whether it's owned by a family or the state; what matters is whether the product is still delicious and comforting. If Southern Black Sesame can adapt to younger consumers and innovate, it has a chance to turn things around. Otherwise, it may be forgotten, just like the cold Black Sesame paste.
In Summary: The midlife crisis of old brands can't be solved by sentiment; it requires real reforms and innovative products. Let's wait and see if Southern Black Sesame can create a new chapter for itself.