Shanghai Lily & Beauty Cosmetics Co Ltd: Major Developments in Shareholder Structure and Business Performance

Shanghai Lily & Beauty Cosmetics Co Ltd, an online cosmetics marketing company listed on the Shanghai Stock Exchange, has recently undergone significant changes in its shareholder structure following a prolonged legal dispute. The company, which operates in various sectors including cosmetics e-commerce retail and brand marketing, has seen its controlling shareholder, Huang Tao, adjust his stake due to a divorce settlement with his ex-wife, Weng Shuhua.

Divorce Settlement and Shareholder Changes

On August 21, 2025, Shanghai Lily & Beauty Cosmetics announced the completion of a share transfer related to a four-year-long divorce case involving Huang Tao and Weng Shuhua. As a result of the transfer, Huang Tao’s stake in the company decreased from 32.46% to 28.28%, maintaining his position as the controlling shareholder. Weng Shuhua acquired 16,774,750 shares, representing 4.18% of the total shares, making her a significant shareholder. The market value of the shares received by Weng Shuhua was approximately 1.72 billion CNH, marking a 40% increase from the value at the time of the court’s initial judgment.

Impact on Business Operations

The prolonged legal dispute has had a noticeable impact on the company’s business operations. Financial reports indicate a sharp decline in revenue from 41.55 billion CNH in 2021 to 17.28 billion CNH in 2024, a reduction of nearly 60%. The company also reported a projected loss of 3 billion to 4.25 billion CNH for the first half of 2025, a shift from previous profitability.

In 2024, Shanghai Lily & Beauty Cosmetics ended partnerships with international brands such as L’Oréal, Shu Uemura, and Yves Saint Laurent, transitioning to lighter operational models. This change contributed to a 38.39% decrease in traditional e-commerce retail revenue. The company’s reliance on the Tmall platform, which accounted for 73.43% of its revenue, highlights a lag in adopting new channels like Douyin, which only contributed 18%.

Further Shareholder Adjustments

In addition to the divorce-related share transfer, another significant change occurred when Alibaba’s subsidiary, Hangzhou Hao Yue, sold its 17.57% stake in the company to Beijing Lin Lang Huan Cai Consulting Partnership for 4.86 billion CNH. This transaction marked the end of Alibaba’s investment relationship with Shanghai Lily & Beauty Cosmetics, which began in 2012. The new shareholder, Lin Lang Huan Cai, was established in March 2025, with a registered capital of 5.15 billion CNH.

These developments underscore the challenges faced by Shanghai Lily & Beauty Cosmetics in stabilizing its shareholder structure and revitalizing its business operations amidst ongoing legal and market pressures.