Two Great Helms Ownership Shift Amid Financial Headwinds

Two Great Helms Stock Co., Ltd., a venerable Chinese herbal toothpaste producer with an 85-year legacy, is navigating a significant ownership transition. The company's controlling shareholder, Guangxi Liuzhou City Industrial Investment Development Group, has signaled intentions for a share transfer that could alter the corporate leadership. This development has prompted a halt in trading for Two Great Helms shares on the Shanghai Stock Exchange as discussions progress.

The potential change in control arrives as the company grapples with considerable financial challenges. In 2025, net profit attributable to shareholders saw a dramatic decline of 87.8%, settling at just 9.8461 million RMB. Basic earnings per share also contracted sharply, falling from 0.1475 RMB in 2024 to a mere 0.0179 RMB in the subsequent year. Despite achieving 1.063 billion RMB in revenue, operational profit was constrained to 7.8367 million RMB, underscoring the intense market competition that has diminished its once-dominant standing against rivals like Yunnan Baiyao.

Industry observers point to Guangxi Health and Wellness Group, a division of Guangxi Tourism Development Group, as a probable successor. This state-backed entity is actively cultivating an integrated business model encompassing health and wellness, medicinal foods, and daily chemical products, boasting total assets of 14 billion RMB. Its strategic acquisition activity was evident in 2025 with a prior investment in Southern Black Sesame, signaling a clear interest in expanding its market footprint through targeted M&A.

Other potential bidders for Two Great Helms include Guangxi Investment Group, the province's largest state-owned enterprise with established medical and pharmaceutical operations, and the Guangxi Farmers' Collective. These entities represent significant provincial capital with strategic alignment towards consumer health and wellness sectors.

Founded in 1978 as the pioneer of China's first Chinese medicine toothpaste, Two Great Helms achieved a significant milestone by listing on the Shanghai Stock Exchange in 2004. Its product was notably the first of its kind to secure United States FDA efficacy certification, and at its zenith, the brand reported annual sales exceeding 400 million units. However, the increasingly competitive Chinese oral care market has exerted considerable pressure, leading to a gradual erosion of its market share over recent years.

This restructuring unfolds against a backdrop of heightened consolidation within China's traditional medicine and daily chemical industries. Market projections indicate a significant shift, with the market share held by leading companies expected to climb from 18% to 35% between 2025 and 2030. This trend creates a favorable environment for a strategic investor to inject new capital and operational expertise, potentially revitalizing the Two Great Helms brand and its market position.