"Toothpaste's first stock" Two Sides Needle plans to change control, with last year's net profit down more than 80% year-on-year.

On the evening of March 27, “the first toothpaste stock” Liangmian Zhen (600249.SH) announced that it had received a notification from its controlling shareholder, Guangxi Liuzhou Industry Investment Development Group Co., Ltd. (hereinafter referred to as “the Industry Group”), stating that the Industry Group is planning to transfer its shares in the company, which may lead to a change in the company’s control. The company’s stock will be suspended from trading starting March 30, with an expected suspension period of no more than 2 trading days.

Liangmian Zhen stated that during the suspension period, the company will fulfill its information disclosure obligations strictly in accordance with legal regulations and requirements based on the progress of the matter. Once the above matter is confirmed, the company will promptly release relevant announcements and apply for resumption of trading.

On the evening of March 26, the company released its annual performance report, stating that revenue for 2025 is expected to be approximately 1.063 billion yuan, an increase of 0.9% year-on-year; the net profit attributable to shareholders of the listed company is expected to be approximately 9.85 million yuan, a decrease of 87.86% year-on-year; basic earnings per share is 0.0179 yuan, a decrease of 87.86% year-on-year.

Despite the poor net profit performance, Liangmian Zhen’s net cash flow from operating activities for 2025 is 61.0119 million yuan, a significant increase of 327.26% year-on-year, mainly due to a reduction in cash paid for purchasing goods and accepting services, which greatly enhanced the company’s cash generation ability at the operational level.

In terms of R&D investment, the company’s R&D expenses for 2025 are expected to grow by 10.24% year-on-year to 19.099 million yuan, with total R&D investment accounting for 1.80% of revenue, an increase from 1.64% in 2024. As of the end of 2025, the company has 133 R&D personnel, accounting for 8.06% of the total number of employees.

For the fiscal year 2025, the company plans to distribute a cash dividend of 0.3 yuan (including tax) for every 10 shares to all shareholders based on a total share capital of 550 million shares as of December 31, 2025, with a total cash dividend payout of 16.5 million yuan (including tax).

Liangmian Zhen was established in December 1996 and was listed on the Shanghai Stock Exchange in January 2004. Its headquarters are located in Liuzhou, Guangxi, and its main business involves the R&D, production, and sales of oral care products, personal hygiene products, and hotel daily necessities.

It is noteworthy that before the disclosure of the change in control news, Liangmian Zhen’s stock price had already shown significant fluctuations this week. After a sharp drop of 9.86% on Monday, the stock rebounded with four consecutive days of gains, increasing by a cumulative 20.19% over four trading days, and surged 5.99% on March 27, with the latest closing price at 6.37 yuan per share.