Liren Lizhuang's revenue has declined for five consecutive years, with last year's losses doubling. What solutions does General Manager Ye Mao have?

运营商财经网 Zhao Xinyu / Text

Recently, Li Ren Li Zhuang, once praised as the “King of Beauty Makeup Agency Operations,” released its 2025 annual report. However, the report shows that its loss predicament has not ended and has further expanded. Moreover, over the past year, Li Ren Li Zhuang has faced significant setbacks.

According to the 2025 annual report data, the company’s total revenue for the year was 1.69B yuan, a slight decrease of 2.08% year-on-year; net loss attributable to the parent was 79.9912 million yuan, more than doubling the loss of 24.4 million yuan in 2024.

In response, the company stated in the annual report that the main reason for the revenue decline was “the termination of cooperation with some brands in the early stage and the shift in operational models with certain brands.” The loss expansion was due to its own brands being in the promotion phase, with large investments in R&D and marketing but no returns, and ongoing store losses.

According to Tianyancha data, Li Ren Li Zhuang has been continuously losing money since 2021. Over the past five years, its revenues were 4.15B yuan, 3.24B yuan, 2.76B yuan, 1.73B yuan, and 1.69B yuan, respectively, shrinking by nearly 60% in just five years. Meanwhile, the company’s profitability has been unstable, from 410 million yuan profit in 2021, a loss of 143 million yuan in 2022, a brief profit of 27 million yuan in 2023, and then consistently in a loss state.

A significant reason for Li Ren Li Zhuang’s declining performance is the collective loss of its core brands. In recent years, top brands such as L’Oréal, Lancôme, Herborist, Sulwhasoo, and Yuze have withdrawn their online operation rights, shifting to self-operation or reducing cooperation scale. Coupled with its own brands not yet growing, Li Ren Li Zhuang’s performance is on a downward trend.

It is worth noting that in 2025, two major events also occurred for Li Ren Li Zhuang. First, Alibaba divested. In April 2025, Alibaba via Hangzhou Haoyue Enterprise Management Co., Ltd., transferred all 70.38M shares (about 17.66% of total share capital) at a price of 486 million yuan.

Second, Huang Tao, the actual controller of Li Ren Li Zhuang, was ordered to transfer his 4.18% stake to his ex-wife, Weng Shuhua, due to property disputes after divorce. During the divorce proceedings, Huang Tao’s shares were judicially frozen, ultimately affecting his personal reputation and the company’s value.

Additionally, Huang Tao, founder of Li Ren Li Zhuang, resigned as chairman and general manager in April 2025. Currently, the company’s chairman is Huang Mei, and the general manager is Ye Mao. It remains unclear when the two will end the company’s losses.

Liu Qing, Director of the Internet Business Department of Operator Finance, said that the current beauty makeup e-commerce agency operation industry has entered a stock competition stage, and brand self-operation has become an irreversible trend. To escape the predicament, Li Ren Li Zhuang still needs to build an autonomous and controllable brand matrix and develop core competitiveness.

(Editor: Zhao Xinyu)