In 2026, the tough times for cosmetics factories continue! Especially for small and medium-sized veteran cosmetics factories, they are even facing a series of dilemmas such as heavy debts, bankruptcy liquidation, being filed for execution, and being restricted from high – end consumption.
For these cosmetics factories, is there no other way but to go to the end?
Jumeili sorted out the relevant development situations of domestic cosmetics contract manufacturers in 2026. Since 2026, 14 cosmetics contract manufacturers have experienced substantial risks and are on the verge of “life and death”. Among them, 10 enterprises have been listed as persons subject to enforcement. It is worth noting that Guangzhou Tianwen Jiaoyan Cosmetics Co., Ltd. owes up to 124 million yuan, and there have been 608 debt cases.
Moreover, Guangzhou Suorou Biotechnology Co., Ltd. has 242 debt cases, and Guangzhou Ruihu Cosmetics Co., Ltd. owes more than 50 million yuan. It should be noted that in the above statistics, more than half of the cosmetics contract manufacturers have recorded debts exceeding tens of millions of yuan.
At the enterprise level, it means that they have experienced a complete “decline” chain: triggering judicial enforcement, the legal representative being restricted from high – end consumption, which in turn leads to the enterprise being untrustworthy, owing taxes, having abnormal operations, and even going bankrupt, having bankruptcy auctions, and finally being deregistered and exiting…
A series of “keywords” of these operational risks collectively present the survival dilemma of this round of cosmetics contract manufacturers.
In this context, the practical problems facing a large number of cosmetics contract manufacturing practitioners and enterprises are becoming more and more obvious: How can they survive the critical moment of life and death? What can cosmetics contract manufacturers rely on to survive?
Thunderbolt! A veteran cosmetics factory over 20 years old owes hundreds of millions of yuan
Before answering these questions, we first need to understand the situation of the cosmetics factories presented in the previous picture. Jumeili sorted out the current situations of these enterprises and found some rather cruel facts: Among the 10 cosmetics contract manufacturers listed as persons subject to enforcement, 80% are veteran factories with more than 10 years of operation. These senior contract manufacturing “players” who have grown up with the industry dividends are now collectively trapped in the quagmire of judicial enforcement and have become “untrustworthy persons”/”deadbeat debtors”. Some enterprises are even involved in the problem of “owing taxes”.
It is also worth noting that in the “thunderbolt list” of cosmetics factories in 2026 in the above picture, there are also upstream manufacturers that contract – manufacture for well – known beauty brands and groups.
For example, Guangzhou Suorou Biotechnology Co., Ltd. is a contract – manufacturing partner of Marubi Biotechnology, Florasis, Memebox, and Danzi. Recently, there have been multiple new bankruptcy auction activities, including intangible assets, equity, and creditor’s rights. According to Kuacha, it owes 3.3719 million yuan in taxes, and the historical tax arrears are 6.7438 million yuan.
Guangzhou Kousien Cosmetics Technology Co., Ltd. contract – manufactures for 3CE and AmorePacific. It also cannot escape the fate of being listed as a person subject to enforcement, and its legal representative, LEE DONG GUN, is restricted from high – end consumption. From this point of view, the labels of “veteran” and “well – known brand” contract – manufacturing are not a “get – out – of – jail – free card” to resist operational crises.
The first stock in the beauty and daily chemical industry? A new execution of 5 million yuan
Focusing on Guangzhou Tianwen Jiaoyan Cosmetics Co., Ltd., which owes 124 million yuan, as of June 12, the dynamics on Qichacha are still being frequently updated, including new court session announcements, a new final case of 5 million yuan, the legal representative being restricted from high – end consumption, and the enterprise being listed as a person subject to enforcement. In terms of restrictions on high – end consumption, the total amount involved in the case is 12.4951 million yuan.
Screenshot from Qichacha
In addition, Guangzhou Tianwen Jiaoyan Cosmetics Co., Ltd. has 13 records as a person subject to enforcement, and the total amount of enforcement has exceeded 100 million yuan, reaching 100.0663 million yuan; there are 554 historical records as a person subject to enforcement, and the total historical amount of enforcement is 22.6671 million yuan.
Screenshot from Qichacha
According to Qichacha, Guangzhou Tianwen Jiaoyan Cosmetics Co., Ltd. belongs to Softto Group and is a veteran contract – manufacturing factory with 23 years of history. It should be noted that in May 2025, Softto Group, once the first stock in the beauty and daily chemical industry, was exposed to be involved in a salary – arrears dispute, with employees demanding their salaries and the factory being sealed (see details).
As the saying goes, “It’s easy to enjoy the shade when leaning against a big tree.” However, from the current real – world situation, even if a company is affiliated with a listed enterprise, once the latter encounters a storm, it may not be able to cover the operational risks of the enterprise itself.
A top 10 cosmetics supplier? Reduced to a “deadbeat debtor”
Another enterprise worthy of attention is Guangzhou Chongsheng Cosmetics Industry Co., Ltd. Previously, Jumeili analyzed it in the article “A well – known cosmetics contract manufacturer reduced to a ‘deadbeat debtor'”: It has been restricted from high – end consumption by the court for the 18th time, and the cumulative total amount involved in the case has exceeded 8.7 million yuan. The situation it faces is: insolvency, credit bankruptcy, overdue payments, and inability to pay off debts.
According to the information from Qichacha and Kuacha, many cosmetics contract manufacturers such as Guangzhou Chongsheng Cosmetics Industry Co., Ltd., Guangzhou Yasheng Biotechnology Co., Ltd., Guangzhou Suorou Biotechnology Co., Ltd., and Guangzhou Ruihu Cosmetics Co., Ltd. have been listed as untrustworthy persons subject to enforcement and have become “deadbeat debtors”.
Enforcement, tax arrears, and an inescapable end of bankruptcy auction
“Veteran” does not equal a protective umbrella. The fact that many of the above – mentioned cosmetics contract manufacturers have become “deadbeat debtors” and “untrustworthy persons” is a case in point.
On the other hand, the debt crisis also makes it difficult for cosmetics contract manufacturers to survive. For example, only Eurostandard (Guangzhou) Cosmetics Co., Ltd. has a debt of 120 million yuan; Guangzhou Suorou Biotechnology Co., Ltd. has 239 lawsuits for debt collection, involving an amount of 18.806 million yuan.
In addition, Guangzhou Debeifu Biotechnology Co., Ltd., which has the same legal person as Guangzhou Suorou Biotechnology Co., Ltd., owes a total of 2.4004 million yuan in taxes, and the historical tax arrears are 4.8008 million yuan.
It is difficult to fill the tax loopholes, and the accounts receivable cannot be recovered. Many factories have lost the room for turnover and can only go through the bankruptcy process. For example, Guangzhou Yasheng Biotechnology Co., Ltd. declared bankruptcy for this reason. It, Guangzhou Bokali Biotechnology Co., Ltd., and Guangzhou Suorou Biotechnology Co., Ltd. are currently in the stage of bankruptcy auction.
However, affected by this, the auction items in bankruptcy auctions often have little value and are difficult to catch the market’s “eye”. According to the Alibaba Auction platform, for the 21 trademarks under the name of Guangzhou Yasheng Biotechnology Co., Ltd., after four consecutive “This auction has failed, and no one has bid!”, the starting price of the fifth auction has dropped from 50,000 yuan, 35,000 yuan, 24,500 yuan, and 17,100 yuan to 12,000 yuan.
Screenshot from the Alibaba Auction platform
Regarding the current situation of cosmetics contract manufacturers, Chen Dongsheng, the chairman of Guangzhou Zhenmeiyan Biotechnology Co., Ltd., joked in his personal video account: “Ten years ago, if you ran a cosmetics factory, you could buy a Land Rover in one year, a villa in two years, and move into a new house at home in three years; nowadays, you sell your car in one year, mortgage your house in two years, and have an empty wallet in three years, and you may even become a deadbeat debtor.”
In the comment section, some netizens said they deeply agreed: “The sky spares no one”, “Several of my customers went bankrupt this year”, “The truth”, “What is said is the truth.”
In the real – world business competition, the market will not reserve market space and competitive advantages for an enterprise just because it has a long – standing foundation and is an established player in the industry.
The “elimination round” of life and death. Do small and medium – sized factories have no way out?
In addition to the above – mentioned dilemmas, currently, China’s cosmetics factories, especially small, medium – sized, and even micro – enterprises, are also facing problems such as shutdown, abnormal operation, and deregistration.
According to the data from Qichacha cited by the Guangdong Cosmetics Quality Management Association, 1,318 cosmetics production enterprises across the country were shut down or deregistered in 2024, and another 953 were shut down in the first half of 2025. From this perspective, for cosmetics contract manufacturers, it is clear that it is not just the “veteran factories’ thunderbolt and exit”. Each cosmetics factory has its own difficulties to overcome.
According to Jumeili’s incomplete statistics based on public information, since 2026, there have been at least 4 notifications of fines and deregistration of cosmetics contract manufacturers. The reasons include non – compliance in supervision and sampling inspection, deregistration of business licenses, and production of cosmetics without permission. It is also worth noting that some enterprises have voluntarily deregistered. Of course, deregistration does not completely equal collapse. Some enterprises continue to operate after changing their names, locations, etc.
For example, according to Qichacha, Guangzhou Kaixiu Cosmetics Co., Ltd., established in 2009, has a total of 11 debt cases as the defendant, involving an amount of 633,000 yuan. It has now changed its name to Guangzhou Yuanyou Trading Co., Ltd. In addition, the sales department of Guangzhou Kaixiu Cosmetics Co., Ltd., a branch, was deregistered on October 21, 2024.
Screenshot from Qichacha
Guangzhou Luyinong Cosmetics Industry Co., Ltd. was listed as having abnormal operations in July 2024 because it could not be contacted at its registered address or business location. According to Qichacha, the enterprise was deregistered on December 15, 2025.
Screenshot from Qichacha
In addition, Huzhou Kaisen Cosmetics Technology Co., Ltd., which is the contract – manufacturer for domestic fragrance brands Wenxian and Guanxia