Core Viewpoint - The recent bankruptcy restructuring news surrounding Shanghai Ruici Cosmetics Co., Ltd. (the parent company of the domestic hand cream brand Dongyang Flower) was misinterpreted, as the court ruled that the company still has the ability to repay its debts, thus rejecting the bankruptcy liquidation application [2][3][7]. Group 1: Bankruptcy Incident Overview - The bankruptcy restructuring application was filed by Caleri Cosmetics Co., Ltd., a subsidiary of Longliqi Group, due to a processing contract dispute, claiming that Shanghai Ruici could not repay its debts [4][5]. - The court found that Shanghai Ruici was not in a state of bankruptcy, as it was actively repaying debts and developing new products to enhance profitability [6][7]. Group 2: Historical Context of Dongyang Flower - Dongyang Flower, established in 1992, was one of the earliest domestic cosmetic brands in China, achieving significant market share by innovatively using "sheep milk" in hand creams [8]. - The brand peaked in 1997 with annual sales exceeding 10 million units and revenue close to 400 million RMB, aided by high-profile advertising campaigns [8][9]. Group 3: Challenges and Changes in Ownership - The turning point for Dongyang Flower occurred in 2007 when it signed a share transfer agreement, which led to a failed IPO attempt due to the 2008 stock market crash and a shift in sales channels [9][10]. - In 2023, the brand's operational rights were transferred to Suzhou Yuanmei, while Shanghai Ruici retained only the trademark ownership, indicating a significant change in management and strategy [10][11]. Group 4: Current Market Position - Despite financial difficulties, Dongyang Flower has shown signs of recovery, regaining a market share of 6.1% in the hand cream category by 2025, ranking third among domestic brands [10][11]. - The resurgence of the brand's market position is seen as a positive development for Shanghai Ruici's creditors, as it suggests potential for asset appreciation and debt repayment [11].

Core Viewpoint - The news highlights the bankruptcy restructuring application of Shanghai Ruici Cosmetics Co., Ltd., the parent company of the once-leading domestic hand cream brand Dongyang Flower, which was misinterpreted as the brand's closure. However, the court rejected the bankruptcy application, indicating that Shanghai Ruici still has the ability to repay its debts [1][4]. Group 1: Bankruptcy Application Details - The bankruptcy application was filed by Calai Li Cosmetics Co., Ltd., a subsidiary of Longliqi Group, due to a processing contract dispute, claiming that Shanghai Ruici failed to pay for services rendered [2][3]. - The court found that Shanghai Ruici was not in a state of bankruptcy, as it was actively repaying debts and developing new products to enhance profitability [3][4]. Group 2: Brand History and Market Position - Dongyang Flower, established in 1992, was one of the earliest domestic cosmetic brands in China, achieving significant market share by innovatively using natural ingredients like "sheep milk" in its hand cream [5][6]. - The brand peaked in sales, with over 10 million units sold and revenue nearing 400 million RMB, but faced challenges after 2007 due to failed IPO attempts and market changes [6][7]. Group 3: Recent Developments and Future Outlook - In 2023, the operational rights of Dongyang Flower were transferred to Suzhou Yuanmei, while Shanghai Ruici retained only the trademark ownership. The brand has shown signs of recovery, regaining a market share of 6.1% in the hand cream category, ranking third among domestic brands [7][8]. - The resurgence of Dongyang Flower's brand value is seen as a positive sign for Shanghai Ruici's creditors, suggesting potential for debt repayment through the brand's continued market presence [8][9].

Core Viewpoint - The recent bankruptcy restructuring news surrounding Shanghai Ruici Cosmetics Co., Ltd. has highlighted the operational issues of the once-popular domestic brand "Dongyang Flower," although the company has not been declared bankrupt by the court [3][4][8]. Group 1: Bankruptcy Restructuring Incident - Shanghai Ruici was applied for bankruptcy liquidation by its creditor, Caleri Cosmetics Co., Ltd., but the court rejected the application, citing that Shanghai Ruici still has the ability to repay its debts [3][4][6]. - The legal dispute originated from a processing contract dispute, where Caleri claimed that Shanghai Ruici failed to pay for processing services, leading to a court ruling requiring Shanghai Ruici to pay approximately 2.54 million yuan [6][7]. - Shanghai Ruici has made repayments and provided a commitment to clear remaining debts by the end of the year, which contributed to the court's decision not to accept the bankruptcy application [7][8]. Group 2: Historical Context of Dongyang Flower - Dongyang Flower, established in 1992, was one of the earliest domestic cosmetic brands in China, achieving peak sales of over 10 million units annually and nearly 400 million yuan in revenue at its height [10]. - The brand's decline began in 2007 due to failed attempts to go public and a shift in sales channels, which it could not adapt to, leading to a decrease in market share [10][11]. - After several ownership changes and operational challenges, Dongyang Flower has recently seen a revival under new management, regaining a market share of 6.1% in the hand cream category by 2025 [12][13]. Group 3: Implications for Creditors - The resurgence of Dongyang Flower's brand value and market position suggests that the trademark still holds potential for appreciation, which could aid Shanghai Ruici in repaying its debts [13][14]. - The continuity of the brand's life is viewed as more beneficial for creditors than mere asset liquidation, indicating a positive outlook for future debt recovery [14].