Skincare Brand OSM Exits Cosmetic Testing Firm in Disciplined Portfolio Reshuffle

Chinese pearl skincare giant OSM Group is streamlining its corporate holdings, marking a notable exit from specialized beauty testing services while maintaining a measured approach to corporate investments.

According to records from China's National Enterprise Credit Information Publicity System, Zhejiang Zhuzhiyuan Biotechnology Co., Ltd. ("Zhuzhiyuan") has officially withdrawn from the shareholder roster of Botai Yida Inspection & Testing (Hangzhou) Co., Ltd. ("Botai Yida"), divesting its full 10% equity stake.

Zhuzhiyuan operates as an indirect, third-tier wholly-owned subsidiary within the OSM brand hierarchy.

An analysis of OSM's investment activity shows that group-affiliated vehicles have backed 11 companies across manufacturing, media, financial services, and information technology. Outside of Botai Yida, OSM entities have also recently executed swift exits from two publicly traded companies listed on China's domestic A-share stock market.

OSM Subsidiary Exits Testing Venture

Public filings show that Zhuzhiyuan was established in 2016 with a registered capital of 10 million RMB ($1.4 million USD). The entity is 100% owned by Deqing OSM Biotechnology Co., Ltd., which itself is a wholly-owned unit of OSM Bio-Co., Ltd.

The target firm, Botai Yida, was founded in 2021 with a registered capital of 2 million RMB ($280,000 USD). Focusing specifically on beauty and cosmetics testing, its core business spans microbiological testing, physical and chemical analysis, human efficacy evaluations, laboratory testing, and raw material safety assessments.

As consumer safety standards tighten and testing controversies over forbidden ingredients in face creams make global headlines, specialized testing providers play an increasingly critical gatekeeping role. Botai Yida gained technical authority by partnering with the Wenzhou Medical University Hangzhou Biomedical Innovation Research Center—led by Chinese Academy of Engineering academician Li Xiaokun—and collaborating with the key cosmetics laboratory under China's National Medical Products Administration (NMPA).

Following Zhuzhiyuan's exit, Botai Yida's ownership is split among three major shareholders: Newlon Laboratory Technology (Shanghai) Co., Ltd. holds a controlling 67% stake, Hanfeng (Taizhou) Biomedical Co., Ltd. holds 26.75%, and Yinzipei (Hangzhou) Enterprise Management Consulting Partnership holds 6.25%.

Zhuzhiyuan's capital involvement with Botai Yida followed a clear timeline of entry, reduction, and complete exit:

• December 2022: Zhuzhiyuan invested 200,000 RMB ($28,000 USD) for a 20% stake, marking OSM's first direct equity venture into technical testing services.
• February 2024: Zhuzhiyuan reduced its equity stake by half, down to 10%.
• July 2026: Zhuzhiyuan transferred its remaining 10% stake, completing its divestment.

Zhuzhiyuan's departure accompanied internal restructuring at Botai Yida. Legal representation shifted to Tu Qi, whose ultimate beneficial shareholding increased from 32.29% to 69.57%, while Newlon Laboratory Technology replaced Hanfeng Biomedical as the primary controlling shareholder.

11 Investments, 3 Exits

As major international beauty groups and top domestic C-beauty players increasingly operate internal venture investments, OSM has actively built its own portfolio—albeit with conservative discipline.

Records indicate that OSM operates primarily through three corporate investment entities established between 2015 and 2016:

• Deqing Qingyang Investment Partnership (Established 2015): Capitalized at 60 million RMB ($8.4 million USD), led by OSM Holding Group Co., Ltd. with a 50% stake alongside institutional and individual partners.
• Deqing OSM Investment Partnership (Established 2015): Capitalized at 50 million RMB ($7 million USD), with OSM Holding Group holding a 50% stake.
• Ningbo Guanhe Investment Management Center (Established 2016): Capitalized at 52 million RMB ($7.3 million USD), with Deqing OSM Investment Partnership holding a 31.73% stake.

OSM maintained controlling half-interest in two of these primary vehicles, reflecting a preference for strategic governance over passive fund management.

Across the 11 invested enterprises, industrial manufacturing represents the largest single sector with four portfolio companies:

• Upstream Packaging & Materials: Investments in plastics and specialized chemical manufacturers—including Fujian Yeguangda, Changzhou Tiansheng New Materials Co., Ltd. ("Tiansheng New Materials"), Hangshi Technology, and Fujian Yuefa Light New Materials—align closely with upstream supply chain synergies for cosmetic containers and chemical formulations.
• Financial Services: In 2019, OSM Culture Industry acquired a 17% stake in Deqing Agricultural Financing Guarantee for 5.6 million RMB ($780,000 USD). In 2022, Zhejiang OSM Group secured an 8% stake in Deqing Hushang Rural Bank for 18.32 million RMB ($2.55 million USD).
• Culture & Media: OSM Culture Industry acquired a controlling 51% stake in Deqing OSM Cultural Tourism in 2024. In 2026, OSM Holding Group took a minor 0.81% minority stake in Zhejiang Cultural Investment Film & TV Co., Ltd.
• IT Services: A minor 0.17% equity holding in Qiming Information Technology Co., Ltd. was established in early 2026.

Of the 11 recorded investments, OSM-affiliated vehicles have divested from three: Botai Yida, Tiansheng New Materials, and Zhangzhou Development Co., Ltd.

Notably, OSM entered and exited its positions in public equities Tiansheng New Materials and Zhangzhou Development within single financial reporting cycles during 2025. These rapid moves indicate a tactical, short-term trading approach to public equities rather than long-term strategic incubation.

Averaging just one to two investment deals per year since 2015, OSM's overall pace remains measured. Compared to the rapid dealmaking of global beauty venture units, OSM continues to favor a cautious capital strategy—securing supply chain links when practical and taking swift profits on financial holdings.