A surprising legal battle has emerged involving the former leading domestic infant formula producer Beingmate, which is now entangled in a lawsuit with a hemp cultivation company over a failed collaboration. The dispute centers on a 50 million yuan advance payment and conflicting claims totaling over 128 million yuan.
The conflict traces back to 2021 when Beingmate, facing declining performance, sought to develop a new growth avenue by creating functional奶粉 targeting pregnant women. The proposed product aimed to alleviate prenatal and postpartum anxiety using cannabidiol (CBD) derived from industrial hemp as its core functional ingredient.
Unlike tetrahydrocannabinol (THC) which causes addiction and hallucinations, CBD is a non-psychoactive compound with recognized anti-epileptic, anti-anxiety, and anti-inflammatory properties. Beingmate partnered with Heilongjiang Fengyou Hemp Planting Co., Ltd., signing exclusive licensing and joint development agreements in November 2021 and January 2022. The dairy company paid a 50 million yuan deposit to demonstrate commitment.
However, the collaboration stalled due to regulatory constraints. Beingmate's strategy relied on China permitting CBD use in food products, but national policies never relaxed. Industrial hemp cultivation remains restricted to specific industrial uses in Yunnan and Heilongjiang provinces, with strict prohibitions against food applications—especially for infant and maternal products.
In December 2025, Beingmate sued Heilongjiang Fengyou for contract breach, alleging failure to provide patent authorization documents, technical guidance, and administrative filing support. The company sought recovery of its 50 million yuan deposit with interest, totaling 56.85 million yuan.
Heilongjiang Fengyou refuted the claims, countering that it had delivered all technical documents, obtained patents, and made substantial irreversible investments for mass production. The hemp grower filed a countersuit in February 2026, demanding 77.25 million yuan in compensation for losses caused by Beingmate's alleged abandonment of the project.
Notably, Beingmate's initial 2021 announcement about partnering with Zhongheng Yiyuan Investment Group—Heilongjiang Fengyou's parent company—omitted any reference to CBD, reflecting regulatory sensitivities. China's National Medical Products Administration had banned CBD in cosmetics in May 2021, with approval only emerging in April 2024.
The legal clash underscores Beingmate's misjudgment of policy directions. Meanwhile, the company faces broader challenges: volatile financial performance, a fractured relationship with key distributor Zhejiang Kelubao Food Co., and potential control changes as major shareholder Xiaobei Damei Holding undergoes pre-restructuring with 98.85% of its 12.28% stake pledged or frozen.
The outcome of the lawsuits remains pending, but the episode serves as a cautionary tale about regulatory risks in the maternal and infant food industry.
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