On August 20, Sichuan Teway Food Group Co.,Ltd. announced its plans to further advance internationalization strategy, improve overseas business layout, and enhance brand international influence. The company is preparing to issue overseas-listed shares (H-shares) and apply for listing on the main board of the Hong Kong Stock Exchange. The announcement also stated that the company is actively promoting preparatory work and discussions for this H-share issuance and listing with relevant intermediary institutions, but core details such as issuance scale and pricing mechanism have not been finalized.
According to company data, Sichuan Teway Food Group Co.,Ltd. is located in Shuangliu District, Chengdu, Sichuan Province. It was established on March 2, 2007, and listed on April 16, 2019. The company's main business involves research and development, production, and sales of Sichuan-style compound seasonings. Main business revenue composition includes: Chinese dish seasonings 50.94%, hot pot seasonings 36.39%, sausage and bacon seasonings 9.46%, others 3.04%, and additional others 0.17%. The company's "Haorenjia" and "Dahongpao" brands have high recognition in the domestic market.
Sichuan Teway Food Group belongs to the SW industry classification: Food & Beverage - Condiments & Fermented Products II - Condiments & Fermented Products III. Related concept sectors include: condiments, high dividend yield, margin trading, mid-cap, and share buybacks.
As of March 31, Sichuan Teway Food Group had 31,000 shareholders, a decrease of 1.97% from the previous period; average tradable shares per capita were 34,338 shares, an increase of 2.01% from the previous period.
Regarding dividends, Sichuan Teway Food Group has cumulatively distributed 1.644 billion yuan since its A-share listing. Over the past three years, cumulative dividends totaled 1.25 billion yuan.
In terms of institutional holdings, as of March 31, 2025, among Sichuan Teway Food Group's top ten tradable shareholders, HKSCC Nominees Limited ranks as the third largest tradable shareholder, holding 28.5183 million shares, an increase of 9.5818 million shares from the previous period. Invesco Great Wall Emerging Growth Hybrid A (260108) ranks as the sixth largest tradable shareholder, holding 8.6363 million shares, unchanged from the previous period.
Notably, Sichuan Teway Food Group's major shareholders' five share transfers have raised questions about potential side agreements. The company listed on the Shanghai Stock Exchange in April 2019. Three years after the major shareholder lock-up period expired, in June 2022, actual controllers Deng Wen and Tang Lu began their first share transfer to private equity funds. To date, this marks the fifth transfer. Interestingly, before each share transfer to private equity funds, the couple would first sign "Concerted Action Agreements" with the private equity funds, making it impossible to define "share transfers to private equity funds" as "reduction behavior."
Sichuan Teway Food Group faces allegations of artificially manipulating 2024 performance to meet equity incentive exercise conditions. According to the 2024 annual report, the company's accounts receivable reached 117 million yuan by the end of 2024, a surge of 485% compared to 20 million yuan at the end of 2023. Meanwhile, 2024 sales expenses totaled 451 million yuan, still declining 6.82% compared to 2023, with second-half sales expenses of only 240 million yuan, a decrease of 18.64% compared to 2023H2. This creates a significant divergence from the accelerated revenue growth in 2024H2, especially 2024Q4. This has led market observers to suspect whether Sichuan Teway Food Group aggressively pushed inventory to distributors in 2024H2. Financial indicators show multiple unreasonable divergences, while 2024 revenue growth barely exceeded the equity incentive threshold.
Sichuan Teway Food Group also faces controversy over potential executive selling before negative quarterly earnings disclosure. From January to March 2025, the company achieved operating revenue of 642 million yuan, down 24.80% year-over-year; net profit attributable to shareholders was 74.733 million yuan, down 57.53% year-over-year.
On the evening of April 28, 2025, Sichuan Teway Food Group released its first quarter 2025 report. However, during trading hours that day, abnormal activity occurred with the stock price inexplicably plunging 6.72% on high volume. The CSI Food & Beverage Index showed no unusual fluctuations that day, indicating this was not market-driven but company-specific issues. After the market saw the first quarter results, the stock hit the daily limit down on April 29, and continued falling 3.44% on April 30 from the limit-down base. While there is no evidence of earnings leakage at Sichuan Teway Food Group, the unexplained sharp decline before financial disclosure inevitably affects capital market confidence in the company.
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