On the evening of March 15, CCTV's annual "3·15" Gala exposed seven major industry malpractices. These included disgusting production workshops for popular chicken feet brands, unregulated "miracle" exosome products, height-increasing institutions using pseudoscience to make huge profits, private marketing schemes preying on the elderly with 500% markups, rental e-bikes violating new national standards, AI large language models being poisoned, and fraudulent stock recommendation agencies.
The report on chicken feet semi-products soaked in hydrogen peroxide became the opening highlight of the gala. Several food companies in the Sichuan-Chongqing region were exposed. The supplier of the hydrogen peroxide material, Yifeng Electronic New Material Co., Ltd., was also revealed during an undercover investigation. Company staff were shown not only brazenly promoting their products but also directly teaching methods to circumvent regulations, such as using misleading labels. Consequently, Yifeng was also penalized for providing unlabeled food additives and violating hazardous chemical management rules.
Just when it seemed this case would conclude with regulatory action, a public announcement from listed company Do-Fluoride New Materials Co.,Ltd. (002407.SZ) brought it back into the spotlight. On the morning of March 16, Do-Fluoride issued an "Announcement on Clarification Regarding Media Reports." It stated the company had noted the CCTV "3·15" report, where an investigation found some food companies used hydrogen peroxide for bleaching chicken feet, involving the sales business of Henan Yifeng Electronic New Material Co., Ltd.
The announcement disclosed that Yifeng Electronic is a subsidiary controlled by Do-Fluoride. In 2025, Yifeng reported revenue of 31.152 million yuan and a net loss of 3.3872 million yuan, contributing a minimal proportion to the parent company's consolidated figures, with revenue accounting for less than 1%. Do-Fluoride also solemnly stated that, upon verification, Yifeng Electronic had not established any form of business cooperation, brand authorization, or production relationship with the companies mentioned in the media report. Its production and sales activities were entirely unrelated to Do-Fluoride and its subsidiaries.
This direct challenge to CCTV's 315 report has put the broadcaster in a difficult position. The central question remains: did Yifeng Electronic, as a subsidiary of Do-Fluoride, sell hydrogen peroxide to the food companies in Sichuan and Chongqing mentioned in the report? This has become a contentious issue with conflicting accounts, potentially leading to a showdown over which party's version is more credible.
The reaction in the secondary market was notable. During the early morning call auction, Do-Fluoride's stock price hit the daily limit-down but recovered by the market open, even turning positive briefly. By the close, it was down only about 1%, suggesting limited overall impact.
Furthermore, it was noted that in November 2025, Yifeng Electronic's "Annual 40,000-Ton Electronic Grade Hydrogen Peroxide Project" had just received approval from the Xinxiang Municipal Ecological Environment Bureau. The potential impact of the CCTV report on this company and its investment project remains uncertain.
Turning to the parent company, Do-Fluoride, which remains at the center of the controversy, the past two years have been challenging. Its core product, electrolyte for power batteries, is at the forefront of intense market competition. This was directly reflected in its financials, with a loss of 300 million yuan in 2024.
Performance improved significantly in 2025. According to the latest earnings forecast, full-year net profit attributable to shareholders is estimated to be between 200 million and 280 million yuan, marking a successful return to profitability. Notably, net profit for the first three quarters of 2025 was less than 80 million yuan, indicating an exceptionally strong performance in the fourth quarter alone.
Despite this recovery, Do-Fluoride's results fell short of securities analysts' predictions. The most recent analyst report on the company, published by China Merchants Securities Co.,Ltd. (600999.SH) in November 2025 by analysts Zhou Zheng, You Jiaxun, and Chen Yuchao, was titled "Do-Fluoride (002407) Deep Dive: Lithium Hexafluorophosphate Business Rebounding with High Profit Elasticity; Large Cylinder Battery Contribution Beginning." It forecasted a 2025 net profit of approximately 337 million yuan, which is at least 15% higher than the upper end of Do-Fluoride's actual reported range.
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