Following Haitian Flavouring & Food Co., another condiment company is pursuing an "A+H" listing structure. On August 20, Sichuan Teway Food Group Co.,Ltd. announced that the company is planning to issue overseas-listed shares (H-shares) and apply for listing on the main board of the Hong Kong Exchanges and Clearing Limited.
As one of China's leading compound condiment companies, Sichuan Teway Food Group Co.,Ltd. went public on the Shanghai Stock Exchange main board in 2019. According to official information, the company's main products include hot pot seasonings, Chinese dish seasonings, and sausage and cured meat seasonings. The company operates six major brands: "Haorenjia," "Dahongpao," "Tianche," "Tianwei Food Catering Premium Custom," "Shicuifang," and "Jiadianziwei." Compound condiments refer to seasonings made from two or more primary condiment ingredients.
Initially, these products were mainly used in the B2B market for restaurants and food industries. Later, due to their convenience in creating "restaurant-quality flavors" at home, they also gained popularity among C2C consumers, gradually becoming a hot market segment.
According to iiMedia Research data, China's compound condiment market reached 230.1 billion yuan in 2024, with the market size expected to reach 336.7 billion yuan by 2027, representing a compound annual growth rate of approximately 13.3%, higher than the overall condiment industry growth rate.
The booming domestic compound condiment market has attracted numerous new entrants. Haitian Flavouring & Food, known as the "soy sauce leader," launched its "Hot Pot @ME" series of hot pot base products in 2020. Fuling Zhacai entered the compound condiment sector in 2024 through the acquisition of Weizimei. Zhou Hei Ya has successively launched compound condiment products this year, including classic marinade packets and flavored duck meat sauce.
As market competition intensifies, Sichuan Teway Food Group Co.,Ltd. is facing performance pressure. From 2022 to 2024, the company's revenue growth showed a slowing trend. According to financial report data, revenue growth rates for 2022-2024 were 32.84%, 17.02%, and 10.41% respectively, while net profit growth rates for the same period were 85.11%, 33.65%, and 36.77% respectively.
In Q1 2025, both revenue and net profit of Sichuan Teway Food Group Co.,Ltd. declined, with revenue reaching 642 million yuan, down 24.8% year-over-year, and net profit of 74.73 million yuan, down 57.53% year-over-year. The company attributed the first-quarter performance changes to "declining sales."
As domestic market competition intensifies, expanding into international markets has become a path for many condiment companies to seek new growth points, including Sichuan Teway Food Group Co.,Ltd. According to financial reports, in 2024, the company's products were sold to more than 50 countries and regions including the United States, Australia, Spain, Japan, Singapore, and Peru. In July this year, Sichuan Teway Food Group Co.,Ltd. showcased its six major brands at the Summer Fancy Food Show in New York, which is described as North America's largest and most authoritative specialty food exhibition.
A representative from Sichuan Teway Food Group Co.,Ltd.'s board secretary office stated that the company's planned Hong Kong listing marks the formal inclusion of its internationalization strategy and overseas business layout planning on the agenda, representing an important step toward realizing its vision of "becoming a globally leading provider of dining table flavor solutions." The company will also better utilize international capital market platforms to optimize its capital structure. Currently, all projects are still in the planning stage, with no clear timeline or detailed progress available for disclosure.
Notably, before this planned Hong Kong stock listing, Sichuan Teway Food Group Co.,Ltd. had previously attempted overseas listing to expand overseas channels. In December 2022, the company announced plans to issue Global Depositary Receipts (GDR) and list on the Swiss Stock Exchange, with proceeds intended for overseas factory construction or joint venture investments and expanding overseas sales channels. The company received acceptance from China Securities Regulatory Commission and conditional approval from the Swiss Exchange in January and February 2023, respectively. However, in September 2023, Sichuan Teway Food Group Co.,Ltd. voluntarily terminated this GDR issuance plan.
Food industry analyst Zhu Danpeng offered his perspective that Sichuan Teway Food Group Co.,Ltd. currently has small scale and low profits, with insufficient risk resistance capability and an insufficiently established moat. The company's over-reliance on hot pot base as a single product may limit market acceptance primarily to Chinese communities and Southeast Asian regions, lacking widespread competitiveness in mainstream European and American markets.
Senior researcher Jiang Han from Pangoal Institution indicated that companies expanding overseas markets need to comprehensively consider factors such as their own strength and resources. On one hand, Sichuan Teway Food Group Co.,Ltd.'s H-share listing can broaden financing channels, enhance international brand recognition, and introduce strategic resources. On the other hand, the company will also face challenges including taste localization, competition from overseas giants, and higher compliance costs.
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