Sichuan Teway Food Group Co., Ltd. ("Teway Food") has submitted its listing application to the Hong Kong Stock Exchange, planning a main board IPO with China International Capital Corporation (CICC) as the sole sponsor.
Teway Food, which went public on the Shanghai Stock Exchange in 2019, specializes in compound seasonings, primarily recipe-based seasonings and hot pot seasonings. The company aims to use the IPO proceeds for brand building, marketing, product R&D, and innovation.
Notably, Teway Food has distributed over RMB 1 billion in dividends in recent years, while its controlling shareholder has frequently reduced holdings.
**Net Profit Decline in First Three Quarters** As China's fourth-largest compound seasoning company by 2024 revenue, Teway Food holds leading market shares of 9.7% in recipe-based seasonings and 4.8% in hot pot seasonings. Its brand portfolio includes "Haorenjia," "Dahongpao," and "Tianche."
From 2022 to 2024, revenue grew from RMB 2.676 billion to RMB 3.447 billion, with profits doubling from RMB 341 million to RMB 645 million. However, 2025 performance showed pressure: H1 revenue fell 5.7% YoY to RMB 1.373 billion, with profits down 20.59% to RMB 202 million. Q3 results revealed 1.98% revenue growth to RMB 2.411 billion but a 9.3% decline in net profit to RMB 392 million.
**Recipe-Based Seasonings Dominate Revenue** Accounting for 65.9% of H1 2025 revenue (up from 44.5% in 2022), recipe-based seasonings saw both revenue and sales volume decline YoY, which the company attributes to Lunar New Year timing differences. Meanwhile, hot pot seasoning revenue share dropped to 31%.
**Expansion Through Acquisitions** Teway Food has actively acquired companies to strengthen new retail and online channels, including a 55% stake in Sichuan Shicui (2023) and 63.84% of Dianziweidao (2024). Direct sales consequently rose from 15% (2022) to 32.4% (H1 2025).
**Substantial Dividends and Shareholder Reductions** Founders Deng Wen and Tang Lu, holding 74.64% voting rights, have overseen cumulative dividends exceeding RMB 1 billion from 2022 to H1 2025. Since 2022, Deng has repeatedly transferred shares to private funds, including a RMB 220 million reduction in July 2025.
**Stock Performance and IPO Plans** After peaking above RMB 40/share in late 2020, Teway's shares closed at RMB 12.91 on November 25, 2025. The Hong Kong IPO proceeds are earmarked for brand development, sales network expansion, potential M&A, supply chain enhancement, digital transformation, and working capital.
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