In recent years, Chinese culinary culture, represented by Sichuan hot pot, has gained global popularity, driving rapid growth in China's compound seasoning industry and attracting significant attention from capital markets. As consumer demand for convenient cooking, standardized flavors, and diverse tastes continues to rise, compound seasonings—particularly hot pot bases and recipe-style seasonings—have become one of the fastest-growing and most promising segments in the industry. Against this backdrop, leading companies are accelerating their capital strategies. Sichuan Teway Food Group Co.,Ltd. (referred to as "Teway Food"), known as the "first hot pot base stock" on the A-share market, recently submitted an application for an H-share listing on the Hong Kong Stock Exchange, with China International Capital Corporation (CICC) acting as the sole sponsor. So, what are the highlights of Teway Food's latest capital market move?
**Steady Growth and Improving Profitability** According to its prospectus, Teway Food is a leading and fast-growing compound seasoning company in China, having listed on the Shanghai Stock Exchange in 2019. Frost & Sullivan data shows that, by 2024 revenue, the company ranked as China's fourth-largest compound seasoning producer and the fastest-growing among the top five (2022–2024). It also holds the top position in recipe-style seasonings (9.7% market share) and ranks second in hot pot seasonings (4.8% share).
Teway Food has built a six-brand portfolio—"Haorenjia," "Dahongpao," "Tianche," "Teway Professional Custom Seasonings," "Shicuifang," and "Jia Dian Ziwei"—targeting household consumption, foodservice clients, regional specialties, customization, and younger consumers. This differentiated strategy avoids internal competition while creating synergies and cross-selling opportunities.
Financially, Teway Food has demonstrated strong resilience. From 2022 to 2024, revenue grew from RMB 2.68 billion to RMB 3.45 billion, a 13.5% CAGR, while net profit surged from RMB 341 million to RMB 645 million, a 37.5% CAGR—significantly outpacing revenue growth due to cost control and operational efficiency. In H1 2025, revenue reached RMB 1.37 billion with RMB 202 million in profit, maintaining growth despite seasonal weakness, underscoring the stability of its business model.
**Product Breakdown and Market Trends** Teway Food’s product matrix includes recipe-style seasonings, hot pot bases, sauces, and other compound seasonings. Recipe-style seasonings—such as fish, crayfish, and cured meat flavors—have become its primary growth driver, with revenue jumping from RMB 1.38 billion in 2022 to RMB 2.09 billion in 2024 (18.2% CAGR), accounting for 60.5% of total revenue by 2024 and 65.9% in H1 2025. This reflects rising demand for convenient home cooking and the company’s innovation in "scenario-based + flavored" solutions.
Hot pot bases, a traditional strength, saw slower growth, with revenue inching up from RMB 1.19 billion to RMB 1.26 billion (2.9% CAGR) over 2022–2024, as market saturation and competition intensified. Its revenue share dropped from 44.5% to 36.5% in 2024 and further to 31.0% in H1 2025.
Sauces and other products, though small-scale (~10% of revenue), boast high margins and serve as a testing ground for innovation, targeting younger consumers and casual dining.
**Omnichannel and Global Expansion** Teway Food operates a nationwide sales network with 3,251 distributors covering all provinces and nearly all prefecture-level cities, reaching over 1 million retail outlets—the highest terminal coverage among listed compound seasoning peers. Online, it leverages e-commerce and social commerce; offline, it penetrates supermarkets, convenience stores, and foodservice supply chains.
Internationally, its products are exported to 50+ countries, supported by localized marketing and trade shows. The Hong Kong listing aims to bolster its global brand and expand into Southeast Asia, Europe, and the Middle East.
**Industry Outlook and Challenges** China’s seasoning market, valued at RMB 498 billion in 2024, is projected to grow at a 6.4% CAGR to RMB 679 billion by 2029. Compound seasonings, especially recipe-style variants (12.5% CAGR), are outpacing the sector. However, the fragmented market (top five players hold 15.9% share) poses competition risks, while input cost volatility and overseas regulatory hurdles remain challenges.
Teway Food’s Hong Kong listing reflects strategic priorities: favorable valuations for consumer brands, access to global investors, and funding for R&D, capacity, and international channels. As Chinese flavors gain global traction, the company is well-positioned to capitalize on the trillion-RMB seasoning market, backed by R&D, quality control, and first-mover distribution advantages.
Comments