Revenue and net profit both declined, Tianwei Food's performance "hits the brakes"

After years of slowing growth, Tianwei Food hit the brakes in 2025. The company’s recent 2025 annual report shows that both revenue and net profit declined in 2025, with all three main product lines experiencing downturns and offline channels under pressure. The company did not provide specific reasons for the performance decline in the financial report, only mentioning the competitive landscape of the seasoned condiment market. Facing intense domestic market competition, Tianwei Food is betting on overseas expansion. In the second half of 2025, the company initiated a Hong Kong stock listing process, planning to leverage the “A+H” dual platform to further expand its overseas market presence and seek strategic investment and acquisition opportunities. Industry insiders suggest that Tianwei Food has not disclosed its overseas revenue, which may indicate that its overseas income is relatively low. Its international expansion is a medium- to long-term effort, still facing multiple challenges such as channels, compliance, and brand recognition.

Shift in Competitive Focus

Ending several years of continuous growth, Tianwei Food’s revenue and net profit both declined in 2025. Financial data shows that the company’s revenue in 2025 was 3.449 billion yuan, down 0.79% year-over-year; net profit attributable to shareholders was 570 million yuan, down 8.79% year-over-year.

By product category, all main product lines saw revenue declines in 2025. Hotpot seasoning revenue fell 2.87% to 1.229 billion yuan; recipe-style seasonings declined 0.2% to 1.767 billion yuan; sausage and cured meat seasonings dropped 12.52% to 288 million yuan.

Channel-wise, there was divergence. As Tianwei Food’s traditional strength, offline channels saw revenue drop 12.76% to 2.507 billion yuan, while online channels grew 56.91% to 936 million yuan. Huachuang Securities’ research report noted that online growth was mainly driven by newly consolidated brands such as Jia Dian Wei and Yi Pin Wei Xiang.

Regarding the reasons for the performance decline, Tianwei Food did not provide detailed explanations in the financial report, only mentioning that “the seasoned condiment market is showing clear signs of stock competition, with leading companies actively adjusting their development pace, focusing on sustainable and steady growth. Industry competition has shifted from scale expansion to quality and efficiency improvement.”

According to Zhang Ji, General Manager and Chief Consultant of Shanghai Zhihui Strategic Marketing Consulting, and a specially appointed researcher at the China Condiment Association Big Data Center, Tianwei Food’s performance pressure is related to factors such as the lifecycle of core product categories and channel transformation. “The core categories of Tianwei Food, hotpot seasonings and pickled fish seasonings, are mature, so consumer demand naturally slows down, but competition continues to intensify. Meanwhile, offline supermarket channels are undergoing transformation, with traditional retail formats declining, impacting Tianwei Food’s offline distribution. Additionally, as the rate of restaurant chain expansion continues, the rapid growth of customized restaurant services is also eating into traditional restaurant distribution markets, which may lead to sluggish growth in its hotpot base stock business.”

Slowing Growth

Tianwei Food focuses on R&D, production, and sales of compound seasonings, listed on the Shanghai Stock Exchange in April 2019. The company owns seven major brands: “Good Home,” “Da Hong Pao,” “Tian Che,” “Tianwei Food Catering High-End Customization,” “Shicui Fang,” “Jia Dian Wei,” and “Yi Pin Wei Xiang.” Its products include recipe-style seasonings, hotpot seasonings, sauces, and other categories.

In recent years, Tianwei Food has acquired key catering seasoning companies such as Shicui Food, which mainly produces compound seasonings, and Yi Pin Wei Xiang, known for fresh garlic-based products. The company’s performance has continued to grow but at a slowing pace. Financial data shows that from 2022 to 2024, revenue was 2.691 billion yuan, 3.149 billion yuan, and 3.476 billion yuan, with year-over-year growth rates of 32.84%, 17.02%, and 10.41%, respectively; net profits attributable to shareholders were 342 million yuan, 457 million yuan, and 625 million yuan, with growth rates of 85.11%, 33.65%, and 36.77%.

Strategic positioning expert and founder of Fujian Huace Brand Positioning Consulting, Zhan Junhao, stated that as the compound seasoning market enters stock competition, Tianwei Food’s shrinking offline channels and declining core business indicate that relying solely on acquisitions to drive growth is no longer sustainable. The company’s core bottleneck lies in weak endogenous growth.

Jiang Han, senior researcher at Pangu Think Tank, pointed out that the marginal effect of Tianwei Food’s acquisitions is diminishing. While acquisitions like Jia Dian Wei and Yi Pin Wei Xiang temporarily boosted online revenue, the acquired companies’ net profit margins are much lower than the parent company’s overall level, and integration costs are high. This suggests that relying solely on “buying volume” cannot sustain high-quality growth. The core issues are the aging of flagship products and insufficient new category incubation. Over-reliance on hotpot base stocks and Sichuan-style seasonings, combined with a lack of breakout products in emerging flavors, has resulted in a product matrix that fails to meet the diverse tastes of younger consumers.

Overseas Expansion for Growth

Amid slowing growth, Tianwei Food is turning its attention overseas.

In August 2025, Tianwei Food announced plans to further its internationalization strategy and overseas business layout, enhance brand recognition and influence globally, and better utilize international capital markets by preparing for a Hong Kong listing. In October, the company officially submitted its prospectus to the Hong Kong Stock Exchange. Tianwei Food views overseas markets as a blue ocean, stating that “domestic competition is fierce, while overseas markets have vast potential. The company is optimistic about overseas development and considers it a key strategic direction.”

In its 2025 annual report, Tianwei Food stated that its overseas business has successfully entered mainstream channels and cross-border e-commerce, achieving breakthroughs in regions such as North America, Southeast Asia, East Asia, and Europe through refined channel operations and localized product development. Its products are now sold in over 50 countries and regions worldwide, though the company has not disclosed specific overseas revenue figures.

Zhan Junhao noted that the global market for compound seasonings is large and growing, and Tianwei Food’s layout on the “A+H” platform will facilitate financing and overseas expansion. However, the lack of disclosed overseas revenue suggests that this segment remains relatively small. The company’s overseas journey is a medium- to long-term effort that requires solid localization, channel deepening, and overcoming multiple challenges such as channels, compliance, logistics, and brand recognition.

Zhang Ji pointed out that the large Chinese diaspora is a natural base for Chinese-style compound seasonings. As Chinese cuisine gains popularity abroad, demand for such seasonings will continue to grow. However, this potential cannot be quickly converted into performance; it is a long-term process. The biggest challenge is breaking out of the Chinese community and entering mainstream markets. Overseas consumers’ taste preferences and cooking habits differ significantly from Chinese tastes, requiring extensive consumer education and even product localization. Additionally, competitors like Lee Kum Kee, Haitan Weiye, and Yihai International, which started earlier and have established a market presence, pose significant competition for Tianwei Food’s overseas ambitions.

The Beijing Business Daily reporter sent interview requests to Tianwei Food but had not received a response as of press time.

Beijing Business Daily Reporter Tao Feng, Wang Yuetong