Annual Report Shows Decline in Three Key Metrics, What Impact Will This Have on Tianwei Food's Hong Kong IPO?

After 2021, Tianwei Food’s revenue, net profit attributable to parent, and non-recurring net profit again declined simultaneously in 2025.

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Investment Time Network, Punctuation Finance Researcher Dong Lin

At the critical stage of planning to list in both the “A+H” markets, the parent company of “Good Family” hotpot base—Sichuan Tianwei Food Group Co., Ltd. (referred to as Tianwei Food, 603317.SH)—delivered a declining annual performance report.

On the evening of March 11, Tianwei Food released its 2025 annual performance report. Data shows that the company achieved revenue of 3.449 billion yuan in 2025, a decrease of 0.79% year-on-year; net profit attributable to parent was 570 million yuan, down 8.79%; and non-recurring net profit was 508 million yuan, down 10.22%.

Although the decline was modest, this marks the company’s revenue, net profit, and non-recurring net profit growth rates declining again simultaneously after 2021.

On the same day, Tianwei Food also announced its 2025 profit distribution plan. The notice states that the company plans to distribute a cash dividend of 0.55 yuan per share (tax included) to all shareholders, totaling approximately 582 million yuan (tax included), with a dividend payout ratio exceeding 100%. Including the company’s share repurchase amount implemented during the year, the total cash dividend for 2025 will reach 599 million yuan, accounting for 105.03% of the annual net profit attributable to parent.

Investment Time Network and Punctuation Finance Researcher noted that in August 2025, Tianwei Food officially launched its Hong Kong stock listing, planning to raise funds for brand building and marketing, expanding and deepening sales and distribution networks, potential investments and acquisitions, strengthening supply chain and promoting digitalization of operations, product R&D and innovation, among other uses.

From an industry perspective, Haitan Flavor Industry (603288.SH, 3288.HK) successfully listed in Hong Kong in 2025, raising a total of HKD 9.27 billion. Additionally, the Hong Kong market also hosts leading seasoning companies such as Yihai International (1579.HK), Anjoy Food (603345.SH, 2648.HK), and others. As the domestic seasoning market enters a stock competition phase, can Tianwei Food, with sluggish main business growth, become the second industry company to list as an “A+H” stock?

2025 Tianwei Food Revenue and Gross Margin by Industry and Product

Data Source: Company Financial Reports

Founded in 2007, Tianwei Food went public on the Shanghai Stock Exchange in April 2019, known as the “First Sichuan-style Compound Seasoning Stock.” Its main products include hotpot seasonings, Chinese cuisine seasonings, spicy sauces, and more, with six major brands: “Good Family,” “Da Hong Pao,” “Tian Che,” “Tianwei Food Catering High-end Customization,” “Shicui Fang,” and “Add Some Flavor.”

Looking at revenue structure, recipe-style seasonings are the largest source of income for Tianwei Food. In 2025, this product generated 1.767 billion yuan, a slight decrease of 0.20% year-on-year, accounting for 51.24% of total revenue; hotpot seasonings earned 1.229 billion yuan, down 2.87%, representing 35.63%; sausage and cured meat seasonings brought in 288 million yuan, down 12.52%. Only other categories saw growth, increasing by 50.88% to 159 million yuan.

Regarding channels, in 2025, online channels grew strongly, while offline channels, which form the company’s main revenue base, declined. The company’s online revenue reached 936 million yuan, up 56.91%, accounting for about 27% of main business revenue; offline revenue was 2.507 billion yuan, down 12.76%, but still over 70%. Regionally, the eastern market achieved sales of 912 million yuan, up 30.69% year-on-year; however, sales in the central and western core markets decreased by 16.19% and 8.69%, respectively.

Wind data shows that from 2022 to 2024, Tianwei Food’s performance grew, with revenue increasing from 2.691 billion yuan to 3.476 billion yuan, but the growth rate slowed from 32.84% to 10.41%; net attributable profit growth also declined from 85.11% in 2022 to 36.77% in 2024.

Despite slowing performance, Tianwei Food maintained high dividend payout ratios. In 2022, 2023, 2024, and the first half of 2025, the company declared cash dividends of approximately 38 million yuan, 242 million yuan, 423 million yuan, and 585 million yuan, respectively. Over three and a half years, total dividends paid amounted to about 1.288 billion yuan, accounting for roughly 77.9% of the total net profit during the same period.

Recent Dividend Details of Tianwei Food

Data Source: Wind

In the second half of 2025, Tianwei Food officially initiated its Hong Kong IPO. The company stated that this H-share issuance aims to further promote its internationalization strategy and overseas business layout, making better use of the international capital market platform and optimizing its capital structure.

Investment Time Network and Punctuation Finance Researcher noted that in the prospectus, the company indicated its products have been sold to over 50 countries and regions, but in the 2025 annual report, it did not disclose overseas revenue separately. Additionally, in December 2025, the China Securities Regulatory Commission requested the company to supplement materials on six matters, including detailed explanations of the use of raised funds and verification of the legality and compliance of the company’s establishment and previous equity changes.

From a valuation perspective, the systemic valuation decline of the Hong Kong consumer sector has set a relatively strict pricing benchmark for Tianwei Food’s Hong Kong listing. According to Wind data, as of March 12, 2026, the Hang Seng Consumer Index PE-TTM was 17 times, further down from 17.47 times in March 2025, at a near three-year low. As an A-share target, as of March 12, Tianwei Food’s PE-TTM was 22.71 times. If successfully listed, the H-share offering price may be discounted by over 20% compared to A-shares, which could compress the fundraising scale.

Keywords for Investment Timing: Tianwei Food (603317.SH)

Author’s statement: Personal opinions for reference only.