"Soy Sauce Ma" has started lending to upstream and downstream partners, and Haitan Flavoring and Food Industry's business in 2025 won't be as easy to do.

On the evening of March 26, Haitian Flavor Industry (603288.SH) released its 2025 financial report. Total revenue was RMB 28.87 billion, up 7.32% year over year; net profit attributable to shareholders was RMB 7.04 billion, up 10.95% year over year. Overall, although Haitian Flavor Industry’s revenue and net profit both hit record highs, its performance growth rate declined compared with 2024, and the momentum of rapid growth seen in the past is no longer there. At present, Haitian Flavor Industry needs to provide support to suppliers and distributors, while also looking overseas for new markets.

Cost-side advantages start to show, and gross margin returns to the 40% threshold

Looking at the business in detail, soy sauce products are still the largest source of revenue. In 2025, this segment generated RMB 14.93 billion, accounting for 51.72% of total revenue, up 8.55% year over year. Oyster sauce (16.86% of total revenue) and seasoning sauces (10.1% of total revenue) are the other two major businesses**; in 2025, they reported RMB 4.87 billion and RMB 2.92 billion respectively, up 5.48% and 9.24% year over year.

Haitian Flavor Industry’s other businesses performed strongly, including vinegar, cooking wine, composite seasonings, and other items that Haitian Flavor Industry has been actively promoting. In 2025, these reported RMB 4.68 billion, up 14.55% year over year.

In addition, Haitian Flavor Industry’s online sales channels advanced noticeably in 2025. Revenue obtained through online channels in 2025 was RMB 1.639 billion. Although it accounted for only 5.7% of total revenue, the year-over-year increase compared with 2024 was 31.87%.

Haitian Flavor Industry said that, based on relatively secure development in the Takii segment, it accelerated to take the lead in other seasoning product tracks such as vinegar and cooking wine. At the same time, relying on its absolute advantages in the core track, it sped up entry into adjacent tracks such as composite seasonings. The company continuously expands the depth and breadth of its offline network, while reaching countless real-world scenarios involving necessities like soybeans, rice, cooking oil, and salt.

On the cost side, Haitian Flavor Industry’s cost-control advantages in 2025 were evident, helping the company’s net profit growth rate stand above the double-digit level.

In 2025, Haitian Flavor Industry’s cost of sales was RMB 17.26 billion, up only 1.84% year over year, far below the revenue growth rate. In its financial report, the company explained that this was mainly because the costs of material procurement declined, leading to lower direct material costs for soy sauce, oyster sauce, seasoning sauces, and others. In addition, technology-driven lean management caused manufacturing expenses to decline 9.98% year over year.

Benefiting from cost advantages, Haitian Flavor Industry’s overall gross margin in 2025 was 40.22%, becoming the first time since 2020 to return to the above-40% range.

The momentum for high-speed growth may already be a thing of the past

Overall, although Haitian Flavor Industry’s revenue and net profit both reached historical highs, the growth rate of performance declined compared with 2024. Currently, Haitian Flavor Industry’s growth rate is still not as high as in 2021, and the former momentum of high-speed growth may already be over.

Haitian Flavor Industry revenue growth rate Data source: iFind by Eastmoney

Haitian Flavor Industry net profit growth rate Data source: iFind by Eastmoney

These changes are also reflected in the company’s 2025 financial report. Finance News noted that in 2025, Haitian Flavor Industry’s accounts receivable was RMB 0.3 billion, reaching a historical high. And before 2022, Haitian Flavor Industry’s accounts receivable was less than RMB 60 million, and the strong momentum of “pay first and ship next” began to loosen.

Not only that, Haitian Flavor Industry has also started providing supply chain financial services to suppliers and distributors, helping stabilize the supplier and distributor ecosystem.

The 2025 financial report shows that the company and its related party Guangdong Haitian Commercial Factoring Co., Ltd. (hereinafter referred to as Haitian Factoring) entered into a cooperation agreement to assist suppliers in financing through Haitian Factoring. Suppliers can transfer accounts receivable from Haitian Flavor Industry to Haitian Factoring to quickly collect funds. In fiscal year 2025, Haitian Flavor Industry paid a total of RMB 3.01 billion in due payments to Haitian Factoring.

In addition, Haitian Flavor Industry also cooperated with its related party Jiaxing Haitian Small Loan Co., Ltd. (hereinafter referred to as Jiaxing Haitian). Jiaxing Haitian mainly provides loan services for distributors, and Haitian Flavor Industry does not need to pay fees to Jiaxing Haitian. In fiscal year 2025, distributors designated Jiaxing Haitian to pay a total of RMB 0.86 billion of the above loans to Haitian Flavor Industry to use as prepayments for goods.

The 2025 financial report shows that currently Haitian Flavor Industry has more than 6,000 distributors, while in 2021, the company had 7,430 distributors.

Going global is an important strategic direction for Haitian Flavor Industry

In 2022, Haitian Flavor Industry went through a “dual-standard” public-opinion crisis. It was reported that Haitian Flavor Industry’s soy sauce sold domestically contained food additives, while the soy sauce sold in Japan had no additives; the related topics sparked heated discussions among netizens. In its 2022 financial report, Haitian Flavor Industry said that this public-opinion crisis had a significant impact on the company. The data show that in 2022, the revenue from Haitian Flavor Industry’s soy sauce products fell 2.30% year over year. In 2023, Haitian Flavor Industry’s performance fell again: revenue declined 4.10% year over year, and net profit attributable to shareholders declined 9.21% year over year.

However, this public-opinion crisis did not cause Haitian Flavor Industry to focus attention on the zero-additives track. Going through the company’s announcements, the keyword “zero additives” appears only once—in an investor exchange at the time, when an investor suggested that Haitian Flavor Industry change its packaging to highlight the “zero additives” wording, and Haitian Flavor Industry only said that it would optimize packaging presentation going forward.

By contrast, expanding overseas is a more important route for Haitian Flavor Industry. In June 2025, Haitian Flavor Industry officially listed on the Hong Kong Stock Exchange, intending to enhance its international visibility. Haitian Flavor Industry said that its successful listing on the Hong Kong Stock Exchange has opened the door for the company to connect with the global stage.

In addition, Haitian Flavor Industry also said that 2025 is a key milestone in the process of Haitian Internationalization, and that its products have been sold to more than 80 countries and regions worldwide. According to a report by Frost & Sullivan, Haitian Flavor Industry ranked first in China’s seasoning market in 2024 with a market share of 4.8%; its soy sauce China market share was about 13.2% and its oyster sauce China market share was about 40.2%, both ranking first in the industry. In 2024, both global soy sauce and oyster sauce sales ranked first worldwide.

However, for the revenue generated from overseas markets, Haitian Flavor Industry did not mention it in its financial report.