---
title: "In H1 2019, How Did Other Condiment Companies Fare Besides Haitian?"
description: "In the first half of 2019, China's condiment industry continued its rapid growth. Among listed companies, Haitian Weiye led in both revenue and net profit, while Yihai International saw the highest revenue growth. Challenges included slowing growth for some and losses for others, with overall industry trends pointing towards transformation and upgrading."
author: "综合整理"
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published: "2019-09-06"
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# In H1 2019, How Did Other Condiment Companies Fare Besides Haitian?

> In the first half of 2019, China's condiment industry continued its rapid growth. Among listed companies, Haitian Weiye led in both revenue and net profit, while Yihai International saw the highest revenue growth. Challenges included slowing growth for some and losses for others, with overall industry trends pointing towards transformation and upgrading.

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In recent years, China's condiment industry has achieved breakthrough development, with rapid growth in production and sales. As the semi-annual reports for the first half of 2019 were released, how did listed condiment companies perform? What breakthroughs did they achieve? What development trends do they bring us?

**Haitian Weiye: Topping Both Revenue and Net Profit**

On August 14, Haitian Weiye released its 2019 interim financial report. The report showed that the company achieved operating revenue of 10.160 billion yuan in the first half of 2019, a year-on-year increase of 16.51%; net profit attributable to shareholders of the listed company was 2.750 billion yuan, up 22.34%; net profit attributable to shareholders of the listed company excluding non-recurring gains and losses was 2.6 billion yuan, up 20.89%; earnings per share were 1.02 yuan.

In its semi-annual report, Haitian Weiye stated that during the reporting period, its three core products—soy sauce, sauce, and oyster sauce—all maintained stable development, with soy sauce revenue growing 13.61%, oyster sauce growing 21.13%, and sauce growing 7.48%. However, according to the 2018 financial report, Haitian Weiye's soy sauce revenue growth was 15.85%, oyster sauce growth was 26.02%, and sauce growth was 2.55%. Except for sauce, the revenue growth of the other two main products, soy sauce and oyster sauce, showed a downward trend.

It is worth noting that although the company's market value is currently nearly 270 billion yuan, Haitian Weiye's executives have been continuously reducing their holdings. According to statistics from reporters, from August 22, 2018 to mid-August 2019, the company's directors, supervisors, and senior management made a total of 35 share reductions, cashing out over 100 million yuan, of which 81.358 million yuan was cashed out in 2019.

**Fufeng Group: H1 Revenue of 7.703 Billion Yuan**

Fufeng Group released its first-half 2019 results, with the company achieving turnover of 7.703 billion yuan, a year-on-year increase of 16.5%; profit attributable to shareholders of 612 million yuan, up 94.5%; basic earnings per share of 24.07 cents; and a proposed interim dividend of 8.34 cents per share.

The announcement stated that the increase in turnover was due to higher average selling prices for MSG and increased contribution from starch sweetener revenue. Revenue from the amino acid segment increased by 16.8% to 7.267 billion yuan.

The group's gross profit increased by 49.2% to 1.67 billion yuan. The increase in operating results was due to a significant rise in MSG prices and a marked improvement in the revenue and profitability of the amino acid segment; despite rising raw material costs in the first half of 2019, MSG profit margins improved due to the substantial price increase; and continuous improvement in production technology and efficiency.

**Meihua Biological: Impressive Net Profit Growth**

On July 24, Meihua Biological Technology Group Co., Ltd. released its 2019 semi-annual report. The announcement showed that Meihua Biological's operating revenue for the first half of 2019 was 6.980 billion yuan, a year-on-year increase of 11.01%; net profit attributable to shareholders of the listed company was 664 million yuan, an increase of 41.40% compared with the same period last year.

Benefiting from the rise in MSG prices, MSG and nucleotides achieved operating revenue of 2.868 billion yuan, an increase of 18.72% year-on-year; animal nutrition amino acid products achieved operating revenue of 3.022 billion yuan, but due to weak prices for lysine and threonine, gross margin fell by about 10 percentage points. The main reasons for the decline were increased industry supply and the impact of the African swine fever epidemic, with lysine and threonine prices falling by 7% and 19% year-on-year, respectively.

**Angel Yeast: Revenue of 3.714 Billion Yuan, Up 11.63% Year-on-Year**

On the afternoon of August 9, Angel Yeast released its 2019 semi-annual report. The company achieved operating revenue of 3.714 billion yuan in the first half of 2019, a year-on-year increase of 11.63%; net profit attributable to the parent company was 464 million yuan, a year-on-year decrease of 7.66%; earnings per share were 0.5634 yuan per share, down 7.65% year-on-year.

Angel Yeast stated that during the reporting period, the company maintained a stable and healthy development trend, with continuous growth in revenue from leading products and an increase in total profit compared with the same period last year, basically achieving its semi-annual operating targets. However, the company's net profit declined year-on-year, and gross and net margins also declined. The main reasons were the rise in molasses prices at Angel Russia, the appreciation of the local currency in Angel Egypt, leading to higher raw material costs; early and concentrated major maintenance at multiple domestic factories; and production restrictions at Angel Yili due to environmental protection reasons, leading to higher costs and lower profits.

Angel Yeast said that in response to the above factors, in the second half of 2019, the company will continue to implement its annual operating plan, strengthen market development measures to increase sales, continuously reduce costs, control expense growth, accelerate product upgrades and new product development, solve major technical and management problems, continue to promote revenue growth and cost reduction, and strive to improve the company's profitability.

**Zhongju Hi-Tech: Operating Revenue of 2.39 Billion Yuan, Up 10.03%**

Zhongju Hi-Tech's 2019 interim report, released on August 23, showed operating revenue of 2.39 billion yuan, a year-on-year increase of 10.03%; net profit attributable to shareholders of the listed company was 366 million yuan, up 7.99%. Basic earnings per share were 0.4595 yuan.

Zhongju Hi-Tech's revenue and net profit mainly come from its subsidiary, Meiweixian Company.

During the reporting period, Meiweixian achieved operating revenue of 2.262 billion yuan, an increase of 299 million yuan or 15.26% over the same period last year; net profit was 399 million yuan, with net profit attributable to the parent company of 362 million yuan, up 20.05% year-on-year. The year-on-year increase in operating revenue was mainly due to the year-on-year increase in Meiweixian's operating revenue.

**Fuling Zhacai: Revenue of 1.086 Billion Yuan, Up 2.11%**

On the evening of July 30, Fuling Zhacai (002507) disclosed its 2019 semi-annual report. The report showed that in the first half of this year, it achieved operating revenue of 1.086 billion yuan, a year-on-year increase of 2.11%; net profit of 315 million yuan, up 3.14%; and net profit attributable to the parent company excluding non-recurring gains and losses of 312 million yuan, up 2.58%.

The company's operating revenue and net profit maintained high-speed growth from 2016 to 2018. Data shows that in 2016, Fuling Zhacai achieved revenue of 1.121 billion yuan, up 20.43% year-on-year, and net profit of 257 million yuan, up 63.46%; in 2017, revenue was 1.520 billion yuan, up 35.64%, and net profit was 414 million yuan, up 61%; in 2018, revenue was 1.914 billion yuan, up 25.92%, and net profit was 662 million yuan, up 59.78%.

However, after entering 2019, the company's revenue and net profit growth slowed. In the first quarter, Fuling Zhacai achieved revenue of 527 million yuan, up 3.81% year-on-year; net profit was 155 million yuan, up 35.15%.

The semi-annual report stated that Fuling Zhacai, in accordance with its strategic plan at the beginning of the year, focused on the strategic policy of "adapting to changes and actively changing," faced the downward macroeconomic pressure, withstood the huge pressure of growth difficulties, proactively sought change, and took various measures to resolve policy, market, and raw material risks, seeking progress while maintaining stability.

**Hunan Salt: Revenue Declined Year-on-Year**

On the evening of August 14, Hunan Salt released its 2019 semi-annual report. The company achieved operating revenue of 1.065 billion yuan in the first half of 2019, a year-on-year decrease of 4.59%; net profit attributable to shareholders of the listed company was 86.9914 million yuan, up 5.93%; basic earnings per share were 0.0948 yuan per share.

Hunan Salt stated that the increase in net profit attributable to shareholders of the listed company during the reporting period was mainly due to a year-on-year decrease in selling expenses and financial expenses, and the impact of reduced income tax expenses on the company's net profit growth.

The semi-annual report showed that during the reporting period, the company improved production levels through technological and process advancements, strengthened equipment management, and continuously improved lean production levels, ensuring the stable quality of high-standard products with "purity 99.6%". At the same time, the company adhered to the brand-led strategy, focused on the single-brand strategy of "Xue Tian," continued to uphold the brand positioning of "adding flavor to Chinese cuisine," deepened brand operations, increased brand promotion efforts, collaborated with CCTV to create a new food documentary "Hometown Cuisine, Chinese Flavor," and joined hands with "Ha Ha Nong Fu" to launch on Hunan Satellite TV and Mango TV, leveraging the strong slow-variety IP to convey the healthy lifestyle concept of "natural purity, adding flavor to a better life," cultivate new consumer groups, and effectively promote the simultaneous improvement of the "Xue Tian" brand image and the company's corporate image.

**Yihai International: Net Profit Growth of 54.1%**

On September 5, Yihai International Holding Co., Ltd., the supplier of hot pot base for Haidilao, released its 2019 interim report. In the first half of the year, the company achieved revenue of 1.656 billion yuan, a year-on-year increase of 64.9%, gross profit of 624 million yuan, up 72%, and net profit of 292 million yuan, up 54.1%.

In the report, Yihai International also disclosed the sales revenue of its major business segments. In the first half of the year, revenue from hot pot seasoning products was 1.088 billion yuan, up 65.7% year-on-year. Among this, revenue from sales of hot pot seasoning products to related parties increased by 32.6%, and revenue from sales to third parties increased by 60.3%. Revenue from Chinese-style compound seasonings in the first half was 200 million yuan, up 12.1% year-on-year. Among this, revenue from sales to related parties increased by 11.1%, and revenue from sales to third parties increased by 69.2%.

Yihai International stated that enhancing the sales capability of third-party retail channels remains one of the group's strategic priorities. Further sinking the sales network, increasing the number of distributors, improving sales efficiency per outlet, strengthening distributor management capabilities, and optimizing internal sales personnel incentive mechanisms are several main directions of the group's sales strategy.

**Jiajia Food: Revenue of 1.025 Billion Yuan, Up 10%**

On August 29, Jiajia Food released its 2019 semi-annual report. The announcement showed that during the reporting period, it achieved revenue of 1.025 billion yuan, a year-on-year increase of 10%; net profit attributable to shareholders of the listed company was 86.1068 million yuan, up 6.42% from the same period last year; basic earnings per share were 0.075 yuan, compared with 0.07 yuan in the same period last year.

Jiajia stated that 2019 is the year of reform, transformation, and breakthrough for the company. In the first half of 2019, the company continued to focus on its main business, adhered to the annual operating goals, insisted on the strategic direction of "big single products," continued to promote the strategic big single products "Yuan Niangzao" and "Miantiao Xian," actively responded to the national salt reduction policy opportunity, and vigorously promoted the new product "reduced-salt raw soy sauce" as a marketing breakthrough; firmly grasped the five magic weapons of "product first, brand supreme, channel as king, order as fundamental, and execution as guarantee"; adhered to "five virtues as the guideline, convincing people with virtue"; clearly standardized the Jiajia marketing model and promoted marketing; sales performance was stable and improving, and salespeople and customers showed new confidence in the enterprise.

**Yunnan Energy Investment: Operating Revenue of 967 Million Yuan, Up 9.37%**

Yunnan Energy Investment's 2019 interim report, released on August 27, showed operating revenue of 967 million yuan, a year-on-year increase of 9.37%; net profit attributable to shareholders of the listed company was 210 million yuan, up 37.98%. Basic earnings per share were 0.2763 yuan. The company's latest distribution plan is no distribution and no conversion.

During the reporting period, the company's main businesses included the production and sale of salt, industrial salt, daily chemical salt, mirabilite and other series products, natural gas pipeline network operation, sales, and installation services, as well as onshore wind power generation operations.

The salt company achieved operating revenue of 547.2847 million yuan, an increase of 23.503 million yuan over the same period last year; total profit of 73.2365 million yuan, an increase of 3.1978 million yuan; and net profit attributable to the parent company's owners of 60.8299 million yuan.

**Hengshun Vinegar: Stable Growth in Main Business**

Hengshun Vinegar disclosed its interim report on August 26, 2019. In the first half of 2019, the company achieved total operating revenue of 880 million yuan, up 9.4% year-on-year; net profit attributable to the parent company was 140 million yuan, up 15.3%; earnings per share were 0.18 yuan. During the reporting period, the company's gross margin was 43.9%, up 2.0 percentage points year-on-year, and net margin was 16.4%, up 1.2 percentage points.

In addition, non-recurring gains and losses totaled 24.423 million yuan, which had a significant impact on net profit. Net profit attributable to the parent company excluding non-recurring gains and losses was 120 million yuan, up 15% year-on-year.

It is understood that in the first half of 2019, the company's sales revenue from vinegar products (including white vinegar) accounted for more than 75% of total condiment sales revenue. Cooking wine also became a star product for the company. The company's condiment business achieved steady growth, and the company's profitability was effectively improved.

**Lotus Health: "Hanging by a Thread" Turned Loss into Profit**

*ST Lotus released its 2019 semi-annual report. Lotus MSG achieved revenue of 830 million yuan in the first half, down 1.88% year-on-year, and net profit attributable to the parent company's shareholders was 130 million yuan, turning from loss to profit compared with the same period; the company's net assets at the end of the reporting period were -169 million yuan, and net profit excluding non-recurring gains and losses was -89 million yuan. However, this turnaround was achieved through non-recurring gains and losses, such as selling assets.

After two consecutive years of losses, *ST Lotus, which had been subject to delisting risk warnings since April 29, finally escaped the shadow of losses after six months of maneuvering, giving investors hope of "removing the hat."

In just three months, from a loss of over 40 million yuan in the first quarter to a profit of over 100 million yuan, this "hanging by a thread" reversal is lamentable.

Regarding the reason for the turnaround, *ST Lotus frankly stated in the announcement that it was mainly due to the disposal of its subsidiary Henan Xiangcheng Jianeng Thermal Power Co., Ltd. equity, which increased investment income in the consolidated statements by 217 million yuan.

**Qianhe Weiye: H1 Net Profit Down 30%, Plans to Acquire Hengkang Vinegar for 150 Million Yuan**

On the evening of August 26, condiment company Qianhe Weiye Food Co., Ltd. (referred to as "Qianhe Weiye") released its 2019 semi-annual report. In the first half of the year, Qianhe Weiye achieved operating revenue of 594 million yuan, up 24.07% year-on-year; net profit was 87.3149 million yuan, down 35.55% year-on-year. At the same time, Qianhe Weiye also announced plans to acquire 100% equity of Zhenjiang Hengkang Vinegar Co., Ltd. for 150 million yuan.

The financial report showed that Qianhe Weiye experienced its first semi-annual net profit decline since listing, down 35.55% year-on-year. In response, Qianhe Weiye stated that it was mainly due to the net income from asset disposal of 69.1052 million yuan in the same period last year, which made the base for net profit attributable to shareholders of the listed company relatively large. At the same time, Qianhe Weiye also predicted that based on the significant decrease in net profit this period, net profit from the beginning of the year to the end of the third quarter may also experience a significant year-on-year decline.

While releasing the semi-annual report, Qianhe Weiye also announced plans to acquire 100% equity of Zhenjiang Hengkang Vinegar Co., Ltd. (referred to as "Hengkang Vinegar") for 150 million yuan in cash.

The announcement showed that this acquisition will not cause financial pressure on Qianhe Weiye. After the transaction is completed, Hengkang Vinegar will become a wholly-owned subsidiary of Qianhe Weiye, which will help increase Qianhe Weiye's revenue scale. However, due to the short time of consolidation, this acquisition is not expected to have a significant impact on Qianhe Weiye's annual performance.

**Laohenghe Brewing: Significant Growth in New Sales Channels**

On August 30, Laohenghe Brewing Co., Ltd. (referred to as "Laohenghe Brewing") released its 2019 semi-annual report. The report showed that in the first half of the year, the company achieved revenue of approximately 402 million yuan, up 4.5% year-on-year. Gross profit was approximately 206 million yuan, up 3.4% year-on-year, and profit attributable to owners of the company was approximately 99.3 million yuan, up 7.7% year-on-year.

As a leader in cooking wine, Laohenghe has both product quality and brand awareness. The company's channel reform achieved significant results in the first half of the year, especially with significant growth in new sales channels such as catering. At the same time, Laohenghe has been looking for suitable strategic partners in the first half of the year. According to the latest announcement from Laohenghe, the company has included several interested investors on the candidate list and will conduct further discussions on possible cooperation. In this regard, there are market rumors that Laohenghe has been in contact with condiment and food and beverage giants, and "joining hands" with the above strategic partners can achieve channel complementarity for the company. The determination of the investor candidate list also means that Laohenghe's work to introduce strategic investors may be nearing completion.

**Jialong Shares: Significant Decline in Net Profit**

On August 29, Jialong Shares (002495) released its 2019 semi-annual report. The announcement showed that during the reporting period, it achieved revenue of 153 million yuan, a year-on-year decrease of 10.90%; net profit attributable to shareholders of the listed company was 18.4744 million yuan, down 24.86% from the same period last year; basic earnings per share were 0.0197 yuan, compared with 0.0263 yuan in the same period last year.

By product, chicken powder and chicken essence, which Jialong Shares regards as the main sources of revenue and profit, achieved operating revenue of 81.5461 million yuan and 33.317 million yuan in the first half of the year, accounting for 53.22% and 21.74% of total revenue, respectively, down 7.93% and 6.06% from the same period last year.

By sales region, in the first half of the year, Jialong Shares' operating revenue in all regions across the country declined to varying degrees. Among them, the Central China and North China regions, which contributed significantly to total revenue, declined by 12.75% and 11.20%, respectively, accounting for 35.54% and 26.28% of total revenue.

During the reporting period, the company completed the filing application for export food production enterprises for chicken powder and chicken essence, and obtained export filing certificates and authorization letters; completed the halal certification application for chicken powder, chicken essence, chicken juice, corn starch, custard powder, and mustard, and obtained halal certification certificates.

**Anji Food: Rapid Development of E-commerce Channels**

Anji Food disclosed its interim report on August 14, 2019. In the first half of 2019, the company achieved total operating revenue of 210 million yuan, up 35.1% year-on-year; net profit attributable to the parent company was 28.274 million yuan, up 33.2%; earnings per share were 0.13 yuan. During the reporting period, the company's gross margin was 25.1%, down 5.3 percentage points year-on-year, and net margin was 13.6%, basically maintaining the level of the same period last year.

During the reporting period, non-recurring gains and losses totaled 6.926 million yuan, which had a significant impact on net profit. Net profit attributable to the parent company excluding non-recurring gains and losses was 21.348 million yuan, up 18.7% year-on-year.

As of June 30, 2019, Anji Food's net assets attributable to shareholders of the listed company were 576 million yuan, down 10.91% from the end of the previous year; net cash flow from operating activities was 46.8593 million yuan, compared with 2.2656 million yuan in the same period last year. It is understood that in the first half of 2019, the company's sales revenue from e-commerce, overseas, and special channel customers increased.

**Summary**

* **Highest Revenue: Haitian Weiye (10.16 billion yuan)**
* **Highest Revenue Growth: Yihai International (64.90%)**
* **Largest Revenue Decline: Jialong Shares (10.90%)**
* **Highest Net Profit: Haitian Weiye (2.75 billion yuan)**
* **Highest Net Profit Growth: Lotus Health (320.34%)**
* **Largest Net Profit Decline: Qianhe Weiye (35.55%)**

**Financial Report Commentary:**

Overall, the 16 condiment companies achieved total revenue of over 40 billion yuan in the first half of 2019, with Haitian Weiye far ahead, and the top three companies accounting for half of the market share.

From a revenue perspective, 13 companies achieved year-on-year revenue growth, with more than 80% of companies growing. Jialong Shares suffered a larger loss, while Hunan Salt and Lotus Health had slight losses. Haitian Weiye maintained its leading position in revenue, and Yihai International had the highest growth rate.

From a net profit perspective, Haitian Weiye had the highest net profit, and Lotus Health had the highest net profit growth, reaching 320.34%.

For the condiment industry, 2019 is a year full of opportunities and challenges. On the one hand, with the improvement of people's living standards, the demand for condiments is gradually increasing, with more varieties and continuously improving quality. On the other hand, the emergence of new business forms has also brought significant changes in consumer behavior, and the condiment industry is facing pressure for transformation and upgrading.

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## Citation metadata

- Publisher: New Distribution
- Author: 综合整理
- Published: 2019-09-06
- Canonical: https://xinjignxiao.com/en/articles/in-h1-2019-how-did-other-condiment-companies-fare-besides-haitian-de79b422/
- Original source: https://mp.weixin.qq.com/s/MhlPjWNSdfBPnibRZQFD6Q

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