Tianwei Food's Three Product Categories Revenue Declines, Goodwill of 445 Million, Dividend Payout Ratio Exceeds 102%, Deng Wen Couple to Pocket 433 Million

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Changjiang Business Daily News ● Reporter Xu Jia

A well-known domestic condiment listed company, Tianwei Food (603317.SH), is facing a performance growth bottleneck.

On the evening of March 11, Tianwei Food released its annual report. By 2025, the company achieved operating revenue of 3.449 billion yuan, a decrease of 0.79% year-on-year; net profit attributable to shareholders of the listed company (hereinafter referred to as “net profit attributable to the parent”) was 570 million yuan, down 8.79% year-on-year; net profit after deducting non-recurring gains and losses (hereinafter referred to as “non-recurring net profit”) was 508 million yuan, down 10.22% year-on-year.

Changjiang Business Daily noticed that in recent years, Tianwei Food has continuously improved its business layout through a “dual-drive” model of internal growth and external expansion. However, issues such as sluggish offline channel growth and high goodwill from acquisitions have also emerged. As of the end of 2025, the company’s goodwill reached 445 million yuan.

In 2025, the revenue from Tianwei Food’s three core products—hotpot seasonings, recipe-style seasonings, and sausage and cured meat seasonings—all declined to varying degrees. From the channel perspective, in 2025, the offline channel, which contributed the most revenue, achieved 2.507 billion yuan, a decrease of 12.76% year-on-year.

Notably, despite performance pressures, Tianwei Food continued to maintain high dividends. The annual report states that the company plans to distribute 582 million yuan (including tax), accounting for 102.15% of the net profit attributable to the parent in 2025. Based on a rough calculation of the shareholding ratio of the company’s actual controllers, Deng Wenfu and his wife, they may receive about 433 million yuan from this dividend.

Performance declines again after three years

Since its establishment, Tianwei Food has focused on the research, production, and sales of compound seasonings, including hotpot seasonings and recipe-style seasonings, with over 100 varieties. It owns seven major brands, including “Haorenjia” and “Dahongpao.” The company was listed on the Shanghai Main Board in April 2019.

The annual report shows that in 2025, Tianwei Food achieved operating revenue of 3.449 billion yuan, a decrease of 0.79%; net profit attributable to the parent was 570 million yuan, down 8.79%; non-recurring net profit was 508 million yuan, down 10.22%. This marks the company’s performance decline for the first time in three years since 2021.

Although Tianwei Food did not directly explain the reasons for the decline, the company admitted in the annual report that in 2025, demand for the compound seasoning industry was weak due to factors such as insufficient consumer confidence and cautious income growth expectations. The market showed a clear stock competition pattern, with leading companies actively adjusting their development pace, focusing on sustainable and steady growth. The industry’s competitive focus has shifted from scale expansion to quality and efficiency improvement.

Guojin Securities research report pointed out that Tianwei Food’s performance decline in 2025 was mainly due to the loss of scale effects in its main business and the impact of minority interests from consolidated subsidiaries, leading to a certain decrease in annual profit.

Quarterly breakdown shows that in 2025, the four quarters achieved operating revenues of 642 million yuan, 749 million yuan, 1.02 billion yuan, and 1.038 billion yuan, respectively, with year-on-year changes of -24.8%, +21.93%, +13.79%, and -6.69%. Net profits attributable to the parent were 74.73 million yuan, 115 million yuan, 202 million yuan, and 177.8 million yuan, with year-on-year changes of -57.53%, +62.72%, +8.93%, and -7.65%. Non-recurring net profits were 50.82 million yuan, 112 million yuan, 195 million yuan, and 151 million yuan, with changes of -65.41%, +77.2%, +8.84%, and -14.79%.

By product line, in 2025, revenue from hotpot seasonings, recipe-style seasonings, and sausage and cured meat seasonings was 1.229 billion yuan, 1.767 billion yuan, and 288 million yuan, respectively, decreasing by 2.87%, 0.2%, and 12.52%, all showing declines.

Despite sluggish revenue growth, Tianwei Food continued to optimize internal operations through cost reduction and efficiency enhancement across the entire supply chain. In 2025, the gross profit margin of its main business was 40.65%, an increase of 0.85 percentage points year-on-year. The gross profit margins for recipe-style seasonings and sausage/cured meat seasonings were 44.66% and 48.23%, up 3.36 and 3.14 percentage points, respectively. The hotpot seasoning gross margin was 34.5%, down 3.03 percentage points.

High goodwill from acquisitions

The dual approach of internal growth and external expansion has been the main development path for Tianwei Food in recent years, but the effectiveness of implementation remains to be seen.

Internally, in 2025, Tianwei Food improved operational efficiency by continuously optimizing its supply chain system, entered Sam’s Club, and formed deep cooperation with Hema, achieving key breakthroughs in member channels. The company also continued systematic innovation to refine products and enhance core competitiveness.

Externally, acquisitions are a core strategy. In 2023, Tianwei Food spent 360 million yuan to acquire a 55% stake in Shicui Food. By the end of 2024, the company acquired a 63.84% stake in Jiadian Wewei for 154 million yuan.

In September 2025, Tianwei Food acquired a 55% stake in Yipinweixiang through equity transfer and capital increase, with a total expenditure of 154 million yuan, making Yipinweixiang a controlling subsidiary.

Under this dual-drive model, Tianwei Food has achieved significant results in online channel expansion, but the offline channel, which contributes the most revenue, still faces growth bottlenecks.

In 2025, online and offline channels achieved revenues of 936 million yuan and 2.507 billion yuan, respectively, with year-on-year growth of 56.91% and -12.76%.

Meanwhile, multiple acquisitions have rapidly increased Tianwei Food’s book goodwill. As of the end of 2025, goodwill reached 445 million yuan, all generated from acquisitions of three companies.

Looking at subsidiary performance, in 2025, Gaidian Weweixiang achieved revenue of 313 million yuan and net profit of 17.93 million yuan, with performance commitment completion rates of 159.74% and 129.96%. Shicui Food achieved revenue of 282 million yuan and 323 million yuan in 2024 and 2025, with performance commitment completion rates of 89.9% and 79.19%, and net profits of 42.72 million yuan and 54.94 million yuan, with completion rates of 115.45% and 122.1%.

In early 2026, some investors asked Tianwei Food about impairment of goodwill on the interactive platform. The company responded that it conducts standardized management of goodwill, performs strict evaluations and tests according to relevant accounting standards, and will disclose information promptly if impairment signs are found.

Additionally, Changjiang Business Daily noted that despite declining performance, Tianwei Food continues to maintain large dividends.

The annual report announced a profit distribution plan, proposing to pay a cash dividend of 0.55 yuan per share to all shareholders, totaling 582 million yuan, accounting for 102.15% of the net profit attributable to the parent in 2025.

In 2025, Tianwei Food also repurchased shares via centralized bidding at a cash cost of 16.4455 million yuan. In total, cash dividends and share repurchases in 2025 amounted to 598 million yuan, accounting for 105.03% of the net profit attributable to the parent.

Since Deng Wen and Tang Lu, along with their concerted parties, hold approximately 74.41% of Tianwei Food’s shares, it is roughly estimated that they may receive about 433 million yuan from this dividend.

From 2021 to 2024, Tianwei Food paid dividends of 37.7091 million yuan, 242 million yuan, 423 million yuan, and 585 million yuan, with payout ratios of 20.43%, 70.96%, 92.62%, and 93.58%, respectively.

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Editor: ZB