"Bleached Chicken Feet" Expose 36.4 Billion Yuan Dupont Holdings—Can Henan's "Rich Family" Dodge Responsibility?

Short-term market sentiment shocks are unavoidable.

Author | Fang Lu

Editor | Yu Xing

Source | Ye Ma Finance

Piles of snow-white chicken feet stacked like mountains, and现场 workers all say they wouldn’t eat these “hydrogen peroxide-bleached” chicken feet—exposed on the CCTV 3.15 evening program in 2026, “Internet-famous chicken feet” black industry, claiming that long-term consumption of foods soaked in hydrogen peroxide can cause damage to oral mucous membranes, liver and kidney functions, and other health hazards. Excessive intake may even threaten life.

Behind the “bleached chicken feet,” Henan Yifeng Electronic New Materials Co., Ltd. (referred to as “Yifeng Electronics”) was listed as an upstream hydrogen peroxide supplier by 3.15. Yifeng Electronics is linked to its parent publicly listed company, Duofuduoduo (002407.SH).

On the morning of March 16, after 7 a.m., Duofuduoduo urgently issued a statement saying it had noted the CCTV “3.15” report. Its investigative reporters found that Sichuan Shufu Xiang Food Co., Ltd. (“Shufu Xiang”) and Chongqing Zengqiao Food Co., Ltd. (“Zengqiao Food”) used hydrogen peroxide to bleach chicken feet during production, involving Yifeng Electronics’ hydrogen peroxide sales.

Duofuduoduo’s self-inspection confirmed that Yifeng Electronics is its controlling subsidiary, but has not established any business cooperation, brand licensing, or product manufacturing relationships with Shufu Xiang, Zengqiao Food, or others. Its production and sales activities are unrelated to the company and its subsidiaries.

Well-known crisis PR expert and Fuzhou Gongsun Ce Public Relations partner Zhan Junhao believes that the announcement focuses on factual clarification and does not constitute malicious scapegoating. However, the illegal sales by subsidiaries and the uncontrolled flow of hazardous chemicals are confirmed, exposing serious loopholes in the group’s compliance and risk control. This serves as a warning to all listed companies: controlling shareholders bear responsibility, and full-chain management must be enforced to prevent compliance risks from spilling over.

Although Duofuduoduo responded promptly with clarification, the latest disclosures indicate that it has issued a statement and is cooperating with regulatory authorities for investigation. Any developments will be promptly disclosed. Regulatory authorities have intervened, and it seems the investigation will continue. If subsequent checks confirm issues, will Duofuduoduo be willing to take responsibility? They replied, “Not sure.”

Bai Wenxi, Vice Chairman of the China Enterprise Capital Alliance and Chief Economist for China, believes that short-term market sentiment shocks are inevitable. Food safety is a highly sensitive area for the public, and the “bleached chicken feet” directly touch consumers’ health bottom line. Although Duofuduoduo’s main business is unrelated to food consumption, the fraudulent operation of “hydrogen peroxide as disinfectant” can easily be labeled as “unscrupulous enterprise,” affecting institutional investors’ ESG ratings.

As of the close on March 16, Duofuduoduo’s stock closed at 30.55 yuan per share, down 0.97%, with a total market value of 36.368 billion yuan.

01

Subsidiary caught in “bleached chicken feet” scandal

Public company quickly distances itself

Yifeng Electronics, the company named, was acquired by Duofuduoduo on January 21, 2025, with its own funds of 28.458 million yuan from Jiaozuo Duofuduoduo Industrial Group Co., Ltd. (“Duofuduoduo Group”). After acquiring 54% of its shares, it became the largest shareholder. On October 28, 2024, Yifeng Electronics was recognized as a high-tech enterprise, valid for three years, and taxed at 15% corporate income tax.

According to the CCTV “3.15” evening program, at Yifeng Electronics New Materials Co., Ltd. in Xinxiang, Henan, staff not only promoted products without hesitation but also directly taught risk-avoidance methods: “Yifeng salespeople told us to put a different label on disinfectant.”

On March 16, the Huojia County Market Supervision Administration issued a report stating that the CCTV “3.15” program exposed violations involving hydrogen peroxide used in processing chicken feet, involving Henan Yifeng Electronic New Materials Co., Ltd. Huojia County attached great importance, immediately formed a joint investigation team, and conducted a comprehensive review of the involved enterprise overnight. The company has ceased production and operation, and further investigation is ongoing.

This image may be AI-generated

Source: Canned Food Library

In Duofuduoduo’s announcement on March 16, it stated that after self-inspection, its controlling subsidiary Yifeng Electronics had 2025 revenue of 31.152 million yuan, with a net loss of 3.3872 million yuan, accounting for a very small proportion of the company’s consolidated revenue and net profit, less than 1%. Its main operations include hazardous chemicals, food additives, disinfectants, etc.

In the 2025 semi-annual report, Duofuduoduo marked the “impact of Yifeng Electronics on overall production, operation, and performance” as “0.” The company admitted that Yifeng Electronics accounts for a “relatively low” share of its consolidated revenue and profit.

Bai Wenxi analyzed that the recent “3.15” exposure has limited direct impact on Duofuduoduo but warrants attention to secondary risks. From a financial perspective, even if the subsidiary is fully divested, the overall impact on Duofuduoduo’s performance is minimal. However, the exposure from the “3.15” event has strong public opinion damage potential, which could trigger short-term investor sell-offs—the stock fell more than 1% on the day of the announcement. The deeper risk lies in regulatory chain reactions: if Yifeng Electronics is found to have “illegally supplied unlabeled food additives and violated hazardous chemical management regulations,” it could face shutdowns, fines, or license revocations. While Duofuduoduo claims to be “actively cooperating with regulatory authorities,” the compliance rectification in the hazardous chemicals field often involves broad scope, and it’s necessary to monitor whether this affects the company’s other electronic chemical businesses.

Bai Wenxi further analyzed that Duofuduoduo’s announcement is a compliance clarification rather than an attempt to shift blame, but it exposes acquisition risk control flaws. The company emphasized in the statement that it has “no business cooperation” with Shufu Xiang and Zengqiao Food. This clarification is legally valid—the exposure on CCTV involved individual actions of Yifeng Electronics’ sales staff, not authorized company-level cooperation. However, completely attributing responsibility to the subsidiary’s individual behavior may be seen as avoiding core issues; the real problem lies in acquisition risk control. Duofuduoduo only acquired 54% of Yifeng Electronics in January 2025, paying 28.458 million yuan from related parties (controlled by the actual controller Li Shijiang). The target was already in loss (net loss of 180,100 yuan from January to October 2024). In just over a year, a major compliance scandal has emerged, revealing significant shortcomings in due diligence and post-acquisition management, and the related-party transaction background raises questions about the acquisition motives.

In Zhan Junhao’s view, “the ‘3.15’ incident may cause short-term market sentiment pressure, with stock prices likely to open lower and fluctuate.” Additionally, management reputation could face severe challenges, and investors may question internal control effectiveness. In the long term, as long as the company quickly rectifies issues and strengthens traceability and compliance, fundamentals should remain unaffected. However, governance weaknesses must be addressed promptly, or they could undermine institutional trust and long-term valuation.

This image may be AI-generated

Source: Canned Food Library

02

2025 performance just rebounded

Duofuduoduo mainly focuses on high-performance inorganic fluorides, electronic information materials, lithium-ion batteries, and related materials. Looking at recent financial data, from 2020 to 2024, the company’s performance has been volatile.

In 2020, revenue was 4.245 billion yuan; in 2022, it surged to 12.358 billion yuan; in 2023, it remained in the hundred-billion-yuan revenue range, but in 2024, it fell back to 8.207 billion yuan. Net profit attributable to shareholders was only 49 million yuan in 2020, peaked at 1.948 billion yuan in 2022, then dropped to 510 million yuan in 2023, and turned to a loss of 308 million yuan in 2024.

According to the third quarter 2025 report, Duofuduoduo’s revenue for the first three quarters was about 6.729 billion yuan, down 2.75% year-on-year; net profit attributable to shareholders was about 78.05 million yuan, up 407.74%.

Why the rollercoaster? Duofuduoduo explained that the 2024 loss was mainly due to the low price of lithium hexafluorophosphate. Although production and sales increased simultaneously, profit margins were compressed. In the second half of 2025, the price of this product rose again. Regarding the fluctuations over the years, the company said that its capacity expansion was gradual, and as capacity increased, so did the scale. The continuous low operation of main product lithium hexafluorophosphate in 2024 led to gross profit decline, but as market prices of related products increased in the second half of 2025, operating performance improved.

This image may be AI-generated

Source: Canned Food Library

Bai Wenxi analyzed that Duofuduoduo operates in a highly cyclical industry. The sharp drop in lithium hexafluorophosphate prices from 2022 to 2024 directly caused the company’s performance to fluctuate. In 2024, the gross profit margin of new energy materials fell from 38.36% in 2022 to 12.6%. Additionally, the industry is technology-intensive, with products like lithium hexafluorophosphate and electronic-grade hydrofluoric acid requiring PPT-level purity (parts per trillion), with rapid technological iteration and high R&D costs. Customer stickiness is strong—certification cycles for electrolyte manufacturers are long, and once integrated into the supply chain, switching is difficult. However, price wars make customer relationships fragile.

Bai Wenxi believes that Duofuduoduo’s core challenge is overcapacity and price competition. In 2023, when lithium hexafluorophosphate prices plummeted, the company’s capacity utilization rate had already fallen to 70%, yet it still expanded capacity, leading to over 300 million yuan in inventory and fixed asset impairments in 2024.

He further explained that during the industry downturn, Duofuduoduo did not adopt cautious strategies but instead aggressively expanded and engaged in cross-border acquisitions (such as Yifeng Electronics), resulting in high depreciation and financial costs. In 2024, some production lines in the new energy battery sector showed impairment signs, combined with inventory impairments totaling about 366 million yuan. Moreover, the company’s downstream lithium battery business has yet to achieve scale, facing continued losses under the squeeze from giants like CATL and BYD, becoming a burden on performance.

This image may be AI-generated

Source: Canned Food Library

03

“Family business” exposes governance flaws

Duofuduoduo’s founder is Li Shijiang, who directly and indirectly holds 11.92% of the listed company’s shares, making him the actual controller.

Tianyancha shows that Li Shijiang’s family holds shares in the listed company through Duofuduoduo Group, including his 47-year-old son Li Yunfeng, who is general manager, and his 51-year-old eldest daughter Li Lingyun, who is vice chairman. In 2024, Li Lingyun’s annual salary was 2.28 million yuan, 1.08 million more than her father and brother.

The 2021 Hurun Rich List ranked Li Shijiang and Li Lingyun at 1,123rd with 6.5 billion yuan, making them “Henan Wenxian’s richest.”

Li Shijiang, 77, holds a master’s degree, is a senior economist, and served in the military from 1968 to 1973. He took over a failing ice crystal factory in 1994, led the management buyout and state-owned enterprise restructuring of Duofuduoduo in 2003, broke foreign monopoly on lithium hexafluorophosphate in 2006, and pushed for Duofuduoduo’s listing on the Shenzhen Stock Exchange in 2010. He previously held positions such as deputy head of equipment department at Henan Wenxian Fertilizer Plant, director of the technical department, director of the petrochemical second factory, deputy factory director of Henan Wenxian Paper Mill, and factory director of Jiaozuo Boron Chemical Plant.

This image may be AI-generated

Source: Canned Food Library

Duofuduoduo’s official website states that in an interview in 2023, Li Shijiang said the company is committed to the research and industrialization of fluorine, lithium, and silicon elements, focusing on materials and energy systems. The company’s development is clear and goal-oriented, with four main business segments: fluorine-based new materials, new energy materials, electronic information materials, and new energy batteries, all showing vigorous growth. Regarding future plans, Li Shijiang said that new materials are a trend, and Duofuduoduo will seize the opportunity. The company will continue exploring and surpassing its strategic path of “new materials supporting new energy, new energy driving new materials.”

Bai Wenxi analyzed that the company faces three major challenges: first, insufficient cycle management; Li Shijiang is good at technological breakthroughs but overly aggressive in responding to industry cyclicality. During the decline of lithium hexafluorophosphate prices, the company still expanded capacity, leading to huge impairments in 2024, reflecting a lack of strategic resilience and risk control. Second, corporate governance is lagging; Duofuduoduo exhibits typical family business traits, with frequent related-party transactions (such as the Yifeng Electronics acquisition). The recent scandal exposes governance loopholes, requiring a shift from “people-based” to “system-based” management. Third, the second growth curve is slow to develop; although the company is trying to diversify into electronic chemicals and semiconductor materials, revenue still heavily depends on lithium hexafluorophosphate. With gross margins of new energy materials falling to 12.6%, there is an urgent need to accelerate industrialization of high-value products like LiFSI and electronic-grade gases, which requires ongoing R&D and talent development—an especially critical challenge for the 77-year-old founder balancing inheritance and innovation.

Bai Wenxi believes that the “3.15” incident is a wake-up call for Duofuduoduo, with limited financial impact but clear governance flaws. During industry downturns, the focus should be on cost reduction and efficiency, not on acquiring loss-making assets through related-party transactions. For Li Shijiang, transforming personal heroism and innovation into sustainable organizational capability is key to whether Duofuduoduo can survive the cycle.

What are your thoughts on the “bleached chicken feet” incident? Feel free to share in the comments.

Author’s note: Personal opinions only, for reference.