Sichuan Teway Food (SH:603317) 3 6 Ke·2025-11-28 09:13Core Viewpoint - The company Tianwei Food is planning to list on the Hong Kong Stock Exchange, aiming to become the second A+H listed company in the seasoning industry, following Haitian Flavoring and Food Co., Ltd. [1][14] Group 1: Company Overview - Tianwei Food, established in March 2007, specializes in the research, production, and sales of compound seasonings, including hot pot base and Sichuan cuisine seasonings [3][5]. - The company has a diverse brand portfolio, including "Hao Ren Jia," "Da Hong Pao," and "Tian Che," and has penetrated both restaurant and home cooking markets [3][5]. Group 2: Financial Performance - From 2019 to 2021, Tianwei Food reported revenues of 1.727 billion, 2.365 billion, and 2.026 billion RMB, with net profits of 297 million, 364 million, and 185 million RMB respectively [5]. - Revenue growth has slowed, with projected revenues of 2.691 billion, 3.149 billion, and 3.476 billion RMB for 2022 to 2024, reflecting year-on-year growth rates of 32.84%, 17.02%, and 10.41% [5][6]. - In the first three quarters of 2025, the company achieved revenues of 2.411 billion RMB, a year-on-year increase of 1.98%, but net profit decreased by 9.3% [5][6]. Group 3: Product Segmentation - The main revenue sources for Tianwei Food include hot pot seasonings, recipe seasonings, sausage and cured meat seasonings, and others [6][7]. - Recipe seasonings are the largest revenue contributor, generating 1.339 billion RMB in the first three quarters of 2025, accounting for 55.53% of total revenue [7][8]. Group 4: Market Position and Strategy - Tianwei Food is the leading company in recipe seasonings and the second-largest in hot pot seasonings in China, holding market shares of 9.7% and 4.8% respectively [8][9]. - The company has established a comprehensive marketing network with over 3,251 distributors across 31 provincial regions, covering nearly 700,000 retail outlets [9][10]. Group 5: Online and Offline Sales Channels - Offline sales remain the primary revenue source, contributing 73.15% of total revenue in the first three quarters of 2025, although this segment saw a decline of 10.35% [9][10]. - Online sales, while only accounting for 26.16% of total revenue, grew by 60.27% in the same period, indicating a shift towards digital marketing strategies [9][10]. Group 6: International Expansion and Future Plans - Tianwei Food has previously attempted international financing, including a failed GDR issuance in Switzerland, and is now focusing on its Hong Kong IPO to enhance its international brand presence [13][14]. - The funds raised from the IPO are intended for marketing, expanding sales networks, and enhancing supply chain capabilities [14][15]. Group 7: Leadership and Ownership - The founders, Deng Wen and Tang Lu, maintain significant control over the company, holding a combined 65.32% of shares [17][18]. - Since its listing, Tianwei Food has consistently paid dividends, totaling 1.561 billion RMB since 2019, with the founders receiving approximately 1.02 billion RMB in dividends [18][19].