QIANHE(SH:603027) Zhong Guo Jing Ji Wang·2025-12-15 01:33Core Viewpoint - Qianhe Flavor Industry Co., Ltd. has experienced a decline in both revenue and net profit in the first three quarters of 2025, attributed to a brand trust crisis stemming from a detection scandal, reflecting a shift in the condiment industry from rapid growth to high-quality development [1][2]. Group 1: Company Performance - In the first three quarters of 2025, Qianhe Flavor achieved revenue of 1.987 billion yuan, a year-on-year decrease of 13.17%, and a net profit of 260 million yuan, down 26.13% [3]. - The third quarter alone saw revenue of 669 million yuan, a decline of 4.29%, and a net profit of approximately 86.34 million yuan, down 14.55% [3]. - The main offline channel revenue was 1.68 billion yuan, down 8.65%, while online sales were significantly weaker at 268 million yuan, down 33.84% [3]. Group 2: Industry Trends - The performance decline for Qianhe Flavor began in 2024, with revenue of 3.073 billion yuan, a decrease of 4.16%, and net profit of 514 million yuan, down 3.07%, ending years of consecutive growth [4]. - The number of "zero-additive" products in the condiment category surged from over 300 in Q2 2022 to over 800 by Q4 2024, with market share increasing from under 2.5% to nearly 5.5% [4]. - Major competitors like Haitian Flavor Industry have accelerated their "zero-additive" product lines, leading to intensified competition in the market [4]. Group 3: Regulatory Changes - The lack of standardized definitions for "zero-additive" products has led to confusion among consumers, with different brands interpreting the term variably [5][6]. - In March 2025, new regulations were introduced prohibiting the use of terms like "no additives" and "zero additives" on packaging, with a two-year transition period before enforcement begins in March 2027 [6][7]. - Qianhe Flavor has responded by removing "zero-additive" labels from its packaging and emphasizing transparency regarding the natural ingredients used in its products [7]. Group 4: Future Directions - The introduction of "clean label" standards aims to prioritize product quality, with new certifications focusing on natural ingredients and minimal additives [8]. - The upcoming implementation of stricter quality standards for soy sauce in December 2026 will require manufacturers to adhere to natural fermentation processes and enhance product transparency [9]. - The industry is expected to shift from marketing-driven strategies to a focus on genuine product quality and brand trust, with companies that adapt to regulatory changes and improve product quality likely to find new growth opportunities [9].