Foshan Haitian Flavouring and Food Co., Ltd. (hereinafter referred to as Haitian Flavour) recently announced its plan to issue H-shares and list on the main board of the Hong Kong Stock Exchange. This means that the "king of soy sauce," which is already listed on the A-share market with a current market value of 260 billion yuan, is officially moving ahead with an IPO in Hong Kong.
Over the past 30 years, under the leadership of Pang Kang, Haitian Flavour has grown from a soy sauce factory in Foshan to the largest condiment company in China. Since its listing in 2014, the company's stock price has continuously hit new historical highs.
In September 2024, Pang Kang handed over the reins of Haitian Flavour to its "second-in-command," Cheng Xue, making her the first female leader in the company's history. Now, she is set to lead Haitian Flavour through its Hong Kong IPO.
Cheng Xue, aged 54, is known for her low profile. She began appearing in the management team of Haitian Flavour in the 1990s and has always closely followed Pang Kang. According to the company's 2014 listing announcement, Cheng served as the company's Director of Corporate Planning, Vice President, and Board Director from 1997 to 2010. By the time Haitian Flavour went public in 2014, Cheng had become the company's Vice Chairman and Executive Vice President.
In fact, when Haitian Flavour started its stock reform in 1995, Cheng Xue was one of the more than 700 employees who participated in the subscription. By the time the company went public, she directly held 25.11 million shares and also held shares indirectly through Haitian Group. Her shareholding was second only to Pang Kang’s, and like Pang Kang, she became one of the company's joint controllers.
Cheng Xue started to attract external attention in late 2022 when she was appointed as the Executive President of Haitian Flavour, a change that was seen as a sign of the company's internal leadership transition. In September 2024, Haitian Flavour convened its 6th Board of Directors' first meeting, announcing the election of Cheng Xue as the new Chairwoman. The board members include Cheng Xue, Guan Jianghua, Huang Wenbiao, and other directors, with a three-year term.
Taking the helm of the 260 billion yuan company, Cheng Xue has transitioned from a worker to the leader and is now known as the "Soy Sauce Queen."
Only three months after Cheng Xue took over, Haitian Flavour made a crucial step forward. On December 11, Haitian Flavour held its 6th Board of Directors' third meeting and its 6th Supervisory Board's third meeting, during which they approved the proposal to hire an audit firm for the H-share issuance and Hong Kong listing. KPMG was appointed as the auditor for the H-share offering, marking the official start of the company's listing in Hong Kong under Cheng Xue's leadership.
According to the official website of Haitian Flavour, the company produces a wide range of products including soy sauce, oyster sauce, ketchup, vinegar, cooking wine, seasoning sauce, chicken essence, chicken powder, fermented tofu, hot pot base materials, and more. With nearly 1000 specifications across dozens of product lines, the company’s annual output value exceeds 20 billion yuan.
In recent years, Haitian Flavour has faced new challenges. In 2023, the company saw its first revenue decline in nearly a decade, and net profit continued its downward trend from the previous year. However, in the first three quarters of 2024, the company’s performance showed a recovery with a revenue of 20.399 billion yuan and net profit attributable to shareholders of 4.815 billion yuan, representing year-on-year growth of 9.38% and 11.23%, respectively.
Cheng Xue had previously stated that the company's performance was affected by multiple factors. During the reporting period, the external environment remained complex and volatile. The company responded proactively, accelerating its transformation and innovation. Therefore, the Hong Kong listing is her first major decision after taking office.
As mentioned in the announcement, in order to further advance its global strategy and enhance its international brand image and overall competitiveness, Haitian Flavour will fully consider the interests of existing shareholders and the conditions of both domestic and international capital markets. The company will choose an appropriate timing and issuance window to complete the offering and listing during the validity period of the shareholders’ meeting resolution.
