BRIEF: Haitian Flavoring reports 2024 double-digit profit growth as it moves toward Hong Kong IPO

Foshan Haitian Flavouring and Food Co. Ltd. (603288.SH) last Thursday reported revenue and profit growth for 2024 amid a globalization drive to propel its business. The leading Shanghai-listed soy sauce and condiment maker is currently preparing for a Hong Kong listing to enhance its brand reputation and expand its reach beyond China.

Haitian reported its revenue rose 9.53% last year to 26.9 billion yuan ($3.7 billion) from 24.6 billion yuan in 2023, according to the annual report. Its 2024 net profit grew 12.75% to 6.34 billion yuan from 5.63 billion yuan a year earlier.

According to its Hong Kong listing prospectus, Haitian was the only top 10 global condiment company to achieve double-digit compound annual growth from 2013 to 2023. Haitian ranked first in the global soy sauce market with 6% share and 12.6% of the China market, and it is also the global leader in oyster sauce with 23.7% market share. The company has been the largest condiment company in China for 27 consecutive years by sales volume, and is a leader in fermentation technology, strain breeding and production equipment.

Haitian, whose history dates back more than 400 years, is making the Hong Kong listing to raise its profile outside China as part of an effort to consolidate its industry-leading position amid the growing influence of Chinese cuisine globally. The company spent over 840 million yuan on R&D last year, accounting for 3.12% of its revenue, as it worked on initiatives such as deploying digital intelligence in its soy sauce brewing at one of its factories, which it calls the first and only “Lighthouse Factory” globally in soy sauce brewing.

By Doug Young

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