English
Back
Open Account
子弹财经
wrote a column · Aug 4 06:56

Supplies Haidilao! JuHui Food is deeply mired in a 'price war'—are its seasonings becoming less profitable the more it sells?

Produced by | Bullet Finance Author | Xibo Editor | Wang Yajing Art Direction by | Qianqian Reviewed | Songwen Chongqing JuHui Food Technology Co., Ltd. (hereinafter referred to as 'JuHui Food'), the supplier behind Haidilao, Xiabu Xiabu, and Laoxiangji, is accelerating its move into the spotlight. Recently, JuHui Food officially filed its prospectus with the Hong Kong Stock Exchange, making a push for capital markets. As China’s largest third-party custom compound Chinese seasoning supplier, the company reported declines in both revenue and net profit for 2025, alongside simultaneous drops in gross and net profit margins. Prior to its IPO, investors introduced to the company had already exited early. In addition, the company faces multiple challenges, including industry-wide price competition, slowing client growth, and overreliance on a single sales channel. Amid these mounting challenges, capital markets are closely watching: can JuHui Food sustain growth going forward? 1. Supplies base ingredients to Haidilao; investors exit ahead of IPO JuHui Food was co-founded by Gou Zhongjun and Wang Bin, who are classmates and both graduated from Southwest University with degrees in Chemistry Education. After graduation, Gou Zhongjun joined the Chongqing Institute of Food Industry, marking the beginning of his career in the food industry. While providing food technology consulting services to catering enterprises, Gou Zhongjun identified a key pain point in scaling restaurant chains: the difficulty of maintaining consistent dish flavors. Since manual preparation lacks precise quantification, the larger the number of outlets, the higher the risk of flavor inconsistency. Targeting this challenge, Gou Zhongjun and Wang Bin founded Chongqing Yulai Xiang Food Co., Ltd. in 2002, ...
Produced by | Bullet Finance
Author | Xibo
Editor | Wang Yajing
Art Direction by | Qianqian
Reviewed | Songwen
JuHui Food Technology Co., Ltd. (hereinafter referred to as 'JuHui Food'), a supplier behind major brands such as Haidilao, Xiaopu Xiaopu, and Laoxiangji, is accelerating its move into the spotlight.
Recently, JuHui Food officially filed its prospectus with the Hong Kong Stock Exchange, making its debut push into the capital markets.
As China's largest third-party custom compound seasoning supplier for Chinese cuisine, the company reported declines in both revenue and net profit in 2025, accompanied by simultaneous drops in gross and net profit margins.
Prior to the IPO, investors who had previously entered the company already exited early.
In addition, the company faces multiple challenges, including intense price competition in the industry, slowing client growth, and overreliance on a single sales channel.
Amid these mounting challenges, capital markets are closely watching whether JuHui Food can sustain growth going forward.
1. Supplies base ingredients to Haidilao; investors exit ahead of IPO
JuHui Food was co-founded by Gou Zhongjun and Wang Bin, who were classmates and both graduated from the Chemistry Education program at Southwest University.
After graduation, Gou Zhongjun joined the Chongqing Institute of Food Industry, marking the beginning of his career in the food industry.
While providing food technology consulting services to catering enterprises, Gou Zhongjun identified a key pain point in scaling restaurant chains: inconsistency in dish flavors. Manual preparation could not achieve precise standardization, and the larger the number of outlets, the higher the risk of flavor inconsistency.
Addressing this challenge, Gou Zhongjun and Wang Bin founded Chongqing Yulai Xiang Food Co., Ltd. in 2002 to fulfill bulk hotpot base orders. In 2008, they jointly established Chongqing JuHui Food Co., Ltd., focusing on innovation and application in standardizing Chinese cuisine, becoming one of China’s early entrants into customized compound seasoning solutions.
JuHui Food’s growth has paralleled the broader trend of chain expansion and industrialization in China’s catering sector.In recent years, China’s catering market has gradually shifted from a highly fragmented structure toward consolidation, with leading chain brands rapidly expanding their store networks. This has created a period of rapid growth for customized seasoning suppliers. By 2025, China’s restaurant chain penetration rate is expected to reach 22.9%.
Unlike companies such as Tiantaste and Hai Di Lao International that sell hotpot bases directly to end consumers, JuHui Food focuses on B2B operations, serving chain restaurant brands that require standardized and customized seasoning products rather than individual consumers.
Reportedly, JuHui Food’s clients include Haidilao, Xiabu Xiabu, Laoxiangji, Yu Ni Zai Yi Qi, and Mengziyuan, with its products supporting over 130,000 restaurant outlets in total.
Produced by | Bullet Finance Author | Xibo Editor | Wang Yajing Art Direction by | Qianqian Reviewed | Songwen Chongqing JuHui Food Technology Co., Ltd. (hereinafter referred to as 'JuHui Food'), the supplier behind Haidilao, Xiabu Xiabu, and Laoxiangji, is accelerating its move into the spotlight. Recently, JuHui Food officially filed its prospectus with the Hong Kong Stock Exchange, making a push for capital markets. As China’s largest third-party custom compound Chinese seasoning supplier, the company reported declines in both revenue and net profit for 2025, alongside simultaneous drops in gross and net profit margins. Prior to its IPO, investors introduced to the company had already exited early. In addition, the company faces multiple challenges, including industry-wide price competition, slowing client growth, and overreliance on a single sales channel. Amid these mounting challenges, capital markets are closely watching: can JuHui Food sustain growth going forward? 1. Supplies base ingredients to Haidilao; investors exit ahead of IPO JuHui Food was co-founded by Gou Zhongjun and Wang Bin, who are classmates and both graduated from Southwest University with degrees in Chemistry Education. After graduation, Gou Zhongjun joined the Chongqing Institute of Food Industry, marking the beginning of his career in the food industry. While providing food technology consulting services to catering enterprises, Gou Zhongjun identified a key pain point in scaling restaurant chains: the difficulty of maintaining consistent dish flavors. Since manual preparation lacks precise quantification, the larger the number of outlets, the higher the risk of flavor inconsistency. Targeting this challenge, Gou Zhongjun and Wang Bin founded Chongqing Yulai Xiang Food Co., Ltd. in 2002, ...
(Image / JuHui Food IPO prospectus)
JuHui Food’s rapid growth has also attracted significant interest from external investors.In March 2021, JuHui Foods conducted a targeted issuance of Series A preferred shares, raising USD 140 million from four institutional investors, including CPE Yuanfeng and Matrix Partners China.
At the same time, JuHui Foods also entered into a valuation adjustment mechanism (VAM) agreement with the investors.
According to the prospectus, these four investors were granted rights including voluntary conversion into common shares, automatic conversion upon an IPO, and priority dividend distribution. The agreement also stipulated that if JuHui Foods failed to complete its initial public offering within three years following the Series A financing, or encountered significant compliance-related issues, the investors would have the right to require the company to redeem their shares at the original investment amount plus 8% annual simple interest and any unpaid dividends.
Produced by | Bullet Finance Author | Xibo Editor | Wang Yajing Art Direction by | Qianqian Reviewed | Songwen Chongqing JuHui Food Technology Co., Ltd. (hereinafter referred to as 'JuHui Food'), the supplier behind Haidilao, Xiabu Xiabu, and Laoxiangji, is accelerating its move into the spotlight. Recently, JuHui Food officially filed its prospectus with the Hong Kong Stock Exchange, making a push for capital markets. As China’s largest third-party custom compound Chinese seasoning supplier, the company reported declines in both revenue and net profit for 2025, alongside simultaneous drops in gross and net profit margins. Prior to its IPO, investors introduced to the company had already exited early. In addition, the company faces multiple challenges, including industry-wide price competition, slowing client growth, and overreliance on a single sales channel. Amid these mounting challenges, capital markets are closely watching: can JuHui Food sustain growth going forward? 1. Supplies base ingredients to Haidilao; investors exit ahead of IPO JuHui Food was co-founded by Gou Zhongjun and Wang Bin, who are classmates and both graduated from Southwest University with degrees in Chemistry Education. After graduation, Gou Zhongjun joined the Chongqing Institute of Food Industry, marking the beginning of his career in the food industry. While providing food technology consulting services to catering enterprises, Gou Zhongjun identified a key pain point in scaling restaurant chains: the difficulty of maintaining consistent dish flavors. Since manual preparation lacks precise quantification, the larger the number of outlets, the higher the risk of flavor inconsistency. Targeting this challenge, Gou Zhongjun and Wang Bin founded Chongqing Yulai Xiang Food Co., Ltd. in 2002, ...
(Image / JuHui Foods Prospectus)
In July 2022, the company revised the redemption clause with its investors. Both parties agreed that JuHui Foods would repurchase half of the preferred shares at original cost, extend the IPO-triggered redemption deadline to five years, and adjust the interest calculation method.
Just over a year after the financing closed, JuHui Foods had already returned half of the principal to investors, indirectly suggesting that the company’s IPO timeline may have fallen short of early expectations.
Subsequently, both parties reached additional repurchase agreements in April 2024 and May 2025, under which JuHui Foods repurchased all remaining preferred shares at the initial principal amount, waiving all accrued interest. Full repayment was completed in May 2025, and all related special shareholder rights were terminated accordingly.
The investors ultimately exited by forgoing all interest income and recovering their full principal.This outcome may reflect that, after a prolonged wait, institutional investors’ confidence in JuHui Foods’ near-term ability to successfully access capital markets has steadily weakened. Unwilling to bear further uncertainty from IPO delays, they opted to secure their capital and exit.
2. Market share of only 7.6%, trapped in a vicious cycle of 'selling more but earning less'
Juhui Food's core business is customized compound seasonings, which account for more than 95% of its revenue.
Customized compound seasonings fall into two main categories: the first includes hotpot seasonings, primarily hotpot base sauces such as traditional Chongqing hotpot and regional specialty hotpot flavors; the second comprises non-hotpot compound seasonings, including sauces, pastes, soup bases, powder blends, and other formulated recipes.
Produced by | Bullet Finance Author | Xibo Editor | Wang Yajing Art Direction by | Qianqian Reviewed | Songwen Chongqing JuHui Food Technology Co., Ltd. (hereinafter referred to as 'JuHui Food'), the supplier behind Haidilao, Xiabu Xiabu, and Laoxiangji, is accelerating its move into the spotlight. Recently, JuHui Food officially filed its prospectus with the Hong Kong Stock Exchange, making a push for capital markets. As China’s largest third-party custom compound Chinese seasoning supplier, the company reported declines in both revenue and net profit for 2025, alongside simultaneous drops in gross and net profit margins. Prior to its IPO, investors introduced to the company had already exited early. In addition, the company faces multiple challenges, including industry-wide price competition, slowing client growth, and overreliance on a single sales channel. Amid these mounting challenges, capital markets are closely watching: can JuHui Food sustain growth going forward? 1. Supplies base ingredients to Haidilao; investors exit ahead of IPO JuHui Food was co-founded by Gou Zhongjun and Wang Bin, who are classmates and both graduated from Southwest University with degrees in Chemistry Education. After graduation, Gou Zhongjun joined the Chongqing Institute of Food Industry, marking the beginning of his career in the food industry. While providing food technology consulting services to catering enterprises, Gou Zhongjun identified a key pain point in scaling restaurant chains: the difficulty of maintaining consistent dish flavors. Since manual preparation lacks precise quantification, the larger the number of outlets, the higher the risk of flavor inconsistency. Targeting this challenge, Gou Zhongjun and Wang Bin founded Chongqing Yulai Xiang Food Co., Ltd. in 2002, ...
(Image / Juhui Food IPO prospectus)
According to the prospectus, Juhui Food has cumulatively launched 3,142 new products for its customized compound seasoning clients.Based on data from Frost & Sullivan, as measured by the number of partner outlets in 2025, four out of China’s top five hotpot chain brands have already partnered with Juhui Food. In terms of revenue scale in 2025, the company ranked first among domestic third-party providers of customized Chinese-style compound seasonings, with a market share of 7.6%.
Produced by | Bullet Finance Author | Xibo Editor | Wang Yajing Art Direction by | Qianqian Reviewed | Songwen Chongqing JuHui Food Technology Co., Ltd. (hereinafter referred to as 'JuHui Food'), the supplier behind Haidilao, Xiabu Xiabu, and Laoxiangji, is accelerating its move into the spotlight. Recently, JuHui Food officially filed its prospectus with the Hong Kong Stock Exchange, making a push for capital markets. As China’s largest third-party custom compound Chinese seasoning supplier, the company reported declines in both revenue and net profit for 2025, alongside simultaneous drops in gross and net profit margins. Prior to its IPO, investors introduced to the company had already exited early. In addition, the company faces multiple challenges, including industry-wide price competition, slowing client growth, and overreliance on a single sales channel. Amid these mounting challenges, capital markets are closely watching: can JuHui Food sustain growth going forward? 1. Supplies base ingredients to Haidilao; investors exit ahead of IPO JuHui Food was co-founded by Gou Zhongjun and Wang Bin, who are classmates and both graduated from Southwest University with degrees in Chemistry Education. After graduation, Gou Zhongjun joined the Chongqing Institute of Food Industry, marking the beginning of his career in the food industry. While providing food technology consulting services to catering enterprises, Gou Zhongjun identified a key pain point in scaling restaurant chains: the difficulty of maintaining consistent dish flavors. Since manual preparation lacks precise quantification, the larger the number of outlets, the higher the risk of flavor inconsistency. Targeting this challenge, Gou Zhongjun and Wang Bin founded Chongqing Yulai Xiang Food Co., Ltd. in 2002, ...
Produced by | Bullet Finance Author | Xibo Editor | Wang Yajing Art Direction by | Qianqian Reviewed | Songwen Chongqing JuHui Food Technology Co., Ltd. (hereinafter referred to as 'JuHui Food'), the supplier behind Haidilao, Xiabu Xiabu, and Laoxiangji, is accelerating its move into the spotlight. Recently, JuHui Food officially filed its prospectus with the Hong Kong Stock Exchange, making a push for capital markets. As China’s largest third-party custom compound Chinese seasoning supplier, the company reported declines in both revenue and net profit for 2025, alongside simultaneous drops in gross and net profit margins. Prior to its IPO, investors introduced to the company had already exited early. In addition, the company faces multiple challenges, including industry-wide price competition, slowing client growth, and overreliance on a single sales channel. Amid these mounting challenges, capital markets are closely watching: can JuHui Food sustain growth going forward? 1. Supplies base ingredients to Haidilao; investors exit ahead of IPO JuHui Food was co-founded by Gou Zhongjun and Wang Bin, who are classmates and both graduated from Southwest University with degrees in Chemistry Education. After graduation, Gou Zhongjun joined the Chongqing Institute of Food Industry, marking the beginning of his career in the food industry. While providing food technology consulting services to catering enterprises, Gou Zhongjun identified a key pain point in scaling restaurant chains: the difficulty of maintaining consistent dish flavors. Since manual preparation lacks precise quantification, the larger the number of outlets, the higher the risk of flavor inconsistency. Targeting this challenge, Gou Zhongjun and Wang Bin founded Chongqing Yulai Xiang Food Co., Ltd. in 2002, ...
(Image / Juhui Food IPO prospectus)
Behind the 'industry leader' accolade, however, Juhui Food’s financial performance has shown signs of decline.
During the reporting period—comprising the full years 2023 to 2025 and the first three months of 2026—Juhui Food reported revenues of RMB 1.03 billion, RMB 1.136 billion, RMB 1.106 billion, and RMB 297 million, respectively, and net profits of RMB 123 million, RMB 153 million, RMB 125 million, and RMB 29.732 million, respectively.
Produced by | Bullet Finance Author | Xibo Editor | Wang Yajing Art Direction by | Qianqian Reviewed | Songwen Chongqing JuHui Food Technology Co., Ltd. (hereinafter referred to as 'JuHui Food'), the supplier behind Haidilao, Xiabu Xiabu, and Laoxiangji, is accelerating its move into the spotlight. Recently, JuHui Food officially filed its prospectus with the Hong Kong Stock Exchange, making a push for capital markets. As China’s largest third-party custom compound Chinese seasoning supplier, the company reported declines in both revenue and net profit for 2025, alongside simultaneous drops in gross and net profit margins. Prior to its IPO, investors introduced to the company had already exited early. In addition, the company faces multiple challenges, including industry-wide price competition, slowing client growth, and overreliance on a single sales channel. Amid these mounting challenges, capital markets are closely watching: can JuHui Food sustain growth going forward? 1. Supplies base ingredients to Haidilao; investors exit ahead of IPO JuHui Food was co-founded by Gou Zhongjun and Wang Bin, who are classmates and both graduated from Southwest University with degrees in Chemistry Education. After graduation, Gou Zhongjun joined the Chongqing Institute of Food Industry, marking the beginning of his career in the food industry. While providing food technology consulting services to catering enterprises, Gou Zhongjun identified a key pain point in scaling restaurant chains: the difficulty of maintaining consistent dish flavors. Since manual preparation lacks precise quantification, the larger the number of outlets, the higher the risk of flavor inconsistency. Targeting this challenge, Gou Zhongjun and Wang Bin founded Chongqing Yulai Xiang Food Co., Ltd. in 2002, ...
(Image / Juhui Food IPO prospectus)
This indicates that in 2025, both Juhui Food’s revenue and net profit declined year-over-year.
Zidan Finance noted thatWhile revenue declined, JuHui Foods’ product sales volume actually continued to grow.
During the reporting periods, JuHui Foods’ sales volume of compound seasonings amounted to 47,700 tons, 53,600 tons, 55,400 tons, and 15,300 tons, respectively.
Produced by | Bullet Finance Author | Xibo Editor | Wang Yajing Art Direction by | Qianqian Reviewed | Songwen Chongqing JuHui Food Technology Co., Ltd. (hereinafter referred to as 'JuHui Food'), the supplier behind Haidilao, Xiabu Xiabu, and Laoxiangji, is accelerating its move into the spotlight. Recently, JuHui Food officially filed its prospectus with the Hong Kong Stock Exchange, making a push for capital markets. As China’s largest third-party custom compound Chinese seasoning supplier, the company reported declines in both revenue and net profit for 2025, alongside simultaneous drops in gross and net profit margins. Prior to its IPO, investors introduced to the company had already exited early. In addition, the company faces multiple challenges, including industry-wide price competition, slowing client growth, and overreliance on a single sales channel. Amid these mounting challenges, capital markets are closely watching: can JuHui Food sustain growth going forward? 1. Supplies base ingredients to Haidilao; investors exit ahead of IPO JuHui Food was co-founded by Gou Zhongjun and Wang Bin, who are classmates and both graduated from Southwest University with degrees in Chemistry Education. After graduation, Gou Zhongjun joined the Chongqing Institute of Food Industry, marking the beginning of his career in the food industry. While providing food technology consulting services to catering enterprises, Gou Zhongjun identified a key pain point in scaling restaurant chains: the difficulty of maintaining consistent dish flavors. Since manual preparation lacks precise quantification, the larger the number of outlets, the higher the risk of flavor inconsistency. Targeting this challenge, Gou Zhongjun and Wang Bin founded Chongqing Yulai Xiang Food Co., Ltd. in 2002, ...
(Figure / JuHui Foods IPO prospectus)
In other words, in 2025, JuHui Foods sold more compound seasonings but generated lower revenue and profits, which is linked to declining product prices.
During the reporting periods, the average selling price of JuHui Foods’ products was RMB 21.6/kg, RMB 21.2/kg, RMB 20.0/kg, and RMB 19.4/kg, respectively, reflecting a continuous year-over-year decline.
In its IPO prospectus, JuHui Foods stated that the company proactively adjusted its pricing strategy to respond to industry competition and expand market share—essentially joining the ongoing 'price war' to maintain competitiveness in the seasoning sector.
With an increasing number of companies entering the compound seasonings segment and chain restaurant clients gaining stronger bargaining power in procurement, prices have remained under persistent pressure, placing significant strain on JuHui Foods’ profitability.
During the reporting periods, JuHui Foods’ gross margin stood at 30.5%, 33.4%, 30.7%, and 30.2%, respectively. After rising in 2024, the gross margin quickly declined in 2025, and this downward trend continued into early 2026.
Produced by | Bullet Finance Author | Xibo Editor | Wang Yajing Art Direction by | Qianqian Reviewed | Songwen Chongqing JuHui Food Technology Co., Ltd. (hereinafter referred to as 'JuHui Food'), the supplier behind Haidilao, Xiabu Xiabu, and Laoxiangji, is accelerating its move into the spotlight. Recently, JuHui Food officially filed its prospectus with the Hong Kong Stock Exchange, making a push for capital markets. As China’s largest third-party custom compound Chinese seasoning supplier, the company reported declines in both revenue and net profit for 2025, alongside simultaneous drops in gross and net profit margins. Prior to its IPO, investors introduced to the company had already exited early. In addition, the company faces multiple challenges, including industry-wide price competition, slowing client growth, and overreliance on a single sales channel. Amid these mounting challenges, capital markets are closely watching: can JuHui Food sustain growth going forward? 1. Supplies base ingredients to Haidilao; investors exit ahead of IPO JuHui Food was co-founded by Gou Zhongjun and Wang Bin, who are classmates and both graduated from Southwest University with degrees in Chemistry Education. After graduation, Gou Zhongjun joined the Chongqing Institute of Food Industry, marking the beginning of his career in the food industry. While providing food technology consulting services to catering enterprises, Gou Zhongjun identified a key pain point in scaling restaurant chains: the difficulty of maintaining consistent dish flavors. Since manual preparation lacks precise quantification, the larger the number of outlets, the higher the risk of flavor inconsistency. Targeting this challenge, Gou Zhongjun and Wang Bin founded Chongqing Yulai Xiang Food Co., Ltd. in 2002, ...
(Figure / JuHui Foods IPO prospectus)
Specifically, the gross margin of its core hotpot compound seasoning products was 30.5%, 32.2%, 29.4%, and 28.8% during the reporting periods, representing a cumulative decline of 1.7 percentage points.Regarding the decline in gross margin, JuHui Foods similarly attributed it to proactively adjusting pricing in response to intensifying market competition.
Moreover, during the reporting periods, JuHui Foods’ net profit margins were 12.0%, 13.5%, 11.3%, and 10.0%, respectively, showing a clear downward trend.It is evident that the strategy of actively lowering prices to gain market share has boosted sales volume while continuously squeezing overall profitability, resulting in an awkward situation where 'the more it sells, the cheaper it gets—and the less it earns.'
3. Heavy reliance on B2B clients—where is the second growth curve?
For its B2B enterprise customers, JuHui Foods has developed a product portfolio comprising both customized and standardized products.
Customized products are specifically developed for certain restaurant chains and food processing companies, while standardized products use fixed formulations and offer more consistent flavor profiles. As of March 31, 2026, the company offered over 19,000 SKUs.
Produced by | Bullet Finance Author | Xibo Editor | Wang Yajing Art Direction by | Qianqian Reviewed | Songwen Chongqing JuHui Food Technology Co., Ltd. (hereinafter referred to as 'JuHui Food'), the supplier behind Haidilao, Xiabu Xiabu, and Laoxiangji, is accelerating its move into the spotlight. Recently, JuHui Food officially filed its prospectus with the Hong Kong Stock Exchange, making a push for capital markets. As China’s largest third-party custom compound Chinese seasoning supplier, the company reported declines in both revenue and net profit for 2025, alongside simultaneous drops in gross and net profit margins. Prior to its IPO, investors introduced to the company had already exited early. In addition, the company faces multiple challenges, including industry-wide price competition, slowing client growth, and overreliance on a single sales channel. Amid these mounting challenges, capital markets are closely watching: can JuHui Food sustain growth going forward? 1. Supplies base ingredients to Haidilao; investors exit ahead of IPO JuHui Food was co-founded by Gou Zhongjun and Wang Bin, who are classmates and both graduated from Southwest University with degrees in Chemistry Education. After graduation, Gou Zhongjun joined the Chongqing Institute of Food Industry, marking the beginning of his career in the food industry. While providing food technology consulting services to catering enterprises, Gou Zhongjun identified a key pain point in scaling restaurant chains: the difficulty of maintaining consistent dish flavors. Since manual preparation lacks precise quantification, the larger the number of outlets, the higher the risk of flavor inconsistency. Targeting this challenge, Gou Zhongjun and Wang Bin founded Chongqing Yulai Xiang Food Co., Ltd. in 2002, ...
(Image / JuHui Foods IPO Prospectus)
JuHui Foods operates its standardized product lines under two proprietary brands: 'Hotpot Cube' and 'Chuan Haomei.' 'Hotpot Cube' is a dedicated brand focused exclusively on the hotpot segment, while 'Chuan Haomei' targets non-hotpot compound seasonings.
Both brands primarily serve small and medium-sized restaurant operators and cover a wide range of Chinese culinary applications.
Produced by | Bullet Finance Author | Xibo Editor | Wang Yajing Art Direction by | Qianqian Reviewed | Songwen Chongqing JuHui Food Technology Co., Ltd. (hereinafter referred to as 'JuHui Food'), the supplier behind Haidilao, Xiabu Xiabu, and Laoxiangji, is accelerating its move into the spotlight. Recently, JuHui Food officially filed its prospectus with the Hong Kong Stock Exchange, making a push for capital markets. As China’s largest third-party custom compound Chinese seasoning supplier, the company reported declines in both revenue and net profit for 2025, alongside simultaneous drops in gross and net profit margins. Prior to its IPO, investors introduced to the company had already exited early. In addition, the company faces multiple challenges, including industry-wide price competition, slowing client growth, and overreliance on a single sales channel. Amid these mounting challenges, capital markets are closely watching: can JuHui Food sustain growth going forward? 1. Supplies base ingredients to Haidilao; investors exit ahead of IPO JuHui Food was co-founded by Gou Zhongjun and Wang Bin, who are classmates and both graduated from Southwest University with degrees in Chemistry Education. After graduation, Gou Zhongjun joined the Chongqing Institute of Food Industry, marking the beginning of his career in the food industry. While providing food technology consulting services to catering enterprises, Gou Zhongjun identified a key pain point in scaling restaurant chains: the difficulty of maintaining consistent dish flavors. Since manual preparation lacks precise quantification, the larger the number of outlets, the higher the risk of flavor inconsistency. Targeting this challenge, Gou Zhongjun and Wang Bin founded Chongqing Yulai Xiang Food Co., Ltd. in 2002, ...
(Image / JuHui Foods IPO Prospectus)
However, during the reporting period, revenue from standardized customized products has not yet reached a significant scale, accounting for less than 5% of total revenue.
Ju Hui Foods' greatest strength lies in its B2B segment, with deep integration into chain restaurant brands.According to the prospectus, as of the end of March 2026, the company had established 30 application centers, forming a nationwide service network. Additionally, the average cooperation duration with its top ten customers reached 6.7 years.
From 2023 to 2025, Ju Hui Foods' customer repurchase rates were 54.2%, 55.4%, and 72.1%, respectively, reflecting rapid growth in repurchase rates.
However, Ju Hui Foods is heavily reliant on B2B clients, and its direct-to-consumer (B2C) business remains very limited. Although the company holds multiple trademarks such as Huoguo Magic, Chuan Haomei, and Laoyouji, the product development, packaging specifications, and pricing strategies for these brands are all tailored specifically for commercial kitchen use in restaurants, rather than targeting end consumers directly.
The company also candidly acknowledged in its prospectus that it does not currently operate independent consumer-facing brands.
Clearly, Ju Hui Foods' performance is deeply tied to the restaurant industry, and its future growth will continue to depend heavily on the recovery of China's restaurant market and expansion by chain restaurant brands. Any slowdown in new restaurant openings or store closures by downstream chain brands would exert significant pressure on the company’s performance.
Take Haidilao, one of the company’s key major clients, as an example: between 2023 and 2025, Haidilao operated 1,374, 1,368, and 1,383 restaurants, respectively, maintaining a generally stable store count without significant expansion.
Produced by | Bullet Finance Author | Xibo Editor | Wang Yajing Art Direction by | Qianqian Reviewed | Songwen Chongqing JuHui Food Technology Co., Ltd. (hereinafter referred to as 'JuHui Food'), the supplier behind Haidilao, Xiabu Xiabu, and Laoxiangji, is accelerating its move into the spotlight. Recently, JuHui Food officially filed its prospectus with the Hong Kong Stock Exchange, making a push for capital markets. As China’s largest third-party custom compound Chinese seasoning supplier, the company reported declines in both revenue and net profit for 2025, alongside simultaneous drops in gross and net profit margins. Prior to its IPO, investors introduced to the company had already exited early. In addition, the company faces multiple challenges, including industry-wide price competition, slowing client growth, and overreliance on a single sales channel. Amid these mounting challenges, capital markets are closely watching: can JuHui Food sustain growth going forward? 1. Supplies base ingredients to Haidilao; investors exit ahead of IPO JuHui Food was co-founded by Gou Zhongjun and Wang Bin, who are classmates and both graduated from Southwest University with degrees in Chemistry Education. After graduation, Gou Zhongjun joined the Chongqing Institute of Food Industry, marking the beginning of his career in the food industry. While providing food technology consulting services to catering enterprises, Gou Zhongjun identified a key pain point in scaling restaurant chains: the difficulty of maintaining consistent dish flavors. Since manual preparation lacks precise quantification, the larger the number of outlets, the higher the risk of flavor inconsistency. Targeting this challenge, Gou Zhongjun and Wang Bin founded Chongqing Yulai Xiang Food Co., Ltd. in 2002, ...
Produced by | Bullet Finance Author | Xibo Editor | Wang Yajing Art Direction by | Qianqian Reviewed | Songwen Chongqing JuHui Food Technology Co., Ltd. (hereinafter referred to as 'JuHui Food'), the supplier behind Haidilao, Xiabu Xiabu, and Laoxiangji, is accelerating its move into the spotlight. Recently, JuHui Food officially filed its prospectus with the Hong Kong Stock Exchange, making a push for capital markets. As China’s largest third-party custom compound Chinese seasoning supplier, the company reported declines in both revenue and net profit for 2025, alongside simultaneous drops in gross and net profit margins. Prior to its IPO, investors introduced to the company had already exited early. In addition, the company faces multiple challenges, including industry-wide price competition, slowing client growth, and overreliance on a single sales channel. Amid these mounting challenges, capital markets are closely watching: can JuHui Food sustain growth going forward? 1. Supplies base ingredients to Haidilao; investors exit ahead of IPO JuHui Food was co-founded by Gou Zhongjun and Wang Bin, who are classmates and both graduated from Southwest University with degrees in Chemistry Education. After graduation, Gou Zhongjun joined the Chongqing Institute of Food Industry, marking the beginning of his career in the food industry. While providing food technology consulting services to catering enterprises, Gou Zhongjun identified a key pain point in scaling restaurant chains: the difficulty of maintaining consistent dish flavors. Since manual preparation lacks precise quantification, the larger the number of outlets, the higher the risk of flavor inconsistency. Targeting this challenge, Gou Zhongjun and Wang Bin founded Chongqing Yulai Xiang Food Co., Ltd. in 2002, ...
Produced by | Bullet Finance Author | Xibo Editor | Wang Yajing Art Direction by | Qianqian Reviewed | Songwen Chongqing JuHui Food Technology Co., Ltd. (hereinafter referred to as 'JuHui Food'), the supplier behind Haidilao, Xiabu Xiabu, and Laoxiangji, is accelerating its move into the spotlight. Recently, JuHui Food officially filed its prospectus with the Hong Kong Stock Exchange, making a push for capital markets. As China’s largest third-party custom compound Chinese seasoning supplier, the company reported declines in both revenue and net profit for 2025, alongside simultaneous drops in gross and net profit margins. Prior to its IPO, investors introduced to the company had already exited early. In addition, the company faces multiple challenges, including industry-wide price competition, slowing client growth, and overreliance on a single sales channel. Amid these mounting challenges, capital markets are closely watching: can JuHui Food sustain growth going forward? 1. Supplies base ingredients to Haidilao; investors exit ahead of IPO JuHui Food was co-founded by Gou Zhongjun and Wang Bin, who are classmates and both graduated from Southwest University with degrees in Chemistry Education. After graduation, Gou Zhongjun joined the Chongqing Institute of Food Industry, marking the beginning of his career in the food industry. While providing food technology consulting services to catering enterprises, Gou Zhongjun identified a key pain point in scaling restaurant chains: the difficulty of maintaining consistent dish flavors. Since manual preparation lacks precise quantification, the larger the number of outlets, the higher the risk of flavor inconsistency. Targeting this challenge, Gou Zhongjun and Wang Bin founded Chongqing Yulai Xiang Food Co., Ltd. in 2002, ...
(Chart / Haidilao’s 2023, 2024, and 2025 financial reports)
Moreover, from 2023 to 2025, Xibei Xibei’s number of stores (excluding CoCo, and including both domestic and overseas locations) stood at 833, 760, and 758, respectively, indicating a continued decline in its store footprint.
Produced by | Bullet Finance Author | Xibo Editor | Wang Yajing Art Direction by | Qianqian Reviewed | Songwen Chongqing JuHui Food Technology Co., Ltd. (hereinafter referred to as 'JuHui Food'), the supplier behind Haidilao, Xiabu Xiabu, and Laoxiangji, is accelerating its move into the spotlight. Recently, JuHui Food officially filed its prospectus with the Hong Kong Stock Exchange, making a push for capital markets. As China’s largest third-party custom compound Chinese seasoning supplier, the company reported declines in both revenue and net profit for 2025, alongside simultaneous drops in gross and net profit margins. Prior to its IPO, investors introduced to the company had already exited early. In addition, the company faces multiple challenges, including industry-wide price competition, slowing client growth, and overreliance on a single sales channel. Amid these mounting challenges, capital markets are closely watching: can JuHui Food sustain growth going forward? 1. Supplies base ingredients to Haidilao; investors exit ahead of IPO JuHui Food was co-founded by Gou Zhongjun and Wang Bin, who are classmates and both graduated from Southwest University with degrees in Chemistry Education. After graduation, Gou Zhongjun joined the Chongqing Institute of Food Industry, marking the beginning of his career in the food industry. While providing food technology consulting services to catering enterprises, Gou Zhongjun identified a key pain point in scaling restaurant chains: the difficulty of maintaining consistent dish flavors. Since manual preparation lacks precise quantification, the larger the number of outlets, the higher the risk of flavor inconsistency. Targeting this challenge, Gou Zhongjun and Wang Bin founded Chongqing Yulai Xiang Food Co., Ltd. in 2002, ...
Produced by | Bullet Finance Author | Xibo Editor | Wang Yajing Art Direction by | Qianqian Reviewed | Songwen Chongqing JuHui Food Technology Co., Ltd. (hereinafter referred to as 'JuHui Food'), the supplier behind Haidilao, Xiabu Xiabu, and Laoxiangji, is accelerating its move into the spotlight. Recently, JuHui Food officially filed its prospectus with the Hong Kong Stock Exchange, making a push for capital markets. As China’s largest third-party custom compound Chinese seasoning supplier, the company reported declines in both revenue and net profit for 2025, alongside simultaneous drops in gross and net profit margins. Prior to its IPO, investors introduced to the company had already exited early. In addition, the company faces multiple challenges, including industry-wide price competition, slowing client growth, and overreliance on a single sales channel. Amid these mounting challenges, capital markets are closely watching: can JuHui Food sustain growth going forward? 1. Supplies base ingredients to Haidilao; investors exit ahead of IPO JuHui Food was co-founded by Gou Zhongjun and Wang Bin, who are classmates and both graduated from Southwest University with degrees in Chemistry Education. After graduation, Gou Zhongjun joined the Chongqing Institute of Food Industry, marking the beginning of his career in the food industry. While providing food technology consulting services to catering enterprises, Gou Zhongjun identified a key pain point in scaling restaurant chains: the difficulty of maintaining consistent dish flavors. Since manual preparation lacks precise quantification, the larger the number of outlets, the higher the risk of flavor inconsistency. Targeting this challenge, Gou Zhongjun and Wang Bin founded Chongqing Yulai Xiang Food Co., Ltd. in 2002, ...
Produced by | Bullet Finance Author | Xibo Editor | Wang Yajing Art Direction by | Qianqian Reviewed | Songwen Chongqing JuHui Food Technology Co., Ltd. (hereinafter referred to as 'JuHui Food'), the supplier behind Haidilao, Xiabu Xiabu, and Laoxiangji, is accelerating its move into the spotlight. Recently, JuHui Food officially filed its prospectus with the Hong Kong Stock Exchange, making a push for capital markets. As China’s largest third-party custom compound Chinese seasoning supplier, the company reported declines in both revenue and net profit for 2025, alongside simultaneous drops in gross and net profit margins. Prior to its IPO, investors introduced to the company had already exited early. In addition, the company faces multiple challenges, including industry-wide price competition, slowing client growth, and overreliance on a single sales channel. Amid these mounting challenges, capital markets are closely watching: can JuHui Food sustain growth going forward? 1. Supplies base ingredients to Haidilao; investors exit ahead of IPO JuHui Food was co-founded by Gou Zhongjun and Wang Bin, who are classmates and both graduated from Southwest University with degrees in Chemistry Education. After graduation, Gou Zhongjun joined the Chongqing Institute of Food Industry, marking the beginning of his career in the food industry. While providing food technology consulting services to catering enterprises, Gou Zhongjun identified a key pain point in scaling restaurant chains: the difficulty of maintaining consistent dish flavors. Since manual preparation lacks precise quantification, the larger the number of outlets, the higher the risk of flavor inconsistency. Targeting this challenge, Gou Zhongjun and Wang Bin founded Chongqing Yulai Xiang Food Co., Ltd. in 2002, ...
(Chart / Xibei Xibei's 2023, 2024, and 2025 financial reports)
One of its key clients, Xibei Xibei, is reducing its number of stores, which will also test JuHui Food's risk resilience.
In contrast, the company’s peer Tianwei Food primarily focuses on mass-market retail for consumers (C-end), supplemented by foodservice support (B-end).
It is understood that Tianwei Food’s C-end brands include Haorenjia and Jiadian Zizi, while its B-end brands include Dahongpao and Shicuifang, along with customized seasoning solutions—serving both household consumers and restaurant clients to hedge against risks associated with reliance on a single channel.
Having grown alongside restaurant chains, JuHui Food is now constrained by its heavy dependence on B-end clients and a singular channel. If it remains confined to the B-end segment, it will struggle to fully escape earnings volatility. How to break free from this single-channel dependency and build a second growth curve is a critical long-term question JuHui Food must address as it prepares for its Hong Kong listing.
*The featured image in this article is sourced from SheTu.com under the VRF license.
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
14K Views
Report
Comments
Write a Comment...