By LI Ye
Haitian, the Chinese soy sauce giant, reported revenue of 5.7 billion yuan (about US$78 million) in Q3, a YoY increase of 2.2 percent. Net profit reached 1.2 billion yuan, down 3.2 percent.
H1’s operating income of 13 billion yuan was down 4.2 percent YoY. Net profit attributable to shareholders sunk to 3.1 billion yuan, the first drop since Haitian’s listing in 2014.
The restaurant business has not returned to 2019 levels. Rising costs of raw materials, such as white sugar, have also put Haitian under pressure. A 3-percent to 7-percent price increase at the end of 2021 has done little for profits.
Haitian introduced additive-free soy sauce as early as 2014. As consumers pay more attention to the ingredient list, the healthier no-additive sauce may become more popular.
As the market evolves and consumer demand diversifies - for example, the rise of ready meals and compound condiments, Haitian need new strategies for new times.
