Recently released in May 2026, the annual report of Qianhe Flavors Food Co., Ltd. (Qianhe Flavors) revealed a concerning downturn in both revenue and net profit for the year 2025. The company’s net profit attributable to shareholders plummeted by 32.4% year-on-year, marking the largest drop since its listing in 2016. The first quarter of 2026 continued to show poor performance, indicating a trend of ongoing challenges for the company moving forward.
It all started when Qianhe Flavors pioneered the concept of “zero additives,” gaining significant market favor upon product launch. However, a setback came in March 2025 when their “Qianhe 0” soy sauce was found to contain cadmium. This discovery led to a sharp decline in Qianhe Flavors’ stock price, resulting in a staggering loss of market value amounting to 950 million yuan. Subsequently, the company’s operational performance showed no signs of improvement.
Responding to the impact of the “zero additives” incident on Qianhe Flavors, Phoenix Net Finance noted on May 10th that the company had long positioned itself around the “zero additives” product line. This concept not only served as the core of Qianhe Flavors’ existence but also represented its strongest brand barrier. For a company like Qianhe Flavors heavily reliant on the “zero additives” selling point, the significant brand premium was primarily rooted in consumers’ extra trust in the “pure” concept. However, such trust also meant a narrower margin for error.
Moreover, the Financial Weekly on May 9th highlighted that the seasoning industry was transitioning from “concept hype” towards “quality competition.” Relying solely on differentiated labels for growth had become unsustainable, urging companies to refocus on the core competitive aspects of their products, distribution channels, and cost management.
Qianhe Flavors had seen its performance decline since 2024, and in 2025, the revelation of cadmium in one of its soy sauces, a key product with the “zero additives” selling point, led to a significant drop in the company’s net profit.
The “2025 Annual Report” published by Qianhe Flavors detailed, “During the reporting period, the company recorded operating income of 2.572 billion yuan, a 16.32% year-on-year decrease, and achieved a net profit attributable to shareholders of the listed company of 348 million yuan, down by 32.40% year-on-year. The net profit attributable to shareholders of the listed company, excluding non-recurring gains and losses, was 344 million yuan, marking a 31.53% decline year-on-year.”
The report further explained, “The changes in total profit, net profit attributable to shareholders of the listed company, and net profit attributable to shareholders of the listed company, excluding non-recurring gains and losses, were primarily attributable to the negative public opinion impact, leading to a decrease in revenue and, consequently, profit.”
In 2025, Qianhe Flavors’ net profit declined by 32%. Public records confirmed that Qianhe Flavors Food Co., Ltd., a privately held corporation specializing in brewing healthy seasonings, was established on January 31, 1996, with its headquarters located in Meishan City, Sichuan Province. The company went public on the Shanghai Stock Exchange in 2016. In 2007, Qianhe Flavors first introduced the “zero additives” concept and launched “0 additives” products in 2008, later registering the “Qianhe 0” trademark in 2020.
On March 18, 2025, an inspection report released on the official Weibo account of Consumer Reports magazine revealed that, among 13 soy sauces claiming to be “zero additives” tested by a third-party authoritative testing agency in March, Qianhe Yuzang Ben Brewed for 380 Days soy sauce contained cadmium at a concentration of 0.0110mg/kg, ranking fourth among the 13 sauces. The product in question prominently displayed the “Qianhe 0” trademark on its label, sparking consumer skepticism about potential misleading practices.
Following this revelation, Qianhe Flavors’ stock prices continued to plummet, witnessing an accumulated decline of 7.3%, leading to a market value loss of 950 million yuan.
As we entered 2026, Qianhe Flavors’ key financial indicators continued their downward trajectory. According to their “2026 First Quarter Report,” the company’s operating income reached 817,563,396.16 yuan, down by 1.57% year-on-year. The total profit amounted to 175,839,730.64 yuan, marking a 7.17% decrease, with a net profit attributable to shareholders of the listed company standing at 148,143,506.60 yuan, a 7.75% drop year-on-year. The net profit attributable to shareholders of the listed company, excluding non-recurring gains and losses, declined by 9.48% to 143,602,656.94 yuan.