Recently, the popular Chinese snack brand “Qiaqia Sunflower Seeds” has once again become a hot topic of discussion due to controversies. Once hailed as the “National Sunflower Seeds,” Qiaqia Sunflower Seeds has seen a significant decline in net profit of 85.86% in the first half of this year amid a downturn in the economy, leading the market to consider it a “bombshell.”
In recent times, mainland Chinese consumers have noticed that the once well-known brand Qiaqia Sunflower Seeds has undergone a transformation and entered Sam’s Club with a new English name and revamped packaging, sparking controversy among consumers.
Qiaqia Sunflower Seeds had garnered significant popularity in mainland China. In 1999, when it first entered the market, its annual sales reached 30 million yuan. Subsequently, the company invested 4 million yuan in advertising on CCTV, China’s state television, leading to a rapid increase in brand awareness. By 2000, Qiaqia Sunflower Seeds’ annual sales exceeded 100 million yuan, soaring to 400 million yuan the following year. On August 9, 2001, Qiaqia Food Co., Ltd. was officially established in the national economic and technological development zone in Hefei city. By 2023, Qiaqia’s revenue had reached 6.806 billion yuan.
In 2011, Qiaqia became the first sunflower seed company to be listed on the A-share market in China.
However, in recent years, Qiaqia has been facing challenges in terms of growth.
On July 14, Qiaqia Food released its 2025 semi-annual performance forecast, projecting a net profit of between 80 million yuan to 97.5 million yuan for the first half of 2025, representing a decrease of 71.05% to 76.25% compared to the same period last year. After deducting non-recurring gains and losses, the net profit is expected to range from 40 million yuan to 57 million yuan, a year-on-year decline of 79.85% to 85.86%.
This rare warning of a significant performance decline by Qiaqia Food since its listing in 2011 is seen as a “bombshell.”
This decline is a continuation of Qiaqia Food’s weak performance. In the fourth quarter of 2024, the company’s revenue dropped by 24.79% year-on-year to 2.374 billion yuan, with a net profit of 223 million yuan and an adjusted net profit of 215 million yuan, both decreasing by 24.79% and 24.69% respectively, compared to the same period last year.
In the first quarter of 2025, Qiaqia Food’s net profit attributable to shareholders dropped by 67.88% year-on-year, with the adjusted net profit attributable to shareholders declining by 73.76%, while the gross profit margin fell below 20%.
On the day of the first quarter report for this year, Qiaqia Food’s stock price fell by 7.37%.
The reason for the decline in performance has been attributed to the “rise in raw material costs,” which has been repeatedly mentioned in the financial reports. Qiaqia Food has highlighted the impact of cost increases on the company on multiple occasions. The main raw materials for Qiaqia Food’s core products include sunflower seeds and nuts. During an investor relations event in April this year, the company mentioned that due to rainy weather conditions in the production area in Inner Mongolia, the mold rate of sunflower seed raw materials increased, leading to a decrease in production volume and price hikes.
From October to December 2024, the market purchase price rose by more than 10% year-on-year, resulting in the sunflower seed gross profit margin for the first quarter of 2025 dropping back to the range of 20-25%. In both 2023 and 2024, the amount of direct material costs in the company’s operating costs exceeded 4 billion yuan, accounting for over 83% of the operating costs.
To cope with the rising costs of raw materials, Qiaqia Food has shifted this cost pressure onto consumers by adopting a “brutal” price increase strategy. However, in the current economic downturn, this method has proven ineffective, as the revenue for 2023 decreased instead of increasing.
Consumers have taken to social media platforms to complain about Qiaqia Sunflower Seeds being “shriveled and small,” with some noting the inconsistent quality, comparing buying a pack of sunflower seeds to a blind box surprise.
In 2010, it was reported by Chinese media that a Mr. Wu purchased a pack of Qiaqia Sunflower Seeds from a supermarket in the East Campus of Qingdao Municipal Hospital, only to discover a dried dead mouse inside upon opening it at home.
“At first, I thought it was a twig or something,” Mr. Wu said. “But the more I looked at it, the more suspicious it seemed. When I touched it, I felt the furry texture and upon closer inspection, I realized it was a dried dead mouse. I couldn’t help but break out in a cold sweat. If you take a close look, you can even see the mouse’s teeth exposed, giving me goosebumps all over.” Mr. Wu admitted to losing his appetite and expressed concern about potential health risks from potential diseases carried by the mouse.
In June 2009, it was reported by Daily Business News that a batch of Qiaqia Fragrant Sunflower Seeds produced by Qiaqia Food Co., Ltd. in Jiangsu Province was found to have exceeded the peroxide value limit.
Exceeding the peroxide value limit indicates that the oil in food has oxidized, giving it an unpleasant taste or odor. While consuming food with an excessive peroxide value limit may not cause immediate adverse reactions, prolonged exposure could accelerate bodily oxidation and lead to other health issues, such as the appearance of age spots and more.