Yao Mazi's long and winding path to going public: investing billions in wealth management over a year, 37 product quality issues draw attention

Ask AI · Why has Jiamazi’s path to going public repeatedly encountered setbacks—what compliance challenges are hidden behind these issues?

Bay Harbor Business Observation Wang Lu

From the end of 2021 to now, Jiamazi Food Co., Ltd. (hereinafter referred to as “Jiamazi”)’s journey toward listing has been particularly lengthy.

Looking into the details, Jiamazi initiated a ChiNext Board IPO as early as 2020. Subsequently, on December 10, 2021, it submitted its application for the Shenzhen Main Board, but on December 30, 2023, the company announced that its listing had been terminated.

After its first attempt failed, at the end of 2025, the company refiled with the Beijing Stock Exchange, with CITIC Securities acting as the sponsor throughout.

1

Steady performance growth, Sichuan pepper oil making up 80%

According to the prospectus and Tianyancha, Jiamazi was established in March 2008. The company is a pioneer in domestic Sichuan pepper oil-related seasonings and is one of the largest producers of Sichuan pepper oil and numbing and spicy flavor compound seasonings in China. According to data from the China Food Industry Association, in 2024, the company’s market share in China’s Sichuan pepper oil market reached 30%, maintaining the top position nationwide among similar products in the seasoning industry for several consecutive years.

From 2022 to 2024 and the first half of 2025 (during the reporting period), the company’s operating revenues were RMB 450 million, RMB 545 million, RMB 625 million, and RMB 332 million, respectively. Its non-recurring profit attributable to the parent was RMB 72.0379 million, RMB 89.6907 million, RMB 144 million, and RMB 101 million. The main products include Sichuan pepper oil, other seasoning oils, compound seasonings, specialty ingredients, and snack foods. Among these, revenue from seasoning oils accounted for 94.07%, 93.15%, 93.63%, and 93.31% of total revenue during the respective periods.

Jiamazi admits that during the reporting period, over 80% of the company’s main business revenue came from its key product—Sichuan pepper oil. The company is actively expanding into related areas such as compound seasonings, snack foods, and other seasoning oil products. In the short term, the company’s performance remains heavily reliant on Sichuan pepper oil. If future market demand for Sichuan pepper oil grows less than expected, or if the company cannot maintain its competitive edge in this business area, it could significantly impact its performance.

During the reporting period, the company’s sales were primarily in Southwest China, with revenue shares of 52.65%, 47.90%, 45.14%, and 46.78%. Although Sichuan and Chongqing have traditionally been the main markets due to high acceptance of Sichuan pepper oil, in recent years the company has actively expanded into East China, South China, Central China, North China, and Northwest China, with revenue outside Southwest China now exceeding 50%.

In terms of sales channels, the company mainly uses a distributor model, leveraging distributor networks to expand market coverage and reduce transaction and storage costs. As of the end of the reporting period, the company had over 600 distributors, with distributor sales accounting for about 90% of main business revenue.

In the inquiry letter issued by the Beijing Stock Exchange on January 27, it requested the issuer to: (1) explain the drivers behind the continuous revenue growth during the reporting period, considering downstream customer demand and industry trends; provide a quantitative analysis of how non-recurring profit attributable to the parent continued to increase, based on changes in product sales structure, cost control, sales to major clients, and raw material price fluctuations; and clarify the reasons and reasonableness for the significantly higher growth rates in 2024 and the first half of 2025 compared to revenue growth.

(2) Compare the revenue trends and growth rates of the issuer’s similar products, such as seasoning oils and compound seasonings, with those of comparable companies in the industry, and assess whether the overall and segmented performance trends are consistent. Also, detail the sales performance of sub-products like Sichuan pepper oil, pepper oil, and numbing pepper oil, including sales amounts, average prices, shares, gross margins, and key customers. Explain the reasons for changes in sales structure, prices, and gross margins, and whether there are significant differences in gross margins among different customers, along with the rationale.

(3) Based on the revenue, gross margin, and profit contributions across different regional markets during the reporting period, assess whether the issuer has the capacity to continuously develop customers outside Southwest China and whether its business development is limited.

The gross profit margins for the main business during each period were 31.11%, 32.33%, 38.69%, and 45.90%. The company believes that the rising trend is mainly due to the decline in prices of key raw materials like rapeseed oil and fresh Sichuan pepper, which has increased the gross margins of its core seasoning oils.

Meanwhile, the inventory book value was RMB 266 million, RMB 261 million, RMB 245 million, and RMB 254 million, respectively, accounting for 39.95%, 34.52%, 25.71%, and 20.53% of current assets. The inventory turnover ratios were 1.32, 1.39, 1.52, and 1.43, respectively.

Jiamazi states that inventory includes raw materials, work-in-progress, finished goods, and turnover materials. Among these, work-in-progress makes up the majority of inventory. At each period’s end, work-in-progress accounts for over 80% of total inventory, mainly because the production cycle of the company’s key seasoning oils is seasonal: fresh Sichuan pepper, pepper, and ginger used for Sichuan pepper oil, pepper oil, and ginger oil are harvested annually from June to August. As a result, the company’s production is concentrated in these months, producing semi-finished products stored in tanks for use in the second half of the year and the following year. In other months, inventory is mainly formed through blending and bottling, leading to higher semi-finished product levels at period-end.

2

Investing hundreds of millions annually in wealth management products, 37 product quality issues raise concerns

For this IPO on the Beijing Stock Exchange, Jiamazi plans to raise RMB 568 million, with RMB 390 million allocated to the annual production of 35,000 tons of Sichuan pepper oil and other seasoning oils’ intelligent manufacturing projects, RMB 95.27 million for the headquarters technical center, and RMB 83.03 million for marketing and information system upgrades.

Notably, from a funding perspective, Jiamazi does not appear to lack capital. At each period’s end during the reporting period, the company’s trading financial assets were RMB 307 million, RMB 319 million, RMB 471 million, and RMB 591 million. The company states these are bank wealth-management products, aimed at improving capital utilization and returns. These products are considered safe with good recoverability, and there is no need to recognize impairment losses, thus having little impact on liquidity or capital management.

At each period’s end, the company’s cash and cash equivalents were RMB 64.26 million, RMB 156 million, RMB 223 million, and RMB 380 million.

On the compliance side, the review inquiry letter notes that, based on application documents and public information: (1) some parts of the company’s operations involve outsourced processing. (2) The company mainly sources raw materials like fresh Sichuan pepper and non-GMO rapeseed oil, but cannot directly control upstream quality. (3) Between early 2022 and August 2024, the company received 37 complaints related to product quality issues, including hair contamination and oil turbidity. (4) The company typically concentrates semi-finished Sichuan pepper base oil production in summer, continuing to use it until the next year’s harvest.

The company is asked to clarify: (1) the proportion of Sichuan pepper it cultivates itself and whether quality standards are consistent. (2) the quality standards and responsibilities outlined in raw material purchase contracts, supplier screening and elimination mechanisms, inspection practices, and quality and food safety measures throughout procurement, transportation, storage, and production processes, ensuring compliance with laws such as the Food Safety Law. (3) Whether the company has established a food safety traceability system, and whether during the reporting period its subsidiaries, entrusted producers, or logistics providers faced any product safety or sanitation issues resulting in counterfeit actions, rights claims, returns, complaints, consumer disputes, administrative penalties, or lawsuits. If so, list the details, including frequency, involved products, and amounts.

IPO observers note that Jiamazi’s repeated attempts over several years to list have failed despite solid performance, making compliance issues—especially food safety—particularly critical. The explicit mention in the review inquiry underscores the high level of concern, and the company needs to provide further detailed explanations, including how past problems arose and whether it can ensure future product quality. (Produced by Bay Harbor Finance)