Chinese New Year is coming, and one of the customs is having a hotpot reunion dinner on the eve. When it comes to hotpot, the brand that comes to mind? Haidilao.
While some families dine out at restaurants, many prefer eating at home—thanks to Haidilao soup base seasoning. During this period, you’ll spot these packets filling shopping baskets everywhere.
The seasoning sold in these packets is exactly what Haidilao uses in its restaurants. The preparation and ingredients might differ, but the powder and sauce? Same. You get the Haidilao experience at home.
But here’s what most people don’t know: the company behind these soup bases isn’t Haidilao—it’s Yihai International (SEHK:1579).
They’re connected through their major shareholders—Zhang Yong and Shu Ping, the founders of Haidilao. So Yihai manufactures and sells soup bases to Haidilao as a related party transaction, while leveraging Haidilao’s branding to sell to consumers.
The Double-Edged Sword
There’s a Chinese saying: 水能载舟，亦能覆舟 (Water can carry a boat, but it can also sink it).
The Haidilao brand helps Yihai move products. But the association comes with two major downsides.
