"Bleached Chicken Feet" Expose 36.4 Billion Yuan Dupont Holdings—Can Henan's "Rich Family" Dodge Responsibility?

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Source | Ye Ma Finance

Author | Fang Lu

Editor | Yu Xing

Short-term market sentiment shocks are unavoidable.

A basket of snow-white chicken feet piled up like a mountain. On-site workers say they wouldn’t eat these “bleached with hydrogen peroxide” chicken feet—exposed on CCTV’s 3.15 Evening Gala in 2026, revealing “internet celebrity chicken feet” black industry, claiming that long-term consumption of hydrogen peroxide-soaked foods can cause health hazards such as oral mucosal damage and liver/kidney impairment, and excessive intake can be life-threatening.

Behind the “bleached chicken feet,” Henan Yifeng Electronic New Materials Co., Ltd. (“Yifeng Electronics”) was listed as an upstream hydrogen peroxide supplier in the 3.15 report. Yifeng Electronics is linked to the publicly listed company Duofuduoduo (002407.SH).

On the morning of March 16, at around 7 a.m., Duofuduoduo urgently issued a statement saying it had noted the CCTV “3.15” report. Its investigative reporters found that Sichuan Shufu Xiang Food Co., Ltd. (“Shufu Xiang”) and Chongqing Zengqiao Food Co., Ltd. (“Zengqiao Food”) used hydrogen peroxide for bleaching chicken feet during production, involving Yifeng Electronics’ hydrogen peroxide sales.

Duofuduoduo’s internal investigation confirmed that Yifeng Electronics is its controlled subsidiary, but it has not established any business cooperation, brand licensing, or product manufacturing relationships with Shufu Xiang, Zengqiao Food, or others. Its production and sales activities are unrelated to the company and its subsidiaries.

Renowned crisis PR expert and Fuzhou Gongsun Ce Public Relations partner Zhan Junhao believes that the announcement focuses on factual separation and does not constitute malicious scapegoating. However, the illegal sales by subsidiaries and the uncontrolled flow of hazardous chemicals are confirmed, exposing serious loopholes in the group’s compliance and risk control. This serves as a warning to all listed companies: control equals responsibility, and full-chain management must be enforced to prevent compliance risks from spilling over.

Despite Duofuduoduo’s immediate clarification, recent disclosures indicate that the company has issued a statement and is cooperating with regulatory authorities for further investigation. Any developments will be promptly disclosed. Regulatory intervention is underway, and it seems the situation will continue to unfold. If subsequent investigations confirm issues, will Duofuduoduo be willing to take responsibility? They responded, “Not sure.”

Bai Wenxi, Vice Chairman of the China Enterprise Capital Alliance and Chief Economist of China, believes short-term market sentiment shocks are inevitable. Food safety is a highly sensitive public concern, and the “bleached chicken feet” incident directly touches on consumer health. Although Duofuduoduo’s main business is unrelated to food consumption, the fraudulent use of “hydrogen peroxide as disinfectant” can easily be labeled as “unscrupulous enterprise,” impacting ESG ratings by institutional investors.

As of the close on March 16, Duofuduoduo closed at 30.55 yuan per share, down 0.97%, with a total market capitalization of 36.368 billion yuan.

Subsidiary embroiled in “bleached chicken feet” scandal

Public company swiftly distances itself

Yifeng Electronics, named in the incident, was acquired by Duofuduoduo on January 21, 2025, with its own funds of 28.458 million yuan from Jiaozuo Duofuduoduo Industrial Group Co., Ltd. (“Duofuduoduo Group”). After acquiring 54% of its shares, it became the largest shareholder. On October 28, 2024, Yifeng Electronics was recognized as a high-tech enterprise, valid for three years, paying corporate income tax at 15%.

According to CCTV’s “3.15” report, at Henan Xinxiang’s Yifeng Electronic New Materials Co., Ltd., staff not only aggressively promoted products but also directly taught risk-avoidance methods: “Yifeng salespeople told us to put a different label on disinfectants.”

On March 16, Hougai County Market Supervision Administration issued a report stating that CCTV’s “3.15” exposed issues of using hydrogen peroxide to produce processed chicken feet, involving Henan Yifeng Electronic New Materials Co., Ltd. The county attached great importance, forming a joint investigation team overnight to conduct a comprehensive check. The company has now ceased production and operations, and further investigations are ongoing.

Source: Canned Food Gallery

In Duofuduoduo’s March 16 announcement, it stated that after self-inspection, its controlled subsidiary Yifeng Electronics had 2025 revenue of 31.152 million yuan, with a net loss of 3.3872 million yuan, accounting for a very small proportion of the company’s consolidated revenue and net profit, less than 1%. Its main operations include hazardous chemicals, food additives, and disinfectants.

In the 2025 interim report, Duofuduoduo marked the “impact of Yifeng Electronics on overall production, operations, and performance” as “0.” The company admitted that Yifeng Electronics accounts for a “relatively low” share of its consolidated revenue and profit.

Bai Wenxi analyzed that the recent “3.15” exposure has limited direct impact on Duofuduoduo but highlights potential secondary risks. Financially, even if the subsidiary is completely divested, the overall impact on Duofuduoduo’s performance is minimal. However, the publicity from the 3.15 Gala has strong public opinion damage potential, possibly triggering short-term investor sell-offs—evidenced by a more than 1% drop in stock price on the day of the announcement. The deeper risk involves regulatory chain reactions: if Yifeng Electronics is found to have “illegally supplied unlabeled food additives and violated hazardous chemical management regulations,” it could face shutdowns, fines, or license revocations. While Duofuduoduo states it is “actively cooperating,” the scope of compliance rectification in hazardous chemicals is broad, and there is concern about impacts on other electronic chemical businesses.

Bai Wenxi further explained that Duofuduoduo’s announcement is a compliance clarification rather than an excuse-shifting, but it reveals gaps in acquisition risk control. The company emphasized that there is no business cooperation with Shufu Xiang and Zengqiao Food, which is legally sound—CCTV exposed the personal actions of Yifeng Electronics’ sales staff, not authorized company activities. However, shifting full responsibility to the subsidiary’s individual behavior may be seen as avoiding core issues—namely, the lack of proper due diligence and post-acquisition management. Duofuduoduo only acquired 54% of Yifeng Electronics in January 2025 from related parties (controlled by the actual controller Li Shijiang’s Duofuduoduo Group), and the target was already in loss (net loss of 180,100 yuan from Jan to Oct 2024). Less than a year later, a major compliance scandal emerged, exposing deficiencies in due diligence and post-investment management, and the related-party nature raises questions about acquisition motives.

Zhan Junhao believes that the “3.15” incident may cause short-term market pressure, with stock prices likely to open lower and fluctuate. Management reputation could also face serious challenges, with investors questioning internal controls. In the long run, rapid rectification, traceability, and compliance can stabilize performance, but governance weaknesses must be addressed quickly to maintain institutional trust and long-term valuation.

Source: Canned Food Gallery

2025 performance begins to recover

Duofuduoduo mainly focuses on high-performance inorganic fluorides, electronic information materials, lithium-ion batteries, and related materials. Financial data over recent years shows a rollercoaster pattern from 2020 to 2024.

In 2020, revenue was 4.245 billion yuan; in 2022, surged to 12.358 billion yuan; in 2023, remained in the hundred-billion-yuan range, but in 2024, dropped to 8.207 billion yuan. Net profit attributable to parent was only 49 million yuan in 2020, peaked at 1.948 billion yuan in 2022, then fell to 510 million yuan in 2023, and turned to a loss of 308 million yuan in 2024.

Looking at the 2025 third-quarter report, revenue was about 6.729 billion yuan, down 2.75% year-over-year; net profit attributable to parent was approximately 78.05 million yuan, up 407.74%.

Why the rollercoaster? Duofuduoduo explained that the 2024 loss was mainly due to low prices for lithium hexafluorophosphate. Although production and sales increased, profit margins were squeezed. By the second half of 2025, the price of this product rose again, improving performance. The company also said that the fluctuations in recent years are due to gradually changing production capacity, which expands as capacity increases. The persistent low operation of key product lithium hexafluorophosphate in 2024 led to gross profit decline, but with market prices rising in the second half of 2025, operational results are expected to improve.

Source: Canned Food Gallery

Bai Wenxi analyzed that Duofuduoduo operates in a highly cyclical industry. The sharp drop in lithium hexafluorophosphate prices from 2022’s peak to 2024’s trough directly caused the performance rollercoaster. In 2024, gross margin of new energy materials fell from 38.36% in 2022 to 12.6%. The industry is also technology-intensive, with strict purity requirements (PPT level, one trillionth of a gram), rapid technological iteration, and high R&D investment. Customer loyalty is strong, as electrolyte manufacturers face long certification cycles, making supply chain switching difficult, but price wars weaken customer relationships.

Bai Wenxi believes that Duofuduoduo’s core challenge is overcapacity and price competition. In 2023, when lithium hexafluorophosphate prices plummeted, the company’s capacity utilization had already fallen to 70%, yet it still expanded capacity, leading to over 300 million yuan in inventory and fixed asset impairments in 2024.

He further explained that during industry downturns, Duofuduoduo did not adopt cautious strategies but aggressively expanded and engaged in cross-border acquisitions (like Yifeng Electronics), resulting in high depreciation and financial costs. In 2024, some production lines in the new energy battery sector showed impairment signs, combined with inventory impairments, totaling about 366 million yuan in asset impairments. The lithium battery business downstream has not yet achieved scale, suffering continuous losses under giants like CATL and BYD, becoming a burden.

Source: Canned Food Gallery

“Family business” exposes governance flaws

The founder of Duofuduoduo is Li Shijiang, who directly and indirectly holds 11.92% of the listed company’s shares, making him the actual controller.

Tianyancha shows that Li Shijiang’s family holds shares through Duofuduoduo Group, with his 47-year-old son Li Yunfeng serving as general manager, and his 51-year-old eldest daughter Li Lingyun as vice chairman. In 2024, Li Lingyun’s annual salary was 2.28 million yuan, 1.08 million more than her father and brother.

According to the 2021 Hurun Rich List, Li Shijiang and Li Lingyun ranked 1,123rd with 6.5 billion yuan, listed as “Henan Wen County’s Richest.”

Li Shijiang, aged 77, holds a master’s degree, is a senior economist, and served in the military from 1968 to 1973. He took over a struggling ice crystal factory in 1994, led Duofuduoduo’s management buyout and state-owned enterprise reform in 2003, broke foreign monopoly with lithium hexafluorophosphate technology in 2006, and pushed for Duofuduoduo’s listing on the Shenzhen Stock Exchange in 2010. He previously held positions such as deputy head of equipment department at Henan Wen County Fertilizer Plant, director of technical department, director of petrochemical second factory, deputy factory director of Henan Wen County Paper Factory, and factory director of Jiaozuo Ice Crystal Factory.

Source: Canned Food Gallery

Duofuduoduo’s official website states that in a 2023 interview, Li Shijiang said the company is committed to research and industrialization in the fields of fluorine, lithium, and silicon. The company’s development is clear, with four main business segments: fluorine-based new materials, new energy materials, electronic information materials, and new energy batteries, all showing vigorous growth. Regarding future plans, Li Shijiang said that new materials are a trend, and Duofuduoduo will seize the opportunity. The company will continue exploring and surpassing along the strategic path of “new materials supporting new energy, new energy driving new materials.”

Bai Wenxi analyzed that the company faces three major challenges: first, insufficient cycle management—Li Shijiang is good at technical breakthroughs but overly aggressive in responding to industry cycles. Despite falling lithium hexafluorophosphate prices, the company still expanded capacity, leading to large impairments in 2024, reflecting a lack of strategic resilience and risk control. Second, corporate governance is outdated; Duofuduoduo exhibits typical family business traits, with frequent related-party transactions (like the Yifeng Electronics acquisition). The scandal exposed governance loopholes, requiring a shift from “people-based” to “system-based” management. Third, the second growth curve is slow; although the company is trying to diversify into electronic chemicals and semiconductor materials, revenue still heavily depends on lithium hexafluorophosphate. With gross margins in new energy materials dropping to 12.6%, accelerating high-value product development (like LiFSI and electronic-grade gases) is urgent, demanding ongoing R&D and talent development—an especially critical challenge for the 77-year-old founder balancing inheritance and innovation.

Bai Wenxi believes that the “3.15” incident is a wake-up call for Duofuduoduo, with limited financial impact but clear governance flaws. During industry lows, the focus should be on cost reduction and efficiency, not on acquiring loss-making assets through related-party deals. For Li Shijiang, transforming personal heroism and innovation into sustainable organizational capability is key to whether Duofuduoduo can survive the cycle.

What are your thoughts on the “bleached chicken feet” incident? Feel free to share in the comments.