The "3.15" Gala revealed that a subsidiary of Multifluor was investigated for bleaching chicken feet with hydrogen peroxide! The controlling stake was obtained through a related-party transaction more than a year ago.

In the 2026 CCTV “3.15” Gala, a black industry chain involved in the illegal use of hydrogen peroxide (commonly known as peroxide water) to bleach chicken feet was exposed. The upstream company supplying hydrogen peroxide—Henan Yifeng Electronic New Materials Co., Ltd. (hereinafter referred to as “Yifeng Electronics”)—was named.

The Times Weekly reporter noted that Yifeng Electronics is a controlling subsidiary of the publicly listed company Duofuduo (002407.SZ). According to CCTV reports, personnel from the involved food companies admitted that since May 2025, they have been purchasing hydrogen peroxide from Jinshan Pharmaceutical for chicken foot processing and equipment disinfection, with a total of 5,242 barrels purchased. Jinshan Pharmaceutical and Yifeng Electronics New Materials were also investigated for illegally providing unlabelled food additives and violating hazardous chemical management regulations.

On the morning of March 16, Duofuduo issued an urgent announcement stating that, following the CCTV “3.15” report, their investigation found that Sichuan Shufuxiang Food Co., Ltd. and Chongqing Zengqiao Food Co., Ltd., among others, used hydrogen peroxide for bleaching and swelling during chicken foot production, involving Yifeng Electronics’ sales of hydrogen peroxide.

Duofuduo stated in the announcement: “After verification, the controlling subsidiary Yifeng Electronics has not established any form of business cooperation, brand authorization, or product production relationship with Sichuan Shufuxiang Food Co., Ltd., Chongqing Zengqiao Food Co., Ltd., or other entities mentioned in the media report. Their production and sales activities are unrelated to the company and its subsidiaries.”

On March 16, the Times Weekly reporter contacted Duofuduo twice as an investor. Company staff said they had noted the reports and were actively cooperating with relevant authorities’ investigations. They also stated, “The company has never supplied unlabelled (food additives).” However, when asked to confirm this statement again, the representative did not respond further, only saying, “Please refer to the announcement.”

Regulatory authorities quickly intervened. On March 16, the Market Supervision Administration of Huojia County, Henan Province, issued a notice stating that a joint investigation team had been formed overnight to investigate Yifeng Electronics. The company has ceased production and operations, and further investigations are ongoing. The authorities will handle the case according to law based on the investigation results and will carry out special inspections and rectifications across the county to protect consumers’ legal rights.

Regarding the impact of this incident, a staff member from Duofuduo said, “It has caused public concern. The only thing the company can do now is provide the public with a truthful and accurate response.”

Yifeng Electronics was established in 2017, mainly engaged in the research, production, and sales of ultra-pure high-grade chemical reagents, electronic chemicals, specialized cleaning agents, disinfectants, and food additives. In 2025, the company achieved an operating income of 31.152 million yuan, with a net loss of 3.3872 million yuan, accounting for a small proportion of Duofuduo’s overall revenue and net profit, with revenue share less than 1% (2025 data unaudited). The overall impact on Duofuduo’s business performance is limited.

The reporter reviewed the announcement and found that in January 2025, Duofuduo acquired a 54% stake in Yifeng Electronics from its controlling shareholder, Li Shijiang, through Duofuduo Group. Currently, Duofuduo holds 54% of Yifeng Electronics, making it the largest shareholder. The company previously stated that the acquisition aimed to enrich its electronic chemical product portfolio and expand into the ultra-pure chemical materials and fine chemical products for the microelectronics industry.

Despite the subsidiary’s involvement in the “3.15” incident, Duofuduo’s overall business performance in 2025 was impressive.

According to the company’s earnings forecast released on January 26, 2025, it is expected that the company will achieve a net profit attributable to shareholders of 200 million to 280 million yuan in 2025, with a non-recurring profit of 105 million to 155 million yuan, showing a significant increase compared to the previous year and turning losses into profits. Duofuduo stated that the core reason for the profit turnaround was the rapid growth in demand for new energy vehicles and energy storage markets, which significantly boosted sales of key products such as lithium hexafluorophosphate and new energy batteries, and improved gross profit margins.

Lithium hexafluorophosphate, as a core raw material for lithium battery electrolytes, directly influences Duofuduo’s profitability. A research report from Kaiyuan Securities indicated that since mid-July 2025, the price of lithium hexafluorophosphate has continued to rise. According to SMM data, on December 4, 2025, the domestic spot price of lithium hexafluorophosphate increased to 167,000–177,000 yuan/ton, with an average of 172,000 yuan/ton, up 124,500 yuan/ton from the low point of 49,500 yuan/ton on July 18, 2025, an increase of approximately 248%.

In the secondary market, as of the close on March 16, Duofuduo’s stock price fell 0.97% to 30.55 yuan per share. The current market value is approximately 36.4 billion yuan.