Internet Celebrity Chicken Feet Scandal: Chicken Feet Sellers in Panic, "Pickled Pepper Chicken Feet Leading Stock" Distances Itself Late Night

Questioning AI · Why can low-priced chicken feet defy cost principles?

The popular chicken feet are actually “bleached.”

On the CCTV 3.15 Evening Gala, chicken feet became the first exposed case. According to CCTV reports, in the processing workshops of the involved companies, the soaking, trimming, and sorting areas are filled with foul odors, with a pungent fishy smell that makes people nauseous. Staff from Sichuan Shufuxiang Food Co., Ltd. admitted that the chicken feet were bleached with “hydrogen peroxide.”

China’s “Food Safety National Standard for the Use of Food Additives (GB2760-2024)” prohibits the use of hydrogen peroxide in chicken feet processing. However, in this factory, a chemical strictly banned by the state was used as a key to transform the chicken feet.

Beijing News Shell Finance noted that the “bleached chicken feet” controversy has stirred the industry and market, prompting multiple brands, including listed companies, to clarify.

On March 16, “Pao Jiao Feng Zhua” (pickled pepper chicken feet) pioneer Youyou Food’s stock price fell to 11.17 yuan per share, down 0.8% for the day, with a total market value of about 4.777 billion yuan.

CCTV specifically pointed out “bleached chicken feet”; Youyou Food and Wang Xiaolu responded.

The companies named by CCTV in this investigation include Chengdu Mingyang Food Co., Ltd., Sichuan Shufuxiang Food Co., Ltd., Chongqing Zengqiao Food Co., Ltd., Sichuan Jinshan Pharmaceutical Co., Ltd., and Henan Yifeng Electronic New Materials Co., Ltd.

Currently, market supervision authorities across various regions are investigating and rectifying these companies. On March 16, the Jiaxian County Market Supervision Administration issued a notice, confirming that CCTV exposed the illegal use of hydrogen peroxide in chicken feet production involving Henan Yifeng Electronic New Materials Co., Ltd. Jiaxian County attached great importance, immediately forming a joint investigation team, and conducting a thorough check overnight. The company has ceased production and operations, and further investigations are ongoing.

On the morning of March 16, Duofuduo, a listed company on the A-share market, announced that Henan Yifeng Electronic New Materials Co., Ltd. is its controlling subsidiary. According to Duofuduo, in 2025, Henan Yifeng Electronic New Materials’ revenue was 31.152 million yuan, with a net loss of 3.3872 million yuan, accounting for a small proportion of the company’s consolidated revenue and profit, with revenue share less than 1% (2025 data unaudited).

Duofuduo issued a clarification regarding media reports.
[Company’s official statement screenshot]

Duofuduo stated that after verification, Henan Yifeng Electronic New Materials has not established any business cooperation, brand licensing, or product production relationships with Sichuan Shufuxiang Food Co., Ltd., Chongqing Zengqiao Food Co., Ltd., or other companies mentioned in the media reports. Its production and sales activities are unrelated to the company and its subsidiaries.

On March 16, Duofuduo’s stock closed at 30.55 yuan per share, down 0.97% for the day, with a total market value of about 36.368 billion yuan.

The “bleached chicken feet” scandal has caused the “Pao Jiao Feng Zhua” first stock to react quickly and issue a statement.

On the night of March 15, Youyou Food, a listed company on the A-share market, announced that it fully implements food safety responsibilities, strictly prohibits the use of raw materials and additives that do not meet national standards, and has not illegally used any additives banned by the state, including “hydrogen peroxide.” Its production and operation comply with relevant national laws and standards.

[Official announcement screenshot]

On March 16, Shell Finance reporters noticed that Wang Xiaolu, a chicken feet brand, also posted a prominent statement on its e-commerce homepage: “Wang Xiaolu’s products do not contain any additives, and the use of ‘hydrogen peroxide’ or any other illegal additives is strictly prohibited. We strictly follow national food safety standards and regularly send products to authoritative third-party agencies for safety testing. All test reports are authentic and verifiable!”

[Official announcement screenshot]

Selling pickled pepper chicken feet earns billions annually, with a gross profit margin of about 30%

According to CCTV, the investigation into the hidden industry chain of “bleached chicken feet” was driven by price doubts. “A 500g portion of chicken feet is often sold for as low as 15 yuan. Such ultra-low prices and large sales volumes do not conform to normal food production costs.”

Shell Finance found on e-commerce platforms that a 400g pack of Youyou Food deboned phoenix claws costs 35.86 yuan after coupons, with a two-pack discount bringing the price to 62.91 yuan; on the same platform, Wang Xiaolu’s boneless chicken feet ranks third in sales, with a 2-jin (about 1 kg) pack priced at 58 yuan.

Despite the low unit price, consumers have already associated chicken feet with listed companies.

In the A-share market, Youyou Food is known as the “Number One Stock for Pao Jiao Feng Zhua,” heavily reliant on this flagship product. Before its IPO in May 2019, Pao Jiao Feng Zhua contributed most of the company’s revenue. From 2016 to 2018, Youyou Food’s Pao Jiao Feng Zhua revenue was 629.5714 million yuan, 783.1423 million yuan, and 896.9362 million yuan, respectively, accounting for 76.27%, 79.45%, and 81.63% of main business income.

From 2021 to 2024, the revenue and gross profit margin of Youyou Food’s Pao Jiao Feng Zhua products are as follows:

Shell Finance’s review shows that in 2022 and 2023, both revenue and gross profit margin of Youyou Food’s Pao Jiao Feng Zhua declined but remained around 30%.

In 2024, Youyou Food achieved approximately 1.182 billion yuan in revenue, up 22.37% year-over-year; net profit attributable to shareholders was about 157 million yuan, up 35.44%. The growth in revenue and net profit was partly due to improved core business profitability and partly from financial investment income. In 2023 and 2024, the company received over 30 million yuan annually from financial product investments.

In the first three quarters of 2025, Youyou Food’s revenue was about 1.245 billion yuan, up 40.39%; net profit attributable to shareholders was about 174 million yuan, up 43.34%.

Beijing News Shell Finance Reporter Yan Xia

Editor: Wang Jinyu

Proofreader: Liu Baoqing