According to the enterprise investigation, Baixiang Food is a private enterprise, and Baixiang Food Co., Ltd. was formerly a grain, oil and food company under the Henan Provincial Food Department. 1996, Yao Zhongliang volunteered, then led the company to achieve a counterattack, and in 1997, Baixiang Food Co., Ltd. was formally established.

In this process, the white elephant food is not directly managed or controlled by the state, but is operated independently by enterprises, which are responsible for their own profits and losses, forming the nature of private enterprises.