One reason is regional protectionism, where officials are often reluctant to release negative information about big local companies, he said, adding the same thing had happened during the beginning period of the melamine-tainted milk scandal in 2008.

"Non-transparent food safety information is the protection and connivance for food safety crimes," Sang added.

Camellia oil, acclaimed for its high nutritional value, has gained popularity in many regions of China. Hunan province provides nearly half of all camellia oil sold in China, with Jinhao being one of the leading camellia oil producers.

Jinhao has six production bases in Hunan, with an annual revenue of 1.1 billion yuan. Company leaders planned to list the company publicly before 2012.

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