Fufeng Group (546) investor relations material

Executive summary

• Revenue rose 4.4% year-over-year to RMB13,959.5 million, driven mainly by growth in the Animal nutrition segment.

• Gross profit increased 37.9% to RMB3,168.6 million, with significant contributions from Food additives and Animal nutrition.

• Net profit attributable to shareholders surged 72.1% to RMB1,791.7 million, aided by higher sales volumes, lower raw material costs, and a RMB233 million compensation from Xinjiang Meihua.

• Basic and diluted EPS were RMB71.48 cents and RMB71.46 cents, up from RMB41.31 cents and RMB41.30 cents year-over-year.

• Return on equity improved to 18.3% from 11.9% in the prior year period.

Financial highlights

• Operating profit rose to RMB2,053.8 million from RMB1,111.4 million year-over-year.

• Net finance income was RMB107.1 million, slightly down from RMB116.5 million.

• Total assets reached RMB38,927.2 million, with total equity at RMB19,621.9 million.

• Gearing ratio increased to 34.7% from 31.5% at year-end 2024.

• Interim dividend declared at HK36.5 cents per share, including basic, special, and compensation components.

Outlook and guidance

• Ongoing geopolitical tensions and global economic uncertainty may impact product prices and demand in 2H 2025.

• Domestic corn supply expected to remain sufficient, with prices likely to be stable or slightly lower; coal prices to stay low.

• Focus on maximizing utilization of new production capacities and exploring further international expansion, including a new plant in Kazakhstan and potential entry into Latin America.