Fufeng Group (546) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 increased by 4.4% year-over-year to RMB13,959.5 million, mainly driven by growth in the Animal nutrition segment.

• Profit attributable to shareholders surged 72.1% to RMB1,791.7 million, supported by higher sales volumes, lower raw material costs, and a one-time compensation of RMB233 million from Xinjiang Meihua.

• Gross profit rose 37.9% to RMB3,168.6 million, with significant contributions from Food additives and Animal nutrition; overall gross margin improved to 22.7% from 17.2%.

• Basic earnings per share rose to RMB71.48 cents from RMB41.31 cents; diluted EPS was RMB71.46 cents.

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

Financial highlights

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

• Net finance income was RMB107.1 million, down from RMB116.5 million in the prior year.

• 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 dividends (including special and compensation-related) declared, totaling RMB558.2 million, RMB80.1 million, and RMB196.7 million; interim dividend declared at HK36.5 cents per share.

Outlook and guidance

• Ongoing geopolitical tensions and global economic uncertainty may impact product prices and demand in the second half of 2025.

• The company aims to fully utilize new production capacities and may seek to raise product prices where possible.

• Domestic corn supply is expected to remain sufficient, with prices likely to stay low; coal prices are also expected to remain stable.

• International expansion continues, with construction of a new production base in Kazakhstan and exploration of opportunities in Latin America.