Fufeng Group (546) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB13,794.7 million, down 1.2% year-over-year, mainly due to lower sales in animal nutrition, high-end amino acid, and colloid segments.

• Profit attributable to shareholders dropped 80.7% to RMB346.6 million, primarily due to a sharp decline in average selling prices (ASP) of main products.

• Gross profit decreased 25.5% to RMB2,361.5 million, with gross margin falling to 17.1% from 22.7% in H1 2025.

• Basic and diluted EPS were RMB13.82 cents, down from RMB71.48 and RMB71.46 cents in the prior year period.

• The board declared an interim dividend of HK6.4 cents per share, including both basic and special interim dividends.

Financial highlights

• Revenue: RMB13,794.7 million (down 1.2% YoY).

• Gross profit: RMB2,361.5 million (down 25.5% YoY).

• Net profit: RMB346.6 million (down 80.7% YoY).

• Basic and diluted EPS: RMB13.82 cents (down from RMB71.48 cents in H1 2025).

• Operating profit: RMB318.3 million (down from RMB2,053.8 million YoY).

Outlook and guidance

• Product selling prices are expected to remain volatile and low in H2 2026 due to geopolitical tensions and slow economic recovery in China.

• Raw material costs are expected to stay relatively low, supported by government policies.

• Focus remains on completing phase I of the Kazakhstan Production Base and planning for phase II.

• The company is exploring a second overseas production plant and may consider external financing for long-term projects.