Fufeng Group (546) H2 2024 earnings summary

Executive summary

• Revenue decreased by 0.9% year-over-year to RMB27.8 billion, mainly due to a decline in the Colloid segment.

• Gross profit dropped 19.1% to RMB5.1 billion, with profit attributable to shareholders down 26.5% to RMB2.3 billion.

• Earnings per share (basic) fell to RMB91.86 cents from RMB124.02 cents year-over-year.

• Final dividends proposed at HK22 cents per share, with a full-year payout ratio of 40%.

Financial highlights

• Operating profit for 2024 was RMB2.54 billion, down from RMB3.70 billion in 2023.

• Finance income rose 50.9% to RMB498.7 million, while finance costs increased 14.2% to RMB205.0 million.

• Net cash inflow from operating activities was RMB2.96 billion, up from RMB1.70 billion in 2023.

• Depreciation expense increased 7.8% to RMB1.18 billion.

Outlook and guidance

• Global and China economic growth for 2025 is forecasted at 3.3% and 5% respectively.

• Raw material prices, especially corn and coal, are expected to remain low and stable.

• Plans to expand international operations with new overseas production bases and sales offices.