MeiHua Holdings Group (600873) Q2 2025 earnings summary

Executive summary

• Revenue for Jan–Jun 2025 was RMB 12.28 billion, down 2.87% year-over-year, while net profit attributable to shareholders rose 19.96% to RMB 1.77 billion and net profit excluding non-recurring items increased 24.98%.

• Gross profit improved by RMB 382 million, driven by higher sales of MSG, lysine, and isoleucine, as well as cost reductions in raw materials and production efficiency.

• Completed the acquisition of Kyowa Hakko’s food and pharmaceutical amino acid and HMO businesses, expanding the product portfolio and global footprint.

• Export ratio remained above 30%, with significant progress in international expansion and digital transformation.

Financial highlights

• Total profit for the period was RMB 2.09 billion, up 21.66% year-over-year.

• Basic and diluted EPS were RMB 0.62, up 24% year-over-year; EPS after non-recurring items was RMB 0.57, up 29.55%.

• Net cash flow from operating activities increased 3.44% to RMB 2.31 billion.

• Gross margin improved due to lower raw material costs and higher production efficiency.

• Non-recurring profit totaled RMB 139.6 million, mainly from government grants and fair value changes.

Outlook and guidance

• The company will continue to invest in R&D, digitalization, and international expansion, focusing on synthetic biology and high-value product development.

• Ongoing capacity upgrades and new projects in lysine, MSG, and other amino acids are expected to further strengthen market leadership.

• Management expects continued growth in global demand for amino acids and functional nutrition products.