MeiHua Holdings Group (600873) investor relations material

Executive summary

• Revenue for H1 2026 was RMB 12.24 billion, down 0.37% year-over-year; net profit attributable to shareholders was RMB 662 million, down 62.56% year-over-year, mainly due to lower prices for key products amid industry oversupply and weak demand.

• Operating profit and cash flow both declined sharply; operating cash flow dropped 83.17% year-over-year, primarily due to increased raw material procurement.

• The company completed the integration of acquired Japanese Kyowa Hakko's amino acid business, with the Plumino platform achieving profitability ahead of schedule.

• Significant progress was made in R&D, digital transformation, and global supply chain optimization, with AI-driven initiatives reducing costs and improving efficiency.

Financial highlights

• Operating income: RMB 12.24 billion (down 0.37% YoY); net profit: RMB 662 million (down 62.56% YoY); operating cash flow: RMB 389 million (down 83.17% YoY).

• Gross margin and net margin declined due to lower product prices and higher raw material costs.

• Basic and diluted EPS: RMB 0.24 (down 61.29% YoY); ROE: 4.03% (down from 11.81% YoY).

• Total assets: RMB 26.79 billion (up 3.35% from year-end 2025); net assets: RMB 15.67 billion (down 4.14%).

• Non-recurring gains: RMB 211 million, mainly from government subsidies and asset disposals.

Outlook and guidance

• The company will continue to focus on global expansion, digital transformation, and high-value product development.

• New production lines for threonine and valine are expected to come online in H2 2026, further optimizing product structure.

• Ongoing cost control, supply chain resilience, and market diversification are prioritized to mitigate industry cyclicality.