Fufeng Group (546) H2 2025 earnings summary

Executive summary

• Revenue increased 0.4% year-over-year to RMB27.9 billion, driven by animal nutrition segment growth.

• Gross profit rose 8.4% to RMB5.5 billion, with higher contributions from food additives and animal nutrition.

• Net profit attributable to shareholders grew 6.6% to RMB2.47 billion; basic EPS was RMB98.33 cents.

• Final dividend proposed at HK12.2 cents per share, full-year payout ratio at 45%.

Financial highlights

• Operating profit reached RMB2.73 billion, up from RMB2.54 billion year-over-year.

• Net finance income was RMB270 million, with interest income from bank deposits up 7.1%.

• Selling and marketing expenses increased 10.3% due to higher transportation costs; admin expenses up 10.5% from increased employee benefits.

• Depreciation expense rose 7.1% to RMB1.26 billion.

Outlook and guidance

• Global and China economic growth expected to remain stable in 2026.

• Product prices have started to recover since late Q1 2026, but weak ASP in early 2026 may impact results.

• Geopolitical tensions and regional protectionism remain key uncertainties.

• Kazakhstan production base phase I to commence production in 2026, focusing on threonine and high-end amino acids for Europe.