Hong Kong-listed Fufeng Group has reported a resilient performance for the year ended 31 December 2025, supported by a rebound in gross margin and stronger animal-nutrition sales.
Financial highlights • Revenue edged up 0.40% year on year to RMB 27.88 billion. • Gross profit increased 8.40% to RMB 5.48 billion; margin widened to 19.7% from 18.2%. • Profit attributable to shareholders grew 6.60% to RMB 2.47 billion; basic EPS reached RMB 0.9833. • Return on equity improved slightly to 12.7% (2024: 12.6%). • Final dividend of HK 12.2 cents per share proposed, lifting full-year distribution 21.8% to HK 48.7 cents and raising payout ratio to 45% (2024: 40%).
Segment performance • Animal nutrition: Revenue jumped 20.5% to RMB 10.53 billion; gross profit climbed 23.0% to RMB 2.50 billion, maintaining a 23.7% margin. – Threonine sales rose 31.1% to 342,541 tonnes; revenue grew 16.4% despite a 11.2% ASP decline. – Lysine volume advanced 30.4% to 435,140 tonnes, lifting revenue 24.0%. • Food additives: Revenue fell 6.8% to RMB 13.39 billion as MSG prices weakened, yet gross profit increased 17.1% to RMB 1.81 billion on lower corn and coal costs; margin expanded to 13.5%. • High-end amino acids: Revenue slipped 11.0% to RMB 1.97 billion; gross margin improved to 39.7%. • Colloid: Revenue dropped 32.5% to RMB 1.23 billion; gross margin narrowed to 35.8% amid softer xanthan-gum prices. • Others (mainly fertilisers): Revenue rose 23.3% to RMB 0.76 billion but recorded a RMB 48.86 million gross loss.
Cost dynamics Corn kernels, 56.6% of production cost, averaged RMB 1,826 per tonne, down 7.0% on 2024. Coal, 15.7% of costs, averaged RMB 342 per tonne, down 11.2%. Lower raw-material prices cushioned the impact of product ASP declines.
Cash flow and balance sheet • Operating cash inflow: RMB 2.91 billion (2024: RMB 2.96 billion). • Cash and bank balances: RMB 19.50 billion versus bank borrowings of RMB 17.65 billion, giving a gearing ratio of 40.4% (2024: 31.5%). • Net current assets stood at RMB 5.46 billion; current ratio at 1.24 times.
Capital investment Construction of the Kazakhstan production base (Phase I) commenced in April 2025 and is on schedule to start production in 2026, focusing on threonine and high-end amino acid supply to European markets.
Dividend timetable Shareholders on record as of 5 June 2026 will be eligible for the final dividend, payable around 30 June 2026. The register closes 26–29 May 2026 for AGM eligibility and 4–5 June 2026 for dividend entitlement.
Audit and governance The audited results comply with HKFRS; PricewaterhouseCoopers confirmed the figures. The board states full compliance with the Hong Kong CG Code during the year.
Outlook Management notes early-2026 price improvements across key products but remains cautious due to geopolitical uncertainties and persistent industry overcapacity. Focus will remain on completing the Kazakhstan facility while leveraging China’s supportive policies on grain and energy to stabilise costs.
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