Earnings release
Page 1
– 1 – Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. ዄОபf Fufeng Group Limited ʮ̡ (Incorporated in the Cayman Islands with limited liability ) (Stock code: 546) (Incorporated in the Cayman Islands with limited liability) ʮ̡ (Stock code: 546) （股份代號： 546） ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2026 截至二零二六年六月三十日止六個月的中期業績公佈 HIGHLIGHTS OF 2026 INTERIM RESULTS 二零二六年中期業績摘要 – The Group’s revenue slightly decreased by 1.2% to approximately RMB13,794.7 million in the Period, as compared to the Corresponding Period, mainly due to the decrease in revenue of animal nutrition, high-end amino acid and colloid segment. ϗɝ༰̘ϋΝಂଫൻ 1.2%ɛ͏࿆ 13,794,700,000ᐄቮe৷Ꮶऄਿაʿ f – The Group’s overall gross profit decreased by 25.5% to approximately RMB2,361.5 million in the Period, as compared to the Corresponding Period, primarily due to the decreased gross profit contribution from all segments except for the others segment. ˣл༰̘ϋΝಂಯˇ 25.5%ɛ͏࿆ 2,361,500,000Ϟ f – Profit attributable to the Shareholders decreased by 80.7% to approximately RMB346.6 million in the Period, as compared to the Corresponding Period. ࠥ80.7%ɛ͏࿆ 346,600,000 ʩf – Basic and diluted earnings per share for the Period were RMB13.82 cents and RMB13.82 cents, respectively (Corresponding Period: RMB71.48 cents and RMB71.46 cents). ɛ͏࿆ 13.82 ʱʿɛ͏࿆ 13.82 ʱ ̘ϋΝಂ j ɛ͏࿆71.48 ʱʿɛ͏࿆ 71.46 ʱ f – Return on equity for the Period was 3.5%* (Corresponding Period: 18.3%*). މ3.5%*̘ϋΝಂj 18.3%*f – The Board declared an interim dividend of HK6.4 cents per Share which represents the basic interim dividend and special interim dividend. ٰ6.4f * calculated on an annualised basis ၑ
Page 2
– 2 –– 2 – INTERIM RESULTS The Board is pleased to announce the unaudited interim results of the Group for the Period. The interim results have been reviewed by the Audit Committee. 中期業績 ʕ ึᄲቡf INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT 中期簡明合併利潤表 For the six months ended 30 June 2026 ˜ Half-year 半年度 2026 2025 二零二六年 ɚཧɚʞϋ Note RMB’000 RMB’000 ൗ 人民幣千元 ɛ͏࿆ɷʩ Revenue ϗɝ 4 13,794,689 13,959,533 Cost of sales ቖਯϓ͉ (11,433,172) (10,790,977) Gross profit 毛利 2,361,517 3,168,556 Selling and marketing expenses ቖਯʿ̹ఙપᄿක˕ (1,171,991) (1,051,148) Administrative expensesක˕ (583,800) (490,184) (Provision for)/reversal of impairment losses on financial assets ᑦฦ ᅡ௪ Ŋ ᅡΫ (248) 672 Other operating expenses Չ˼ᐄක˕ (25,344) (46,573) Other income Չ˼ϗू 5 179,646 145,589 Other (losses)/gains – net Չ˼ ᑦฦ ŊлÑଋᕘ (441,443) 326,932 Operating profit 經營溢利 6 318,337 2,053,844 Finance income ৌਕϗɝ 248,537 244,231 Finance costs ৌਕϓ͉ (156,738) (137,129) Finance income – net ৌਕϗɝÑଋᕘ 7 91,799 107,102 Share of net loss of associates accounted for using the equity method ᏐЦᑌᐄ ʮ̡ଋᑦฦ (604) – Profit before income tax 除所得稅前溢利 409,532 2,160,946 Income tax expenseක˕ 8 (62,976) (369,205) Profit for the half-year and attributable to the Shareholders 股東應佔半年度溢利 346,556 1,791,741 Earnings per share for profit attributable to the Shareholders during the period 期內股東應佔溢利每股盈利 (expressed in RMB cents per share)ɛ͏࿆ʱяΐ – basic Ñਿ͉ 9 13.82 71.48 – diluted Ñᛅᑛ 9 13.82 71.46
Page 3
– 3 – INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 中期簡明合併綜合收益表 For the six months ended 30 June 2026 ˜ Half-year 半年度 2026 2025 二零二六年 ɚཧɚʞϋ RMB’000 RMB’000 人民幣千元 ɛ͏࿆ɷʩ Profit for the half-year 半年度溢利 346,556 1,791,741 Other comprehensive income/(loss) for the half-year 半年度其他綜合收益╱ （虧損） Items that may be reclassified to profit or loss ධͦ Exchange differences on translation of foreign operations ᕘ 52,313 (5,414) Total comprehensive income for the half-year attributable to the Shareholders 股東應佔半年度綜合收益總額 398,869 1,786,327
Page 4
– 4 – INTERIM CONDENSED CONSOLIDATED BALANCE SHEET 中期簡明合併資產負債表 As at 30 June 2026 ɚཧɚʬϋʬ˜ɧɤ˚ 30 June 2026 31 December 2025 二零二六年 六月三十日 ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚ Note RMB’000 RMB’000 ൗ 人民幣千元 ɛ͏࿆ɷʩ ASSETS 資產 Non-current assets 非流動資產 Property, plant and equipmentʿண௪ 14,921,874 13,768,311 Right-of-use assets Դ͜ᛆ༟ପ 972,099 983,022 Intangible assets ೌҖ༟ପ 84,609 88,284 Deferred income tax assets༟ପ 47,720 42,434 Investments accounted for using the equity method ҳ༟ 22,099 9,703 Financial assets at fair value through profit or loss ፄ ༟ପ 3,985 4,007 Other receivables and prepayments Չ˼Ꮠϗಛධʿཫ˹ಛධ 591,687 512,807 Total non-current assets 非流動資產總值 16,644,073 15,408,568 Current assets 流動資產 Properties under developmentุ 135,469 125,514 Inventories π 6,738,985 6,756,748 Trade and other receivables, notes receivable and prepayments ሪಛʿՉ˼Ꮠϗ ಛධeᏐϗୃኽʿཫ˹ಛධ 10 1,779,830 1,927,867 Derivative financial instrumentsፄʈՈ 5,334 – Restricted bank balancesვБഐቱ 11 7,665,882 6,030,251 Cash and cash equivalentsي࠽11 13,873,052 13,465,776 Total current assets 流動資產總值 30,198,552 28,306,156 Total assets 資產總值 46,842,625 43,714,724
Page 5
– 5 – 30 June 2026 31 December 2025 二零二六年 六月三十日 ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚ Note RMB’000 RMB’000 ൗ 人民幣千元 ɛ͏࿆ɷʩ LIABILITIES 負債 Non-current liabilities 非流動負債 Deferred incomeϗू 1,041,183 1,003,543 Borrowings൲ 12 99,000 199,900 Lease liabilitiesව 47 428 Deferred income tax liabilitiesව 120,712 204,032 Total non-current liabilities 非流動負債總額 1,260,942 1,407,903 Current liabilities 流動負債 Trade, other payables and accrualsሪಛeՉ˼Ꮠ˹ ൬͜ 13 3,808,701 4,035,772 Contract liabilitiesව 924,880 1,191,577 Current income tax liabilitiesව 101,484 163,077 Borrowings൲ 12 21,155,710 17,445,910 Lease liabilitiesව 922 1,112 Derivative financial instrumentsፄʈՈ 601 9,267 Total current liabilities 流動負債總額 25,992,298 22,846,715 Total liabilities 負債總額 27,253,240 24,254,618 EQUITY 權益 Capital and reserves attributable to the Shareholders 股東應佔股本及儲備 Share capital͉ 240,850 240,840 Share premium΅๐ᄆ 155,820 155,360 Treasury shares΅ (1,001) – Other reserves Չ˼Ꮇ௪ 1,563,442 1,497,547 Retained earningsवϗू 17,630,274 17,566,359 Total equity 權益總值 19,589,385 19,460,106 Total equity and liabilities 權益及負債總額 46,842,625 43,714,724
Page 6
– 6 – 1. 一般資料 ᙮ʮ̡ԫႡ ʿ e ලᎲ ط ˒ආБ ቖਯf ʮ މCricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islandsf ɪ̹f ΥԻৌਕ ɚཧɚʬϋ ̊೯f f 2. 編製基準及會計政策變動 (i) 編製基準 ࿚Їɚཧɚʬϋʬ˜ɧɤ˚˟̒ϋ ΥԻৌ ୋ 34 Υ ৌਕజѓɓ ൗ f ΪϤ d ࠇ ಥʮ̡ૢԷୋ 622מٙ ᇜႡ࿚Їɚཧɚʞϋɤɚ ΌϋజѓɓԻ ቡᛘf NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 中期簡明合併財務報表附註 For the six months ended 30 June 2026 截至二零二六年六月三十日止六個月 1. GENERAL INFORMATION Fufeng Group Limited and its subsidiaries manufacture and sell fermentation-based food additive, biochemical products and starch-based products. The Group has manufacturing plants in Shaanxi Province, Heilongjiang Province, Inner Mongolia Autonomous Region and Xinjiang Uygur Autonomous Region of the PRC and sells mainly to customers located in the PRC. The Company is a limited liability company incorporated in the Cayman Islands. The address of its registered office is Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1- 1111, Cayman Islands. The Company has its shares listed on the Stock Exchange. These interim condensed consolidated financial statements are presented in RMB, unless otherwise stated, and were approved for issue on 28 August 2026 by the Board. These interim condensed consolidated financial statements have not been audited. 2. BASIS OF PREPARATION AND CHANGES IN ACCOUNTING POLICIES (i) Basis of preparation These interim condensed consolidated financial statements for the half-year reporting period ended 30 June 2026 has been prepared in accordance with HKAS 34 “Interim Financial Reporting”. The interim condensed consolidated financial statements does not include all the notes of the type normally included in an annual financial report. Accordingly, this announcement is to be read in conjunction with the annual report for the year ended 31 December 2025, which have been prepared in accordance with HKFRS Accounting Standards and the disclosure requirements of the Hong Kong Companies Ordinance Cap. 622.
Page 7
– 7 – (ii) 本集團所採納的新訂及經修訂 準則 ึ ഄၾ࿚Їɚཧɚʞϋɤɚ˜ ڌ ɚཧ ࠈ ৰ̮f͉ණྠˡΪ ഄʿ Ъ̈๑ሜf ϣમ͜əɨΐ ʿ༕ᙑj • Ñ ୋ 9࠰ ୋ 7ࠈࡌ ͉f • Ñ ୋ 9࠰ ୋ 7ࠈࡌ ͉f • ҷ ԄÑୋ11 f ಂග ᕘԨೌОᅂᚤd˲ཫಂ ɽᅂ ᚤf (ii) New and amended standards adopted by the Group The accounting policies in these interim condensed financial statements applied are consistent with those of the annual financial statements for the year ended 31 December 2025, except for the adoption of the following new and amended standards for the first time from 1 January 2026. The Group did not have to change its accounting policies and make retrospective adjustments as a result of adopting these standards. The Group has applied the following standards, amendments and interpretation for the first time for its interim reporting period commencing 1 January 2026: • Amendments to the Classification and Measurement of Financial Instruments – Amendments to HKFRS 9 and HKFRS 7. • Contracts Referencing Nature-dependent Electricity – Amendments to HKFRS 9 and HKFRS 7. • Annual Improvements to HKFRS Accounting Standards – Volume 11. The amendments and interpretation listed above did not have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.
Page 8
– 8 – (iii) 尚未採納之新訂及經修訂準則 及詮釋 મ͜ʊ೯бШίɚ ֠ ʿึ ༈ ͉ʿอ༕ᙑ ʚ˸મॶj ൙Пd༈ഃ א ً ಥৌਕజѓ ୋ 18ᅂᚤΥԻၝΥϗ яΐf (iii) New and amended standards and interpretations not yet adopted Certain new accounting standards and amendments to accounting standards have been published that are not mandatory for 30 June 2026 reporting periods and have not been early adopted by the Group. The Group plans to adopt these new standards, amendments to standards and new interpretations when they become effective: Effective for annual periods beginning on or after 於以下日期或之後 起的年度期間生效 HKFRS 18 Presentation and Disclosure in Financial Statements 1 January 2027 ୋ 18ᚣ ɚཧɚɖϋɓ˜ɓ˚ Hong Kong Interpretation 5 (Revised) Presentation of Financial Statements – Classification by the Borrower of a Term Loan that Contains a Repayment on Demand Clause 1 January 2027 ಥ༕ᙑୋ 5ٙ ʱᗳ ɚཧɚɖϋɓ˜ɓ˚ HKFRS 19 Subsidiaries without Public Accountability: Disclosures 1 January 2027 ୋ 19ᚣ ɚཧɚɖϋɓ˜ɓ˚ According to the assessment made by the directors of the Company, these new and amended standards are either not relevant to the Group or not significant to the financial performance and positions of the Group when they become effective, except for HKFRS 18 which will mainly impact the presentation of the consolidated statements of comprehensive income.
Page 9
– 9 – HKFRS 18 will replace HKAS 1 Presentation of Financial Statements, introducing new requirements that will help to achieve comparability of the financial performance of similar entities and provide more relevant information and transparency to users. Even though HKFRS 18 will not impact the recognition or measurement of items in the financial statements, its impacts on presentation and disclosure are expected to be pervasive, in particular those related to the statement of financial performance and providing management-defined performance measures within the financial statements. Management is currently assessing the detailed implications of applying the new standard on the Group’s consolidated financial statements. From the high-level preliminary assessment performed, the following potential impacts have been identified: Impact on consolidated statements of comprehensive income: • Although the adoption of HKFRS 18 will have no impact on the Group’s net profit, the Group expects that grouping items of income and expenses in the income statement into the new categories will impact how operating profit is calculated and reported. From the high-level impact assessment that the Group has performed, the following items might potentially impact operating profit: – HKFRS 18 has specific requirements on the category in which derivative gains or losses are recognised – which is the same category as the income and expenses affected by the risk that the derivative is used to manage. Although the group currently recognises the gains or losses in operating profit, there might be a change to where these gains or losses are recognised, and the Group is currently evaluating the need for change. ୋ 18࠰ ୋ 1ΐజ d ۨ Դ ٙܓ ୋ 18 ᆽႩ ᚣ੭ ତజ ʕԶ ᅺf ࿁͉ ࣬ Ӊ൙Пdʊᆽ ˸ɨᆑίᅂᚤj ᅂᚤj • ୋ 18ॱ ٙ อᗳй ၑʿజѓᐄ๐л ٙ א ึ࿁ᐄ๐лϞᆑίᅂᚤj Ñ ୋ18 א ࠅ ͛ʈՈ͜ ϗू ʿක˕ᓥɝΝɓᗳйfኋ ίᐄ๐лʕ ᑦฦdШ༈ ᑦฦᐏᆽႩ̙ঐ ҷᜊd͉ණྠ͍ఱ Ъ̈һҷආБ൙ Пf
Page 10
– 10 – Impact on consolidated balance sheets: • The line items presented on the primary financial statements might change as a result of the application of the concept of useful structured summary and the enhanced principles on aggregation and disaggregation. In addition, since goodwill will be required to be separately presented in the statement of financial position, the group will disaggregate goodwill and other intangible assets and present them separately in the statement of financial position. Impact on disclosure: • The Group does not expect there to be a significant change in the information that is currently disclosed in the notes because the requirement to disclose material information remains unchanged; however, the way in which the information is grouped might change as a result of the aggregation/disaggregation principles. In addition, there will be significant new disclosures required for: – management-defined performance measures; – a break-down of the nature of expenses for line items presented by function in the operating category of the statement of profit or loss – this break-down is only required for certain nature expenses; and – for the first annual period of application of HKFRS 18, a reconciliation for each line item in the statement of profit or loss between the restated amounts presented by applying HKFRS 18 and the amounts previously presented applying HKAS 1. ᅂᚤj • ධ̙ͦ ฿ ̋੶Ͼ ਠᚑ ʕʱකяΐd͉ ਠᚑʿՉ˼ೌҖ ʕ ʱකяΐf ᅂᚤj • ᚣ ɽᜊਗd ၪ ˙ ϾϞ ᜊਗ f Ϥ̮ d ɨΐධਗ਼ც ᚣj Ñ ᅺi Ñ ᔖঐ ʍ iʿ Ñ ۆ ୋ 18ಂග ಥৌਕజѓ ୋ18 ಥ ୋ 1ٙ ධͦ ࿁ሪf
Page 11
– 11 – Impact on cash flow statement: • From a cash flow statement perspective, there will be changes to how interest paid are presented. Interest paid will be presented as financing cash flows, which is a change from current presentation as part of operating cash flows. The Group will apply the new standard from its mandatory effective date of 1 January 2027. Retrospective application is required, and so the comparative information for the financial year ending 31 December 2026 will be restated in accordance with HKFRS 18. 3. ESTIMATES The preparation of interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing this interim condensed consolidated financial statements, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December 2025. ᅂᚤj • ϾԊdʊ˹ ᜊਗf ਗତ ۃ ඎɓʱ яΐ˙όf ɚཧɚɖϋɓ˜ɓ f ๑Ꮠ͜dΪϤ࿚Їɚཧ ܓ ಥৌਕజѓ ୋ 18ΐf 3. 估計 d၍ଣᄴЪ̈ වၾ ʿண f ྼ f d၍ ࠠٙ Ը๕ၾ ܓ Νf
Page 12
– 12 – 4. SEGMENT INFORMATION The chief operating decision-maker has been identified as the executive Directors. The executive Directors review the Group’s internal reporting in order to assess performance and allocate resources. The executive Directors examine the business performance of the Group according to the following product segments: – Food additives segment: manufacturing and sales of food additives products, including MSG, starch sweeteners, glutamic acid, compound seasoning and corn oil; – Animal nutrition segment: manufacturing and sales of animal nutrition products, including corn refined products, threonine and lysine; – High-end amino acid segment: manufacturing and sales of high-end amino acid products; – Colloid segment: manufacturing and sales of colloid products, including xanthan gum and gellan gum; – Other segment: manufacturing and sales of other products, including fertilisers, synthetic ammonia and others. The executive directors assess the performance of the business segment based on gross profit of the above five product segments. Approximately 70% (30 June 2025: 68%) of the Group’s revenue are generated from sales to the customers in the PRC. No customer contributes 10% or more to the Group’s revenue for the six months ended 30 June 2026 and 2025. 4. 分部資料 ੂБԫfੂ ʫяజཀd˸ ତʿʱৣ༟๕f ʱ൙П͉ණྠ ତj Ñ ۜ բၚ e ዠ४բ i Ñ ᐄ e ᘽऄ აʿ፠ऄაi Ñ ৷ᏦऄਿაʱjႡிʿቖਯ৷Ꮶ i Ñ d ᇭʿഐиᇭi Ñ d eΥϓऄʿՉ˼f ʱˣл൙ ତf ߒ70%ɚཧɚʞϋʬ˜ɧɤ˚j 68%f ࿚Їɚཧɚʬϋʿɚཧɚʞϋʬ˜ɧɤ ٙ 10%˸ɪf
Page 13
– 13 – The revenue of the Group for the six months ended 30 June 2026 and 2025 are set out as follows: Half-year 半年度 2026 2025 二零二六年 ɚཧɚʞϋ Products by segments RMB’000 RMB’000 按分部劃分產品 人民幣千元 ɛ͏࿆ɷʩ Food additives 食品添加劑 MSG բၚ 5,131,357 4,836,397 Starch sweeteners ዠ४բኒ 1,165,505 1,263,385 Glutamic acid ԋऄა 334,540 329,687 Compound seasoningۜ44,771 44,083 Corn oilذ860 757 6,677,033 6,474,309 Animal nutrition 動物營養 Corn refined productsۜ2,669,479 2,368,865 Threonine ᘽऄა 1,316,425 1,597,067 Lysine ፠ऄა 1,150,758 1,440,538 5,136,662 5,406,470 High-end amino acid 高檔氨基酸 High-end amino acid productsۜ902,230 1,054,412 Colloid 膠體 Xanthan gumᇭ 586,048 640,908 Gellan gum ഐиᇭ 24,553 20,783 610,601 661,691 Others 其他 Fertilisersࣘ٭453,367 348,698 Synthetic ammonia Υϓऄ 13,439 10,855 Others Չ˼ 1,357 3,098 468,163 362,651 13,794,689 13,959,533 ͉ණྠ࿚Їɚཧɚʬϋʿɚཧɚʞϋʬ ϗɝ༱ΐνɨj
Page 14
– 14 – The segment information for the six months ended 30 June 2026 is as follows: Food additives Animal nutrition High-end amino acid Colloid Others Group 食品添加劑 動物營養 高檔氨基酸 膠體 其他 本集團 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 人民幣千元 人民幣千元 人民幣千元 人民幣千元 人民幣千元 人民幣千元 Revenue ϗɝ 6,677,033 5,136,662 902,230 610,601 468,163 13,794,689 Cost of sales ቖਯϓ͉ (5,845,026) (4,179,022) (560,333) (438,789) (410,002) (11,433,172) Gross profit ˣл 832,007 957,640 341,897 171,812 58,161 2,361,517 The segment information for the six months ended 30 June 2025 is as follows: Food additives Animal nutrition High-end amino acid Colloid Others Group ᐄቮ ৷Ꮶऄਿა ᇭ Չ˼ ͉ණྠ RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Revenue ϗɝ 6,474,309 5,406,470 1,054,412 661,691 362,651 13,959,533 Cost of sales ቖਯϓ͉ (5,454,135) (3,883,846) (625,020) (423,333) (404,643) (10,790,977) Gross profit ˣл 1,020,174 1,522,624 429,392 238,358 (41,992) 3,168,556 ٙ νɨj ٙ νɨj
Page 15
– 15 – 5. 其他收益 6. 經營溢利 ᐄධͦ f 5. OTHER INCOME Half-year 半年度 2026 2025 二零二六年 ɚཧɚʞϋ RMB’000 RMB’000 人民幣千元 ɛ͏࿆ɷʩ Government grants relating to expensesп 60,770 39,490 Amortisation of deferred incomeϗूᛅቖ 48,507 43,287 Sales of waste products and raw materialsࣘ39,346 39,071 Others Չ˼ 31,023 23,741 179,646 145,589 6. OPERATING PROFIT An analysis of the amounts presented as operating items in the financial information is given below. Half-year 半年度 2026 2025 二零二六年 ɚཧɚʞϋ RMB’000 RMB’000 人民幣千元 ɛ͏࿆ɷʩ Amortisation of intangible assets ೌҖ༟ପᛅቖ 8,130 6,442 Depreciation of property, plant and equipment ʿண௪ұᔚ 662,774 635,313 Depreciation of right-of-use assets Դ͜ᛆ༟ପұᔚ 13,147 12,675 Provision for/(reversal of) impairment losses on financial assets ᑦฦᅡ௪Ŋ ᅡΫ 248 (672) Provision for/(reversal of) value on employee services for the share option schemes ࠽ ᅡ௪Ŋ ᅡΫ 148 (548) Reversal of inventory write-down – net࠽145,624) (2,106) Net foreign exchange losses/(gains) ̮ිᑦฦŊ л ଋᕘ 518,304 (73,230) Gains from sales of carbon emission quotaл (23,830) (896) Indemnity received from a lawsuitږ– 233,000) Investment gains from cross currency swaps and cross currency and interest rate swaps ʹɸ࿆દಂʿʹɸ࿆ၾлଟ ҳ༟л (42,912) (13,973) Fair value losses of financial assets at fair value through profit and loss ٙ ᑦฦ 22 1,154
Page 16
– 16 – 7. 財務收入及成本7. FINANCE INCOME AND COSTS Half-year 半年度 2026 2025 二零二六年 ɚཧɚʞϋ RMB’000 RMB’000 人民幣千元 ɛ͏࿆ɷʩ Finance income: ৌਕϗɝj Interest income from financial assets held for cash management purposes ፄ ϗɝ – bank deposits and bank balances ÑვБπಛʿვБഐቱ 246,408 241,093 – other receivables ÑՉ˼Ꮠϗಛධ – 2,520 Net foreign exchange gain on financing activities ̮ිлଋᕘ 2,129 618 248,537 244,231 Finance costs: ৌਕϓ͉j Interest and finance charges paid/payable for lease liabilities and financial liabilities not at fair value through profit or loss ඎ ව ʿፄ༟൬͜ – bank borrowings൲ (156,711) (137,080) – lease liabilitiesව (27) (49) (156,738) (137,129) Net finance income ৌਕϗɝଋᕘ 91,799 107,102
Page 17
– 17 – 8. 所得稅開支 ɓɘʬɓ ൗ ʮ̡dԨᐏᒀеᖮ f ᙮ʮ̡ᐏᒀ f d Ꮠሙ๐лd ၑf ج Ꮠሙ ၑf 8. INCOME TAX EXPENSE Half-year 半年度 2026 2025 二零二六年 ɚཧɚʞϋ RMB’000 RMB’000 人民幣千元 ɛ͏࿆ɷʩ Current income tax – PRC Ñʕ – Enterprise income tax 110,749 318,379 – Withholding tax Ñཫϔ 30,069 11,042 – U.S. enterprise income tax 10,191 7,095 – Vietnam enterprise income tax 573 – – Hong Kong profit taxಥл – 1,596 Total current income taxᐼᕘ 151,582 338,112 Deferred income tax (88,606) 31,093 62,976 369,205 The Company was incorporated in the Cayman Islands as an exempted company with limited liability under the Companies Law (Law 3 of 1961, as consolidated and revised) of the Cayman Islands and is exempted from payment of the Cayman Islands income tax. The Group’s subsidiaries in BVI are exempted from payment of the BVI income tax. Hong Kong profit tax is calculated based on the effective tax rate on assessable profit of subsidiaries established in Hong Kong in accordance with Hong Kong tax laws and regulations. PRC enterprise income tax is calculated based on the effective tax rate on assessable profit of subsidiaries established in the PRC in accordance with PRC tax laws and regulations.
Page 18
– 18 – dІɚཧཧɞϋɓ˜ ટછ ɚཧཧɞϋɓ dਗ਼ ʮ̡ᅄϗ 10% ཫϔf ༈ഃ ᛆਜ ٙ ཫϔଟ5%ʮ̡e ಥ ᙮ʮ̡ Іʕ ٙ 5%᙮ʮ މ10%f ج Ꮠሙ ၑf ج Ꮠሙ ၑf ɛ͏࿆30,000,000 ͉ʮ̡ɓග ˹࿚Їɚཧɚʞϋɤɚ˜ वϗूɛ͏࿆ 600,000,000 ʩ ࿚Їɚཧɚʞϋʬ˜ɧɤ˚˟ಂගj ˹࿚Їɚཧ वϗूɛ͏ ࿆220,840,000ʊ˕˹ཫϔɛ͏ ࿆ 11,042,000 ʩ f ࿚Їɚཧɚʬϋʬ ͉ණྠཫಂʕ ࿚Їɚཧ Ԩೌ ཫϔᅡ௪ ࿚Їɚཧɚʞϋʬ˜ ڝ ࿚Їɚཧɚʞϋʬ˜ɧɤ˚ वϗूɛ͏࿆ 1,000,000,000 ʩdʊ ཫϔᅡ௪ɛ͏࿆ 50,000,000 ʩ f According to the corporate income tax law, starting from 1 January 2008, a 10% withholding tax will be levied on the immediate holding companies established outside the PRC when their PRC subsidiaries declare dividends out of their profits earned after 1 January 2008. A lower withholding tax rate of 5% may be applied if there is a tax treaty arrangement between the PRC and the jurisdiction of the foreign immediate holding companies, including those incorporated in Hong Kong. Trans- Asia Capital Resources Limited, Full Profit Investment (Group) Limited and Full Health (Hong Kong) Limited, three subsidiaries of the Company, acquired qualification for the lower tax rate of 5% for dividend received from its subsidiaries in mainland China while the withholding tax rate for other subsidiaries in Hong Kong were based on 10%. The U.S. enterprise income tax is calculated based on the assessable profit of the subsidiaries established in the U.S. in accordance with the U.S. tax laws and regulations. The Vietnam enterprise income tax is calculated based on the assessable profit of the subsidiaries established in Vietnam in accordance with the Vietnam tax laws and regulations. The withholding tax during the Period mainly comprises RMB30,000,000, which has been paid as a subsidiary of the Company has distributed the retained earnings of RMB600,000,000 as of 31 December 2025 (for the period ended 30 June 2025: withholding tax of RMB11,042,000 has been paid as a subsidiary of the Company has distributed the retained earnings of RMB220,840,000 as of 31 December 2024). For the period ended 30 June 2026, no withholding tax has been provided as the Group doesn’t expect PRC subsidiaries to distribute the retained earnings as of 30 June 2026 (for the period ended 30 June 2025: withholding tax of RMB50,000,000 has been provided as the Group expects PRC subsidiaries to distribute the retained earnings of RMB1,000,000,000 as of 30 June 2025) in the foreseeable future.
Page 19
– 19 – 9. 每股盈利 ᏐЦ๐лৰ˸ಂ ᛅ ᆑί ΅̋ᛆ ၑf j ͊БԴ ၑd ٙ ΅ᅰ ΅ᅰͦਗ਼ၾணБԴ ΅ᅰͦЪˢ༰f л ɛ͏࿆ 13.82 ʱʿɛ͏࿆ 13.82 ʱ 15.69 ಥ̀ʿ15.69 ಥ ̀ ɚ ཧ ɚʞϋɪ̒ϋ j ɛ͏࿆71.48 ʱʿɛ͏ ࿆71.4677.53 ಥ̀ʿ 77.51 ಥ ̀ f 9. EARNINGS PER SHARE Half-year 半年度 2026 2025 二零二六年 ɚཧɚʞϋ Earnings per share for profit attributable to the Shareholders (RMB cents per share) л ɛ͏࿆ʱ – basic Ñਿ͉ 13.82 71.48 – diluted Ñᛅᑛ 13.82 71.46 Basic earnings per share is calculated by dividing the profit attributable to the Shareholders by the weighted average number of Shares in issue during the period. Diluted earnings per share is calculated by adjusting the weighted average number of Shares outstanding assuming the conversion of all dilutive potential ordinary shares. The Company has one category of dilutive potential ordinary shares: share options. For the share options, a calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the Company’s shares) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options. Earnings per share – basic and diluted for the first half of 2026 was RMB13.82 cents and RMB13.82 cents respectively (equivalent to HK15.69 cents and HK15.69 cents) (1H 2025: RMB71.48 cents and RMB71.46 cents respectively (equivalent to HK 77.53 cents and HK 77.51 cents)).
Page 20
– 20 – 10. TRADE AND OTHER RECEIVABLES, NOTES RECEIVABLE AND PREPAYMENTS As at 於 30 June 2026 31 December 2025 二零二六年 六月三十日 ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚ RMB’000 RMB’000 人民幣千元 ɛ͏࿆ɷʩ Trade receivables (a)ሪಛ (a) 689,706 703,322 Less: provision for impairment loss allowance ᑦฦᅡ௪ (3,306) (3,058) Trade receivables – netሪಛÑଋᕘ 686,400 700,264 Deposits and othersʿՉ˼ 122,903 164,567 Loan to a related party൲ಛ 11,242 16,442 Less: provision for impairment loss allowance ᑦฦᅡ௪ (11,242) (11,242) Loan to a related party – net ൲ಛÑଋᕘ – 5,200 Loan to a third party (b)൲ಛ (b) 50,000 50,000 Less: provision for impairment loss allowance ᑦฦᅡ௪ (50,000) (50,000) Loan to a third party – net൲ಛÑଋᕘ – – Loans to employees൲ಛ 4,481 3,900 Value-added tax for future deduction 384,993 206,385 Interest receivablesࢹ2,346 1,640 Trade and other receivablesሪಛʿՉ˼Ꮠϗಛධ 1,201,123 1,081,956 Notes receivable (c) Ꮠϗୃኽ (c) 505,789 481,765 1,706,912 1,563,721 Prepayments to suppliers ཫ˹ԶᏐਠಛධ 664,605 876,953 2,371,517 2,440,674 Less: non-current portionਗʱ Prepayments for non-current assets (d)ਗ༟ପཫ˹ಛධ (d) (294,677) (407,344) Value-added tax to be recovered beyond one year (297,010) (105,463) 1,779,830 1,927,867 10. 應收貿易賬款及其他應收款 項、應收票據及預付款項
Page 21
– 21 – (a) At 30 June 2026 and 31 December 2025, the ageing analysis of the trade receivables based on invoice date was as follows: As at 於 30 June 2026 31 December 2025 二零二六年 六月三十日 ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚ RMB’000 RMB’000 人民幣千元 ɛ͏࿆ɷʩ Within 3 months˜ʫ 673,343 692,310 3 to 12 months˜ 14,359 8,300 Over 12 months˜ 2,004 2,712 689,706 703,322 The Group sells its products to customers and receives settlement either in cash or in form of bank acceptance notes (Note (c)) upon delivery of goods. The bank acceptance notes are usually with maturity dates within six months. Certain major customers in the PRC and overseas with good payment history are offered credit terms of not more than three months. (b) The loan to a third party was arranged via a financial trust company during 2019. During the year ended 31 December 2021, the loan was past due for collection as the third party was in financial difficulties. A full provision of RMB50,000,000 was recorded on the balance sheet to reflect the increase in credit risk. As there has been a significant increase in credit risk, the Group measured the impairment as lifetime expected credit losses. (a) ɚཧɚʬϋʬ˜ɧɤ˚ʿɚཧ νɨj гୃኽ ൗ (c) Җόϗ՟ഐၑಛධfვБ ˜ʫՑಂfՈ ʍ ڦٙ ൲ಂf (b) ɚཧɓɘϋʫdഗʚɓΤୋɧ˙ ৄʮ̡൲ ̈f࿚Їɚཧɚɓϋɤɚ˜ɧɤɓ d༈൲ಛΪୋɧ˙ɝৌ Όᅰᅡ௪ɛ͏࿆ 50,000,000 ʩd ࠬ πᚃಂ f
Page 22
– 22 – (c) As at 30 June 2026, notes receivable were all bank acceptance notes aged less than one year, including a total amount of RMB485,836,000 (31 December 2025: RMB441,319,000) that have been endorsed to the suppliers. As the notes receivable are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, they are measured at FVOCI. As at 於 30 June 2026 31 December 2025 二零二六年 六月三十日 ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚ RMB’000 RMB’000 人民幣千元 ɛ͏࿆ɷʩ Current assets 流動資產 Notes receivable measured at FVOCIɝՉ˼ၝΥϗू Ꮠϗୃኽ 505,789 481,765 On endorsing these notes receivables, there is no any related balance within the FVOCI reserve that needs to be reclassified to other gains/(losses) within profit or loss due to the fair value is equal to its face amount and no premium was recognised. All of the financial assets at FVOCI are denominated in RMB. As at 30 June 2026 and 31 December 2025, no notes receivable were pledged as security for bank borrowings of the Group. (d) As at 30 June 2026, the prepayments for non-current assets comprised amounts of RMB294,677,000 (2025: RMB407,344,000) for purchase of property, plant and equipment and RMB297,010,000 (2025: RMB105,463,000) of input value-added tax attributable to purchase of property, plant and equipment and expected to be recovered beyond one year. (c) ɚཧɚʬϋʬ˜ɧɤ˚dᏐϗୃ гୃ ɛ͏࿆ 485,836,000 ʩ ɚཧɚʞϋɤɚ˜ɧɤɓ˚ j ɛ͏࿆ 441,319,000ʚԶ Ъϗ ፄ༟ପd ˕˹͉ ɝՉ˼ၝ ඎf ʮ Ꮇ௪ʕԨ อʱᗳЇฦ މ ˲͊ᆽႩ๐ᄆf Ϟ f ɚཧɚʬϋʬ˜ɧɤ˚ʿɚཧ ɚʞϋɤɚ˜ɧɤɓ˚dԨೌᏐϗ תٙ f (d) ਗ ุeᅀ ʿண௪ɛ͏࿆ 294,677,000 ʩ ɚ ཧɚʞϋ j ɛ͏࿆407,344,000 ʩ ٙ ɛ͏࿆297,010,000 ʩ ɚཧɚʞϋ j ɛ͏࿆105,463,000 ϗΫf
Page 23
– 23 – 11. CASH AND CASH EQUIVALENTS AND RESTRICTED BANK BALANCES As at 於 30 June 2026 31 December 2025 二零二六年 六月三十日 ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚ RMB’000 RMB’000 人民幣千元 ɛ͏࿆ɷʩ Cash and cash equivalentsي࠽ Cash on handږ2,500 670 – Cash in banksږ13,870,552 13,465,106 13,873,052 13,465,776 Restricted bank balances (a)ვБഐቱ (a) 7,665,882 6,030,251 21,538,934 19,496,027 (a) As at 30 June 2026, restricted bank balances were mainly comprised of: (i) amounts of RMB7,489,204,000 (31 December 2025: RMB5,762,637,000) was pledged as security for bank borrowings of the Group; (ii) amounts of RMB140,800,000 (31 December 2025: RMB249,000,000) was pledged as security for issuing notes payable of the Group; (iii) amounts of RMB33,908,000 (31 December 2025: RMB18,614,000) was pledged as security for cross currency swaps and interest rate swaps. As at 30 June 2026, restricted bank balances were with interest rates between 0.05% and 1.70% (31 December 2025: between 1.00% and 1.70%). 11. 現金及現金等值物以及受限制 的銀行結餘 (a) ࠢ j (i) ɛ͏࿆ 7,489,204,000 ʩ ɚཧɚʞϋɤɚ ˜ɧɤɓ˚jɛ͏࿆ 5,762,637,000 תٙ i(ii)ɛ͏࿆140,800,000 ʩ ɚ ཧɚʞϋɤɚ˜ɧɤɓ˚jɛ͏࿆ 249,000,000͉ණྠ೯ i (iii) ɛ͏࿆ 33,908,000 ʩ ɚཧɚʞϋɤɚ˜ ɧɤɓ˚ j ɛ͏࿆18,614,000 ʩ ʹɸ࿆દಂʿлଟદಂ f Փ ܲ0.05% Ї1.70%л ɚཧɚʞϋɤɚ˜ɧɤɓ ˚j1.00% Ї1.70% ʘ ග f
Page 24
– 24 – (b) ვ j ږ ࠅ ვБfਗ਼༈ഃ˸ɛ͏ ̮࿆աʕ ࠢ Փf (c) ɚཧɚʬϋʬ˜ɧɤ˚d͉ණྠ ˸ ̋ᛆ̻ѩྼ މ2.11%ɚཧɚʞϋɤɚ ˜ɧɤɓ˚j 2.13%f (b) Total cash and cash equivalents and restricted bank balances are denominated in the following currencies: 30 June 2026 31 December 2025 二零二六年 六月三十日 ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚ RMB’000 RMB’000 人民幣千元 ɛ͏࿆ɷʩ – USDʩ 12,122,513 11,088,186 – RMB Ñɛ͏࿆ 8,928,928 8,025,728 – EUR Ñᆄʩ 432,390 314,818 – HKD Ñಥʩ 22,555 20,568 – VNDی16,456 19,865 – KZT Ñˑ 15,269 18,998 – SGD Ñอ̋սʩ 823 11 – RUB Ñጅ̺ – 7,853 21,538,934 19,496,027 The Group’s cash and cash equivalents and restricted bank balances denominated in RMB were mainly deposited with banks in the PRC. Conversion of these RMB denominated balances into foreign currencies is subject to the rules and regulations of foreign exchange control promulgated by the PRC government. (c) The weighted average effective interest rate on cash and cash equivalents and restricted bank balances placed with banks by the Group was 2.11% per annum as at 30 June 2026 (31 December 2025: 2.13%).
Page 25
– 25 – 12. 借貸 (a) ת ვБ ഐቱɛ͏࿆7,489,204,000 ʩ ɚ ཧ ɚʞϋɤɚ˜ɧɤɓ˚ j ɛ͏࿆ 5,762,637,000ൗ11(a)f νɨ j 12. BORROWINGS As at 於 30 June 2026 31 December 2025 二零二六年 六月三十日 ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚ RMB’000 RMB’000 人民幣千元 ɛ͏࿆ɷʩ Non-current 非流動 – Bank borrowings, unsecured 99,000 199,900 Current 流動 – Bank borrowings, unsecured 12,756,710 10,865,910 – Bank borrowings, secured (a)(a) 8,399,000 6,580,000 21,155,710 17,445,910 Total Borrowings 借貸總額 21,254,710 17,645,810 (a) As at 30 June 2026, the secured current bank borrowings were secured by restricted bank balances of RMB7,489,204,000 (31 December 2025: RMB5,762,637,000) (Note 11(a)). The carrying amount and fair value of non-current borrowings are as follows: Carrying amount Fair value 賬面值 公平值 As at As at 於 於 30 June 2026 31 December 2025 30 June 2026 31 December 2025 二零二六年 六月三十日 ɚཧɚʞϋ ɤɚ˜ɧɤɓ˛ 二零二六年 六月三十日 ɚཧɚʞϋ ɤɚ˜ɧɤɓ˛ RMB’000 RMB’000 RMB’000 RMB’000 人民幣千元 ɛ͏࿆ɷʩ 人民幣千元 ɛ͏࿆ɷʩ Bank borrowings, unsecured 99,000 199,900 98,213 198,019
Page 26
– 26 – Movements in borrowings were analyzed as follows: RMB’000 ɛ͏࿆ɷʩ Six months ended 30 June 2025 截至二零二五年六月三十日止六個月 Opening amount as at 1 January 2025ᕘ 11,364,468 New borrowings൲ 9,679,314 Decrease of bank borrowings:൲ಯˇj – Cash repayments of bank borrowings൲ (7,543,255) – Derecognition of discounted notes receivable Ñ˟ᆽႩʊ൨ତᏐϗୃኽ (8,043) Closing amount as at 30 June 2025 於二零二五年六月三十日的期末金額 13,492,484 Six months ended 30 June 2026 截至二零二六年六月三十日止六個月 Opening amount as at 1 January 2026ᕘ 17,645,810 New borrowings൲ 14,592,000 Decrease of bank borrowings:൲ಯˇj – Cash repayments of bank borrowings൲ (10,983,100) Closing amount as at 30 June 2026 於二零二六年六月三十日的期末金額 21,254,710 Interest expenses on borrowings for the Period were RMB156,711,000 (30 June 2025: RMB137,080,000). (b) Loan covenants As at 30 June 2026 and 31 December 2025, the Group’s certain bank borrowings are subject to the fulfilment of covenants relating to certain debt servicing financial indicators. The Group regularly monitors its compliance with these covenants. As at 30 June 2026 and 31 December 2025, none of these covenants had been breached. νɨj ɛ͏࿆ 156,711,000 ʩ ɚཧɚʞϋʬ˜ ɧɤ˚jɛ͏࿆ 137,080,000 ʩ f (b) 貸款契諾 ɚཧɚʬϋʬ˜ɧɤ˚ʿɚཧ ٙ ʍᎵවৌ ಂ္ ɚཧɚʬ ϋʬ˜ɧɤ˚ʿɚཧɚʞϋɤɚ˜ ፕf
Page 27
– 27 – 13. TRADE, OTHER PAYABLES AND ACCRUALS As at 於 30 June 2026 31 December 2025 二零二六年 六月三十日 ɚཧɚʞϋ ɤɚ˜ɧɤɓ˛ RMB’000 RMB’000 人民幣千元 ɛ͏࿆ɷʩ Trade payables (a)ሪಛ (a) 927,986 920,145 Payables for property, plant and equipment ʿண௪Ꮠ˹ಛධ 1,383,870 1,249,197 Salaries, wages and staff welfares payables ʈ⨲л 496,685 506,460 Notes payable Ꮠ˹ୃኽ 303,232 734,409 Interest payablesࢹ23,886 9,897 Other payables and accruals൬͜ 638,395 593,604 Receipts in advance ཫϗಛධ 34,647 22,060 3,808,701 4,035,772 (a) The ageing analysis of the trade payables was as follows: As at 於 30 June 2026 31 December 2025 二零二六年 六月三十日 ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚ RMB’000 RMB’000 人民幣千元 ɛ͏࿆ɷʩ Within 3 months˜ʫ 837,001 806,163 3 to 6 months˜ 14,884 26,350 6 to 12 months˜ 29,706 21,068 1 to 2 years ɓЇՇϋ 23,698 39,468 Over 2 years Շϋ˸ɪ 22,697 27,096 927,986 920,145 13. 應付貿易賬款、其他應付款項 及應計費用 (a) νɨj
Page 28
– 28 – 14. DIVIDENDS On 26 March 2026, the Board proposed a final dividend of HKD268,286,000 (equivalent to RMB236,108,000), representing HKD10.7 cents (equivalent to RMB9.4 cents) per share and a special final dividend of HKD37,610,000 (equivalent to RMB33,099,000), representing HKD1.5 cents (equivalent to RMB1.3 cents) per share to be distributed from the retained earnings account. The final dividend paid in June 2026 amounted to HKD305,896,000 (equivalent to RMB267,078,000). The difference between proposed and paid final dividends was due to the exercise of share options and the impact of exchange rate fluctuation. At a meeting held on 28 August 2026, the Board proposed a basic interim dividend of HKD140,380,000 (equivalent to RMB121,381,000), representing HK5.6 cents (equivalent to RMB4.8 cents) per share, and a special interim dividend of HKD20,054,000 (equivalent to RMB17,340,000), representing HKD0.8 cents (equivalent to RMB0.7 cents) per share. At a meeting held on 28 August 2025, the Board proposed a basic interim dividend of HKD611,767,000 (equivalent to RMB558,219,000), representing HK24.4 cents (equivalent to RMB22.3 cents) per share, a special interim dividend of HKD87,753,000 (equivalent to RMB80,072,000), representing HKD3.5 cents (equivalent to RMB3.2 cents) per share, and a special interim dividend on after-tax compensation from Meihua of HKD215,623,000 (equivalent to RMB196,749,000), representing HKD8.6 cents (equivalent to RMB7.8 cents) per share. The interim dividend has not been recognised as a dividend payable in this interim financial information, but will be recognised as an appropriation from the retained earnings for the year ending 31 December 2026. 15. CONTINGENT LIABILITIES As at 30 June 2026 and 31 December 2025, the Group had no material contingent liabilities. 16. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE (a) Details of the interim dividend proposed are described in Note 14. Other than the above disclosed, there was no significant event of the Group occurred after the balance sheet date. 14. 股息 ɚཧɚʬϋɧ˜ɚɤʬ˚ d ԫ ٰ ࢹ268,286,000ɛ͏࿆ 236,108,000ٰ10.7 ಥ̀ ɛ͏࿆9.4 ʱ ʿतй͋ಂ ࢹٰ37,610,000ɛ͏࿆ 33,099,000ٰ1.5 ɛ͏࿆ 1.3˹ މࢹٰ305,896,000 ɛ͏࿆ 267,078,000˹ ᛆ f ٙ ೯ਿ͉ʕಂ ࢹٰ140,380,000ɛ͏ ࿆ 121,381,000ٰ5.6 ಥ ɛ͏࿆4.8 ʱ ʿतйʕಂ ࢹٰ20,054,000ɛ͏࿆ 17,340,000ٰ0.8 ɛ͏࿆ 0.7 ʱ f ٙ ೯ਿ͉ʕಂ ࢹٰ611,767,000ɛ͏ ࿆ 558,219,000ٰ24.4 ಥ ɛ͏࿆22.3 ʱ e तйʕಂ ࢹٰ87,753,000ɛ͏࿆ 80,072,000ٰ3.5 ɛ͏࿆ 3.2ሦᎵत ࢹٰ215,623,000ɛ ͏࿆196,749,000ٰ8.6 ಥ̀ ɛ͏࿆ 7.8 ʱ f ʕᆽ dઓਗ਼ఱ࿚Їɚཧɚʬϋ वϗू ᅡಛf 15. 或然負債 ɚཧɚʬϋʬ˜ɧɤ˚ʿɚཧɚʞϋ ್ වf 16. 資產負債表日後事項 (a) ൗ 14f ༟ପ ɽԫධf
Page 29
– 29 – MANAGEMENT REVIEW 管理層回顧 市場概覽 經濟環境 ၡੵ҅ැ ̍ eঐ๕ᄆ ࣦ ɚཧɚʬϋ ૐһอdɚཧɚʬϋ މࠇ3.0%ίϤልᕏ҅ැ ཫ d ̈ତ ᇠf ኽʕ ᅰኽd ڗ 4.7%ڗ5.0%ܓ֙ ڗ4.3%֛ٙ4.5% Ї 5.0%ͦᅺᇍఖʫf 主要原材料 ɨd ІഗІԑঐɢʔᓙ̋੶fʕ͗ ცӋ d ϗᐵЇ༰Э ᅰኽ d ಂʫ͗Ϸ̻ѩ ɛ͏࿆ 2,295 ʩ*d ༰̘ϋΝಂ ߒ4.7%f ᅰኽdಂʫʕ މߒ2,370,000,000ߒ 1.7%ԶᏐ Υଣᇍఖʫf ᅰኽdಂʫ ߒ225,000,000 ኚd༰̘ϋΝ ڗ1.7%f 主要產品 ცӋʥ ࣸ ᅰኽ d ɛ͏࿆ 7,070 ʩd༰̘ϋΝಂಯˇ 1.5%f * Market Overview Economic Environment In the Period, the global economy continued to face uncertainties arising from geopolitical tensions, including conflicts in the Middle East and the ongoing Russia-Ukraine war, elevated energy price volatility, and trade protectionism. According to the International Monetary Fund’s World Economic Outlook Update in July 2026, global growth is projected at 3.0% for 2026, reflecting a modest slowdown from its earlier projection in 2026 amid these crosscurrents. Against this background, China’s economy demonstrated resilience. According to the data released by the National Bureau of Statistics of China in July 2026, GDP grew by 4.7% year-on-year in the first half of 2026, with growth of 5.0% in the first quarter and 4.3% in the second quarter. This performance remained within the government’s annual growth target range of 4.5 to 5.0%. Major Raw Materials Supported by the Grain Security Guarantee Law of the People’s Republic of China, China’s corn self-sufficiency continued to be strengthened. China’s corn planting area and production capacity remained robust. Domestic supply stayed adequate relative to demand, with imports shrinking to a low level. According to Sublime China Information ( ՙ௴༟ৃ), the average corn price in the Period was approximately RMB2,295 per tonne*, representing an increase of about 4.7% as compared to the Corresponding Period. According to the data released by the National Bureau of Statistics of China, China’s coal output amounted to approximately 2.37 billion tonnes in the Period, a slight decrease of about 1.7% year on year. Although coal production declined marginally, coal supply remained stable and the coal prices stayed within a reasonable range overall. According to the data from the General Administration of Customs of the People’s Republic of China, coal imports in the Period rose to about 225 million tonnes, an increase of 1.7% as compared to the Corresponding Period. Major Products Demand for MSG in the domestic food and beverage sector remained subdued in the Period, with downstream customer demand staying relatively weak. MSG price continued to hover at a low level. According to the data from Sublime China Information, the ASP of MSG in the Period was approximately RMB7,070 per tonne, decreased by 1.5% as compared to the Corresponding Period. * the market prices from Sublime China Information in this section include VAT
Page 30
– 30 – The xanthan gum market witnessed a further price decrease following the availability of new production capacity launched in 2025. Based on the data from Sublime China Information, the ASP of xanthan gum decreased by 18.8% to approximately RMB17,863 per tonne in the Period, as compared to the Corresponding Period. The threonine and lysine markets remained unconsolidated, with ongoing capacity additions continuing to exert downward pressure on the prices. Although demand in the overseas markets remained robust, prices for threonine and 98% lysine in the Period stayed at lower levels. According to the data from Sublime China Information, the ASP of threonine in the Period declined to approximately RMB8,361 per tonne, a decrease of 19.1% as compared to the Corresponding Period. Meanwhile, the ASP of 98% lysine decreased to approximately RMB7,066 per tonne, a decrease of 22.1% as compared to the Corresponding Period. ᇭ̹ఙ ᅰኽ d ಂ ̻ѩਯᄆ༰̘ϋΝಂɨൻ 18.8% ɛ͏࿆ 17,863 ʩf ͊Υdʔᓙ̈ ிϓɨБᏀɢfኋ၍ऎ̮ dಂʫᘽऄაʿ 98% ፠ऄ ኽՙ௴༟ৃ ̻ѩਯᄆಯˇЇӊኚ ɛ͏࿆ 8,361 ʩd༰̘ϋΝಂಯˇ 19.1%f d 98%̻ѩਯᄆಯˇЇ ɛ͏࿆7,066 ʩ d ༰̘ϋΝಂಯˇ 22.1%f
Page 31
– 31 – Business and Financial Review Overall Performance The table below illustrates the trend of the Group’s revenue: 2023 2024 20252021 2022 2026 28,000 24,000 20,000 16,000 12,000 8,000 0 RMB (Million) ɛ͏࿆ϵຬʩ 4,000 13,795 21,540 27,475 9,521 12,931 28,007 13,580 13,368 13,960 27,757 27,879 Half year ̒ϋ Full year Όϋ With a diversified product development plan, the business structure of multiple growth drivers has been established, enhancing the core competitiveness of the Group. Facing the challenging market situation, the Group maintained stable revenue leveraging on a diversified product portfolio. With further analysis below, the profit attributable to the Shareholders decreased by 80.7% to approximately RMB346.6 million in the Period, as compared to the Corresponding Period, mainly due to a drop in the ASP of the main products during the Period. The Group’s revenue slightly decreased by 1.2% to approximately RMB13,794.7 million in the Period, as compared to the Corresponding Period, mainly due to the decreased revenue of the animal nutrition, high-end amino acid and colloid segments. The Group’s overall gross profit decreased by 25.5% to approximately RMB2,361.5 million in the Period, as compared to the Corresponding Period, primarily due to the decreased gross profit contribution from all segments except for the others segment. 業務及財務回顧 整體表現 ϗɝᒈැj ͭəε ː ɢf ̹ఙҖැd͉ණྠኯᔟεʩʷପ ϗɝf ᏐЦ๐л༰̘ϋ Νಂಯˇ 80.7%ɛ͏࿆ 346,600,000 ʩd f ϗɝ༰̘ϋΝಂଫൻ 1.2%ߒ ɛ͏࿆13,794,700,000ᐄ f ˣл༰̘ϋΝಂಯˇ 25.5%ɛ͏࿆2,361,500,000͟ ˣл্ᘠಯˇ f
Page 32
– 32 – Analysis of Five Product Segments The Group’s products are organised into five product segments: Segment Key products of the segment Food additives MSG Animal nutrition Threonine, lysine, corn refined products High-end amino acid Tryptophan, valine, leucine, isoleucine, glutamine, hyaluronic acid Colloid Xanthan gum Others Fertilisers Detailed sales and gross profit analysis by segment for the Period and Corresponding Period: For the six months ended 30 June 2026 Food additives Animal nutrition High-end amino acid Colloid Others Total 食品添加劑 動物營養 高檔氨基酸 膠體 其他 總計 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 人民幣千元 人民幣千元 人民幣千元 人民幣千元 人民幣千元 人民幣千元 Revenue ϗɝ 6,677,033 5,136,662 902,230 610,601 468,163 13,794,689 Gross profit ˣл 832,007 957,640 341,897 171,812 58,161 2,361,517 Gross profit margin (%) ˣлଟ (%) 12.5 18.6 37.9 28.1 12.4 17.1 For the six months ended 30 June 2025 Food additives Animal nutrition High-end amino acid Colloid Others Total ࠇ RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ ɛ͏࿆ɷʩ Revenue ϗɝ 6,474,309 5,406,470 1,054,412 661,691 362,651 13,959,533 Gross profit ˣл 1,020,174 1,522,624 429,392 238,358 (41,992) 3,168,556 Gross profit margin (%) ˣлଟ (%) 15.8 28.2 40.7 36.0 (11.6) 22.7 五個產品分部分析 ʱj 分部 分部的主要產品 ̋ኒ բၚ ᐄቮ ᘽऄაe፠ऄაe͗Ϸ ۜ ऄ ऄაeԋऄ ሯა ᇭ ࣘ٭ ಂʫʿ̘ϋΝಂ༉ቖਯʿˣ j 截至二零二六年六月三十日止六個月 截至二零二五年六月三十日止六個月
Page 33
– 33 – 1. Food additives segment Revenue of the food additives segment increased by 3.1% to approximately RMB6,677.0 million in the Period, as compared to the Corresponding Period, mainly due to increased revenue contribution from MSG. Gross profit of the food additives segment decreased by 18.4% to approximately RMB832.0 million in the Period, as compared to the Corresponding Period, mainly due to decreased gross profit contribution from MSG and starch sweeteners. Gross profit margin of the food additives segment was 12.5% in the Period, representing a decrease of 3.3 percentage points, as compared to the Corresponding Period. This reflects the impact of the decrease in the prices of key food additive products. Key product: MSG: The market remained weak as mentioned in the section headed “Market Overview”. The sales volume of MSG increased by 22.4% to approximately 958,000 tonnes, but the ASP of MSG was approximately RMB5,354 per tonne, representing a decrease of 13.3% as compared to the Corresponding Period. As a result, revenue increased by 6.1% to approximately RMB5,131.4 million in the Period. 2. Animal nutrition segment Revenue of the animal nutrition segment decreased by 5.0% to approximately RMB5,136.7 million in the Period, as compared to the Corresponding Period. Gross profit of the animal nutrition segment decreased by 37.1% to approximately RMB957.6 million in the Period, as compared to the Corresponding Period, mainly due to decreased gross profit contribution from threonine and lysine. Gross profit margin of the animal nutrition segment was 18.6% in the Period, representing a decrease of 9.6 percentage points, as compared to the Corresponding Period. Please refer to the “Market Overview” section for the analysis of threonine and lysine. Key products: Threonine: Revenue of threonine decreased by 17.6% to approximately RMB1,316.4 million in the Period, as compared to the Corresponding Period, primarily due to a decrease in the ASP of threonine. The ASP of threonine was approximately RMB7,906 per tonne in the Period, representing a decrease of 16.2%, as compared to the Corresponding Period. Sales volume of threonine was stable and maintained at approximately 167,000 tonnes in the Period, representing a slight decrease of 1.7%, as compared to the Corresponding Period. 1. ̋ኒʱ ϗɝ༰̘ϋΝ ಂᄣ̋3.1%ɛ͏࿆ 6,677,000,000 f ˣл༰̘ϋΝ ಂಯˇ 18.4%ɛ͏࿆ 832,000,000 բၚʿዠ४բኒˣл্ ˣлଟ މ12.5%d ༰̘ϋΝಂಯˇ3.3ϵʱᓃf ٙ ᅂᚤf j d ̹ఙ ቖඎᄣ̋22.4% Ї ߒ958,000ӊ ɛ͏࿆5,354 ʩ d ༰̘ϋΝಂಯˇ 13.3%f ΪϤ d ಂʫϗɝᄣ̋6.1%ߒ ɛ͏࿆ 5,131,400,000 ʩf 2. ᐄቮʱ ϗɝ༰̘ϋΝಂ ಯˇ 5.0%ɛ͏࿆ 5,136,700,000 ʩf ˣл༰̘ϋΝಂ ಯˇ 37.1%ɛ͏࿆ 957,600,000 ʩd ᘽऄაʿ፠ऄაˣл্ᘠಯˇf މ18.6%d ༰̘ϋΝಂɨൻ 9.6ϵʱᓃfϞᗫᘽऄ dሗਞቡ ̹ఙ฿ᚎ ɓືf j ϗɝ༰̘ϋΝ ಂಯˇ 17.6%ɛ͏࿆ 1,316,400,000 ̻ѩਯᄆಯˇf ɛ͏࿆ 7,906 ʩ d ༰̘ϋΝಂಯˇ 16.2%fᘽ ऄ ߒܵ167,000 ኚd༰̘ϋΝಂଫಯ 1.7%f
Page 34
– 34 – Lysine: Revenue of lysine decreased by 20.1% to approximately RMB1,150.8 million in the Period, as compared to the Corresponding Period. The sales volume was approximately 196,000 tonnes in the Period, representing a decrease of 6.2% as compared to the Corresponding Period. 3. High-end amino acid segment Revenue of the high-end amino acid segment decreased by 14.4% to approximately RMB902.2 million in the Period, as compared to the Corresponding Period. Gross profit of the high-end amino acid segment decreased by 20.4% to approximately RMB341.9 million in the Period, as compared to the Corresponding Period. Gross profit margin of the high- end amino acid segment was 37.9% in the Period, representing a decrease of 2.8 percentage points, as compared to the Corresponding Period. 4. Colloid segment Revenue of the colloid segment decreased by 7.7% to approximately RMB610.6 million in the Period, as compared to the Corresponding Period. Gross profit of the colloid segment decreased by 27.9% to approximately RMB171.8 million in the Period, as compared to the Corresponding Period, mainly due to reduced gross profit contribution from xanthan gum. Gross profit margin of the colloid segment was 28.1% in the Period, representing a decrease of 7.9 percentage points, as compared to the Corresponding Period. The ASP of xanthan gum was approximately RMB16,402 per tonne in the Period, representing a decrease of 10.6%, as compared to the Corresponding Period. 5. Others segment Revenue of other products increased by 29.1% to approximately RMB468.2 million in the Period, as compared to the Corresponding Period, mainly due to increased revenue of fertilisers. The segment recorded a gross profit of approximately RMB58.2 million in the Period. ϗɝ༰̘ϋΝ ಂಯˇ 20.1%ɛ͏࿆ 1,150,800,000 މߒ196,000 ኚd༰̘ϋ Νಂಯˇ 6.2%f 3. ৷Ꮶऄਿაʱ ಂʫd৷Ꮶऄਿაʱϗɝ༰̘ϋΝಂ ಯˇ 14.4%ɛ͏࿆ 902,200,000 ʩf ˣл༰̘ϋΝ ಂಯˇ 20.4%ɛ͏࿆ 341,900,000 މ 37.9%d༰̘ϋΝಂಯˇ 2.8ϵʱᓃf 4. ᇭʱ ಂʫd ᇭʱϗɝ༰̘ϋΝಂಯˇ7.7% ɛ͏࿆ 610,600,000 ʩfಂʫᇭʱ ˣл༰̘ϋΝಂɨൻ 27.9%ɛ ͏࿆ 171,800,000ٙ ˣ މ28.1%d༰̘ϋΝಂಯˇ 7.9ϵ ɛ ͏࿆ 16,402 ʩd ༰̘ϋΝಂɨൻ10.6%f 5. Չ˼ʱ ϗɝ༰̘ϋΝಂ ᄣ̋ 29.1%ɛ͏࿆ 468,200,000 ʩd fಂʫ ɛ͏࿆ 58,200,000 ʩf
Page 35
– 35 – Analysis of Key Production Costs Production costs Six months ended 30 June 截至六月三十日止六個月 2026 2025 Change 二零二六年 ɚཧɚʞϋ ᜊਗ RMB’000 人民幣千元 % of total production costs 佔總生產成本 的百分比 RMB’000 ɛ͏࿆ɷʩ % of total production costs Цᐼ͛ପϓ͉ ϵʱˢ % Major raw material 主要原材料 • Corn kernels • ͗Ϸᒶ 6,836,846 58.8 6,434,722 54.9 6.2 Energy 能源 • Coal • ލ1,547,578 13.3 1,868,873 16.0 (17.2) Corn kernels In the Period, corn kernels accounted for approximately 58.8% (Corresponding Period: 54.9%) of the total cost of production. The average price of corn kernels, the key raw material cost, was approximately RMB1,906 per tonne in the Period which increased by 7.1% as compared to the Corresponding Period. The total cost of corn kernels increased by 6.2% in the Period due to the increase in the average price of corn, as compared to the Corresponding Period. 主要生產成本分析 ͛ପϓ͉ ͗Ϸᒶ ߒ58.8%̘ϋ Ν ಂj54.9% ˴ ɛ͏࿆ 1,906 ʩd༰ ̘ϋΝಂᄣ̋ 7.1%f ᐼϓ͉ᄣ̋ 6.2%͗ ᄣ̋f
Page 36
– 36 – The following chart shows the price trend of corn kernels from the first half of 2023 to the Period: 2,500 1,600 1,900 2,200 1,300 1,000 RMB/T onne 人民幣╱噸 1,9061,872 2,397 2,078 1,888 1,780 2,292 2H2025 二零二五年 下半年 1H2026 二零二六年 上半年 1H2023 二零二三年 上半年 1H2024 二零二四年 上半年 2H2023 二零二三年 下半年 1H2025 二零二五年 上半年 2H2024 二零二四年 下半年 Energy cost The coal cost is the main energy cost. Coal accounted for approximately 13.3% (Corresponding Period: 16.0%) of the total cost of production in the Period. The average unit cost of coal in the Period was approximately RMB303 per tonne, representing a decrease of 13.2%, as compared to the Corresponding Period. Our major production bases have their own power plants with access to the low cost coal in the regions by purchasing directly from the local coal mines with long-term contracts to guarantee our coal supply volume. ɨྡΐͪІɚཧɚɧϋɪ̒ϋЇಂʫ͗Ϸᒶ ᒈැj ঐ๕ϓ͉ Ц ߒ13.3%̘ϋΝಂj 16.0%f ಂ ɛ͏࿆303 ʩd ༰̘ϋΝಂɨൻ 13.2%f ೯ཥᅀdஷ ήᘤʕમᒅ ᗇ ԶᏐඎf
Page 37
– 37 – Production The annual designed production capacity of the major products by product categories were as follows: Annual production capacity as at 於以下日期的年產能 30 June 2026 31 December 2025 Change 二零二六年 六月三十日 ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚ ᜊਗ Tonnes Tonnes Product 產品 噸 ኚ % Food additives 食品添加劑 MSG բၚ 1,730,000 1,730,000 – Starch sweeteners ዠ४բኒ 720,000 720,000 – Animal nutrition 動物營養 Threonine ᘽऄა 263,000 263,000 – Lysine ፠ऄა 380,000 380,000 – Colloid 膠體 Xanthan gumᇭ 80,000 80,000 – Analysis of capacity usage of major products Business strategy of production remained unchanged and the Group sets production volume according to market demand. During the Period, the capacity utilisation rate of MSG, threonine and lysine reached full capacity. Xanthan gum, as classified in the colloid segment, reached 84% of the capacity utilisation in the Period. ͛ପ ପঐν ɨj ؓ ኽ̹ఙ ପඎ f ಂʫբၚ e ᘽऄაʿ፠ऄა ᇭ ʱ ପঐԴ͜ଟ͵༺Ї 84%f
Page 38
– 38 – Other Financial Information Other income In the Period, other income amounted to approximately RMB179.6 million, which was mainly comprised of the income from the sales of waste products and raw materials, amortisation of deferred income and government grants. Other loss It mainly represents net foreign exchange losses generated from operating activities amounted to approximately RMB518.3 million (Corresponding Period: net foreign exchange gains RMB73.2 million). Selling and marketing expenses Selling and marketing expenses increased by approximately RMB120.9 million, or 11.5%, in the Period, mainly due to the increase in transportation costs. Administrative expenses Administrative expenses increased by approximately RMB93.6 million, or 19.1%, in the Period. The increase was due to the increase in employee benefit expenses. Finance income Finance income mainly represented interest income from bank deposits and bank balances. The interest income from bank deposits and bank balances amounted to approximately RMB246.4 million, representing an increase of 2.2%. This was mainly due to higher USD bank balance in the Period than that of the Corresponding Period. Finance costs Finance costs increased by approximately RMB19.6 million, or 14.3% in the Period. Finance costs mainly represent the interest expenses. Depreciation Depreciation expense of the Group was approximately RMB675.9 million in the Period, representing an increase of RMB27.9 million, or 4.3%, as compared to the Corresponding Period. Income tax expense Please refer to the note 8 of interim condensed financial statement. 其他財務資料 Չ˼ϗू ɛ͏࿆ 179,600,000 ʩd ַ пf Չ˼ᑦฦ ̮ිᑦฦ ɛ͏࿆ 518,300,000 ʩ ̘ ϋ Ν ಂj̮ ිлଋᕘɛ͏࿆ 73,200,000 ʩ f ቖਯʿ̹ఙપᄿක˕ ɛ͏࿆ 120,900,000א11.5%༶፩ϓ͉ ᄣ̋f ක˕ ɛ͏࿆ 93,600,000 ʩ א19.1%၅лක˕ᄣ̋f ৌਕϗɝ ࢹ މߒ ɛ͏࿆ 246,400,000 ʩdᄣ̋ 2.2%͟ ̘ϋΝಂf ৌਕϓ͉ ɛ͏࿆ 19,600,000א 14.3%ක˕f ұᔚ ɛ͏࿆ 675,900,000 ʩ d ༰̘ϋΝಂᄣ̋ɛ͏࿆ 27,900,000א4.3%f ක˕ ൗ 8f
Page 39
– 39 – Dividend The basic interim dividend and special interim dividends for the Period and the Corresponding Period are shown in the following table: 2026 2025 二零二六年 ɚཧɚʞϋ Note 1 Note 2 附註 1ൗ 2 Per share Amount Per share Amount 每股股份 金額ᕘ HKD cents RMB cents equivalent HKD ’000 RMB ’000 equivalent HKD cents RMB cents equivalent HKD ’000 RMB ’000 equivalent 港仙 等值 人民幣分 港幣千元 等值 人民幣千元 ಥ̀ ࠽ ɛ͏࿆ʱ ಥ࿆ɷʩ ࠽ ɛ͏࿆ɷʩ Basic Interim Dividend (35%) ࢹٰ35%) 5.6 4.8 140,380 121,381 24.4 22.3 611,767 558,219 Special Interim Dividend (5%)ࢹٰ5%) 0.8 0.7 20,054 17,340 3.5 3.2 87,753 80,072 Special Dividend on after-tax compensation from Meihua ሦᎵ ࢹٰ–––– 8.6 7.8 215,623 196,749 6.4 5.5 160,434 138,721 36.5 33.3 915,143 835,040 Notes: 1. The Board has resolved to pay the basic interim dividend and special interim dividend for the Period, payable on or before 30 September 2026 to the Shareholders whose names appear on the register of members of the Company on 14 September 2026. 2. The basic interim dividend, special interim dividend and special dividend on after- tax compensation from Meihua for the Corresponding Period were paid. ࢹٰ ʿ j ൗj 1. Σ ٰٙ f 2. ʿ f
Page 40
– 40 – Capital structure, liquidity and financial resources Capital structure and financial resources The capital structure of the Group comprises share capital and bank borrowings. The Group adopted a prudent treasury policy and thus maintained a healthy liquidity position throughout the Period. As at 30 June 2026, the Group had total cash and bank balances amounting to approximately RMB21,538.9 million (31 December 2025: RMB19,496.0 million) which were mainly denominated in RMB and USD. As at 30 June 2026, the Group had total bank borrowings of approximately RMB21,254.7 million (31 December 2025: RMB17,645.8 million). Bank borrowings include short term and long term bank borrowings bearing both fixed and floating interest rates. As at 30 June 2026, approximately 84% (2025: 79%) of the Group’s total borrowings were at fixed interest rates. Of the total bank borrowings, approximately RMB21,155.7 million (31 December 2025: RMB17,445.9 million) were short term bank borrowings and approximately RMB99.0 million (31 December 2025: RMB199.9 million) were long term bank borrowings. The Group’s bank borrowings were denominated in RMB at the period end date. Depending on the needs and market situation, the Group may issue bonds and/or raise foreign currency bank borrowings for the daily operation and investment of the Group. The Group uses financial instruments to hedge the foreign currency risks arising from export sales denominated in foreign currencies. Liquidity The Group met the working capital requirements by cash generated from operations and bank borrowings during the Period. The Group had a net cash inflow of approximately RMB447.6 million from operating activities (Corresponding Period: RMB1,622.8 million). Taking into account the cash balances together with short term bank borrowings facilities available, the Group was financially sound throughout the Period. As at 30 June 2026, the Group’s net current assets were approximately RMB4,206.3 million (31 December 2025: RMB5,459.4 million) and current ratio (current assets divided by current liabilities) was 1.16 times (31 December 2025: 1.24 times). ʿৌਕ༟๕ 資本架構及財務資源 ൲f͉ ಂʫ f ږ ɛ͏࿆21,538,900,000 ʩ ɚཧɚʞϋɤɚ˜ɧɤɓ˚ j ɛ͏࿆ 19,496,000,000ࠇ f ൲ ɛ͏࿆ 21,254,700,000 ʩ ɚཧɚʞϋ ɤɚ˜ɧɤɓ˚ j ɛ͏࿆17,645,800,000 ʩ f ո ɚཧɚʬϋʬ˜ɧɤ ߒ84%൲ᐼᕘ ɚཧɚʞϋj 79%൲ᐼᕘʕd ɛ͏࿆ 21,155,700,000 ʩ ɚཧɚʞϋɤɚ ˜ɧɤɓ˚jɛ͏࿆ 17,445,900,000 ɛ͏࿆ 99,000,000 ʩ ɚ ཧ ɚʞϋɤɚ˜ɧɤɓ˚jɛ͏࿆ 199,900,000 ಂ͋ d ൲d ͉ණྠ˚੬ᐄ༶ʿҳ༟f ̈ɹ ᎈf 流動資金 ൲ ɛ͏࿆ 447,600,000 ʩ ̘ ϋΝಂ j ɛ͏࿆1,622,800,000 ʩ fϽ ᅇ Ց d͉ණ ᖢf ਗ ɛ͏࿆ 4,206,300,000 ʩ ɚ ཧ ɚʞϋɤɚ˜ɧɤɓ˚ j ɛ͏࿆5,459,400,000 މ 1.16ɚཧɚʞϋɤɚ˜ɧɤɓ˚ j1.24f
Page 41
– 41 – Gearing ratio As at 30 June 2026, the total assets of the Group amounted to approximately RMB46,842.6 million (31 December 2025: RMB43,714.7 million) whereas the total debts amounted to RMB21,254.7 million (31 December 2025: RMB17,645.8 million). The gearing ratio was approximately 45.4% (31 December 2025: 40.4%) which was calculated based on the Group’s total debts over total assets. Total debts include current and non-current bank borrowings as at 30 June 2026 and 31 December 2025. Foreign exchange exposure Foreign currencies of the Group are received from the export sales. Such proceeds are subject to foreign exchange risk before receiving and converting them into RMB. The foreign currencies received from export sales are converted into RMB depending on needs and market conditions. During the Period, the Group recorded a net foreign exchange (losses)/ gains as follow: 2026 2025 二零二六年 ɚཧɚʞϋ RMB’000 RMB’000 人民幣千元 ɛ͏࿆ɷʩ Foreign exchange (losses)/gains: ̮ි ᑦฦ Ŋлj – From operating activities classified under other (losses)/gains (a) ਗd Չ˼ᑦฦ Ŋл (a) (518,304) 73,230 – From financing activities classified under finance income ৌਕ ϗɝ 2,129 618 Net foreign exchange (losses)/gains ̮ි ᑦฦ Ŋлଋᕘ (516,175) 73,848 a. The net foreign exchange losses from operating activities were mainly due to the depreciation of USD to RMB. වˢଟ ༟ପᐼ ɛ͏࿆46,842,600,000 ʩ ɚཧɚʞ ϋɤɚ˜ɧɤɓ˚ j ɛ͏࿆43,714,700,000 ɛ͏࿆ 21,254,700,000 ʩ ɚཧɚʞϋɤɚ˜ɧɤɓ˚ j ɛ͏ ࿆ 17,645,800,000ߒ މ45.4% ɚཧɚʞϋɤɚ˜ɧɤɓ˚ j 40.4%͉ණྠවਕᐼᕘৰ˸༟ପ ɚཧɚʬϋʬ˜ɧɤ˚ʿɚཧ ਗ ൲f ᎈ ϗ՟Ϟᗫ ա ʿ ɛ͏࿆f ಂʫd͉ණྠ̮ි ᑦฦ Ŋлଋᕘν ɨj a. ʩ f
Page 42
– 42 – Contingent liabilities As at 30 June 2026 and 31 December 2025, the Group had no material contingent liabilities. Charges on assets As at 30 June 2026, RMB7,489.2 million of restricted bank balances (31 December 2025: RMB5,762.6 million) were pledged to certain banks to secure bank borrowings of RMB8,399.0 million (31 December 2025: RMB6,580.0 million) of the Group. As at 30 June 2026, RMB140.8 million restricted bank balances (31 December 2025: RMB249.0 million) were pledged as security for issuing notes payable and RMB33.9 million restricted bank balances (31 December 2025: RMB18.6 million) were pledged as security for cross currency swaps. Significant investment held During the Period, the Group did not hold any significant investment. Kazakhstan Production Base (“Base”) Construction of Phase I of the Base was completed early this year, and the Base is in the test-running stage. It is expected that the Base will commence production in the second half of 2026. Phase I of the Base is planned to produce threonine, lysine, and a few high-end amino acids, primarily for supply to the European and USA markets. ව ɚཧɚʬϋʬ˜ɧɤ˚ձɚཧɚʞϋɤɚ වf ץת ვБഐ ቱɛ͏࿆ 7,489,200,000 ʩ ɚཧɚʞϋɤɚ ˜ɧɤɓ˚ j ɛ͏࿆5,762,600,000ת ൲ ɛ͏࿆ 8,399,000,000 ʩ ɚཧɚʞϋɤɚ˜ ɧɤɓ˚ j ɛ͏࿆6,580,000,000ɚ ვБഐቱ ɛ͏࿆140,800,000 ʩ ɚཧɚʞϋɤɚ˜ ɧɤɓ˚ j ɛ͏࿆ 249,000,000Ъ ვБ ഐቱɛ͏࿆ 33,900,000 ʩ ɚཧɚʞϋɤɚ˜ ɧɤɓ˚jɛ͏࿆ 18,600,000މ f ɽҳ༟ ɽҳ༟f ᔜдվ͛ପਿή 基地」 ɚཧɚʬϋɨ ͛ପf ྌ͛ପᘽऄაe፠ऄაʿᅰ၇ ̹ఙf
Page 43
– 43 – Outlook and Future Plan Outlook With geopolitical tensions, increasing regional protectionism and awaiting economic recovery in China in mind, the selling prices of our products may fluctuate and remain low in the second half of 2026. As anticipated earlier this year, China’s policies aimed at food and energy supply security have helped keep raw material costs at relatively low levels. Future Plan Our focus in 2026 remains on establishing phase I of the Kazakhstan Production Base during the remainder of 2026. We will start planning phase II of the Kazakhstan Production Base at an appropriate time. In parallel, we continue to explore the possibility of establishing our second overseas production plant. Financing We are confident that internal resources are sufficient to meet the capital expenditure for our internationalisation. As setting up a new production base is a long-term project, the Group continuous to consider the possibility of external financing to rationalise the capital structure. Other Information Material acquisition or disposal of subsidiary, associates and joint ventures The Group had no material acquisition or disposal of subsidiaries, associates and joint ventures for the Period. Employees As at 30 June 2026, the Group had approximately 17,500 employees. Employees’ remuneration was paid in accordance with relevant policies in the PRC. Appropriate salaries and bonuses were paid which were commensurate with the actual practices of the Group. Other corresponding benefits include pension, unemployment insurance, housing allowance, etc. 展望及未來計劃 展望 ᚐ˴່̋ᄌ˸ʿ ਯᄆ̙ঐึ ЭЗf ϓ͉ ˥̻f 未來計劃 ܔء ࡁ ᔜдվ͛ପਿήୋɚಂྌf ऎ̮͛ f 融資 ٙ ಂ d ˸Υଣʷ༟͉ഐf 其他資料 附屬公司、聯營公司及合營企業的重大 收購或出售事項 ᙮ʮ̡eᑌᐄ ̈ਯԫධf 僱員 ߒ 17,500ഄ ڀ ᎈʿ ൨ഃf
Page 44
– 44 – Closure of register of members The register of members of the Company will be closed from 11 September 2026 to 14 September 2026 (both dates inclusive), during which period no transfer of shares will be registered. In order to qualify for the basic interim dividend and special interim dividend, all transfers of shares accompanied by the relevant share certificates must be lodged with the Company’s branch share registrar in Hong Kong, Tricor Investor Services Limited, at 17/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong not later than 4:30 p.m. on 10 September 2026. Corporate governance The listing of the Shares on the Main Board of the Stock Exchange took place on 8 February 2007 and the Directors are of the opinion that the Company’s corporate governance practices are based on the principles and code provisions set out in the CG Code. For the Period, the Company has complied with the CG Code except for the following: All Directors attended the annual general meeting of the Company held on 29 May 2026, except Mr. Zhang Youming, an Independent Non-executive Director due to other engagement. All the Directors have given the Board and the committees of which they are members the benefit of their skills, expertise and varied backgrounds and qualifications through regular attendance and active participation. The Directors will also endeavor to attend future general meetings and develop a balanced understanding of the views of Shareholders. The Audit Committee of the Company has reviewed the Group’s unaudited interim condensed consolidated financial statements for the Period. 暫停辦理股份過戶登記手續 ɚཧɚʬϋɘ˜ɤɓ˚Їɚཧ ҈Շ˚ ᅲ৾፬ ΅ ʿ ΅ཀ˒˖ஹΝϞᗫ ࣛ ΅ཀ˒೮া ࢀ 䅳༸ 16ፄʕː 17 ᅽf 企業管治 ɪ ੬ɗ˸Ά ਿf dઓɨ ৰ̮j ͛ΪՉ˼τર̮d ɚཧɚʬϋʞ˜ ಂ̈ ึึ ౻ ึf ɽึd࿁ ə༆f ͊ f
Page 45
– 45 – Model Code for securities transactions by Directors The Company has adopted the Model Code. Specific enquiries have been made with all the Directors who have confirmed that they have complied with the Model Code for the Period. Purchase, Redemption or Sales of Listed Securities of the Company During the Period, the Company repurchased a total of 246,000 Shares (the “Shares Repurchased”) on the Stock Exchange at an aggregate consideration of approximately HKD1.1 million before expenses. As at 30 June 2026, the Company did not hold any treasury shares for the purpose of the Listing Rules and the Shares Repurchased remained outstanding and have not been cancelled. Subsequent to 30 June 2026 and before the approval of interim results on 28 August 2026, the Company has repurchased a total of 312,000 Shares on the Stock Exchange at the aggregate consideration of approximately HKD1.5 million before expenses in July 2026. Details of the Shares Repurchased are as follows: Month of repurchase in 2026 Total number of shares Repurchased Purchase price paid per share 已付每股股份購買價 Aggregate consideration paidHighest Lowest 二零二六年購回月份 購回股份總數 最高 最低 已付代價總額 HKD HKD HKD ಥʩ ಥʩ ಥʩ June ʬ˜ 246,000 4.80 4.47 1,147,810 Total ᐼᕘ 246,000 1,147,810 Save as disclosed above, neither the Company nor any of its subsidiaries had purchased, sold or redeemed any of the Company’s listed securities (including sale of treasury shares, if any) during the Period. By order of the Board Fufeng Group Limited Li Xuechun Chairman Hong Kong, 28 August 2026 As at the date of this announcement, the executive directors of the Company are Mr. Li Xuechun, Mr. Li Deheng and Mr. Li Guangyu and the independent non-executive directors of the Company are Mr. Lau Chung Wai, Mr. Zhang Youming and Ms. Li Ming. 董事進行證券交易的標準守則 fΣΌԫЪ̈ ഃʊ፭ f 購買、贖回或出售本公司的上市證券 ᒅΫΥ 246,000ٰ މߒ1,100,000 ಥ ɚཧɚʬϋʬ˜ɧɤ˚d π ͊ൗቖ f Їɚཧɚʬϋɞ ɚ ᒅΫΥ 312,000ٰ މߒ1,500,000 ಥʩ ϔৰක˕ ༉ઋνɨj Չ ᛙΫ͉ʮ̡ ΅ νϞ f ԫึն 阜豐集團有限公司 ڗ 李學純 ಥdɚཧɚʬϋɞ˜ɚɤɞ˚ ҽኪॱ ͛ e ҽᅃፅ͛ʿҽᄿ͗͛ i Ͼ͉ʮ̡ ͛ʿҽთɾɻf
Page 46
– 46 – GLOSSARY 詞彙 ASP average selling price(s) of the products of the Group ̻ѩਯᄆ Audit Committee audit committee of the Board ึ Board the board of Directors ԫึ ԫึ BVI The British Virgin Islands ࢥ CG Code Code on Corporate Governance Practice under Appendix C1 of the Listing Rules C1ۆ Company Fufeng Group Limited ʮ̡ Corresponding Period six months ended 30 June 2025 ˜ Director(s) the director(s) of the Company ԫ ͉ʮ̡ԫ FVOCI fair value through other comprehensive income ɝՉ˼ၝΥϗू Group the Company and its subsidiaries ᙮ʮ̡ HKAS Hong Kong Accounting Standards issued by HKICPA ۆ HKFRS Hong Kong Financial Reporting Standards issued by HKICPA ۆ HKICPA Hong Kong Institute of Certified Public Accountants ʮึ Hong Kong the Hong Kong Special Administrative Region of the PRC ਜ Listing Rules the Rules Governing the Listing of Securities on the Stock Exchange ۆ Model Code Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules C3ۆ
Page 47
– 47 – MSG monosodium glutamate, a salt of glutamic acid which is commonly used as a flavour enhancer and additive in the food industry, restaurant and household application ԋऄა Period six months ended 30 June 2026 ˜ PRC/China the People’s Republic of China, which for the purpose of this announcement exclude Hong Kong, the Macau Special Administrative Region of the PRC and Taiwan ਜʿ̨ᝄ Share(s) ordinary share(s) in the share capital of the Company ٰ Share Option Scheme the share option scheme adopted by the Company on 12 May 2017 for granting the share options to certain Directors and employees of the Company ࡰ ᛆ Shareholder(s) holder(s) of the Share(s) Ϟɛ Stock Exchange the Stock Exchange of Hong Kong Limited ʮ̡ VAT value-added tax in PRC U.S. the United States of America лΥ HKD Hong Kong dollars, the lawful currency of Hong Kong ࿆ಥʩ RMB Renminbi, the lawful currency of the PRC ࿆ɛ͏࿆ USD United States dollars, the lawful currency of the U.S. ʩ % per cent % ϵʱˢ