Financial Performance - The Group's revenue increased by 1.9% to approximately RMB 28.0 billion in 2023 compared to 2022, driven by higher contributions from food additives, high-end amino acids, and colloid segments [2]. - Overall gross profit decreased by 13.4% to approximately RMB 6.2 billion in 2023, primarily due to reduced gross profit from food additives, animal nutrition, and other segments [2]. - Profit attributable to shareholders amounted to approximately RMB 3.1 billion, representing a decrease of 18.6% compared to 2022 [2]. - Earnings per share (Basic) was RMB 124.02 cents in 2023, down from RMB 152.34 cents in 2022 [2]. - Return on equity was 18.1% in 2023, compared to 24.9% in 2022 [2]. - The Group's profit before income tax expense for 2023 was RMB 3,850,245, a decrease from RMB 4,860,309 in 2022 [55]. - The total current income tax expense for 2023 was RMB 672,690,000, a decrease of 21.6% from RMB 858,579,000 in 2022 [49]. - Basic earnings per share profit attributable to shareholders was RMB 3,144,124,000 in 2023, down from RMB 3,861,078,000 in 2022, indicating a decrease of about 18.6% [63]. - Diluted earnings per share attributable to shareholders decreased to RMB 123.99 cents in 2023 from RMB 152.30 cents in 2022, representing a decline of approximately 18.5% [61]. Dividends - The Board proposed final dividends of HK 35.0 cents per share, resulting in a full-year dividend of HK 58.0 cents per share, with a payout ratio of 42.5% [2]. - The interim dividend paid in 2023 was RMB 534,954,000, a decrease from RMB 810,067,000 in 2022, reflecting a reduction of approximately 33.9% [69]. - The final dividends paid in 2023 amounted to RMB 748,943,000, compared to RMB 253,301,000 in 2022, representing an increase of approximately 195.5% [69]. - The proposed final dividend for 2024 is RMB 504,494,000, down from RMB 643,789,000 in 2022, which is a decrease of about 21.6% [70]. - The special final dividend proposed for 2024 is RMB 160,521,000, compared to RMB 91,018,000 in 2022, representing an increase of approximately 76.5% [70]. - The total dividends for 2023 were RMB 1,337,558,000, down from RMB 1,544,874,000 in 2022, indicating a decrease of approximately 13.4% [69]. Assets and Liabilities - Total assets increased to RMB 32.6 billion in 2023, up from RMB 26.4 billion in 2022 [9]. - Non-current assets rose to RMB 12.8 billion in 2023, compared to RMB 10.5 billion in 2022 [9]. - Current assets totaled RMB 19.7 billion in 2023, an increase from RMB 15.9 billion in 2022 [9]. - Total liabilities increased to RMB 15,236,673, up 39.5% from RMB 10,895,000 in 2022 [10]. - Current liabilities rose to RMB 14,044,560, a 49.5% increase compared to RMB 9,387,995 in 2022 [10]. - Non-current liabilities decreased to RMB 1,192,113, down 20.9% from RMB 1,507,005 in 2022 [10]. - Total equity and liabilities reached RMB 32,560,887, up 23.4% from RMB 26,388,624 in 2022 [10]. Revenue Breakdown - Total revenue for 2023 reached RMB 28,006,875,000, an increase from RMB 27,474,639,000 in 2022, representing a growth of approximately 1.9% [29]. - Revenue from external customers in the PRC amounted to RMB 20,482,261,000 in 2023, up from RMB 19,517,420,000 in 2022, indicating a growth of about 4.9% [28]. - Revenue from external customers overseas decreased to RMB 7,524,614,000 in 2023 from RMB 7,957,219,000 in 2022, reflecting a decline of approximately 5.4% [28]. - The food additives segment generated revenue of RMB 13,495,002,000 in 2023, compared to RMB 13,300,548,000 in 2022, marking an increase of about 1.5% [26]. - The animal nutrition segment reported revenue of RMB 8,901,002,000 in 2023, down from RMB 9,581,198,000 in 2022, a decrease of approximately 7.1% [26]. - High-end amino acid products revenue increased significantly to RMB 1,972,812,000 in 2023 from RMB 1,201,208,000 in 2022, representing a growth of about 64% [26]. Cost and Expenses - Gross profit for the group in 2023 was RMB 6,247,385,000, compared to RMB 7,212,467,000 in 2022, indicating a decline of approximately 13.4% [27]. - Selling and marketing expenses increased by approximately RMB 47.6 million, or 2.7%, in the Year [145]. - Administrative expenses rose by approximately RMB 148.5 million, or 14.1%, due to increased employee benefits and impairment charges [146]. Cash Flow and Financing - The net cash inflow from operating activities for the year was approximately RMB 1,704.9 million, a decrease of 52.6% compared to RMB 3,600.1 million in 2022 [157]. - The Group's cash and bank balances reached approximately RMB 10,880.2 million as of December 31, 2023, up from RMB 7,639.5 million in 2022, representing an increase of 42.9% [157]. - The Group's total bank borrowings amounted to approximately RMB 9,724.5 million, an increase of 63.1% from RMB 5,953.1 million in 2022 [157]. - The weighted average effective interest rate on borrowings decreased to 2.10% in 2023 from 2.81% in 2022 [88]. Market and Economic Conditions - The price of 98% lysine was RMB9,410 per tonne in 2023, representing a drop of 13.3% compared to 2022 [114]. - The price of 70% lysine was RMB5,810 per tonne in 2023, reflecting a decrease of 11.2% compared to 2022 [114]. - China's corn production in 2023 was approximately 288.8 million tonnes, an increase of 4.2% from 2022 [105]. - The forecast for global economic growth in 2024 is projected at 3.1%, with China targeting around 5% growth [163]. Strategic Initiatives - The Group aims to confirm site locations in the U.S. and Eastern Europe in 2024 as part of its internationalization plan [165]. - The Group plans to further enhance its production technology and improve sales and marketing strategies [165].

Financial Performance - Fufeng Group reported a turnover of RMB 28,000 million for the first half of 2023, a significant increase compared to RMB 24,000 million in the same period of 2022, representing a growth of approximately 16.67%[4] - The profit attributable to shareholders for the first half of 2023 was RMB 4,000 million, up from RMB 3,500 million in the first half of 2022, indicating a growth of about 14.29%[4] - The Group's revenue increased by 5.0% to approximately RMB13,580.1 million in the Period, driven by higher contributions from food additives, colloid, and high-end amino acid segments[8] - Overall gross profit decreased by 17.4% to approximately RMB2,956.8 million, primarily due to declines in the gross profit of food additives and animal nutrition segments[8] - Profit attributable to shareholders decreased by 24.1% to approximately RMB1,537.9 million in the Period[8] - The company's revenue for the six months ended June 30, 2023, was RMB 13,580,093, an increase from RMB 12,930,797 in the same period of 2022, reflecting a growth of approximately 5.02%[72] - Gross profit for the same period was RMB 2,956,760, down from RMB 3,580,620 in 2022, indicating a decrease of approximately 17.38%[72] - Operating profit decreased to RMB 1,731,961 from RMB 2,721,900 year-on-year, representing a decline of approximately 36.5%[72] - Profit for the half-year decreased to RMB 1,537,904, down 24.1% from RMB 2,026,006 in 2022[74] - Total comprehensive income attributable to shareholders for the half-year was RMB 1,535,044, a decline of 24.2% compared to RMB 2,026,006 in 2022[74] Segment Performance - Revenue from the food additives segment increased by 8.1% to approximately RMB6,558.5 million, mainly due to stable contributions from MSG and increased revenue from starch sweeteners[15] - Gross profit from the food additives segment decreased by 23.5% to approximately RMB971.8 million, with a gross profit margin of 14.8%, down 6.1 percentage points from the Corresponding Period[15] - Revenue from the animal nutrition segment dropped by 14.0% to approximately RMB4,090.7 million, attributed to increased competition and oversupply in the market[18] - Gross profit from the animal nutrition segment decreased by 57.5% to approximately RMB594.5 million, with a gross profit margin of 14.5%, down 14.9 percentage points from the Corresponding Period[19] - Revenue of the high-end amino acid segment increased by 54.7% to approximately RMB827.4 million, driven by increased sales volume[22] - Gross profit of the high-end amino acid segment rose by 40.2% to approximately RMB298.8 million, with a gross profit margin of 36.1%, down 3.8 percentage points[22] - Colloid segment revenue increased by 73.6% to approximately RMB1,632.3 million, primarily due to higher sales volume and ASP of xanthan gum, which was RMB40,864 per tonne, up 44.2%[24] - Gross profit of the colloid segment surged by 109.8% to approximately RMB997.4 million, with a gross profit margin of 61.1%, up 10.5 percentage points[24] Market Conditions - The average selling price (ASP) of MSG in the first quarter of 2023 was approximately RMB 9,435 per tonne, while it dropped to RMB 8,667 per tonne by the end of the second quarter due to increased supply and weak demand[5] - The ASP of threonine and lysine increased in the second quarter of 2023 due to production inspections and maintenance by some suppliers, which limited market supply[6] - China's GDP growth was recorded at 4.5% in Q1 2023 and 6.3% in Q2 2023, averaging 5.5% for the first half of the year, although it was lower than expected[5] - The International Monetary Fund forecasts China's GDP growth at 5.2% for 2023, reflecting ongoing economic recovery challenges[5] - Corn prices fluctuated between RMB 2,636 to RMB 2,816 per tonne during the period, with supply at approximately 188 million tonnes and demand at 116 million tonnes[5] - Coal supply in China increased by 4.4% to approximately 2.3 billion tonnes, while coal imports surged by 93% to around 222 million tonnes during the same period[5] Financial Position and Liquidity - As of June 30, 2023, the Group's total assets amounted to approximately RMB26,888.1 million, an increase from RMB26,388.6 million as of December 31, 2022[38] - The total debts of the Group were approximately RMB5,971.8 million as of June 30, 2023, down from RMB6,026.7 million as of December 31, 2022, resulting in a gearing ratio of approximately 22.2%[38] - The Group had a net cash inflow of approximately RMB1,332.0 million from operating activities during the Period, compared to RMB1,149.7 million in the corresponding period[37] - The Group's net unrestricted cash after short-term bank borrowings was approximately RMB1,934.3 million as of June 30, 2023, up from RMB1,639.5 million as of December 31, 2022[37] - The Group's total cash and bank balances were approximately RMB7,433.2 million as of June 30, 2023, down from RMB7,639.5 million as of December 31, 2022[37] - The Group maintained a healthy liquidity position throughout the Period, supported by cash generated from operations and bank borrowings[37] - The Group's current ratio was 1.79 times, an increase from 1.69 times as of December 31, 2022[37] Investments and Expansion Plans - The Group plans to expand MSG capacity in China by adding 400,000 tonnes at the Hulunbeier Base, expected to launch in Q4 2023[45] - The Group is conducting feasibility studies for establishing production bases in the U.S. and Europe despite delays in the U.S. project[45] - The Group has established three regional marketing centers in the U.S., Netherlands, and Vietnam to serve overseas customers directly[45] Employee and Governance - As of June 30, 2023, the Group employed approximately 16,500 employees[48] - The annual remuneration for Executive Directors was increased effective April 1, 2023, with Mr. Li Xuechun receiving RMB1,428,000[51] - The company has complied with the Corporate Governance Code during the reporting period, with all directors attending the annual general meeting except one[54] Financial Risks and Management - Financial risks faced by the Group include market risk, credit risk, and liquidity risk, with no material changes in risk management policies since the end of 2022[103] - Credit risk is managed on a Group basis, with bank deposits held in reputable financial institutions considered to have low credit risk[105] - The Group's activities expose it to various financial risks, including foreign exchange risk and interest rate risk[107] Trade Receivables and Impairment - The gross carrying amount of trade receivables as of June 30, 2023, was RMB 1,067,800,000, compared to RMB 1,094,634,000 as of December 31, 2022[116] - The provision for impairment loss allowances for trade receivables was RMB 33,637,000 for the six months ended June 30, 2023[119] - The expected loss rates for trade receivables were 4.09% for 3 months, 29.14% for 3 to 12 months, and 99.12% for over 12 months as of June 30, 2023[116] - The opening loss allowance for trade receivables was RMB 50,000,000 as of January 1, 2022, and remained unchanged at RMB 50,000,000 as of December 31, 2022, and June 30, 2023[125] Accounting Policies and Standards - The Group has adopted new accounting standards effective from January 1, 2023, including HKFRS 17 and amendments to HKAS 12, impacting deferred tax recognition[90] - The Group's interim financial statements for the six months ended June 30, 2023, reflect significant accounting policies and amendments adopted, including deferred tax assets and liabilities recognition[94] - The cumulative effect of recognizing adjustments as of December 31, 2022, was not material, with no adjustments made to beginning retained earnings[95]

Financial Performance - The Group's revenue increased by 5.0% to approximately RMB 13,580.1 million for the six months ended June 30, 2023, compared to the corresponding period, driven by higher contributions from food additives, colloid, and high-end amino acid segments[3]. - Overall gross profit decreased by 17.4% to approximately RMB 2,956.8 million during the same period, primarily due to declines in the gross profit of food additives and animal nutrition segments[3]. - Profit attributable to shareholders decreased by 24.1% to approximately RMB 1,537.9 million for the period[3]. - Basic and diluted earnings per share were RMB 60.70 cents and RMB 60.68 cents, respectively, compared to RMB 79.96 cents for the corresponding period[3]. - Return on equity for the period was 18.9%, down from 28.0% in the corresponding period[3]. - Operating profit for the period was RMB 1,731.9 million, a decrease from RMB 2,721.9 million in the previous period[7]. - Finance income increased to RMB 135.3 million, while finance costs decreased to RMB 109.7 million, resulting in net finance income of RMB 25.6 million[7]. Dividends - An interim dividend of HK 23.0 cents per share was declared, with a dividend payout ratio of 35%[3]. - The interim dividend proposed on August 30, 2023, is HKD583,392,000 (equivalent to RMB534,953,000), representing HKD23.0 cents per share, a decrease from HKD32.0 cents per share in the corresponding period[62]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 26,888.1 million, compared to RMB 26,388.6 million at the end of 2022[11]. - Total liabilities decreased from RMB 10,895,000,000 as of December 31, 2022, to RMB 10,593,691,000 as of June 30, 2023, representing a reduction of approximately 2.8%[12]. - Total equity increased from RMB 15,493,624,000 as of December 31, 2022, to RMB 16,294,399,000 as of June 30, 2023, reflecting a growth of about 5.2%[12]. - Current liabilities decreased from RMB 9,387,995,000 to RMB 8,800,393,000, a decline of approximately 6.2%[12]. - Non-current liabilities increased from RMB 1,507,005,000 to RMB 1,793,298,000, an increase of about 18.9%[12]. Revenue Segmentation - Revenue from the food additives segment increased by 8.1% to approximately RMB 6,558.5 million, mainly due to stable contributions from MSG and increased revenue from starch sweeteners[73]. - Revenue from the animal nutrition segment dropped by 14.0% to approximately RMB 4,090.7 million, influenced by previous high demand during supply chain disruptions[75]. - Revenue from threonine dropped by 36.0% to approximately RMB 884.6 million, with a decrease in average selling price (ASP) by 20.2%[80]. - Revenue from lysine decreased by 11.2% to approximately RMB 907.6 million, despite a sales volume increase of approximately 16.5%[80]. - Revenue of the high-end amino acid segment increased by 54.7% to approximately RMB 827.4 million, driven by increased sales volume[81]. - Revenue of the colloid segment increased by 73.6% to approximately RMB 1,632.3 million, primarily due to increased revenue from xanthan gum[84]. Cost and Profit Margins - Gross profit from the food additives segment decreased by 23.5% to approximately RMB 971.8 million, with a gross profit margin of 14.8%, down 6.1 percentage points[73]. - Gross profit from the animal nutrition segment decreased by 57.5% to approximately RMB 594.5 million, with a gross profit margin of 14.5%, down 14.9 percentage points[76]. - Gross profit of the high-end amino acid segment rose by 40.2% to approximately RMB 298.8 million, with a gross profit margin of 36.1%, a decrease of 3.8 percentage points[81]. - Gross profit of the colloid segment surged by 109.8% to approximately RMB 997.4 million, with a gross profit margin of 61.1%, an increase of 10.5 percentage points[85]. - Gross profit from other products fell by 58.0% to approximately RMB 94.2 million, with a gross profit margin of 20.0%, a decrease of 15.2 percentage points[86]. Cash Flow and Financing - The Group reported a net cash inflow from operating activities of approximately RMB 1,332.0 million, compared to RMB 1,149.7 million in the corresponding period[107]. - As of June 30, 2023, the Group's net unrestricted cash after short-term bank borrowings was approximately RMB 1,934.3 million, an increase from RMB 1,639.5 million at the end of 2022[107]. - The Group's bank borrowings included RMB 948,000 in unsecured loans and RMB 880,000 in secured loans as of June 30, 2023[54]. - The Group's total current income tax in the PRC decreased to RMB 205,691,000 from RMB 332,980,000 in the previous year, reflecting a reduction in taxable profits[42]. Market Conditions - China's GDP growth was recorded at 4.5% in Q1 2023 and 6.3% in Q2 2023, averaging 5.5% for the first half of the year, lower than the expected 5.2% for 2023[63]. - Corn prices fluctuated between RMB2,636 to RMB2,816 per tonne, with supply and demand in China at approximately 188 million tonnes and 116 million tonnes respectively[63]. - Coal supply in China increased by 4.4% to approximately 2.3 billion tonnes, while coal imports surged by 93% to approximately 222 million tonnes[63]. Corporate Governance - The Company has complied with the Corporate Governance Code except for certain exceptions noted during the reporting period[118]. - The Company has adopted the Model Code for securities transactions by Directors and confirmed compliance during the reporting period[120]. - The Group's unaudited interim condensed consolidated financial statements were reviewed by the Audit Committee[118].

Stock Option Plan - The company granted 2,000,000 stock options under the new stock option plan, representing approximately 0.08% of the total issued shares as of December 31, 2022[2]. - The total number of stock options available for grant under the new stock option plan increased from 247,473,403 shares on January 1, 2022, to 250,473,403 shares by December 31, 2022[4]. - The plan's authorization limit allows the company to issue up to 254,673,403 shares, equivalent to 10% of the total issued shares at the time of the plan's adoption[3]. - No stock options were cancelled during the fiscal year ending December 31, 2022[5]. - The exercise price for the stock options granted on July 4, 2022, was set at HKD 4.96[6]. - The vesting schedule for the stock options allows for a maximum of 25% to be exercisable starting from July 4, 2024, with full vesting by July 4, 2027[3]. - The closing price of the shares on the day prior to the grant of the stock options was HKD 5.03[3]. - The total number of stock options granted and unexercised as of December 31, 2022, was 4,200,000[6]. - The stock option plan was initially adopted at the annual general meeting held on May 12, 2017[4]. - The company aims to align the interests of its key employees with its long-term performance through the stock option plan[3]. - The stock option plan post-IPO has a vesting schedule of up to 5 years, with a maximum of 25% vesting per tranche[7]. - The first tranche vests after the second anniversary of the grant date, with subsequent tranches vesting on the third, fourth, and fifth anniversaries[7].

Financial Performance - The Group achieved a revenue increase of 27.6% to approximately RMB 27.5 billion and a net profit increase of 201.5% to RMB 3.9 billion in 2022[4]. - Gross profit margin improved by 8.2 percentage points to 26.3%[4]. - Profit attributable to shareholders surged by 201.5% to approximately RMB 3.86 billion in 2022, up from RMB 1.28 billion in 2021[18]. - Revenue for the year ended December 31, 2022, was RMB 27,474,639, an increase of 27.5% from RMB 21,539,841 in 2021[178]. - Gross profit for 2022 was RMB 7,212,467, representing a gross margin of 26.2%, compared to RMB 3,905,276 in 2021[178]. - Operating profit for 2022 was RMB 5,250,746, a significant increase from RMB 1,580,357 in 2021[179]. - The company reported a profit for the year of RMB 3,861,078, compared to a loss of RMB 1,280,640 in the previous year[192]. Revenue Breakdown - The Group's key business segments, including food additives, animal nutrition, and colloid, saw significant revenue increases during the year[4]. - Revenue from the food additives segment was approximately RMB 13,300.5 million, an increase of 28.0% compared to 2021[28]. - Revenue from the animal nutrition segment was approximately RMB 9,581.2 million, a 25.7% increase from 2021[28]. - Revenue from the colloid segment was approximately RMB 2,238.7 million, an increase of 114.7% compared to 2021[30]. - Revenue from threonine was approximately RMB 2,469.6 million, a 3.1% increase from 2021[29]. - Revenue from the high-end amino acid segment was approximately RMB 1,201.2 million, a decrease of 15.1% compared to 2021[29]. Cost and Expenses - Selling and marketing expenses increased by 25.4%, while administrative expenses rose by 10.9% compared to 2021[21]. - Finance costs increased significantly by 183.7% to approximately RMB 489.9 million in 2022[21]. - Corn kernels accounted for approximately 56.3% of total production costs, a decrease of 2.8 percentage points from 2021[36]. - The total cost of coal increased by 35.4% during the year, accounting for 17.2% of total production costs[37]. Dividends and Shareholder Returns - The Board proposed a final dividend of HK29.0 cents and a special final dividend of HK4.1 cents per share, resulting in a full-year dividend of HK69.7 cents per share with a payout ratio of 40%[4]. - The total of paid interim dividend and proposed final and special dividends is HK69.7 cents per share, compared to HK21.5 cents in 2021[44]. - Dividends paid to shareholders increased significantly to RMB 1,079,216 in 2022 from RMB 292,653 in 2021, reflecting a substantial rise in shareholder returns[197]. Cash Flow and Liquidity - The Group achieved a net cash inflow of approximately RMB 3,600.1 million from operating activities in 2022, up from RMB 2,774.4 million in 2021[47]. - As of December 31, 2022, the Group's total cash and bank balances increased to approximately RMB 7,639.5 million, compared to RMB 4,054.8 million in 2021[47]. - The company reported a net increase in cash and cash equivalents of RMB 92,410 for the year, with total cash and cash equivalents at the end of the year amounting to RMB 7,008,116[197]. Strategic Initiatives - The Group plans to establish three strategic regional sales offices in America, Europe, and Southeast Asia to enhance internationalization efforts[4]. - The company aims to maintain high-quality internationalization and improve production capacity to consolidate its leading market position[54]. - The company is revamping a plant acquired in 2020 to produce chemicals for its products, aiming to reduce production costs[54]. ESG and Sustainability - The Group's ESG strategy was further strengthened under the leadership of the ESG Committee, emphasizing sustainable development[4]. - The emission concentration of greenhouse gases was 323.87 tCO2 e/million RMB revenue, representing a decrease of 8.16% compared to 2021[71]. - Total sewage discharge was 9,845,500 tonnes, representing a decrease of 1.28% compared to 2021[71]. - Fufeng Group received the "Green Deposit Scheme" award from Mitsubishi UFJ Financial Group, Inc. (MUFG) in 2022[71]. Governance and Compliance - The Board is responsible for promoting the Group's success through leadership and supervision[77]. - The roles of the Chairman and the Chief Executive Officer are clearly separated to ensure effective governance[78]. - The Company has arranged liability insurance for its Directors and officers, with no claims made during the year[96]. - The risk management and internal control system of the Group is considered to be effectively operated by the Board[97]. Employee Engagement and Training - As of December 31, 2022, the company employed approximately 15,100 employees[58]. - Total number of employees is 15,099, with 90.7% (13,700) having received training[72]. - Employees accumulated a total of 550,866 training hours[72]. Market Conditions and Economic Outlook - China's GDP growth rate was reported at 3.0% year-on-year in 2022, amidst global economic recovery challenges[9]. - Economic growth in Mainland China is projected to be approximately 5.0% for 2023, an increase from 3.0% in 2022[53]. - The International Monetary Fund (IMF) forecasts global economic growth to be 2.9% for 2023, down from 3.2% in 2022[53].

Financial Performance - The Group's revenue increased by 27.6% to approximately RMB 27.5 billion in 2022 compared to 2021, driven by higher contributions from food additives, animal nutrition, and colloid segments [2]. - Overall gross profit rose by 84.7% to approximately RMB 7.2 billion in 2022, primarily due to increases in gross profit from food additives, animal nutrition, and colloid segments [2]. - Profit attributable to shareholders amounted to approximately RMB 3.9 billion, representing an increase of 201.5% compared to 2021 [2]. - Basic earnings per share was RMB 152.34 cents, up from RMB 50.55 cents in 2021 [4]. - Return on equity improved to 24.9% in 2022, compared to 10.1% in 2021 [2]. - Total revenue for 2022 reached RMB 27,474,639,000, a 27.5% increase from RMB 21,539,841,000 in 2021 [44]. - Gross profit for the same period was approximately RMB 7,212,467,000, representing an increase of 84.7% from RMB 3,905,300,000 in 2021 [129]. - Profit attributable to shareholders increased by 201.5% to approximately RMB 3,861,078,000 in 2022 compared to RMB 1,280,640,000 in 2021 [129]. Dividends - The Board proposed a final dividend of HK 29.0 cents and a special final dividend of HK 4.1 cents per share, resulting in a full-year dividend of HK 69.7 cents per share, with a payout ratio of 40% [2]. - Proposed final dividend for 2023 is HKD 735,422,000 (equivalent to RMB 643,789,000), representing HK29.0 cents (RMB 25.4 cents) per share, up from HK11.7 cents (RMB 9.5 cents) in 2021 [77]. - The total dividends paid in 2022 reached 1,554,874 RMB'000, a substantial increase from 447,477 RMB'000 in 2021 [76]. Assets and Liabilities - Total assets increased to RMB 26.39 billion in 2022 from RMB 21.51 billion in 2021 [11]. - Total liabilities increased to RMB 10,895,000, up 23.9% from RMB 8,833,052 in the previous year [12]. - Current liabilities rose to RMB 9,387,995, a 74.5% increase from RMB 5,373,665 in 2021 [12]. - Non-current liabilities decreased significantly to RMB 1,507,005, down 56.5% from RMB 3,459,387 in 2021 [12]. - Total equity and liabilities reached RMB 26,388,624, an increase of 22.5% from RMB 21,510,806 in the previous year [12]. - Cash and cash equivalents rose to RMB 7.01 billion in 2022, compared to RMB 3.54 billion in 2021 [11]. Segment Performance - The Group operates through five segments: food additives, animal nutrition, high-end amino acids, colloid, and other products, with performance assessed based on gross profit [39]. - Revenue from food additives segment was RMB 13,300,548,000, up 28.9% from RMB 10,388,668,000 in 2021 [44]. - Animal nutrition segment revenue increased to RMB 9,581,198,000, a 25.7% rise from RMB 7,619,865,000 in 2021 [44]. - The colloid segment's revenue was approximately RMB 2,238.7 million, a significant increase of 114.7% from 2021, driven by higher sales volume and ASP of xanthan gum, which reached RMB 31,421 per tonne, up 65.6% [145]. - The high-end amino acid segment reported revenue of approximately RMB 1,201.2 million, a decrease of 15.1% from 2021, with gross profit declining by 34.6% to approximately RMB 384.2 million [144]. Costs and Expenses - Selling and marketing expenses increased by 25.4% to support growth initiatives [131]. - Finance costs surged by 183.7% to approximately RMB 489.9 million in 2022 compared to RMB 172.0 million in 2021 [132]. - Staff costs increased by approximately RMB 315.5 million or 28.1%, reaching approximately RMB 1,436.5 million in the Year [170]. Cash Flow and Financing - As of December 31, 2022, the Group's net cash inflow from operating activities was approximately RMB 3,600.1 million, an increase from RMB 2,774.4 million in 2021 [178]. - The total bank borrowings of the Group amounted to approximately RMB 5,953.1 million as of December 31, 2022, up from RMB 4,227.0 million in 2021 [179]. - The Group obtained a syndicated loan of up to $400,000,000 with a term of 36 months and an interest rate of 1.80% plus LIBOR [177]. Economic Environment - The overall economic environment in China showed a GDP growth rate of 3.0% in 2022, with uncertainties due to the COVID pandemic and geopolitical conflicts [117]. - The International Monetary Fund (IMF) forecasts global economic growth at 2.9% for 2023, down from 3.2% in 2022, while China's economic growth is expected to be approximately 5.0% in 2023, up from 3.0% in 2022 [187][190]. Corporate Governance and Compliance - The company adheres to the corporate governance code as outlined in the Listing Rules, with compliance noted for the year 2022 [197]. - The company confirmed that there is no use of forced labor in its production processes [197]. Future Outlook - The Group plans to continue its "Dual High-quality Objectives" strategy, focusing on high-quality internationalization and maintaining operational excellence in existing production capacity [191]. - The Group aims to establish three regional marketing centers in America, Europe, and Southeast Asia to better serve overseas customers [191].

Financial Performance - The Group's revenue increased by 35.8% to approximately RMB 12,930.8 million in the first half of 2022, driven by higher contributions from food additives, animal nutrition, and colloid segments [12]. - Overall gross profit surged by 102.8% to approximately RMB 3,580.6 million, primarily due to increased gross profit in food additives, animal nutrition, and colloid [14]. - Profit attributable to shareholders rose by 242.8% to approximately RMB 2,026.0 million during the same period [12]. - Revenue for the six months ended June 30, 2022, was RMB 12,930,797, an increase of 35.5% compared to RMB 9,520,562 for the same period in 2021 [75]. - Gross profit for the same period was RMB 3,580,620, representing a gross margin of approximately 27.7%, up from RMB 1,765,957 in 2021 [75]. - Basic earnings per share for the period were 79.96 cents, compared to 23.33 cents in the same period last year, reflecting a growth of 242.5% [75]. - The profit for the half-year 2022 reached RMB 2,026,006, a significant increase from RMB 591,049 in 2021, representing a growth of approximately 243% [77]. Segment Performance - Revenue from the food additives segment was approximately RMB 6,065.5 million, representing an increase of 34.9% compared to the corresponding period, mainly due to increased revenue from MSG [20]. - Revenue from the animal nutrition segment was approximately RMB 4,754.2 million, with a gross profit margin of 29.4%, an increase of 11.7 percentage points compared to the corresponding period [24]. - Revenue from the colloid segment was approximately RMB 940.2 million, an increase of 137.7%, with an ASP of xanthan gum at RMB 28,344 per tonne, up 61.5% [26]. - The high-end amino acid segment revenue decreased by 22.4% to approximately RMB 534.8 million, with a gross profit margin of 39.9%, down 4.9 percentage points [25]. Market Dynamics - The average selling price (ASP) of MSG increased due to higher cost levels and demand recovery, despite challenges from COVID-19 lockdowns [8]. - Demand for threonine and lysine remained stable, supported by recovery in the swine farming industry [9]. - The market for xanthan gum saw significant demand growth due to the recovery of the global oil industry [8]. - The domestic corn price remained stable, with sufficient supply mitigating the impact of global food shortages [6]. Cost Structure - Corn kernels accounted for approximately 55.5% of total production costs, down 6.9 percentage points, with an average price of RMB 2,262 per tonne, a decrease of 6.3% compared to the previous year [35]. - The total cost of corn kernels increased by 5.8% due to higher consumption volumes compared to the previous year [36]. - Coal accounted for approximately 16.1% of total production costs, with an average unit cost of RMB 408 per tonne, an increase of RMB 105 per tonne or 34.7% compared to the previous year [39]. Financial Position - As of June 30, 2022, the Group's cash and bank balances were approximately RMB 7,969.9 million, an increase from RMB 4,054.8 million as of December 31, 2021 [51]. - Total bank borrowings amounted to approximately RMB 7,662.5 million, up from RMB 4,227.0 million as of December 31, 2021, with short-term borrowings at RMB 4,866.9 million and long-term borrowings at RMB 2,795.6 million [51]. - The Group's total assets were approximately RMB 26,876.2 million, an increase from RMB 21,510.8 million as of December 31, 2021, resulting in a gearing ratio of approximately 28.5% [51]. - The Group's liquidity position is considered relatively stable, with sufficient banking facilities to repay or renew existing short-term bank loans [50]. Investments and Expansion - The Group launched a scientific research facility in Qingdao in May 2022 to enhance systematic research and technical capabilities [53]. - The Group plans to strengthen its B2C model and provide industrial customers with tailor-made product solutions [53]. - The Group has purchased land in North Dakota, USA, for the initial planning of a factory to produce animal nutrition products [53]. - The Group completed the acquisition of a third-party company in Northeast China, which will be transformed into an in-house chemical plant to lower production costs [53]. Shareholder Information - The Board resolved to pay an interim dividend of HK32.0 cents per share and a special interim dividend of HK4.6 cents per share for the period [50]. - As of June 30, 2022, the company had a total of 1,000,217,461 shares held by Motivator Enterprises Limited, representing approximately 39.48% of the total issued share capital [62]. - The company reported a total of 10,800,000 share options as of June 30, 2022, with 6,300,000 options lapsed during the period [57]. Risk Management - The Group's credit risk management includes ongoing evaluations of customers' financial conditions, with credit periods generally not exceeding 90 days [105]. - The Group believes that the credit risk inherent in outstanding trade receivables is not significant due to a good collection history [105]. - The Group applies the HKFRS 9 simplified approach for measuring expected credit losses, using a lifetime expected loss allowance for all trade receivables [105]. Accounting and Compliance - The company has adopted new accounting standards effective from January 1, 2022, which are expected to enhance financial reporting transparency [89]. - There have been no significant changes in the risk management policies since the end of 2021, ensuring consistent financial risk management practices [101]. - The Group's policy is to recognize transfers into and out of fair value hierarchy levels at the end of the reporting period [146].

Financial Performance - For the year ended December 31, 2021, the audited turnover of Fufeng Group amounted to approximately RMB 21.5 billion, representing an increase of approximately 29% compared to 2020[5]. - Profit attributable to shareholders for the same period was approximately RMB 1.3 billion, reflecting a year-on-year increase of approximately 103%[5]. - The Group's revenue increased by 29.1% to approximately RMB21,539.8 million in 2021 compared to 2020, driven by higher contributions from food additives, animal nutrition, and high-end amino acids[25]. - Gross profit rose by 38.7% to approximately RMB3,905.3 million in 2021, primarily due to increased gross profit from animal nutrition and high-end amino acid products[26]. - Profit attributable to shareholders surged by 103.3% to approximately RMB1,280.6 million in 2021 compared to 2020[26]. - Total revenue for the Group reached RMB21,539.8 million in 2021, representing a 29.1% increase from RMB16,690.7 million in 2020[36]. - The gross profit for the Group increased to RMB3,905.3 million in 2021, with an overall gross profit margin of 18.1%[32]. Cost and Pricing Dynamics - The average prices of corn and coal, which account for 59% and 15% of total production costs respectively, increased significantly by 35% and 37% during the year[7]. - Average prices of corn and coal increased significantly by 34.7% and 37.4%, respectively, impacting operational costs[27]. - Total production costs increased by 22.5% in 2021, amounting to RMB17,691.1 million, primarily due to rising raw material costs[48]. - Corn kernels accounted for approximately 59.1% of total production costs, with an average price increase of 34.7% to approximately RMB2,350 per tonne[49]. - Coal constituted 15.0% of total production costs in 2021, with an average unit cost of RMB360 per tonne, reflecting a 37.4% increase from 2020, influenced by a supply shortage[56]. Product Segmentation and Growth - Fufeng Group's key products include cash cow products like MSG and xanthan gum, and star products such as animal nutrition and high-end amino acids, with the latter showing high growth potential[8]. - The animal nutrition segment has become one of the most profitable businesses for Fufeng Group, driven by a complete product line including threonine, lysine, and others[10]. - Revenue from animal nutrition products increased to approximately RMB7,619.9 million in 2021, a significant increase of 50.3% compared to 2020, driven by higher sales of threonine and lysine[41]. - High-end amino acid products generated revenue of approximately RMB1,415.4 million, a 50.0% increase from 2020, with gross profit rising by 69.6% to RMB587.9 million and a gross profit margin of 41.5%[42]. Strategic Initiatives - The company aims to implement a "Dual High-quality Objectives" strategy for 2022, focusing on high-quality internationalization and maintaining its leading position in the Chinese market[11]. - The Group's strategic mission includes accelerating the integration of global resources to become a leading corn biochemical enterprise[10]. - The Group plans to enhance its international production and sales network as part of its "Dual High-quality Objectives" strategy for 2022[74]. - A scientific research facility will be established in Qingdao to improve research and technical capabilities, including independent yeast research and product application development[75]. Dividend and Shareholder Returns - Fufeng Group maintains a stable dividend payout ratio of 35%, with total dividends for 2021 amounting to HK 21.5 cents per share[5]. - The Company recommended a final dividend of HK11.7 cents per share, leading to a total dividend of HK21.5 cents per share for the year, compared to HK9.9 cents in the previous year[65]. - The Group's total distributable reserves reached RMB 543,374,000 as of December 31, 2021, compared to RMB 318,956,000 in 2020, reflecting a significant increase of approximately 70.5%[173]. Governance and Compliance - The Company is committed to maintaining high standards of corporate governance practices and continuously enhancing internal controls and risk management procedures[92]. - Independent directors accounted for 50% of the Board members[89]. - The Company has established an ESG Committee to oversee environmental, social, and governance initiatives[86]. - The Board is collectively responsible for promoting the success and interest of the Group through its leadership and supervision[98]. - The Company has developed a Risk Management Manual and established a risk management strategy and structure during the reporting year[137]. Employee and Workforce Management - As of December 31, 2021, the Group had approximately 15,000 employees, with remuneration aligned with relevant policies in the PRC[77]. - Staff costs increased by approximately RMB56.0 million, or 5.3%, from approximately RMB1,065.0 million in 2020 to approximately RMB1,121.0 million in 2021[64]. - The company recognizes the importance of diversity and aims to enhance gender diversity among Board members[124]. Risk Management - The Group's risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatement or loss[135]. - The annual risk assessment conducted by the Risk Management Team identified key risks and documented responsive mitigating controls in risk registers[143]. - The management confirmed the effectiveness of the risk management and internal control systems for the year ended December 31, 2021, with no significant areas of concern affecting strategic goals[143].

Financial Performance - For the first half of 2021, the company's revenue increased by 16.6% year-on-year to RMB 9,520,600,000, while net profit rose by 55.8% to RMB 591,000,000, primarily due to rising prices of key products [6]. - The overall revenue increased to approximately RMB 9,520.6 million, up from RMB 8,168.6 million in the same period of 2020, marking a growth of 16.6% [12]. - The gross profit rose to approximately RMB 1,766.0 million, a 20.2% increase from RMB 1,469.2 million in the first half of 2020 [12]. - The net profit attributable to shareholders increased by 55.8% to RMB 591.0 million compared to RMB 379.3 million in the same period of 2020 [18]. - Operating profit increased to RMB 737,576 thousand, representing a 31.0% rise from RMB 562,886 thousand year-on-year [72]. - Earnings per share for the first half of 2021 were RMB 23.33, compared to RMB 14.97 in the same period of 2020, reflecting a growth of 55.8% [72]. Revenue Breakdown - The revenue from food additives increased to approximately RMB 4,495,000,000, up by RMB 238,000,000 or 5.6%, primarily due to the rise in sales of monosodium glutamate [25]. - The Animal Nutrition segment generated revenue of RMB 3,462,376 thousand, up from RMB 2,515,977 thousand, reflecting a significant growth of approximately 37.5% [116]. - The high-end amino acids segment reported revenue of RMB 688,912 thousand, an increase from RMB 453,159 thousand, marking a growth of about 52.0% [116]. - The sales of threonine reached approximately RMB 1,103.0 million, an increase of 71.5% compared to the same period in 2020 [14]. - The revenue from corn refining products rose by approximately 30.9%, attributed to the increase in corn kernel prices [31]. Pricing and Sales Volume - The average selling price of MSG was approximately RMB 7,176 per ton, an increase of about 18.7% compared to the first half of 2020, despite a sales volume decrease of approximately 8.9% to 498,351 tons [8]. - The average selling price of threonine rose by approximately 40.1% to RMB 9,395 per ton, with sales volume increasing by 22.4% to 117,402 tons [8]. - The average selling price of starch sweeteners increased by approximately 39.1% to about RMB 3,500 per ton, despite a significant decrease in production and sales volume [13]. - The average selling price of monosodium glutamate rose by 18.7%, although the production and sales volume decreased by approximately 5.2% and 8.9%, respectively [13]. - The sales of xanthan gum products decreased by RMB 157.2 million, a decline of 30.4% compared to the first half of 2020, with a sales volume drop of approximately 43.3% [9]. Cost and Profitability - The company successfully transferred part of the cost pressure from rising raw material prices to downstream customers, maintaining profitability despite significant increases in raw material costs [7]. - Major raw material costs increased significantly, with corn accounting for 62.4% of total production costs, up from 55.1% in the previous year, and its average price rising by 52.8% to RMB 2,415 per ton [38]. - Total production costs increased by 23.0% to RMB 8,543,003,000, driven by higher prices of key raw materials [37]. - The gross profit margin for high-end amino acids was 44.8%, significantly higher than the overall gross profit margin of 18.5% [21]. Strategic Initiatives - The company has enhanced its production technology for high-end amino acids, leading to improved operational efficiency and the development of new products [7]. - The company aims to expand its business scope from traditional amino acids to high-end products, focusing on health and pharmaceutical raw materials [15]. - The company continues to focus on expanding its production facilities in various provinces in China to enhance its manufacturing capabilities [79]. - The company aims to leverage its R&D capabilities to develop a series of high-end amino acid products, indicating a strategic focus on innovation [33]. Financial Position - As of June 30, 2021, the total assets of the group amounted to approximately RMB 20,188,100,000, an increase from RMB 19,355,700,000 as of December 31, 2020 [65]. - The total liabilities of the group were RMB 7,995,620,000, compared to RMB 7,666,287,000 as of December 31, 2020, indicating an increase in liabilities [71]. - The debt-to-asset ratio was approximately 17.1% as of June 30, 2021, a slight decrease from 17.9% as of December 31, 2020 [65]. - Cash and cash equivalents, along with restricted bank deposits, amounted to RMB 1,623,100,000 as of June 30, 2021, an increase from RMB 1,231,200,000 at the end of 2020 [58]. Dividends and Shareholder Returns - The group declared an interim dividend of HKD 0.098 per share for the six months ended June 30, 2021 [68]. - The company proposed a final dividend of HKD 0.041 per share (equivalent to RMB 0.0343), totaling HKD 103,879,000 (equivalent to RMB 87,003,000) for the year ended December 31, 2020 [151]. - The interim dividend proposed on August 30, 2021, is HKD 0.098 per share (equivalent to RMB 0.0816), totaling HKD 248,297,000 (equivalent to RMB 206,712,000), an increase from HKD 0.058 per share (equivalent to RMB 0.0522) in the same period of 2020 [151]. Risk Management - The group’s financial risk management includes market risks such as foreign exchange risk, cash flow interest rate risk, and credit risk [86]. - The group has maintained a good collection record for trade receivables, leading management to believe that the credit risk from outstanding trade receivables is not significant [88]. - The group considers its debt instrument investments as low-risk investments, with credit ratings monitored to prevent credit deterioration [88]. Employee and Management Compensation - The management's remuneration for the six months ended June 30, 2021, totaled RMB 7,339,000, a decrease of approximately 27.5% from RMB 10,113,000 in the same period of 2020 [153]. - The group employed approximately 13,500 employees as of June 30, 2021, with appropriate salaries and bonuses paid according to local policies [63].

Financial Performance - The audited revenue for the fiscal year ending December 31, 2020, was approximately RMB 16.691 billion, an increase of about 3.2% compared to 2019[6]. - The profit attributable to shareholders was approximately RMB 630 million, a year-on-year decrease of about 44.6%[6]. - The total revenue for the year 2020 was RMB 16,690,736, an increase from RMB 16,170,850 in 2019, representing a growth of approximately 3.2%[13]. - Gross profit for 2020 was RMB 2,816,354, compared to RMB 3,260,634 in 2019, indicating a decrease of about 13.6%[13]. - Profit attributable to shareholders for 2020 was RMB 629,901, down from RMB 1,137,223 in 2019, reflecting a decline of approximately 44.5%[13]. - The gross margin for 2020 was 17%, a decrease from 20% in 2019[13]. - The group achieved its annual production and sales targets, with overall sales volume and revenue growth in key products despite a weak market[33]. - The group reported a decrease in the gross profit margin for the food additives segment to 15.7% from 21.7% in 2019[48]. Sales and Pricing - The average selling price of MSG for 2020 was approximately RMB 6,190 per ton, a decrease of about 10.8% compared to 2019, with sales volume of approximately 1,161,883 tons, an increase of about 4.1%[9]. - The average selling price of starch sweeteners was approximately RMB 2,587 per ton, a slight increase of about 3.3% compared to 2019, with sales volume of approximately 536,763 tons, a decrease of about 17.4%[10]. - The average selling price of threonine was approximately RMB 6,903 per ton, an increase of about 1.8% compared to 2019, with sales volume of approximately 185,421 tons, an increase of about 5.1%[10]. - The sales revenue from the new lysine product launched in the first half of 2019 was approximately RMB 974 million, an increase of about 86.1% compared to 2019[10]. - The sales revenue from high-end amino acids was approximately RMB 943 million, an increase of about 16.7% compared to 2019[10]. - The sales volume of xanthan gum decreased to approximately 56,646 tons in 2020, impacting the gross margin due to lower average selling prices[34]. - The total revenue from threonine products in 2020 reached approximately RMB 1,279,900,000, an increase of 7.0% compared to 2019[41]. Cost and Expenses - The company anticipates facing significant cost pressures in 2021 due to high prices of key raw materials such as corn and coal[10]. - Total production costs increased by 9.7% to RMB 14,436.0 million in 2020, with corn grain costs rising by 19.9%[61]. - Corn grain accounted for approximately 56.4% of total production costs in 2020, up from 51.7% in 2019, with an average price increase of 11.7% to about RMB 1,745 per ton[62]. - The company's employee costs decreased by approximately RMB 51.7 million or 4.6% to about RMB 1,065 million in 2020, maintaining a stable level[75]. - Depreciation expenses increased by approximately RMB 96.6 million or 8.4% to RMB 1,246.8 million in 2020, mainly due to increased lysine production capacity[76]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.041 per share, with total dividends for the year amounting to HKD 0.099 per share, resulting in a payout ratio of approximately 35%[7]. - The company's reserves available for distribution to shareholders reached RMB 318,956,000 as of December 31, 2020, compared to RMB 269,093,000 in 2019[195]. - The interim dividend declared was HKD 0.058 per share, equivalent to RMB 0.0522, totaling HKD 146,951,000 (approximately RMB 132,256,000)[195]. Management and Governance - The company has established an audit committee responsible for reviewing the group's audit work and financial statements[93]. - The board of directors leads the ESG initiatives, with a dedicated working group responsible for guiding and implementing ESG policies[96]. - The company has established three committees: Audit Committee, Nomination Committee, and Remuneration Committee, adhering to corporate governance principles[171]. - The board confirmed its responsibility for ensuring the company maintains effective internal controls at all times[178]. - The company has maintained compliance with the revised corporate governance code throughout 2020[163]. Environmental, Social, and Governance (ESG) Initiatives - The company invested in energy-saving equipment and implemented measures to reduce emissions and waste during production in 2020[100]. - The company strictly adheres to national environmental laws and standards, ensuring that all emissions meet regulatory requirements before discharge[101]. - The company achieved a waste gas emission density of 0.27 tons per RMB million in revenue, consistent with 2019[104]. - The company has implemented strict waste management protocols in compliance with national standards, ensuring proper treatment and recycling of solid waste[112]. - The company actively engages in community investment, focusing on education, social assistance, and rural infrastructure development[157]. Employee Engagement and Safety - The group emphasizes talent development, offering targeted training for new employees to help them adapt quickly to their roles[136]. - Employee safety is prioritized, with a comprehensive safety production system established in 2020 to minimize occupational hazards[143]. - The company implemented extensive COVID-19 prevention measures, including the establishment of a dedicated pandemic response team and various safety protocols[144]. - The company organized a series of cultural and sports activities from April 29 to May 5, 2020, to enhance employee morale despite the ongoing pandemic[138]. Market and Competitive Landscape - The group faced significant cost pressures due to a substantial rise in raw material prices, particularly corn, which affected operational efficiency[197]. - The competitive landscape in the animal nutrition sector showed signs of recovery, with stable sales and prices for threonine, although lysine sales did not meet expectations[199]. - The group is actively expanding its product offerings in high-value amino acids and starch sweeteners to increase market share in healthcare and pharmaceutical sectors[34].