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  • You Are Hereļ¼š Home > Investor relations > Financial Report

    As one of the leading vertical integrated corn-based biochemical products manufacturers in China, the Fufeng group’s operations are primarily focused on glutamate acid as well as MSG and xanthan gum-related processing. The pace of consolidation within the glutamate acid and MSG industry quickened in 2007 due to an oversupply of products and surging raw materials costs. At the end of the first quarter of 2008, industry consolidation was nearly completed, which eliminated redundant and inefficient small and medium-sized manufacturers, helped balance market demand and supply. We played a leading role throughout the industry’s consolidation process, which has helped us expand our market share, and significantly increased our average selling prices and volume of glutamate acid and MSG products. Moreover, our xanthan gum segment also achieved a satisfactory result due to our aggressive market expansion.

    Although the economic crisis during the second half of 2008 caused shockwaves to global markets, the PRC economy has remained relatively stable and the domestic demand for food-related items such as MSG has maintained robust growth. On the other hand, although global inflation resulted in higher average prices for raw materials during the year compared with 2007, the nearly final consolidation of the glutamate and MSG industries coupled with a significant growth in sales of xanthan gum have largely offset the impact of the increase in raw material costs. Moreover, these costs have dropped rapidly since the forth quarter of 2008. As a consequence our business results have resumed an upward trend and surpassed historic highs set in 2006, with profits attributable to shareholders during the year increasing by 553.9% to RMB294.7 million with earnings per share reaching RMB0.178.
    Looking ahead, although today’s global economy is full of uncertainties, we are still confident of achieving satisfactory growth in 2009. Market prospects remain optimistic and the impact brought by the financial crisis will be limited. As a leading manufacturer, we will prudently utilize our advantages and capture opportunities brought by recent market consolidation. Fufeng Group will strive to strengthen its leader status and continue to develop biochemical technology products which promote long-term growth and become the world’s leading manufacturer in the industry.
    I wish to take this opportunity to express my gratitude to the members of the Board, our management team, staff, business partners, customers and all shareholders. All of you have kindly contributed so much to our continued development and your on-going support is greatly appreciated. Fufeng Group will actively exploit new biochemical technology products and continue to increase our profitability to bring our shareholders better returns.