MSG giant Fufeng warns of potential first-half loss

China’s leading MSG producer Fufeng Group Ltd. (0546.HK) warned on Wednesday that it expects to report a loss or significant profit decline for the first half of this year,  compared with a profit of 1.79 billion yuan ($265 million) in the year-ago period.

The company said it recorded a loss of approximately 53 million yuan in the first five months of 2026, mainly due to an exchange loss of about 540 million yuan resulting from the depreciation of the U.S. dollar against the yuan and its holdings of U.S. dollar assets, which were mainly cash. Meanwhile, weak selling prices for its key products, including MSG, xanthan gum, threonine and lysine, also weighed on its profitability.

Fufeng is one of the world’s largest producers of glutamic acid and MSG, with products sold in more than 100 countries and regions, according to its website. The company ships more than 5 million tons of products annually, including about 900,000 tons of exports, with amino acids and xanthan gum as its major exports.

Shares of Fufeng opened lower on Thursday, closing at HK$XX by the midday break, down X%.

By Lee Shih Ta

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