Fufeng Announces 2007 Annual Results( Turnover Inc...)

Turnover Increased by 37%

HONG KONG, April 22 /Xinhua-PRNewswire/ -- Fufeng Group Limited ("Fufeng" or "the Company", together with its subsidiaries collectively known as "the Group"; HKEx: 546), a leading vertically integrated manufacturer of corn-based biochemical products in China, announced its annual results for the year ended 31 December 2007.

During the year, driven by the increased sales volume of major products, the Group's turnover increased to RMB2,445.7 million, representing an increase of 37% compared to 2006. However, with the decrease in the average selling prices (ASP) of the Group's major products and the increase in the cost of raw materials, especially corn kernel, the Group's gross profit dropped to RMB249.7 million. The increase in transportation, administrative expenses also further lowered the Group's profitability. Fufeng recorded a profit attributable to shareholders for 2007 of approximately RMB 45.1 million. Its earnings per share for 2007 amounted to RMB 2.8 cents.

Commenting on the results, Mr. Li Xuechun, Chairman of Fufeng said, "Despite the challenging market conditions in 2007, the Group managed to maintain its leading position in the corn-based fermentation industry. During the year, we strived to capture the opportunity brought by MSG and glutamic acid industry consolidation and actively expand our market, our market share in the sector surged significantly to 23% in 2007 from 17% in 2006. As for xanthan gum, the Group actively expanded export business, the export portion of xanthan gum increased from 65% to 83%. Other than better selling price, the Group can also enlarge our market share in xanthan gum through exporting products."

During the period, the Group posted a healthy increase for its MSG segment. The sales volume of MSG increased by nearly 200% to 91,850 tonnes, this proves the Group's decision to shift its focus from glutamic acid to MSG production. Besides, fertili
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