HK Stock Market Move | FUFENG GROUP (00546) fell more than 12% after issuing a profit warning. It is expected that there may be a significant reduction in profits or after-tax profits in the middle term.

FUFENG GROUP (00546) falls more than 13% after issuing a profit warning, falling by 13.44% to HK$4.7 as of the time of publication, with a turnover of HK$71.946 million. On the news front, on June 17, FUFENG GROUP announced that based on the unaudited comprehensive management accounts of the Group for the five months ended May 31, 2026, the Group had incurred a post-tax loss of approximately RMB 53 million. The announcement stated that during this period, the depreciation of the US dollar against the RMB resulted in an exchange loss of approximately RMB 540 million due to holding mainly US dollar-denominated assets in cash; since 2025, the selling prices of the Group's products (including MSG, xanthan gum, alanine, and lysine) have continued to weaken, leading to a decline in net profit. Based on the above situation and assuming that the situation continues, the Group expects to record a loss or a significant decrease in post-tax profit for the six months ending June 30, 2026, compared to the RMB 1.79 billion profit for the six months ended June 30, 2025.