Meihua Holdings reports strong profit growth despite slight revenue dip

Meihua Holdings Group Co., Ltd. reported revenue of 12.28 bn yuan for the first half of 2025, a slight year-on-year decrease of 2.87%. Despite this, net profit attributable to shareholders of the listed company rose by 19.96% to 1.768 bn yuan, and net profit excluding non-recurring gains and losses increased by 24.98% to 1.628 bn yuan. This profit growth was attributed to increased sales of key products, declines in raw material costs, and improved production efficiency.

The company advanced its global expansion strategy by completing the acquisition of Kyowa Hakko’s food amino acids, pharmaceutical amino acids, and Human Milk Oligosaccharides (HMO) businesses on July 1, 2025. This acquisition expanded Meihua Bio's product portfolio and established overseas production bases in Shanghai, Thailand, and North America. The company also increased R&D investment, focusing on synthetic biology, and achieved full production at its Tongliao monosodium glutamate (MSG) capacity upgrade project.

Net cash flows from operating activities increased by 3.44% to 2.31 bn yuan, while net cash flows from investment activities decreased by 40.6% due to increased external investment. The company's total assets reached 24.00 bn yuan, an increase of 0.81% from the previous year-end.