How are major Chinese MSG producers performing financially amid price declines?

How are major Chinese MSG producers performing financially amid price declines?
Listed producers show divergent financial health. Meihua Holdings reported 2025 full-year revenue of RMB 24.21 billion, down 3.43%, but net profit attributable to shareholders rose 19.72% to RMB 3.28 billion, supported by a 21.48% ROE. However, Q1 2026 profit collapsed 90% year-on-year, with interim guidance indicating a further 50% decline, reflecting falling MSG and xanthan gum prices outpacing raw material cost reductions. Gross margin slipped from 18.48% to 17.65%. Meanwhile, Lotus Holdings, once China's largest MSG producer, saw its market share collapse from 43% to roughly 10% after the 2001 'MSG causes cancer' rumor triggered a decade of losses. The sector now operates as a duopoly-plus-one, with Fufeng and Meihua dominating globally.