Fufeng’s Long-term Corporate Credit Rating

upgraded to “BBB-” by S&P Global

    [January 23, 2018 – Hong Kong] The world's largest monosodium glutamate (“MSG”) and xanthan gum producer and a major supplier for a series of bio-fermentation products, Fufeng Group Limited ("Fufeng" or the "Company", together with its subsidiaries, the "Group"; stock code: 546) has been upgraded from “BB+” to “BBB- ” on its long-term credit rating by S&P Global (“S&P”), with “stable” outlook.

    According to the rating report, S&P expects Fufeng to sustain its low debt leverage over the next 24 months, given its more conservative financial policy, stable profitability, and diversifying revenue base.

    S&P does not expect Fufeng’s margin to decline significantly in 2018 relative to 2017, despite a likely increase in corn prices. The stable outlook on Fufeng reflects S&P’s expectation that the company will be able to maintain its EBITDA margin despite rising corn prices. S&P also expects the debt-to-EBITDA ratio to remain below 1.5x over the next 24 months.

    "The credit rating upgraded by S&P shows that we are continuing to enhance our financial strength. It also proves that our efforts to decrease debt level and develop more new products and new growth drivers are well recognized by the rating agency,” says Peter Chen, CFO of Fufeng.

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About Fufeng Group Limited

Fufeng is the world's largest producer of MSG, xanthan gum and a major supplier for a series of bio-fermentation products. The main products of the Group are food additives, animal nutrition, colloid and high-end amino acids. For more information, please visit our website www.fufeng-group.com.

Investors and media enquiries

Mr. Eric Yip

Vision Asia Consulting Group Limited

Mobile: 852-51186009 / Office tel: 852-39066439 / Fax: 852-21809686

Email: fufeng@visionasia.com.hk