April 6, 2006

Chinese meat processor produces sterling results for 2005

China's Yurun Food Group, one of the country's leading meat processors, saw turnover in 2005 reach RMB 4.5 billion (US$560 million), an increase of 71.8 percent on 2004 while profits doubled to RMB359 million (US$44.8 million).

The group attributed the results to the booming Chinese economy, strong growth in the consumer market and expansion in the processed meat markets.

2005 was a major milestone for Yurun Food as it was the year the company got listed on the Hong Kong Stock Exchange, said Zhu Yicai, chairman of Yurun Food. The listing has made it possible to tap the resources of the international capital markets to enhance productivity, increase research and development capability as well as to expand the company's sales network.

Stronger consumer purchasing power has driven product sales, according to the company. There has been increased demand for chilled pork from Chinese domestic consumers as living standards improve. Sales of raw pork grew rapidly as the group increased market penetration in its existing markets and developed new markets in a number of mid- to small-size cities during the year.

The group currently offers more than 500 types of low-temperature meat products and more than 200 types of high-temperature meat products.