July 16, 2013
Fujian Sunner sees US$39 million loss in Jan-June 2013
Buoyed by food safety worries in the country, KFC China supplier, Fujian Sunner Development, expects to post a loss of up to RMB239 million, or US$39 million for the first half of the year.
Business was hurt after buyers shunned chicken during a now-ended outbreak of H7N9 bird flu in eastern China this spring. Demand for chicken was also hurt earlier in the year after reports that New Hope Liuhe, one of the country's largest chicken suppliers, provided unhealthy amounts of antibiotics for meat sold at KFCs.
Sunner earned RMB192 million (US$31 million) in the first half of 2012. Its Shenzhen–traded shares have lost 28% in the past 12 months. The company already reported a loss of RMB78.6 million (US$13 million) for the first quarter.
