August 20, 2012

China Yurun Food Group has announced its interim results for the first six months of 2012.

For the first half, the Group recorded a turnover of HKD12.5 billion (US$1.6 billion), with gross profit totalling HKD268 million (US$34.6 million). The Group's overall gross profit margin was 2.1%, down from 12.6% last year.

The fall in revenue is being attributed to the oversupply of hogs on China markets, and soaring feed prices. Many small farmers were forced to sell due to a sluggish market.

Yurun facilities in Anhui, Sichuan, Gansu, Jiangxi increased slaughtering capacity to 48.45 million heads per year as at June 30, 2012, representing an increase of 2.40 million heads as compared to that at the end of 2011. Yurun intends to reach, by 2015, a slaughtering capacity of 70 million heads. In terms of downstream, the Group had an annual downstream meat processing capacity of 278,506 tonnes as at June 30, 2012, representing an increase of approximately 2,722 tonnes as compared to that at the end of 2011.