China Yurun Food Sees Higher H1 Net Profit

by 5m Editor
11 July 2011, at 9:50am

CHINA - China Yurun Food Group Ltd said earlier today it expected to record significant increases in turnover and net profit for the six months ended in June from the same period a year ago.

In a filing to the Hong Kong bourse,the China Yuran Food said the growth was due to rises in pig prices and its slaughtering volume.

China Yurun Food also said the growth rate of overall net profit would be less than that of core net profit because contributions from non-core items, including government subsidies, negative goodwill and foreign exchange, had decreased during the six months compared to the prior year.

Last week, China Yurun Food said it had suspended production at a plant in a Chinese province due to problems with the meat it produced.

In June, shares of China Yurun Food dove sharply on market talk that Muddy Waters may issue a report on the company, but turned out it was on another Chinese firm. The stock was also hit by an expected decline in hog prices in China and concern over the sustainability of local government subsidies, analysts said.

Shares of China Yurun have lost 14 per cent so far this year, compared to a 1.3 per cent fall in the benchmark Hang Seng Index.