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Yurun Sees Profits Rise

by 5m Editor
24 March 2009, at 10:21am

CHINA - China Yurun Food Group, a leading vertically-integrated meat-product processor and supplier in China, recorded a turnover of HK$13,024 million compared to HK$8,635 million in 2007, representing a 50.8 per cent increase.

The chilled meat and low temperature meat product ("LTMP") segments remained the main revenue growth drivers for the Group in 2008.

During the Year, the Group's gross profit and net profit were HK$1,690 million compared to HK$1,220 million in 2007 and HK$1,138 million compared to HK$859 million, respectively, representing an increase of 38.5 per cent and 32.4 per cent.

The Group's gross profit margin and net profit margin remained stable at 13.0 per cent and 8.7 per cent, whjich were slightly down on the previous year.

The slight decrease in the profit margin was mainly due to the reduction in the gross profit margin of frozen pork products and an increase in percentage of upstream products of total turnover which generally have a lower profit margin than the downstream products.

The Board has recommended a final dividend of HK 8 cents per share for the year ended 31 December 2008.

Mr. Zhu Yicai, Chairman of Yurun, said: "We are pleased to announce our relatively satisfactory 2008 annual results despite challenging economic environment.

"During the Year, we implemented several measures to sooth the pressure brought by hog price fluctuation throughout 2008. In addition, thanks to our stringent quality control, the Group was immune from the adverse impacts brought by food crises in 2008 and, in fact, able to attract more customers and strengthen its premier brand.

"While the financial crisis is expected to persist in 2009, small-scale enterprises with low hygiene standards will be weeded out as a result of new regulation, accelerating the industry consolidation.

"Looking ahead, the Group expects to capture new business opportunities brought by the industry consolidation in an effort to further strengthen its market position and enhance shareholders' returns in a prudent manner."