China Yurun Food Group, a a Hong Kong based meat-product processor and supplier in China, has announced its interim results for the first six months of 2012.
For H1, the Group recorded a turnover of HK$12.5 billion (€1.3 billion), with gross profit totalling HK$268 million (€28 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.
Production capacities and targets
Yurun facilities in Anhui, Sichuan, Gansu, Jiangxi increased slaughtering capacity to 48.45 million heads per year as at 30 June 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 30 June 2012, representing an increase of approximately 2,722 tonnes as compared to that at the end of 2011.