China Yurun Food Group Limited, and together with its subsidiaries, announced its annual results for the year ended 31 December 2011 on Friday.
During the Year, the vertically-integrated meat product processor and supplier in China recorded a turnover of HKD32,315 million (USD4.17 billion) (2010: HKD21,473m), representing a 50.5 percent growth over the same period last year.
The Group’s gross profit and profit attributable to shareholders were HKD2,785m (2010: HKD3,098m) and HKD1,799m (2010: HKD2,728m) respectively, representing a decrease of 10.1 percent and 34.1 percent respectively as compared to those of 2010.
The Group’s overall gross profit margin reached 8.6 percent during the Year. The decrease in gross profit margin was mainly due to the significant increase in raw material costs (in particular hog price), together with weakened market confidence in the Group’s products, and the increasing difficulty in transferring the Group’s increased operation costs to its customers. The decrease was also attributable to product promotion activities conducted by the Group in the fourth quarter of 2011 which targeted at retaining market share.
The board of directors of the Company does not recommend the payment of final dividend for the year of 2011.
(Source: China Yurun Food Group )