Successful production planning and an increase in market share boosted Chinese meat processor Yurun Food’s profits in 2009.
Net profit amounted to HK$1.74bn (US$224m), a growth of 53.4% on 2008.
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In 2009, the group recorded turnover of HK$13.87bn, representing a 6.5% growth on the prior year.
In spite of over 20% decrease in hog prices during the year, China Yurun said it was able to “significantly” increase the sales volume of its products by leveraging the competitive edge of its Yurun brand, as well as its nationwide production network, boosting the stable growth of its business.
The firm said the increases were mainly attributable to the group’s “flexible strategies and strong market position”.
Zhu Yicai, chairman of Yurun Food, said: “Amid the challenging market conditions in 2009, the group achieved remarkable results due to the experienced management team’s thorough understanding of the hog breeding cycles and the meat products market. The group managed to overcome the challenge of fluctuating hog prices by adopting flexible strategies for its chilled meat and low temperature meat products businesses, as well as utilising its optimised nationwide production network.”
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By GlobalDataLooking forward, the firm said it will continue to implement its long-term development strategies and “further enhance its brand recognition and production network” in order to achieve “economies of scale, increase market share, and drive business growth to maximize value” for its shareholders.
