China Yurun Food Group recorded a net loss in 2012 as the company battled with a poor macro-economic environment, fluctuating hog prices and increasing costs.
In the 12 months ended 31 December, the meat processor made a net loss of HK$611.1m (US$78.7m) compared to earnings of HK$1.8bn last year. Operating losses amounted to HK$422.2m versus an operating profit of HK$1.94bn in 2011.
“The review year was affected by the macro-economic environment, and recovery in consumer demand was slower than expected,” the company said. “Hog price fluctuation continued and operating costs such as labour costs and utilities costs persistently increased. All these factors resulted in tremendous pressure on the hog slaughtering and meat processing industry in China.”
The group recorded a turnover of HK$26.78bn compared to sales of HK$32.31bn last year.