China Yurun Food Group saw its shares drop today (1 November) after the meat processor reported a slump in third-quarter profits.
Shares in the meat processor dropped 5.64% to HK$13.04 (US$1.60) after the company announced a 18% drop in sales and a 25% drop in profits, without releasing detailed figures.
The board of the company believes that the drop in sales and profits were caused by “negative media reports” hitting market confidence and a “substantial” increase in raw material costs.
Yurun’s shares plunged to HK$7.45 in September after a Chinese business newspaper reported that meat at one of its units contained the illegal additive clenbuterol.
A company statement added: “The board expects that the business environment for the group will continue to be difficult in the fourth quarter and the group’s profitability will remain challenging.”