China Yurun Food Group Limited (“Yurun Food”) reported a HK$9.51 million loss attributable to shareholders for the six months ended 30 June 2026, an improvement from the HK$10.80 million loss a year earlier. Basic and diluted loss per share narrowed to HK$0.005 from HK$0.006.
Revenue slipped 2.7% year on year to HK$248.46 million as softer pork prices and the expiry of certain processed-plant leases weighed on the top line. Nevertheless, product-mix optimisation and higher downstream contribution lifted gross profit 13.4% to HK$65.99 million, expanding the overall gross margin to 26.6% from 22.9%.
• Segment trends – Upstream (chilled & frozen pork) sales fell 16.3% to HK$58.39 million amid a 30% decline in national live-hog prices. Chilled pork revenue contracted 34.6% to HK$35.00 million, while frozen pork rose 44.5% to HK$23.39 million. Upstream gross margin improved to 6.9% (H1 2025: 1.5%). – Downstream processed meat products rose 2.4% to HK$190.07 million, representing 77% of group revenue. Low-temperature meat products generated all downstream sales, with gross margin increasing to 32.7% (H1 2025: 30.9%).
Operating profit surged to HK$22.10 million from HK$3.76 million, supported by the stronger margin and HK$9.0 million of other net income, including a HK$7.90 million gain from deregistering a subsidiary. Operating expenses were broadly stable at HK$53.08 million, or 21.4% of revenue.
Net finance costs climbed 53.4% to HK$29.08 million, reflecting higher borrowing costs. As at 30 June 2026, Yurun Food held HK$19.80 million in cash against HK$432.27 million in bank borrowings, 96% of which bear fixed rates. Of these loans, HK$382.06 million mature within one year; HK$363.33 million are in covenant breach with HK$340.55 million of accrued interest overdue. Management is negotiating renewals and waivers with lenders, who have indicated no immediate enforcement intentions.
Total assets stood at HK$502.43 million, up HK$15.71 million since year-end 2025, driven by HK$32.02 million of capital expenditure mainly for plant renovation in Harbin. Net current liabilities widened to HK$993.70 million, while total net liabilities reached HK$814.63 million. The board maintains that ongoing operational improvements and debt-restructuring discussions support the group’s going-concern assumption.
Yurun Food continued to prioritise its “HRL” branded products, applying traditional fruitwood smoke-roasting techniques while expanding its low-temperature meat portfolio. The group operated slaughtering capacity of 2.35 million heads and processed-meat capacity of 20,000 tons, unchanged from December 2025.
The board declared no interim dividend and reported no significant investments, acquisitions or disposals during the period. Litigation by a PRC bank seeking repayment of HK$363.33 million remains unresolved; negotiations are ongoing.
As at 30 June 2026, Yurun Food employed approximately 465 staff with total payroll of HK$26.07 million, representing 10.5% of revenue.