China Yurun Food Group Ltd. provided consolidated earnings guidance for the five months ended May 31, 2015. For the period, the group expects to record a loss in net profit when compared to the same period of 2014. The loss in the first half of 2015 is expected to be not less than HKD 700 million.

The loss was mainly attributable to the slowdown in economic growth and transformation of economic structure in China, together with the sluggish high-end catering and pork consumption markets and the increasingly competitive economic environment. In addition, the hog prices increased compared to the same period of last year and the cost of production had risen. It was therefore more difficult for the group to pass on the costs and as a result the gross profit decreased remarkably.