China Yurun Food Group Limited reported 2025 revenue of HK$446.47 million, down 55.0 % from 2024’s HK$992.37 million, as it continued to scale back lower-margin slaughtering operations and faced softer pork demand in China.

Gross profit increased 20.1 % year on year to HK$138.45 million, lifting the gross margin to 31.0 % (2024: 11.6 %) on a shift toward higher-value processed products and plant rationalisations. However, higher impairment charges on receivables (HK$49.93 million) and construction-in-progress (HK$17.54 million), coupled with HK$49.27 million in net finance costs, pushed the Group to an operating loss of HK$23.41 million and a net loss of HK$72.68 million, versus a HK$36.40 million loss a year earlier. Basic and diluted loss per share widened to HK$0.039 (2024: HK$0.021).

Segment performance diverged. Revenue from chilled and frozen meat contracted 78.8 % to HK$117.17 million following an 86.4 % slide in slaughter volumes, yet its margin improved to 4.5 % (2024: 0.6 %). Processed meat products contributed HK$329.30 million, 25.2 % below last year, but low-temperature meat products (LTMP) delivered a stronger margin of 41.8 % (2024: 29.5 %).

Liquidity pressure intensified. Cash and cash equivalents fell to HK$18.02 million (31 Dec 2024: HK$40.98 million), while total bank borrowings stood at HK$436.70 million, of which HK$381.39 million are current. Borrowings of HK$352.22 million and related interest of HK$300.56 million were in default and subject to ongoing litigation. The Group ended 2025 with net liabilities of HK$752.93 million and net current liabilities of HK$889.47 million.

Given these conditions, auditor BDO Limited issued a disclaimer of opinion, citing multiple uncertainties over the Group’s ability to continue as a going concern. Management is negotiating debt restructurings, seeking covenant waivers and additional financing, and pursuing cost-control measures.

Capital expenditure was contained at HK$8.93 million (2024: HK$13.73 million). No final dividend was proposed for 2025, consistent with the prior year.

Yurun Food’s annual general meeting is scheduled for 9 June 2026, with the register of members closed from 4 to 9 June 2026.