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.
Go deeper with GlobalData
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.”
