China Yurun Food Group Limited (Yurun Food) released its unaudited results for the six months ended 30 June 2026.

Revenue and margins • Group revenue slipped 2.70% year-on-year to HK$248.46 million, weighed down by a 34.60% fall in chilled-pork sales and a 16.30% contraction in overall upstream slaughtering revenue. • Processed meat (low-temperature products) grew 2.40% to HK$190.07 million and now contributes 76.50% of group turnover. • Gross profit rose 13.40% to HK$66.19 million as consolidated gross margin widened to 26.60% (1H 2025: 22.90%), driven by a product mix shift toward higher-margin processed items and cost controls at slaughter plants.

Earnings • Loss attributable to shareholders narrowed to HK$9.51 million (1H 2025: HK$10.80 million). • Basic and diluted loss per share improved to HK$0.005. • Operating profit climbed to HK$22.10 million (1H 2025: HK$3.76 million), offset by a 53.40% jump in net finance costs to HK$29.08 million.

Cash flow and capex • Net cash generated from operations reached HK$52.55 million, while capital expenditure expanded to HK$32.02 million, largely for a factory renovation in Harbin. • Cash and cash equivalents stood at HK$19.80 million on 30 June 2026, up from HK$18.02 million at year-end 2025.

Balance sheet and borrowings • Total assets grew to HK$502.43 million, but net liabilities widened to HK$814.63 million. • Bank borrowings totalled HK$432.27 million, of which HK$382.06 million fall due within a year. • Loans of HK$363.33 million and related interest of HK$340.55 million were overdue, breaching covenants. The company remains in talks with the lending bank for extensions and amendments; the lender has indicated no plan for “drastic enforcement actions” at this stage. • Fixed-rate debt accounted for 96.00% of total borrowings.

Operational metrics • Annual slaughtering capacity stayed at 2.35 million heads; processed meat capacity remained 20,000 tons. • Staff headcount was 465, and personnel costs represented 10.50% of revenue.

Dividend • The board declared no interim dividend.

Outlook and going-concern considerations Management cited continued negotiations with banks, sales-mix optimisation and cost controls as key measures to stabilise operations. Auditors highlighted material uncertainties linked to covenant breaches and net-liability position, but directors believe existing plans provide sufficient liquidity for the next 12 months.