(Updates with website report in third paragraph.)
June 27 (Bloomberg) -- China Yurun Food Group Ltd., a Chinese supplier of meat products, said its gross profit margin had a “slight decrease” in the first five months of this year, following a record plunge in its stock after a website report.
Yurun slid by HK$5.10, or 20 percent, to HK$20.60 at the 4 p.m. close of trading in Hong Kong today. The drop was the biggest since the company first sold shares in October 2005 and the steepest decline today on the MSCI Asia Pacific Index.
Rising pork prices will erode the profit margin of Nanjing, Jiangsu province-based Yurun, the Chinese-language financial website JRJ.com reported earlier today, without saying how it got the information.
The company’s sales had “significant growth” in the period up to May 31 compared with 2010 on higher hog prices and greater slaughtering volume, Yurun said in a statement to the Hong Kong Stock Exchange, citing unaudited financial information.
The price of marbled pork in China rose as much as 4.3 percent to 28.20 yuan ($4.35) a kilogram in the 10 days from June 11 to June 20 compared with the previous 10 days, the National Bureau of Statistics said in a June 24 statement on its website. Prices for pork thigh rose 4.1 percent to 29.05 yuan a kilogram in the period, the statement said.
Short-selling volume for Yurun shares reached a record on June 24, when the stock fell 5 percent, according to data compiled by Bloomberg.
--Michael Wei. Editors: Paul Gordon, Ryan Woo
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