(Updates with closing share price in second paragraph.)
Nov. 1 (Bloomberg) -- China Yurun Food Group Ltd., the country’s second-largest meat processor, declined the most in two weeks in Hong Kong trading after saying profit fell in the third quarter, partly because raw material costs rose.
Yurun slipped 5.6 percent, the most since Oct. 18, to HK$13.04 at the 4 p.m. close in Hong Kong trading. The stock has plunged 49 percent this year, compared with a 16 percent drop in the benchmark Hang Seng Index.
The meatpacker’s slaughtering volume fell 4 percent and sales of processed-meat products dropped 18 percent in the third quarter, according to a statement the company filed to the Hong Kong stock exchange today. Group profit fell 25 percent in the third quarter, Yurun said, without providing figures.
“Profitability will remain challenging” in the fourth quarter, the company said in the statement. A “substantial” increase in hog prices and “increasing difficulty in transferring the group’s increased operation costs to its customers” led to the drop in third-quarter earnings, it said.
--Michael Wei. Editors: Dave McCombs, Suresh Seshadri.
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