China Yurun Food Group Limited (HKG:1068) expected the Group's net profit for the full financial year of 2011 to decrease by approximately 38% as compared with that of the year 2010.

The Company stated that the business environment in the second half (especially in the fourth quarter) of 2011 became extremely difficult for the Group due to the continual publication of negative media reports in the past few months which had an impact on the reputation of the Group and market confidence in the Group's products; and the substantial increase in raw material costs (in particular hog price). The Company believed that it has taken all possible methods and measures available in the past few months in order to restore its business and maintain its market shares and to ensure such short-term challenges would not have any far-reaching impact on the Group's future development.