China Yurun Food Group Limited (YURUN FOOD, 01068) has issued a profit warning, projecting an unaudited consolidated net loss of about HK$70.00 million for the financial year ended 31 December 2025. The anticipated loss compares with a loss of roughly HK$36.00 million recorded in FY2024, implying an expansion of around 94%.

Management attributes the larger deficit primarily to the following factors:

1. Absence of last year’s one-off items: FY2024 benefited from a HK$117.00 million gain arising from the write-off of lease liabilities and extinguishment of debt, which did not recur in FY2025.

2. Smaller negative adjustments in FY2025: • Write-off of value-added-tax recoverable fell by approximately HK$36.00 million. • Write-off of property, plant and equipment declined by about HK$21.00 million. • Impairment loss on property, plant and equipment decreased by roughly HK$32.00 million.

Although these smaller write-offs and impairments mitigated part of the impact, they were insufficient to offset the non-recurring gain recognised in FY2024, resulting in the forecasted wider loss.

The figures are based on preliminary, unaudited management accounts. Final audited results are slated for release by the end of March 2026.

The board advises shareholders and potential investors to exercise caution when trading the company’s securities.