2015

Interim Results Announcement

August 2015

These presentation slides have been prepared by China Yurun Food Group Limited ("Yurun" or the "Company") solely for use during its presentation held in connection with

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Disclaimer

2

2015 Interim Results Review and

Analysis

Financial Review and Analysis

Summary and Outlook

3

2015 Interim Results

Review and Analysis

4

Financial Highlights

For the six months ended

30 Jun

(HK$ in millions)

(Except for LPS)

* Represents loss attributable to equity holders of the Company

5

Gross Profit

Turnover

Operating Loss

Net Loss*

Diluted LPS

(HK$)

1H2015

9,584

575

0. 397

255

724

1H2014 Average

Procurement Cost:

RMB12.11/kg

Hog Prices in 2014 and 1H2015

Hog Procurement Cost*

1H2015 Average

Procurement Cost:

RMB 13.13/kg

RMB/kg

Trend of Hog Prices

* Hog procurement cost refers to the Group’s weighted average hog procurement cost in the corresponding month

Year 2014 Year 2015

6

Overview of Product Lines

1H2014

Turnover Breakdown by Segment*

Sales Volume Breakdown by Segment*

Chilled Meat

79%

Frozen

Meat

11%

HTMP

2%

LTMP

8%

Chilled Meat

74%

Frozen

Meat

11%

HTMP

1%

LTMP

14%

Chilled Meat Frozen Meat HTMP LTMP

* Including inter-segment sales

1H2014

HTMP

1%

LTMP

8%

Chilled Meat

79%

Chilled Meat

71%

Frozen

Meat

16%

HTMP

1%

LTMP

12%

1H2015

Frozen

Meat

12%

7

1H2015

1H2014 1H2015

Chilled Meat Sales Volume (’000 tons)

1H2014 1H2015

Frozen Meat Sales Volume (’000 tons)

Sales Volume

8

HTMP Sales Volume (’000 tons)

1H2014 1H2015

1H2014 1H2015

LTMP Sales Volume (’000 tons)

411

420

45 40

57

67

9 7

Distributions – Upstream Slaughtering

Supermarket

Direct Sales

16.8%

Third-party

Distributor

46.3%

Processing &

branded shop

30.4%

Internal Use

6.5%

* Percentage of upstream revenue

1H2014* 1H2015*

9

Supermarket

Direct Sales

10.4% Third-party

Distributor

54.4%

Processing &

branded shop

32.9%

Internal Use

2.3%

10

Distributions – Downstream Meat Processing

Supermarket

Direct Sales

49.2%

Hotel &

Restaurant Chain

17.7%

Third-party

Distributor

33.1%

**Percentage of downstream revenue

1H2014* 1H2015*

10

Supermarket

Direct Sales

51.0%

Hotel &

Restaurant Chain

14.1% Third-party

Distributor

34.9%

Upstream Production Capacity

Number of Plants: 66 Total Capacity: 56.35 million heads*

Northeastern China

11 plants

10.25 M heads/yr

(18% of total capacity)

Eastern China

12 plants

12.70 M heads/yr

(23% of total capacity) Southwestern China

18 plants

14.10 M heads/yr

(25% of total capacity)

Northern China

18 plants

13.80 M heads/yr

(24% of total capacity)

Northwestern China

7 plants

5.50 M heads/yr

(10% of total capacity)

11 * As of 30 June 2015

Downstream Production Capacity

Number of Plants: 15 Total Capacity: 312,000 Tons*

* As of 30 June 2015

Neijiang

Kaiyuan

Fuyang

Harbin

Guangzhou

Beijing

Lianyungang

Baiyin

Shenyang

Ma’anshan

Nanjing

Xinjiang Shihezi

Daye Guangyuan

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Financial Review and

Analysis

13

Upstream Sales*

* Including inter-segment sales

Downstream Sales

Total Turnover

(HK$ in millions)

1H2015 1H2014

(HK$ in millions)

1H2015 1H2014

(HK$ in millions)

1H2015 1H2014

Turnover

14

7.4%

2.7%

669

255

Gross Profit & Gross Margin

Gross Profit Gross Margin

(HK$ in millions)

1H2014 1H2015 1H2015 1H2014

15

Gross Margin By Product Line

Frozen Meat

LTMP Chilled Meat

HTMP

1H2015 1H2014

1H2015 1H2014

1H2015 1H2014

1H2015 1H2014 16

17.9% 14.8%

17.5%

13.7%

6.4% 3.8%

-4.2% -13.6%

1H2015 1H2014

Distribution Expenses Administrative Expenses

Operating Expenses

17

793 881

Operating Expenses as to turnover

9.2%

5.4%

3.8%

8.8%

5.4%

3.4%

(HK$ in millions)

Operating Expenses as to turnover

484 515

309 366

* Other net income was mainly government subsidies, gain/loss on disposal of fixed assets or subsidiary(ies)

Summary of P&L Statement

(HK$ in millions) For the Six Months Ended 30 Jun 2015

Turnover 9,584

Net profit 255

Other Net Income* 50

SG&A Expenses (881)

Operating Result (575)

Net Finance Costs (142)

Loss Before Tax (718)

Tax (6)

Net Loss (724)

18

*Including bank loans, medium term notes, short term financing notes and finance leases

Summary of Balance Sheet

(HK$ in millions) As at 30 Jun 2015

Total Asset 26,097

Total Debt* (note) 8,578

Total Equity and Reserves 15,169

Total Capital 23,747

Cash and Bank Deposit 1,124

19 note: Gearing = total debt ÷ (total debt + total equity and reserves)

* Excluding pledged deposits and time deposits

Summary of Cashflow Statement

(HK$ in millions) For the Six Months Ended 30 Jun 2015

Net Cash used in Operating Activities (61)

Net Cash used in Investing Activities (256)

Net Cash from Financing Activities 332

Net Increase in Cash and Cash Equivalents 15

Cash and Cash Equivalents as at 1 January 885

Effect of Exchange Rate Fluctuations on Cash Held 1

Cash and Cash Equivalents as at 30 June* 901

20

35 days 18 days

12 days 13 days

18 days 16 days

Inventory Turnover

Trade Receivables

Turnover

Trade Payables Turnover

1H2014 1H2015

Working Capital Analysis

21

Summary and Outlook

22

23

Summary and Outlook

• Optimizing Existing Assets

• Alleviating Operation

• Invigorating Existing Production

Plants

• Enhancing Operation Scale

• Developing New Businesses

• Exploring New Distribution Channels

23

For any inquiries or additional information about

the group’s development, please feel free to contact

us by:

Fax: (852) 3927 3300

Email: ir@yurun.com.hk

URL: www.yurun.com.hk

Thank you!

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