Zhu Yicai, founder and largest shareholder of China Yurun Food Group Ltd., returned home on Jan.22. Zhu had been placed under surveillance since 2015 for unknown reasons, according to announcement.
Zhu turned a small company into a giant in the meat product industry through years of efforts made in merger and acquisition. Zhu now controls two listed companies, which are HK-listed China Yurun Food Group Ltd. (01068.HK) and Shanghai-listed shopping center operator Nanjing Central Emporium Co. (600280.SH). The companies said on Tuesday they received notice from family members of Zhu’s return. Both companies rallied after the announcements.
Performance data shows that, since Zhu’s departure in 2015, annual net profit of the company suffered a loss of HKD2.976 billion, HKD2.342 billion and HKD1.915 billion, respectively, during the 2015-2017 period. Its net profit saw a loss of HKD542 million again in the first half of 2018.
Faced with precarious situation inside the company and fierce competition in the meat product industry, the company has a bumpy road to go, analysts said.
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