In a recent statement, China Feihe, a major player in the food and beverage industry, has issued a warning about a possible significant drop in its half-year profits. The Hong Kong-listed company predicts a decline of 23-36% compared to the previous year.
The primary reasons cited for this anticipated decline include a low birth rate in China, intensifying competition, and expected net losses from its subsidiary YuanShengTai Dairy Farm.
China Feihe projects its first-half revenue to be in the range of 9.58bn to 9.87bn yuan, slightly lower than the 9.67bn yuan posted in the same period last year. In 2022, the company recorded a total revenue of 21.31bn yuan, along with a net profit of 4.95bn yuan.
The company plans to release its first-half accounts by the end of the month. However, these forecasted figures have already impacted its stock performance, with shares closing down by 11.42% at HK$4.42.
China Feihe specializes in a range of products, including infant milk formula, adult milk powder, liquid milk, and goat milk infant formula. Some of its popular formula brands include Astrobaby and Organic Zhenzhi.