China's Feihe issues profit warning
In a stock-exchange filing, the Hong Kong listed company said revenue could be down as much as 10% in the six months to 30 June, while net profit could be down as much as 47% from the same period a year earlier.
Feihe put forward a revenue range of 9.1bn yuan ($1.2bn) to 9.3bn yuan for the period, compared to the reported figure of 10.1bn yuan in the corresponding six months.
Net profit, meanwhile, was flagged at 1bn yuan to 1.2bn yuan, down from the actual 1.9bn yuan a year earlier.
Feihe attributed the expected declines to several factors, including 'childbirth subsidies' to consumers, a decrease in government grants, and an 'impairment provision' for whole milk powder products.
It also cited inventory adjustments to ensure product freshness as a contributing factor to the anticipated declines.
However, the company projects a 'low single-digit increase' in revenue for the full year 2025 compared to the prior year, with inventory adjustments expected to be completed by the third quarter.
It plans to release its half-yearly results by the end of August.
The company also announced a share buyback plan, allocating at least 1bn yuan from existing cash reserves to repurchase shares for 'subsequent sales' or employee incentives.
The board said total dividends for FY 2025 will be 'no less than' 2bn yuan, despite the anticipated 'short-term" financial challenges.
Feihe's primary products include infant milk formula, adult milk powder, liquid milk, and goat milk infant formula.
Its formula brands include Astrobaby and Organic Zhenzhi.
Feihe issued a similar first-half profit warning back in August 2023 ahead of its final annual results.
It later reported that full-year net profit increased 11.1% to 3.6bn yuan in the 12 months to 31 December 2024. Revenue climbed 6.2% to 20.7bn yuan.
In contrast, it posted a profit of 3.2bn yuan in fiscal 2023, down 33.5%, while revenue dropped 8.3% year-on-year to 19.5bn yuan.
"China's Feihe issues profit warning" was originally created and published by Just Food, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
42 minutes ago
- Yahoo
MinLaw acts against firms over billion-dollar money laundering case; Singapore cracks down on drug-laced vapes: Singapore live news
The Ministry of Law (MinLaw) has announced enforcement action against four law firms and a lawyer following an investigation into the "law practices that were involved in the conveyancing of the real estate properties" in the $3 billion money laundering scandal which rocked Singapore. Singapore is cracking down on criminal operations selling drug-laced vapes known as Kpods which is becoming an increasing problem across Asia. This includes weekly enforcement operations by the Health Sciences Authority (HSA) as well as public healthcare institutions doing their part to record all suspected and confirmed etomidate-linked vaping cases. Read more in our live blog below, including the latest local and international news and updates: The Ministry of Law (MinLaw) has taken enforcement action against four law firms and a lawyer for providing legal services for the purchase of properties in a $3-billion money laundering scandal which made headlines in 2023. MinLaw, in a press release on 15 July, said it is supporting the Director of Legal Services (DLS) in "conducting inquiries into the law practices that were involved in the conveyancing of the real estate properties seized in an anti-money laundering operation in August 2023." DLS has conducted investigations into 24 law practices – with 11 of these investigations concluded. Here's a summary of the enforcement actions revealed: Two law practices have been ordered to pay financial penalties of $30,000 and $100,000 respectively. The DLS has issued a third law practice with a statutory notice of the intention to order that law practice to pay a financial penalty of $70,000. A final decision will be made upon receiving and considering the law practice's written representations, if any. The DLS has privately reprimanded a fourth law practice. A lawyer has been referred to the Law Society of Singapore for disciplinary action. The DLS will not take further regulatory action against 7 other lwpractices. The press note did not state the names of the law practices involved. Singapore has stepped up efforts to cripple criminal operations selling drug-laced vapes known as Kpods, which typically contain etomidate or ketamine. In one dramatic bust in Bishan Street 13, an officer from the Health Sciences Authority (HSA) dived into a car to stop an alleged dealer from speeding away. Once the man was detained, officers searched his car and found several white envelopes containing Kpods. The envelopes with the Kpods were marked for delivery. In total, 28 vape devices and 814 vape pods were seized from the man's car. It is just one example of multiple HSA operations that happen in a week targeting the booming illegal trade in e-vaporisers. The United Nations Office on Drugs and Crime warned in a recent report that organised crime groups were pushing drug-laced vapes in Asia – including Singapore. The Straits Times also reported that public healthcare institutions have been told to record all suspected and confirmed etomidate-linked vaping cases. Files containing Beyoncé's unreleased music was stolen from a car rented by the singer's choreographer and one of her dancers in Atlanta last week, according to police. Two laptops and hard drives that contained watermarked music, unreleased music, footage plans and past and future set lists, were among the items listed in the police incident report. The choreographer told officers that "he was also carrying some personal sensitive information for the musician Beyonce." The Atlanta Police Department, in an online statement, said that a warrant had been issued for an unnamed suspect's arrest. The next Toto draw on 17 July will feature an estimated jackpot size of $10 million, according to Singapore Pools. On Monday (14 July), the Toto draw ended without a Group 1 winner which means the $5,792,345 prize snowball into Thursday's draw. The winning numbers for Monday's draw were 2, 8, 19, 29, 38, 41, with 20 as the additional number. More on Toto, here. Both Singapore Airlines (SIA) and Scoot have checked the fuel switches of their Boeing 787 aircrafts, reports CNA. 'As a precautionary measure, SIA and Scoot have carried out and completed checks on the fuel switches of the Boeing 787 aircraft in our fleet," read an SIA statement published by CNA on 15 July. A preliminary report on last month's Air India tragedy – which killed 260 people – concluded fuel to the engines of the Boeing 787 Dreamliner in the deadly crash was cut off moments after take-off. US aviation regulator, the Federal Aviation Administration (FAA) has said fuel control switches in Boeing aeroplanes are safe. Two major commercial pilots' associations have rejected claims that human error caused the Air India crash. The High Court has published its grounds of decision for dismissing Jeremiah Ng's appeal against his seven-year jail sentence for killing one person and injuring six others in a violent crash along Tampines Avenue 1 in December 2021. The 36-year-old had gone out with this brother and two friends that night (23 December) and consumed four cans of beer before driving back from dinner. Ng reportedly hit speeds as high as 169kmh in his brother's red Mercedes-Benz during the journey. He lost control of the vehicle as he approached the junction of Tampines Avenue 1 and Tampines Avenue 10, smashing into a centre divider and crashing into traffic. "It is plainly foolish and hazardous to drive in this manner on any occasion. Our public roads are not a racetrack," said the High Court in its dismissal of Ng's appeal. A private-hire car driver was killed in the crash. Six others were injured – including a motorcyclist who was left with long-term disabilities. Ng was sentenced in October 2023 after pleading guilty to one count of drink driving and another for causing death by driving in a dangerous manner. One person was taken to hospital after a fire at Block 194 Kim Keat Avenue in Toa Payoh on 14 July. The Singapore Civil Defence Force (SCDF) said, in a Facebook post, that it responded to the fire at about 11.50am. "Upon arrival, one of the bedrooms in a 12th-floor unit was on fire. Firefighters entered the smoke-filled unit and extinguished the fire with a water jet," read a statement. SCDF assessed two people for smoke inhalation with one being taken to the KK Women's and Children's Hospital. The other person declined to be taken to hospital. Pictures from the incident showed the unit as well as the corridor area outside sustained heat and smoke damage. Preliminary findings indicate the cause of the fire is likely from an electrical origin in a bedroom. You can read tips from the SCDF on how to prevent such fires, here. South Korean actress Kang Seo-ha has tragically died at the age of 31 following a battle with cancer. The sad news was shared by a close acquaintance of Kang who wrote on social media: "I hope you're happy and pain-free up there. I miss you so much.' Kang, in the tribute post, was also described as someone who remained kind despite enduring immense pain. "Even while relying on painkillers, she kept saying she was grateful things weren't worse. I felt ashamed hearing that," the post said. "She suffered so much. I hope she finds only happiness now." Kang starred in a number of TV dramas during her career including 'Through the Waves' and 'Flowers of the Prison.' Her final project – 'In the Net' – is expected to be released posthumously. A race at the World Aquatics Championships was postponed just hours before it was due to start after water quality levels in Sentosa failed to meet "acceptable thresholds", it was announced by organisers. The women's open water 10km race at Sentosa was scheduled for 8am this morning (15 July) but has been pushed until tomorrow (16 July) "in the utmost interest of athlete safety." "While testing in recent days has consistently shown water quality at the venue to meet World Aquatics' acceptable thresholds, analysis of samples taken on 13 July surpassed these thresholds," read a statement from World Aquatics. "The decision to postpone racing was made in the best interests of athlete health and safety, which remains World Aquatics and the Singapore 2025 Organising Committee's top priority." It is unclear why tests on the water samples on 13 July exceeded quality thresholds
Yahoo
44 minutes ago
- Yahoo
Nvidia says it will resume sale of key AI chip to China
Nvidia (NVDA) said it plans to resume sales of its H20 artificial intelligence chip to China, days after its CEO, who is visiting Beijing, met US President Donald Trump. Nvidia's AI chips have been a key focus of US export controls designed to keep the most advanced chips out of Chinese hands amid national security concerns, restrictions that the US-listed company said would cut its revenue by $15 billion. The world's most valuable firm is filing applications with the US government to resume sales to China of the H20 graphics processing unit (GPU), and expects to get the licenses soon, Nvidia said in a statement. 'The US government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon,' it said. Nvidia, which has criticized the export restrictions the Trump administration imposed in April that stopped it from selling its H20 chip in China, also said it has introduced a new model tailored to meet regulatory rules in the Chinese market. The White House did not immediately respond to a request for comment. The US government has expressed concern that the Chinese military could use AI chips to develop weapons. Nvidia CEO Jensen Huang is scheduled to hold a media briefing in Beijing on Wednesday when he attends a supply chain expo, his second visit to China after a trip in April where he stressed the importance of the Chinese market. 'The Chinese market is massive, dynamic, and highly innovative, and it's also home to many AI researchers. Therefore, it is indeed crucial for American companies to establish roots in the Chinese market,' Huang told Chinese state broadcaster CCTV on Tuesday. Nvidia has faced increased competition from Chinese tech giant Huawei and other makers of graphics processing units – the chips used to train artificial intelligence. But Chinese companies, including its big tech firms, still crave Nvidia chips due to the company's computing platform known as CUDA. Huang's visit is being closely watched in both China and the United States, where a bipartisan pair of senators last week sent a letter to the CEO asking him to abstain from meeting companies that are working with military or intelligence bodies. The senators also asked Huang to refrain from meeting with entities named on the United States' restricted export list. The move to resume sales of the H20 chips comes amid easing tensions between Washington and Beijing, with China relaxing controls on rare earth exports and the United States allowing chip design software services to resume in China. 'The uncertainties between the US and China remain high and despite a pause in H20's ban, Chinese companies will continue to diversify their options to better protect their supply chain integrity,' said He Hui, research director of semiconductors at Omdia. The H20 chip was developed specifically for the Chinese market after US export restrictions were imposed on national security grounds in late 2023. The AI chip was Nvidia's most powerful legally available product in China until it was effectively banned by Washington in April. The H20 ban forced Nvidia to write off $5.5 billion in inventories, and Huang told the Stratechery podcast earlier this year that the company also had to walk away from $15 billion in sales. Nvidia also announced the development of a new AI chip designed specifically for China, called the RTX Pro GPU. The company described the model as 'fully compliant' with US export controls and suitable for digital twin AI applications in sectors such as smart factories and logistics. In May, Reuters reported Nvidia was preparing to launch a new AI chip, based on the RTX Pro 6000D, in China at a significantly lower price point than the H20. The graphics processing unit would be part of Nvidia's latest generation Blackwell-architecture AI processors and was expected to be priced well below the H20 due to its weaker specifications and simpler manufacturing requirements, sources said. China generated $17 billion in revenue for Nvidia in the fiscal year ending January 26, accounting for 13% of the company's total sales, based on its latest annual report. Huang has consistently highlighted China as a critical market for Nvidia's growth. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Bloomberg
an hour ago
- Bloomberg
Xi Urges ‘New Model' for China Urban Plan in Rare Meeting
By Updated on Save Chinese President Xi Jinping called for the acceleration of a 'new model' for property development, advocating a more measured approach to urban planning and upgrades, while falling short of investor expectations for more aggressive policies. China will 'steadily advance renovation of urban villages and dilapidated houses,' the official Xinhua News Agency reported Tuesday, citing the Central Urban Work Conference held on Monday and Tuesday. The announcement follows a pledge by the government last October to renovate 1 million homes in older, rundown dwellings in large cities.
