Chinese dairy group American Dairy has reported "softer than anticipated" results after the US-listed group swung to a loss during the first half of the year.

For the six-month period, the company made a net loss of US$15m from a profit of $35.4m in the prior year.

Revenue decreased 13.8% to $133.6m, largely due to increased competition from new companies entering China's infant formula sector and from old competitors aggressively attempting to reclaim market share following the melamine crisis, the firm said.

Leng You Bin, chairman and CEO of American Dairy, said: "2010 has been a unique year of fine-tuning of our operations. This quarter's results were softer than anticipated, but we are addressing this with certain initiatives to improve future results."

In the second quarter, the company made a net loss of $20.7m versus net income of $7.6m in 2009.

Revenue, however, was up 26.7% to $52.2m due to an expansion of the company's market areas and distribution network throughout China.