China-based infant-formula maker Feihe has issued another profit warning ahead of the official issuance of its first-half results in August.

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.