According to the Zhitong Finance App, VitaMilk International (00345) announced that the group expects a loss of HK$151 million to HK$172 million in consolidated financial results for the financial year ending March 31, 2022. Profit attributable to equity holders for the same period last year was HK$548 million.

The company's interim results report for the six months ended September 30, 2021 has mentioned that sales in mainland China declined significantly in the second quarter of this fiscal year, and that sales in mainland China subsequently rebounded sharply in the second half of this fiscal year. Therefore, compared to the first half of this fiscal year, the decline has narrowed sharply. Additionally, the company's other operating units (Hong Kong, Australia and New Zealand, Singapore) saw revenue growth throughout the fiscal year, supported by the steady performance of core business and innovative products. In terms of profit, although the company declined in the second half of this fiscal year compared to the same period last year, the decline was narrower than in the first half of this fiscal year.

The company expects that by strengthening product innovation, advertising and promotion investment, efficient market development strategies and sales, and strengthening communication with consumers, the company's sales and profits will continue to recover and return to year-on-year profit growth in the 2022/23 fiscal year.

In addition, the consolidated financial performance attributable to equity holders for this fiscal year is expected to lose, mainly for the following reasons: sales in mainland China declined significantly during the summer peak month; government subsidies related to COVID-19 received from the government this fiscal year were HK$19.8 million, compared to HK$225 million in the same period last year; and large non-recurring expenses and asset impairment arising from the relocation of the Shenzhen plant to a modern plant in Dongguan as part of a plan to achieve production innovation.