China Feihe Limited provided consolidated earnings guidance for the six months ended 30 June 2022. The Group is expected to record a revenue of approximately RMB 9.5 billion to RMB 9.8 billion for the six months ended 30 June 2022, representing a decrease of approximately 14.9% to 17.4% as compared to the corresponding period in 2021 (approximately RMB 11.5 billion); and is expected to record a profit for the period of approximately RMB 2.2 billion to RMB 2.5 billion for the six months ended 30 June 2022, representing a decrease of approximately 33.4% to 42.4% as compared to the corresponding period in 2021 (approximately RMB 3.8 billion). The anticipated decrease in the Group's revenue for the six months ended 30 June 2022 was primarily due to: (i) the birth rate in Mainland China decreased; and (ii) in order to provide consumers with better product experience, the Group implemented the "fresh" strategy in 2022, further reduced the channel inventory of products, such as Astrobaby, to maintain a higher level of freshness of products on the shelves, and implemented stricter control over the overall inventory level of distribution channels.

The anticipated decrease in the Group's profit for the six months ended 30 June 2022 was mainly due to a decrease in revenue generated from infant milk formula products.