United Food Holdings Limited announced that the group expects to register a significant loss before tax of up to approximately RMB 550 million for second quarter of 2015. The expected significant loss is mainly attributable to a change in the operating environment which was caused by actions taken by the Chinese authorities in China to curb serious industrial pollution. The local government in Linyi had ordered more than 50 companies in the region involved in heavy industries and power generation to stop production due to pollution reasons.

The group was not one of those companies directly affected. However, the anti-pollution actions taken had indirectly affected the group in terms of higher operating expenses due to higher costs of utilities like electricity. At the same time, the group's operations continued to be adversely impacted by the weak Chinese economy.

As a result the group expects a loss of approximately RMB 120 million from its business operations in second quarter of fiscal year 2015.