China Feihe (HKG:6186) expects to report a drop in its revenue and profit for the half ended June 30, according to a Friday Hong Kong bourse filing.

Shares fell over 17% in morning trade Monday.

The producer of dairy products expects profit of 1 billion yuan to 1.2 billion yuan on revenue of 9.1 billion yuan to 9.3 billion yuan for the six-month period.

This compares to the 1.9 billion yuan profit on sales of 10.1 billion yuan in the comparable, year-ago period.

The company attributed the drop to a host of factors, including loss of government grants and subsidies to consumers.

China Feihe expects to report its results by the end of August.

Based on the available information, the company now also expects to record a low single-digit increase in revenue for the year ending Dec. 31.

Meanwhile, the company said it would give effect to its previously authorized share repurchase plan.

The company will repurchase at least 1 billion yuan of shares during the remainder of 2025.

Meanwhile, the company expect to distribute at least 2 billion yuan in dividends for the year despite "the short-term challenges impacting financial performance," it said.