Chinese dairy giant Yili has published its annual financial report for 2008 showing that it made losses of CNY1.96 billion during the year.
Yili said that due to the global financial crisis and the melamine scandal in 2008, the demand in China for dairy products declined significantly, and had a major impact on the dairy market.
However, the company said it expects to make revenues of CNY21.6 billion and a total profit of CNY500 million in 2009. At the same time, Yili emphasized that it will enhance its construction of dairies and realize the upgrading and transition of the management model of its milk sources.
Prior to this, another Chinese dairy company Mengniu also published its annual financial report for 2008, which said it made net losses of CNY948.6 million during the year.