According to Biostime's interim results for the six months ended June 30 this year, revenue and profit decreased by 10.3 percent and 34.4 percent year-on-year, respectively, due to stiff competition and rising challenges in China's infant formula market. Among them, earnings from infant formula, a major revenue source for Biostime, fell by 8.7 percent to 1.69 billion yuan ($264 million) for the first six months of the year.

Revenue from probiotic supplements, dried baby food and nutrition supplements, and baby care products fell to 173.1 million yuan, 43.1 million yuan and 48.8 million yuan respectively for the six month period.

Biostime recently acquired a United States-based company, which owns a strong heritage US organic brand since 1980 that currently has presence in several major markets. The group plans to develop organic infant formula and baby food products in the US and introduce them in the Chinese market soon.