(Yicai Global) Nov. 5 -- Bright Dairy & Food, one of China's biggest dairy labels, has written off concern over its almost 64 percent annual decline in third-quarter profit and the departure of two executives.

Production and business is as normal, the firm said on social media on Nov. 2, days after publishing its financial report for the third quarter. It put the gaping hole in profit down to fierce competition and poor sales of room temperature dairy products.

It plans to turn its luck around with by expanding sales channels for two of its products, Ubest fresh milk and Rushi fermented milk, which it claims are well received by customers.

The Shanghai-based firm also dismissed apprehension over the resignations of Chief Financial Officer Wang Wei and Sang Shude, a director, who handed in their notice on Oct. 29. Sang is of legal retirement age and Wang is becoming general manager of Bright Food Group Finance, the post added.

Just two months earlier, Bright Dairy's President Zhang Chongjian and General Manager Zhu Hangming said they would be leaving the company due to work reasons.

Turning Sour

The 68-year-old company went public in 2002, earning a revenue of CNY5 billion (USD739 million) the same year -- more than the combined total of Yili Group and China Mengniu Dairy, now the country's two biggest dairy producers.

But 16 years on, the tables have turned. Bright Dairy's income fell 5.7 percent to CNY15.6 billion over the first three quarters this year, less than half of Yili and Mengniu's individual interim revenues, while net profit dived 25.5 percent to CNY394 million (USD58.2 million).

The third quarter was particularly unsuccessful for Bright Dairy, with net profit over the three months sliding nearly 63.8 percent to CNY58.9 million.

Its share price has seen a similar fate, halving this year to CNY7.77 (USD1.1) and wiping around CNY9 billion from its market capitalization. As stocks across the country continue to slide, investors are expected to be much more prudent with their money and companies that fail to perform will feel the squeeze considerably tighter.

Editor: James Boynton