Infant formula maker Bellamy's says it revealed information about poor China sales and a lower outlook as soon as possible, after being quizzed over the timing of a shock trading update by the ASX.
The ASX has written to Bellamy's over its December 2 trading update that wiped more than $500 million from its market value, citing listing rules that require companies to immediately report information that could have a material impact.
Bellamy's, in its response to the ASX released to the market on Thursday morning, says it has complied with the listings rules.
It says the board had a routine meeting on November 22 for a monthly business update and the impact of November sales to date was considered.
Bellamy's says from that meeting, management was asked to provide additional financial information regarding forecast earnings before interest and taxes.
"Management undertook the review and continued to finalise the updated forecasts until the start of the board meeting held on 2 December 2016 at 8am (0800 AEDT)," it said.
Bellamy's said its directors reviewed the updated information and authorised release of the market update after the meeting ended just after 0900 AEDT.
The company's market update warned worse-than-expected sales in China had led to a fall in revenue and profit.
Bellamy's said regulatory changes, which include restrictions on the number of baby products companies are allowed to sell in China, had triggered discounting by rivals that had temporarily eaten into its sales.
Revenue for the first half of the 2016/17 year is expected to be around $120 million and revenue in the second half is also expected to be similar if current conditions continue.
That forecast would fall short of the previous year's annual revenue of $244.6 million.
