Dukang Distillers Holdings on Friday said it expects its overall revenue and earnings to be significantly lower for the fiscal 2017.
The profit warning comes on the back of significant impairment loss recognised for some of its non-current assets, the company said in a statement.
Dukang Distillers, which makes and sells grain liquor baijiu in China, said prolonged severe air pollution and stricter enforcements imposed by the Chinese government to fight air pollution violations affected the baijiu production.
Air quality in China has deteriorated, resulting in implementation of emission reduction control measures by the Chinese Government to curb air pollution.
Earlier this year, Singapore-listed company reported a 82 percent slump in third-quarter sales as baijiu production was severely affected due to intermittent functioning of production facilities.
Dukang Distillers plans to announce its results for financial year ended June 30 around August 29.
Shares in the company fell 2.2 percent to S$0.225. Stock has fallen about 70 percent so far this year, bringing its market capitalisation to S$18 million.
