Baby formula company Bellamy's has extended its trading suspension on the ASX until the middle of next month.
In a statement to the exchange, the company said its shares will remain suspended until January 13, or until it makes an announcement to market about its financial position.
Bellamy's said the suspension has been extended while it continues negotiations with key suppliers and manufacturers.
The company said it needs time to determine what the impact of those negotiations will be on its expected financial results.
Bellamy's shares dropped as much as 40 per cent on one day earlier this month after it surprised the market by warning that new regulations in China had hurt sales.
Bega Cheese, which is Bellamy's key supplier of baby formula, put out its own statement to the share market in response.
In it, Bega noted the regulatory changes in China, increased global baby formula supply and changing methods to sell directly to Chinese consumers, all or which had seen "significant price discounting and signs of short term oversupply of infant formula and growing up milk powders."
However, the company said there is still strong demand for infant formula in China and across Asia, including organic products.
Bega's chairman Barry Irvin reaffirmed earnings guidance given at the company's annual general meeting in late-October.
"While infant formula is important to us, Bega is a large multi-product dairy company with a strong ongoing profitable business in multiple categories," he said in the statement.
Bega shareholders seemed reassured, with the company's share price up 3.1 per cent to $4 by 2:00pm (AEDT).
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