Dairy company Yashili International Holdings (1230.HK) said Sunday that it expects profits decreased 30-40% year-on-year in the first half of 2011 on rising raw materials costs, advertising expenses and increasing tax rates, the South China Morning Post reported. Yashili, China’s third-largest baby milk formula firm by sales, still expects to announce an increase in revenue for the first half of the year when it reports earnings next month. Tax rates have risen due to the expiration of certain benefits Yashili previously received. The company’s share price has fallen 58% compared with last October, when it raised US$349 million in an initial public offering on the Hong Kong Stock Exchange. US investment firm Carlyle Group owns a 24.26% stake in Yashili.