March 19 -- BaWang International (1338.HK) posted a net loss of 560 million yuan in 2011, while revenue fell 40 percent year-on-year to 889 million yuan, reports Netease Finance, citing a company filing.

Sales-related costs declined 3.5 percent from 2010. The company suffered an operating loss of 625 million yuan, a surge from the loss of 130 million yuan incurred in 2010.

BaWang International said the huge loss in 2011 was caused by the dioxane scandal in July 2010.

The company lost 295 million yuan in the first half of 2011, while the loss suffered in the second half was 264 million yuan.

According to the company, revenues from its Bawang shampoos and Zhuifeng shampoos in the second half of 2011 totaled 332 million yuan, an increase of 43.5 percent year-on-year.

Revenue from its Bawang brand totaled 418 million yuan in 2011, accounting for 47 percent of total revenue, 57.9 percent lower than the amount in 2010.

Revenue from its Zhuifeng brand fell 56.3 percent year-on-year to 146 million yuan.

BaWang International launched the Bawang herbal tea in April 2010, which brought in revenue of 167 million yuan, accounting for 18.8 percent of total revenue. This product became the second-largest contributor to revenue.