We continue to move forward on several initiatives. As announced last quarter, we aim to streamline the distribution process by contracting directly with larger infant-maternity store chains. This quarter, we are pleased with our progress on this front. We view this strategy as a win-win solution that allows us to strengthen our relationships with these growing chains to enhance our margins by lowering our selling costs. ... We have also continued to focus on driving revenue by growing same store sales instead of increasing penetration into more locations. ... Lastly, we have reviewed the efficiency of our sales team. Throughout the past quarter, we have examined the productivity of the promotional spending allocated to our third party marketing agents and believe that the resources are not being effective deployed. Thus, we have decided to focus our resources on building our internal sales team. This will be a gradual process that will be evident in our sales and marketing spending. However, we believe that long term, this will give us greater control over the activities and methods used to target customers and lead to stronger sales performance. We continue to be very excited for Yayi's outlook. In the long term, we are confident that our continued efforts to innovate and adapt will strengthen our presence in the marketplace while enhancing margins and strengthening distribution channels.
We recognize that our strategy realignments coincided with a challenging time in our industry. In the past year, the negative publicity of cow milk dairy products has spread to also affect the goat milk industry and for the broader dairy industry, we have seen imported brands gain market share from domestic brands to account for the majority of the market. In the near term, this means that our shift in strategy towards supermarket sales has encountered a rather hostile environment. Furthermore, due to recent nationwide, government-mandated manufacturing license renewals, we also noticed that distributors were reluctant to work with a new entrant until the renewal process was complete. We expected our supermarket centered strategy to gain Yayi nationwide brand recognition and, in turn, provide a platform to support greater long term growth. Unfortunately, due to high slotting fees, distinct distributor challenges, higher marketing costs, regulatory uncertainty and overall lack of consumer confidence in domestic brands, we have found the market penetration process to be lengthier than expected.
We have seen China's dairy industry experience a similar trend before with the melamine crisis. Thus, we are confident that as consumer confidence returns, domestic brands will regain consumer recognition and market share. Due to the various challenges of the past year, Yayi struggled to maintain its historical growth trajectory and needed to revise its near term financial performance expectations. As the industry rebounds, we are confident that Yayi will also regain its historical growth momentum.
Yayi International has continued to expand its distribution network and has thus far as of November 7, 2010 signed sales contracts with distributors for an aggregate expected sales value of approximately $76 million (value-added tax included). Due to the heightened government inspection of milk products, the Company decided to postpone the date for installing equipment at its milk collection stations in Fuping to January 2011. Moreover, the Company believes the Jinghai facility in Tianjin will be subject to more stringent inspection following the newly issued guidance by the General Administration of Quality Supervision, Inspection and Quarantine of China regarding the safety and quality of dairy products, which will lead to a delay of more than six months for the completion of the project.
"While we have postponed the commencement of production at the new processing plant in Tianjin in order to ensure that we meet the heightened quality requirements, and suspended the installation of processing and central system pipelines at our new raw milk processing facility in Shaanxi Province as the local government is conducting exploration work for the discovered ancient artifacts on the site, we remain optimistic about our current capacity meeting the existing demand." Because of the ongoing ramp-up of sales following the restructuring of the product portfolio, as well as the upcoming peak season that hampers the predictability of sales, the Company is carefully assessing its sales guidance of between $58.6 million and $65.9 million for the fiscal year ending March 31, 2011 and will provide updates as its business continues to evolve. Nonetheless, the Company is working diligently towards meeting the guidance.
Yayi today announced that the Company expects to report strong sequential growth in the first quarter of its new fiscal year ended June 30, 2010. Based on its preliminary results, the Company expects to report revenues of approximately $7.5 million, a 66.7% increase from $4.5 million for the three months ended March 31, 2010, and expects to be profitable for the first quarter of Fiscal 2011. "We remain optimistic about consumer confidence and acceptance of our high quality products and anticipate continued sales growth in the next few quarters, providing us with confidence that we are on track to achieve our financial goals for this year of net sales of $58.6 million to $65.9 million for Fiscal 2011."
In addition, Yayi International separately announced that it has recently amended an existing agreement with its current shareholder, SAIF Partners III L.P., a well-known private equity investor in Asia, to modify the terms of its Series A Preferred Stock, so as to readjust the Companys make good target to reflect the new business focus and align with its new fiscal year. The new target provides for an aggregate net income of $20 million in the Fiscal Years ended March 31, 2011 and 2012.
"We are still on track to start production at the new processing plant in Tianjin in the fourth quarter of calendar year 2010, and expect to commence production at our new raw milk processing facility in Shaanxi Province by the end of 2011. Together, these two facilities will increase our output of finalized goat milk powder products by 250% by the end of calendar year 2010 and increasing raw milk powder production capacity by 460% by the end of calendar year 2011." The Company reaffirms its previous guidance for the new fiscal year ending March 31, 2011 of net sales between $58.6 million to $65.9 million.