Dukang Distillers

Dukang Distillers: Reported a strong 30% yoy rise in net profit to Rmb218.09m for FY12 Turnover increased 28.1 per cent over the previous year to RMB1.83 billion, thanks to an increase in revfrom Luoyang Dukang's operations. Overall gross profit margin for Dukang brand products increased to 41.4% from 39.2% yoy, mainly from the launch of its premium Jiuzu Dukang product series. Grp note that it will continue to place emphasis on growing brand equity and strengthen its positioning to target mid to high class and mass-market consumers respectively in Henan Province and the rest of China. Add that according to the latest data released by National Bureau of Statistics of China, the baijiu industry achieved sales of Rmb374.7b and profits of Rmb57.2b in 2011, representing a growth rate of over 30.0% yoy. In light of the continuous expansion of the Chinese baijiu market, the Gup expects to increase its production capacity for brand products by about 40% or 3,000 tonnes through the addition of another 700 fermentation pools during FY13.