Dukang

Dukang: Lower net profit on higher selling and distribution exp though revenues were higher. 3Q rev at Rmb590.7m +14.7% yoy +8.6% qoq with net profit at $62.4m -16.9% yoy -51.1%. Costs was mainly attributed to higher advertising costs with activities such as TV comm telecast on CCTV-1, 10 and TV channels in Henan as well as bus and rooftop advertising. Overall co recorded both volume and ASP growth in its flagship brand Luoyang Dukang qoq though slightly lower volumes for its Siwu brand Co has guided that the baijiu industry is likely to remain challenging in view of inflationary pressure and competition. However, co's strategy of moving up the brand hierarchy has been viewed as successfully internally.