[Caihua News] Dynasty Wine Industry (00828.HK) announced that in the six months ended June 30, 2021, revenue from customer contracts was about HK $180 million, an increase of 99.84% over the same period last year. The profit attributable to shareholders was about HK $19.485 million, compared with about HK $143 million in the same period last year (including non-recurrent net income (after tax) of about HK $184 million from the sale of wine castles and related facilities and about HK $13.3 million in employee compensation under the employee reform plan), a decrease of 86.34 per cent compared with the same period last year. Earnings per share are HK1.6 cents; no dividend is paid.

The increase in revenue was mainly due to a significant increase in product sales (especially mid-and high-end wine products) and an increase in market prices for a number of upgraded and customized products after product structure optimization during the period under review. During the period, the average ex-factory prices (in RMB) of red and white wines under the Group's "Dynasty" brand increased. As Chinese consumers prefer red wine, the group's red wine products can be priced higher, so the average ex-factory price of the group's red wine is generally higher than that of its white wine.

Sales of red wine products continued to be the main source of revenue for the group, accounting for about 58% of the group's income during the period under review (2020: 63%).

The decrease in profit was mainly due to the recognised proceeds of the sale completed in January 2020 (after deducting land value-added tax) of approximately HK $184 million. After deducting non-recurrent gains from the sale and non-recurrent employee compensation of about HK $13.3 million arising from the implementation of the employee reform plan in 2020, there will be an adjusted unaudited consolidated loss of about HK $27.8 million for the six months ended June 30, 2020. benefiting from the increase in sales of mid-and high-end wine products and the increase in gross profit margin, the Group turned a loss to a profit during the period under review. Changed from adjusted consolidated loss to unaudited consolidated profit.