Dynasty Wine is the first Sino-foreign joint venture in China, with major shareholders including Tianjin Food Group and French wine giant Remy Martin Group. The Group produces and sells more than 100 kinds of wine products and imports 110 kinds of wine products to provide high-quality and value-for-money wines consumed in the mainland.

The Group achieved satisfactory results in the first half of 2021. As of June 30, 2021, unaudited consolidated income was about 179.6 million yuan, an increase of about 100% over the same period last year. The profit attributable to the Group is about $19.5 million. The main reason for the increase in income is: 1. The epidemic is under control, and the government has relaxed restrictions on places of consumption. Consumer desire to recover, coupled with ideal economic growth. Sales of medium and high-end wines rose. two。 During the period, the Group strengthened its sales efforts and cooperated with dealers to restock before the festival, reflecting the results of the Group's operational and sales reform.

In the same period last year, the group recorded an one-time non-recurrent income of 184 million yuan from the sale of wine castles and related facilities. And the implementation of the employee reform recorded non-recurrent compensation of $13.3 million. In the same period last year, the comprehensive profit reached 142.6 million yuan. However, excluding these two non-recurrent income and expenditure, core business recorded a loss of HK $27.8 million last year. The profit attributable to the Group this year is about 19.5 million yuan, which is a substantial improvement over the same period last year. The main reason is the increase in sales of medium and high-grade wine and the improvement of gross margin.

In 2021, the distribution of group products was adjusted in terms of sales channels and market, and remarkable results were achieved. Through 5 major series, covering all mainstream wine prices, to dry red wine, dry white, brandy, sparkling wine, 4 dominant products, enhance market share. To strengthen the brand effect in promotion, in March this year, the dynasty began to name high-speed trains, covering Jiangfu, the key market in the core area of Shanghai.

The group's business will grow significantly in the second half of the year and return to profit for the whole year Cash flow is abundant, and the debt-to-capital ratio has been further reduced to 60 per cent from 63 per cent at the end of last year, maintaining a healthy level. It is recommended to buy while low, buy $0.45, target $0.55, stop loss $0.40.