Dynasty Fine Wines Gr Ltd0828
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Weak demand in China's wine market causes significant sales revenue decline, leading to a sharp profit drop.
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Consumer Staples
Dynasty Fine Wines Gr LtdDynasty Fine Wines Group has issued another profit warning, saying its earnings for the first half of the year are set to fall sharply as weak demand in China's wine market hits sales. In a stock-exchange filing yesterday, Dynasty said it expects to record an unaudited consolidated profit of HK$0.4m to HK$1.2m for the six months to 30 June, down 85-95% from HK$8.2m a year earlier. The Hong Kong-listed company said the earnings decline was primarily due to a reduction in gross profit following a significant decrease in sales revenue due to weak demand for wine in China. Dynasty added that higher other income, including the write-off of long-aged payables, and lower administrative expenses had partially offset the impact of revenue decline on profit in the period. The warning marks another setback for the Chinese wine producer, which in March flagged a sharp drop in profit for its 2025 financial year.
Dynasty Fine Wines Gr LtdWeak demand in China's wine market causes significant sales revenue decline, leading to a sharp profit drop.