August 17 -- Gansu Huangtai Wine-Marketing Industry (Huangtai Wine) (000995) posted a 146.84 percent increase in first half net profit to 7.51 million yuan, reports yicai.com, citing a company filing.

The distiller’s non-operating income rose to 30.66 million yuan in the first half of 2011. It borrowed 70.04 million yuan from its largest shareholder, Shanghai Houfeng Investment, this February, in order to repay debts and boost cash flow. Its debt restructuring generated non-operating income of 30.52 million yuan during the reporting period.

Huangtai Wine’s revenue rose 47.22 percent year-on-year to 42.97 million yuan in the first half of 2011, while it incurred a loss of 23.34 million yuan in total profit. It incurred a loss of 16.4 million yuan in the same period of last year.

The Wuwei-based firm increased investment in marketing during the reporting period, and its sales expenses rose 360.42 percent year-on-year. Revenue from liquor sales rose 40 percent year-on-year to 35.65 million yuan in the same period, while the gross margin of liquor fell 8.47 percent to 55.41 percent. Revenue from wine increased 388.26 percent year-on-year to 7.13 million yuan, but the gross margin of wine was negative 35.12 percent, in loss status.

According to an earlier announcement, Huangtai Wine plans to raise 813-961 million yuan from a follow-on offering to acquire a 51- to 100-percent stake in Chengde Mountain Resort Corporation Group, a liquor operator.  

Source:Capitalvue