YANTAI Changyu Pioneer Wine Co said first-quarter profit increased 30 percent as rising income spurred consumption of grape wine.

Changyu, China's largest wine maker, posted a net income of 195.3 million yuan (US$25.29 million) in the fist three months, up 30.34 percent from the same period last year, the company said in a filing to the Shenzhen Stock Exchange yesterday.

Sales grew to 995.8 million yuan over the period, up from the 811.4 million yuan a year earlier.

The Shandong-based wine maker delivered a 42 percent increase in 2006 net profit and an 18 percent rise in sales. The winery has increased its focus on premium products to raise profit margins and compete with domestic rivals such as China Great Wall Wine Co and Dynasty Fine Wines Group Ltd.

It invested 50 million yuan in September to form a joint venture with Canada-based Aurora Icewine Co to build an ice-wine vineyard in Liaoning Province with a production capability of 1,000 tons per year.

Grape wine, becoming more popular in wealthier regions, delivered sales of 12.95 billion yuan in 2006.

Source:佚名