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Companies

Leading liquor producers post strong revenues

(Xinhua)
Updated: 2011-04-23 11:06
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BEIJING - China's leading liquor producers Kweichow Moutai Co, Ltd. and Yanghe Brewery Joint-stock Co both posted robust earnings in the first quarter on strong market demand, according to their quarterly reports released on Saturday.

Net profit of Kweichow Moutai Co, China's largest liquor maker by market value, hit 1.88 billion yuan ($288.5 million) in the first three months, up 49 percent from the same period last year, the report says.

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Its business revenue in the first quarter rose 39 percent from one year earlier to 4.22 billion yuan while earnings per share stood at 2 yuan, according to the report.

The company attributed the surge in revenue to strong sales and price hikes.

Starting on Jan 1 this year, Kweichow Moutai raised the factory prices of its products by an average of 20 percent.

Jiangsu Yanghe Brewery, China's third-largest liquor maker by market value, saw its net profit in the Jan-March period surge 62 percent to 1.17 billion yuan.

Its business revenue jumped 88 percent to 3.63 billion yuan in the period while earnings per share reached 2.6 yuan, according to its quarterly report.

With its growing popularity and rising market share, the company expects a 50 percent to 70 percent rise in its revenues in the first half of this year, the report says.

The robust business growth of China's liquor companies in the first quarter is well within market expectations, as demand for liquor is on rise during the festival-packed period.

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