Dynasty Fine Wines Group Limited ("Dynasty" or the "Group") (Stockde: 00828), a premier grape winemaker in China, today announced its unaudited interim results for the six months ended 30 June 2023.

During the period, theles, especially in the middle-end wine products, were rvered, as a result of the normalization ofnsumption scenes and the resumption ofnsumer sentiment in Mainland China after the dismantlement of pandemicntrol measures at the end of last year. Therefore, in the first half of 2023, the Group's revenue increased by 27% to HK$128.2 million,pared to theme period last year, whereas profit attributable to owners of thepany remained at HK$10.7 million. Gross profit margin decreased to 37% from 40% in the first half of 2022, as materialsts and delivery charges increased during the period.
Benefiting from the resumption ofnsumption scenario such as banquets and gatherings nationwide,les of red wine products grew well over the period, reaching theles level of white wine products. Both red and white wine products served as the Group's major revenuentributors, each aunting for approximately 48% of the Group's revenue for the period. Gross margin of red wine products and white wine products were 31% and 45% respectively (2022 1H: 35% and 44% respectively).
The Group produces a wide range of more than 100 wine products under the "Dynasty" brand. It has been actively pursuing innovation, creating the mostpetitive products, and embracing the "5+4+N" product strategy. The Group's "5" key series of productsprise the air dry series, seven-year reserve series, merlot series, classic series and best-selling series, whichver fully the price range of mainstream markets, whereas the "4" advantage product categories include dry red wines, dry white wines, brandy and sparkling wines, which enlarge vertical market shares for the Group. Furthermore, the Group boasts the development of "N" kinds of tomized products to meet the diversified needs of Chinesensumers.
With China chic on the rise, the Group has launched the "China Chic" series, a series of new high-end products, to further strengthen the rgnition of the Dynasty brand and attract mainstreamnsumer groups fancying China-made products and China chic. The flagship product of this series is the "Dynasty Chinese Zodiacmemorative Dry Red Wine for the Gui Mao Year of Rabbit," which integrates high quality with Chinese zodiac culture, resonating with Chinesensumers' culturalnfidence. Additionally, totisfy the needs of tomer groups with differentnsumption habits, the Group has launched the Dynasty NIANHUA series, priced between RMB100 and RMB500. Furthermore, with leading and well-proven technologies it has developed, the Group carried out aprehensive upgrade of production techniques and packaging design of its Golden Dynasty products.
In addition, the Group sold chateau wines imported from France and other foreign-branded wines in China through the Group's existing distributionwork. In that way, the Group introduced classic "old world" and "new world" varietals to cater to thensumer group preferring the taste of foreign premium wines.
The Group's overall iness potential has been enhanced through online platforms. On one hand, the emerce team of the Groupprehensively operated online stores itself on traditional emerce platforms, such as JD, Tmall and Pinduoduo for productles. On the other hand, the Group madeprehensive innovation on its brand, product categories, iness systems, procedures and models via new retail platforms, including East Buy, RED, Kuai and TikTok. These efforts facilitated the Group's autonom brandmunications so that ituld enhance effective market pration of the Group's products in the youngnsumer group. Meanwhile, the emerce team also actively cultivated emerce live broadcasting talents to expand itsles channels further and establish a new tomer base. The Groupntinues putting resources into the improvement of the onlineles channels and optimtion of the online stores' interface. During the period, the emerceles grew significantly and reached the level of the whole year of 2022.
Production of quality wines greatly depends on the sufficient supply of quality grapes or grape juice. Currently, the Group has more than 10 major grape juice suppliers with whom the Group has enjoyed long-term relationships, mainly located in Tianjin, Hebei, Ningxia and Xinjiang. To ensure reliable supplies of quality grapes and grape juice, the Groupntinues to actively work with vignerons and equip their vineyards with state-of-the-art techniques for assuring quality. During the period, the Group also enhanced its intrial footprint, and procured quality grapes and grape juice from premium vineyards through setting up subsidiaries in Ningxia and Xinjiang, so as to raise the supply of the Group's products.
Mr. Wan Shoupeng, Chairman of Dynasty,ncluded, "Looking ahead to the snd half of 2023, Dynasty will kick off the development of the first phase of a winery near the Eastern foot of Helan Mountain in Ningxia, named TianXia Winery. The winery will integrate pressing, fermentation, processing, testing and research and development as a whole, with an annual production and processing capacity of 5,000 tonnes. It will be a new iness growth driver of the Group and help to perfect the regional layout for the Group's grape wines. The Board currently remains cautily optimistic on the iness in the snd half of 2023. It willntinue to fo on product quality, reshape thensumption scene and guide marketnsumption, in order to create Dynasty as the representative brand of China's grape wines and Dynasty grape wines as the most signature products."
About Dynasty Fine Wines Group Limited
Dynasty Fine Wines Group Limited was listed on the Main Board of The Stock Exchange of Hong Kong Limited with the stockde 00828 on 26 January 2005. Founded in 1980, Dynasty is the premier grape winemaker in China. It is principally engaged in the production andle of grape wine products under its reputable "Dynasty" brand. Dynasty is the first Sino-foreign joint venture winepany in China with Tianjin Food Group Limited and the French grape wine giant, Remyintreau, as its major shareholders. The Group produces and sells more than 100 grape wine product series, and introduces imported wine products, providing high-quality and value-for-money grape wines to the full range ofnsumer groups in China.