The total profit of Dynasty Fine Wine Group Co., Ltd increased 7,9 per cent to RMB 79 million last year. According to its chairman Bai Zhisheng, Dynastry was also on the lookout for acquisition in a bid to strengthen its profit ability. Besides, Dynasty was set to invest RMB 160 million to increase its production capacity to 50.000 tons from 35.000 tons this year.

It was reported the sales volume of Dynasty increased 17 per cent to 45.500.000 bottles. The red wines accounted for 95 per cent of the total turnover, moreover, the dry red wine accounted for 49,1 per cent of the total turnover.

Bai Zhisheng said Dynasty was also on the lookout for acquisition in a bid to increase its profit ability. Currently Dynasty has ten major grape juice providers. In the future, it is going to buy appropriate providers to make sure it could obtain reliable supply of grape juice.

He added that Dynasty was set to increase its production capacity to 50.000 tons from 35.000 tons this year. Besides, it would increase workshops and buy farmlands to further increase its output to 70,000 tons by the end of 2008. It is estimated that Dynasty should invest RMB 160 million in that.

Last year, Dynasty was affected by natural disasters and its purchasing cost rose 10 to 15 per cent. As a result, its gross profit margin declined to 51,8 per cent by 1.0 percentage points. Therefore, to countervail the negative impacts, the company would take actions to regular product structure and enlarge production scale.