Dynasty Fine Wines Announces 2026 Interim Results
Financial Highlights (Unaudited) (HKD Thousand) Six months ended 30 June 2026 2025 Revenue 83,046 122,775 Gross Profit 30,775 47,277 Profit Attributable to Owners of the Company 496 8,172 Basic Earnings per Share (HK cents) 0.04 0.58 HONG KONG, August 26, 2026 - Dynasty Fine Wines Group Limited (“Dynasty” or “the Group”) (Stock Code: 00828), a premier grape winemaker in China, today announced its unaudited interim results for the six months ended 30 June 2026. In the first half of 2026, due to weak demand of wine consumption market in the PRC, the Group’s sales of middle to high-end and red wine products declined, resulting in a 32% year-on-year decrease in revenue to HK$83.0 million. Although the impact of revenue decline on profit was partially offset by an increase in other income such as write-off of payables with long ageing and a decrease in administrative expenses, the profit attributable to owners of the Company was approximately HK$0.5 million. Earnings per share of the Company was HK0.04 cents per Share. With the Group’s stronger base of dry white market in coastal regions and the new launch of products of white and sparkling wines in response of the market trend, sale of white wine remained serving as the Group’s primary revenue contributor, though sale of white wine products recorded a decrease when compared with the corresponding period in 2025. Sales of red and white wines products accounted for approximately 28% and 63% of the total revenue respectively for the period (2025: approximately 41% and 54% respectively). The gross margin of red wine products and white wine products during the period were both 38% (2025: 38% and 39% respectively). The overall gross profit margin was 37% during the period (2025: 39%), mainly due to change of product mix at lower prices and margin adaptive to the mass market during the period. The Group has been actively pursuing innovation, embracing the “5+4+N” product strategy, with “N” standing for developing various customised products and continuously creating new products to meet the diverse needs of different Chinese consumer groups. During the period, the Group launched a new gift set product, i.e. Dynasty Chinese Zodiac Commemorative Dry Red Wine for the Bing Wu Year of Horse, integrating with the Chinese zodiac culture and the leading rise of Chinese-style fashionable products, by presenting the zodiac culture in a youthful visual language to attract potential consumers. At the same time, the Group continued carrying out activities “Dragon Across the Universities ” in different universities and colleges to promote wine culture, further broadening the brand’s awareness and reputation among young people. Based on its existing high-quality products, the Group continues to introduce new products and promote product upgrades. The Group participated in the 114th China Food & Drinks Fair in March 2026 and capitalised on the momentum to launch new products such as “Tipsy series ”, to further improve its product matrix and provide consumers with diverse consumption choices. The "Tipsy Series” forms two distinct product lines: nonalcoholic free-run grape juice beverages and low-alcohol sparkling wines. Its low alcohol content provides a gentle, pleasant buzz, and its sweetness comes solely from the natural sugars of the grapes, authentically showcasing the characteristics of the grape variety and the unique terroir of the region. During the China Food & Drinks Fair, the Group also held wine-tasting events during the fair, where the new muscat sparkling wine and tea-flavoured wine won industry praise for their unique flavour and exquisite craftsmanship. In addition, the Group has continuously expanded the product spectrum by introducing new categories of products for ready-to-drink consumption channels such as craft beer, and cultivated new business growth. The Group also sold chateau wine imported from France and other foreign branded wines in the PRC market through the Group’s existing distribution network to introduce some classic “old world” and “new world” varietals to cater for a market that prefers the taste of foreign premium wines. The two joint venture companies established by the Group in February 2025 made corresponding progress during the period. Regarding Dynasty Jiangsu, as of 30 June 2026, the construction of core section has been basically completed, accounting for approximately 90% of the overall project progress. Production machinery is at a trial run. Apart from construction of winery and testing of machinery, Dynasty Jiangsu has not yet commenced operation. Regarding Dynasty Renhuai, the company continued trading operations in 2026 after encountering a period of fluctuation in the baijiu market in the PRC at its establishment in 2025, the baijiu market is tending to be stable in 2026. Leveraging on the advantages of origin and brand, Dynasty Renhuai is actively expanding channels, promoting product structure stratification and building a diversified product matrix of sauce-flavour baijiu to increase the scale of the segment. The establishment of these new joint ventures aim to implement Dynasty’s strategic plan, further improving the industrial layout, expanding category tracks, tapping into industry potential, creating new performance growth in the long run, and realising the Group’s transformation into a full category, full industry-chain enterprise. Regarding online sales, the e-commerce team of the Group comprehensively operates online stores itself on the traditional e-commerce platforms, such as JD.com , Tmall and Pinduoduo for product sales, as well as comprehensive innovation on its brand, product categories, and business systems, procedures and models via interest-based e-commerce platforms, including RED, Kuai and TikTok . Based on this, the e-commerce team also actively cultivates e-commerce live broadcasting talents to further expand its sales channels so as to build up a new customer base. The Group has also strengthened the promotion of newly launched “Hi” tea-flavoured sparkling wines and "Tipsy Series ” in RED and TikTok during the period under review. The Group continues investing resources in a timely manner for improvement of the online sales channels and optimisation of online stores interface so as to respond to the change of customer consumption behaviour in the PRC. The Group jointly develops exclusive products with leading e-commerce platforms, and promotes AI livestreaming models in various channels to increase brand exposure and livestreaming sales, adopts big data analysis to accurately understand consumer demand. During the period, the Group achieved a staged growth in online sales. To establish an online brand matrix, the Group optimised online distributors during the period. The Group believes that the online platforms not only serve as a business-to-customer trading platform between the Group and the consumers, but also an additional marketing and promotion channel for the brand, which can enhance the overall business potential of the Group. During the period, the Group had boasted brilliant results in major wine appraisal competitions. Among the numerous awards, “Dynasty Dry Red Wine Seven Year Reserve” has won the Silver Award, at the 2026 International Wine & Spirit Competition (“IWSC”). The competition is considered the international standard for wine and spirits quality. Dynasty 5 degree Muscat Sweet Sparkling Wine and Dynasty Eastern Tea Bubble Sparkling Wine - Maojian Teaare also awarded at the “2025 New Alcoholic Beverage Product Competition ” in respective categories hosted by China Alcoholic Drinks Association. These two wines have also won the Gold Medal at the France International Wine Awards (“FIWA”) China region, Spring 2026 for its excellent quality. These wines stood out from other entries for their elegant aroma, smooth body and round taste, and won the awards at the competitions, showing the charm and strengths of Dynasty wines to the country and the world. Mr. Wan Shoupeng, Chairman of Dynasty, concluded, “Looking ahead to the second half of 2026, the wine consumption market remains challenging, the Group will be cautious and continue to focus on market and consumer demand and promote product quality through technological innovation. At the same time, the Group will continue to innovate marketing strategies to stimulate brand vitality, further expand the market share of Dynasty’s products, strengthen Dynasty’s brand image representative of domestic wines, and set a benchmark for the Chinese wine industry, with the aim of bringing Dynasty’s superior wines to more consumers in the PRC. The Group will continue to proactively develop new marketing prospects through innovation in product categories and consumption scenarios, and adjust its business strategies by seizing the development trend of ready-to-drink and younger consumer markets.” 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 stock code 00828 on 26 January 2005. Founded in 1980, Dynasty is the premier grape winemaker in China. It is principally engaged in the production and sale of grape wine products under its reputable “Dynasty” brand. Dynasty is the first Sino-foreign joint venture wine company in China with Tianjin Food Group Limited and the French grape wine giant, Remy Cointreau, as its current 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 of consumer groups in China.