- Language Tips
The income of Yantai Changyu Pioneer Wine Co Ltd, which has a 120-year history, declined in the first half of 2012 for the first time in the last five years.
The company released its first-half financial report on Aug 8 showing that its total business income decreased 2.51 percent to 3.01 billion yuan ($472.6 million) in the first half of 2012 compared with the same period in 2011.
For the last five years, Changyu's half-year income growth was over 20 percent, except in the first half of 2009, when it was 8.14 percent, according to the company's financial reports.
Changyu's net profit in the first half rose 5.04 percent, compared with the first half of 2011, while it was a double-digit figure in the last five years.
"Due to the decline of the economic development growth in China, the adverse effect on consumption demand and also the continuous flooding of imported wine, the competition is increasingly fierce in the domestic wine market," the company said in its report.
The company's sales declined 5.4 percent in the first half.
Other Chinese wine manufacturers also saw sales decline recently due to increasing wine imports and stiffer competition.
The sales of China Great Wall Wine Co Ltd declined 2.1 percent in 2011 compared with 2010, and Sino-French join-venture Dynasty Winery Co also saw a 10.5 percent decline in income in 2011 from the previous year.