Golden Seed Winery to withdraw from property business

Jul. 12, 2010 (China Knowledge) - Anhui Golden Seed Winery Co Ltd<600199> last Friday announced that it will sell all the 98.16% stake in a property subsidiary to parent Anhui Golden Seed Group for a total of RMB 80.56 million in order to focus on its core business.

The Shanghai-listed firm, which is principally engaged in the production and distribution of liquors, intends to withdraw from Chinese real estate market due to fierce competition.

Established in 1999, the target property firm reaped RMB 8.3 million in operating revenue but suffered a net loss of RMB 823,500 in 2009. As of Jun. 30, the firm had no real estate project on hand.

In the first half of this year, Anhui Golden Seed Winery forecasted that its net profit will hit between RMB 78 million and RMB 88 million, reflecting a year-on-year increase of 152% to 184%. The company attributed the estimated growth to swelled revenue in liquor sales.