Chinese liquor giant reports slower profit growth

Chinese liquor giant Wuliangye Yibin Co., Ltd. reported net profits of 5.79 billion yuan (946 million U.S. dollars) in the first half of 2013, up 14.76 percent year on year. However, the growth rate was much slower than the company's profit increase of 61.35 percent in 2012, according to the company's semi-annual report filed with the Shenzhen Stock Exchange on Thursday. Wuliangye said China's liquor industry is in an adjustment period with difficulties and challenges. An ongoing frugality and anti-corruption campaign has had an effect on the country's high-end wine market, with slower growth in sales and rising inventory. According to the company's report, Wuliangye's business revenue hardly increased in the second quarter, up only 0.4 percent year on year, after it rose 5.41 percent in the first three months of 2013 compared with the same period in 2012. Total revenue for the first six months stood at 15.52 billion yuan, up 3.12 percent from a year earlier, with basic earnings per share standing at 1.53 yuan.