Chinese wine group, Yunnan Red Wine Co Ltd, is thought to be planning to launch an initial public offering worth between HK$300m and HK$500m ($38-64m) on the Hong Kong stock exchange.

According to reports, the company, based in Kunming, the capital of the southwestern province of Yunnan, has confirmed that it is planning the listing but declined to comment further. The company is believed to be looking to raise capital for the expansion of its production facilities and sales operation.

Yunnan Red Wine posted profits of more than Y40m ($4.83m) in 2001 and has been in profit since 1997.