Dynasty Fine Wines Group has issued another profit warning, saying its earnings for the first half of the year are set to fall sharply as weak demand in China’s wine market hits sales.
In a stock-exchange filing yesterday (19 August), Dynasty said it expects to record an unaudited consolidated profit of HK$0.4m (US$50,999) to HK$1.2m for the six months to 30 June, down 85-95% from HK$8.2m a year earlier.
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The Hong Kong-listed company said the earnings decline was “primarily” due to a reduction in gross profit following a “significant decrease in sales revenue due to weak demand of wine consumption market in the PRC”.
Dynasty added that higher other income, including the write-off of long-aged payables, and lower administrative expenses had “partially offset the impact of revenue decline on profit” in the period.
The warning marks another setback for the Chinese wine producer, which in March flagged a sharp drop in profit for its 2025 financial year.
Dynasty later reported full-year revenue fell 37% to HK$170m, while operating profit fell nearly 62% to HK$12.5m. Profit for the year declined about 67% to HK$11.1m.
In its 2025 annual results, the group said the weaker performance reflected a fall in sales revenue, “especially a significant decline in sales of medium to high-end products”, amid macroeconomic pressure and soft consumer demand for wine in China.
White wine accounted for HK$92.6m of 2025 revenue, ahead of red wine at HK$66.3m.
In the latest filing, Dynasty said it had been “closely monitoring the market conditions” and adjusted its business strategy by promoting lower-alcohol products including sparkling wines.
The company added it had “also strengthened cost control and adopted appropriate measures in a timely manner”.
Dynasty, which was established in 1980 and listed in Hong Kong in 2005, makes and sells more than 100 wine products, spanning red wine, white wine and sparkling wine, along with ice wine and brandy.
Rémy Cointreau is its second-largest shareholder, with a 23.9% stake, according to the company’s previous disclosures.
Dynasty said its interim results for the first half are expected to be published by the end of August.
