Dukang Distillers Holdings, the producer and seller of baijiu formerly known as Trump Dragon Distillers Holdings, says profit attributable to owners of the company dropped 76.2% to RMB25.0 million ($4.9 million) for the financial year ended June 30, 2010 (FY2010).

Groups revenue increased 10.9% from RMB702.9 million in the previous financial year (FY2009) to RMB779.6 million in FY2010, due mainly to revenue contribution of RMB117.4 million from newly-acquired Luoyang Dukang Distillers Group from May to June 2010.

Had the non-cash effects of the accounting of convertible bonds been excluded, the group would have recorded a 38.0% or RMB119.8 million increase in profit attributable to owners of the Company (net earnings) to RMB144.8 million in FY2010.

Luoyang Dukang Distillers Group, which produces and sells baijiu products under the “Dukang” brand name, was acquired by the group in the fourth quarter of FY2010. The Group subsequently changed its name from Trump Dragon Distillers Holdings to Dukang Distillers Holdings.

From May to June 2010, “Dukang” products registered an overall sales volume of 2,562 tonnes and overall average selling price (“ASP”) of RMB45.8 per kilogram.

Revenue of the group’s “Siwu” baijiu products decreased 5.8% from RMB702.9 million in FY2009 to RMB662.2 million in FY2010. The decline resulted from a drop in the overall ASP from RMB35.3 per kilogram in FY2009 to RMB31.4 per kilogram in FY2010, but was partially offset by an increase in overall sales volume from 19,915 tonnes in FY2009 to 21,084 tonnes in FY2010.

In line with the increase in total revenue, the group’s gross profit increased 10.8% to RMB250.9 million in FY2010, and recorded an overall gross profit margin of 32.2%. The gross profit margin for “Dukang” products was 38.6%, compared to 31.0% for “Siwu”.