200 mil RMB is roughly the same with Dukang's last fiscal year net profit (last FY net profit is 218 mil RMB). Interestingly, this FY half year profit is already 208 mil RMB (based on Dukang's 2013 Q2 financial result published on SGX). Based on the same published result, as of 2013 Q2, cash at banks and in hand stands at 731 mil RMB.
Starting from 2010, Dukang earns more in the second half than the first half. Let's assume that they earn the same amount. That means if Dukang proceeds to distribute dividend, the dividend payout ratio will be 50%
Dukang makes a splash with inaugural Baijiu Cultural World Tour – Singapore as its first stop
Official designation of the Group’s brand as one of the appointed baijiu to serve foreign dignitaries reinforces Group’s status as an iconic baijiu brand endorsed by the PRC government
Signing of distributorship agreement with leading baijiu distributor in Singapore allows Group to ride on higher demand and interest of baijiu in Asia
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Baijiu, whether the mid or premium range, is usually consumed during state or official events. With the curtailing of spending by government officials, most bajiu manufacturers are seeing sharp decline in sales. This is coupled with bad publicity over the use of certain additives in some products. Hence, why the break out in high volume when the bajiu industry in china (dukang home market) is declining? maybe dukang is closing the gap in valuation between them and their peers?
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