Chinese liquor giant expects profit surge in Q3

Wuliangye Yibin Co., Ltd., one of China's top liquor makers, on Sunday forecast a nearly 90 percent surge in net profits in the third quarter of the year over strong sales and price rises. Net profits are expected to reach 2.74 billion yuan (432.2 million U.S. dollars) to 2.76 billion yuan, up 88.3 percent-89.6 percent year on year, the company said in a statement to the Shenzhen Stock Exchange, where it's listed. That will be a much higher growth than a year-on-year net profit rise of 50.15 percent in the first half. It forecast 7.79 billion yuan to 7.81 billion yuan of net profits for the first three quarters, soaring more than 60 percent from a year earlier. The company attributed the profit gain to a marked increase in sales revenues and price hikes implemented late last year. The liquor brand, one of the best known in China, raised the ex-factory prices of its spirits by between 20 percent and 30 percent in September 2011.