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Dynasty Fine Wines to sell $59m worth of winery assets

Published 29 June 2017

Dynasty Fine Wines, a joint venture between the French spirits firm Rémy Cointreau and Tianjin Government, is set to sell assets worth CNY400m ($58.8m).

The company will dispose the assets via a public auction, which comes at a time when Dynasty Fine Wines was suspended from trading on the Hong Kong Exchanges after it was found with fake invoices and selling expired wines.

The company has been experiencing consecutive losses for about five years.

Last year, the company sold its Bordeaux wine stocks to improve its liquidity position, so that it can clear its debts and pay salaries to its employees.

Presently, Dynasty Fine Wines is planning to sell its 169,000 m2 of land, which includes winery, a red wine blending centre along with other technical facilities for sale.

The red wine blending centre is not being used for the winery’s production.

The company stated that auction will last from this June till late July, which will be followed by a strategy review. This is expected to help the company to focus on its core wine production and distribution businesses.

About the reason for the sale, Dynasty Fine Wines said: “Due to the rapid changing environment such as e-commerce and change of customer consumption behavior, the operation of the chateau cannot cope with these changes. The demand for consumption of middle to high end wine products sourced from corporate customers is shifting to middle to low end wine products driven by mass markets on which the Company strategically focuses.

“The chateau no longer helps enhancing development of e-commercial or mass market business, and other related facilities are currently not in use as part of the Group’s production. As a result, the Company has decided to dispose of the Assets in order to focus its resources on its core wine production and distribution businesses.”

Image: Dynasty Fine Wines to sell its assets in China. Photo: Courtesy of John De Boer/FreeImages.com.