Huiyuan Achieved Turnaround in 2010

Write: Narella [2011-05-20]

Huiyuan Group, a leading beverage producer in China, reported yesterday that its revenue and gross profit both registered double-digit growth in 2010 and the company turned to be profitable from the previous year s loss.

Huiyuan s report showed that its profit attributable to equity holders stood at 181 million RMB in 2010, compared with a 99-million loss in 2009. In the first half of 2010, Huiyuan s net profit decreased by 208.2% to a loss of 72.247 million RMB, mainly because of its increasing costs on sales and marketing.

The turnaround is due to Huiyuan s reform in its distribution channels since the second half of 2010, its expansion plan in the second- and third-tier cities, and the increase of its sales, a senior executive told reporters.