Dukang Distillers Issues TDRs on TWSE

Taipei, March 9, 2011 (CENS)--Dukang Distillers Holdings Limited, the manufacturer of baijiu in China, today began issuing 130 million units of TDRs (Taiwan depository receipts) on the Taiwan Stock Exchange (TWSE) at NT$18.65 per unit.

Dukang is the first alcoholic beverage company listed on the TWSE, becoming the 25th TDR issuer after Taiwan loosened the policy of listing by foreign-registered companies. Dukang hopes to enhance its visibility in Asia through strengthening ties with Taiwan's consumer industry and capital market by issuing the TDRs.

Baijiu has been a mainstay in the Chinese lifestyle and is considered as the most important secondary industry in the consumer segment. The history of baijiu can be traced back to more than 2,000 years ago. Being the forefather of baijiu, Dukang from the Xia Dynasty has always been the metaphor for baijiu. This can be seen as Dukang was mentioned in various poems and by different historical figures.

Dukang produces and markets their baijiu products under the “Dukang” and “Siwu” brand names. “Siwu” products are targeted at the mid-to-mass market, while “Dukang” products will be positioned to target the premium market. Based on the growth potential of mainland China's baijiu industry in the coming years, Dukang will make use of its dual-brand strategy to expand the China market.

With China's 12th five-year national development plan seeking to increase domestic consumption, it is anticipated that the consumer market will grow dramatically in the next decade. Accordingly, the vast China baijiu market is set to experience another round of rapid growth. Dukang envisions itself to become Henan province's top baijiu brand before reaching out to such core markets as Guangdong, Hebei, Hubei and Hunan, and subsequently to qualify as one of the top-10 baijiu enterprises in China.