The non-cash effects of the accounting of convertible bonds included RMB149.7 million fair value loss on convertible bonds on initial recognition, and the RMB29.9 million gain on change in fair value of derivative component of the outstanding convertible bonds. – Dukang Distillers Holdings Limited ("Dukang Distillers" or the "Group") (杜康控股有限公司) (previously known as Trump Dragon Distillers Holdings Limited), a producer and seller of baijiu (白酒) products based in Henan Province, the People’s Republic of China (the "PRC"), posted its results for the financial year ended June 30, 2010 ("FY2010").

Mr Gao Feng (

"Although our net profit was affected by the non-cash effects arising from the accounting of convertible bonds, we would like to stress that this is not a reflection of our business fundamentals as our net earnings* remain healthy.

Our cash flows and working capital position are also sound, with cash and cash equivalents of RMB667.6 million as at June 30, 2010. We are confident of ‘Dukang’ brand name’s growth potential, and its contribution to the Group’s profitability in the years to come."

Luoyang Dukang Distillers Group ("Luoyang Dukang"), which produces and sells

From May to June 2010, "Dukang" products registered an overall sales volume of 2,562 tonnes and overall average selling price ("ASP") of RMB45.8 per kilogram.

Revenue of the Group’s "Siwu" ("

In line with the increase in total revenue, the Group’s gross profit increased 10.8% to RMB250.9 million in FY2010, and recorded an overall gross profit margin of 32.2%. The gross profit margin for "Dukang" products was 38.6%, compared to 31.0% for "Siwu". baijiu products under the "Dukang" ("杜康") brand name, was acquired by the Group in the fourth quarter of FY2010. The Group subsequently changed its name from Trump Dragon Distillers Holdings Limited to Dukang Distillers Holdings Limited, to reflect its emphasis and focus on "Dukang" baijiu products going forward. 四五") baijiu products decreased 5.8% from RMB702.9 million in FY2009 to RMB662.2 million in FY2010. The decline resulted from a drop in the overall ASP from RMB35.3 per kilogram in FY2009 to RMB31.4 per kilogram in FY2010, but was partially offset by an increase in overall sales volume from 19,915 tonnes in FY2009 to 21,084 tonnes in FY2010. Page 4 of 5 　

Outlook

Following the completion of the acquisition of Luoyang Dukang, the Group has increased its production capacity significantly with the addition of 2,932 fermentation pools and 34 distillation lines to Siwu’s existing 1,548 fermentation pools and 14 distillation lines.

In addition, with the rich heritage of the "Dukang" brand name and Luoyang Dukang’s nation-wide sales and marketing channels, the Group is set to benefit from the heightened brand visibility and strengthened market presence.

Mr Gao commented, "We look forward to greater revenue contributions, as well as a lift in the Group’s overall ASP and gross profit margin from sales of ‘Dukang’ products in the financial years ahead."

About Dukang Distillers Holdings Limited

Listed on the SGX Mainboard in September 2008, Dukang Distillers Holdings Limited (previously Trump Dragon Distillers Holdings Limited) is a producer and seller of

The Group’s products are sold through distributors mainly to hospitality establishments, supermarkets and specialty stores selling tobacco and alcohol products in the PRC. baijiu products based in Henan Province, the PRC. The Group has a wide range of baijiu products currently sold and marketed under "Dukang" ("杜康") and "Siwu" ("四五") brand names, which have strong and established brand identities in the PRC and Henan Province respectively. 高峰), Executive Chairman of Dukang Distillers, said, "The Group’s FY2010 top line has been boosted by revenue from Luoyang Dukang, despite recording only two months’ sales from ‘Dukang’ products.