Major winemaker has less reason for cheers

Yantai Changyu Pioneer Wine Co, the oldest Chinese winemaker still in existence, expects first half income and net profit to decline.

The company released a statement on Tuesday to deny an earlier report that it sold almost half of its vineyards in 2012.

"The size of the company's vineyards has not changed much in recent years," the winemaker said in its statement.

According to Changyu's annual report in 2012, the company's biological assets fell by 20.45 million yuan ($3.34 million) compared with 2011.

The company said it transferred some vineyards to fruit farmers who signed supply contracts with the company.

But vineyard area controlled by the company did not fall, Changyu said.