(Yicai Global) Aug. 17 -- Shares in Shede Spirits plunged by the exchange-imposed limit today as investors cashed in after the Chinese liquor maker posted its best performance since it was formed in 1996 with an almost four-and-a-half-fold leap in net profit and doubling of revenue in the first half from the same period last year.

Shede’s share price [SHE:600702] plummeted 10 percent to end at CNY204 (USD31.50). The stock has more than doubled since Chinese pharma-to-jewelry conglomerate Fosun International bought a 70 percent stake last December, transforming the fortunes of the struggling distiller.

Net profit soared to CNY735 million (USD113.5 million) in the six months ended June 30 on revenue of CNY2.4 billion (USD370.6 million), according to Shede's latest earnings report released yesterday. This was in line with expectations. The Suining, southwestern Sichuan province-based company had previously forecast profit in the first half to fall in the range of CNY710 million and CNY750 million.

By bringing in much needed cash, Shanghai-based Fosun was able to boost the confidence of distributors and accelerate expansion, industry expert Cai Xuefei told Yicai Global.

Shede’s assets were put up for auction last year by the Suining government after its majority shareholder Hong Kong-based SkyOcean Group Holdings was found to have stripped the distiller of cash assets totaling CNY4 billion (USD617 million), of which CNY475 million (USD73 million) has not been recovered, Shede said last September.

Market competition, though, is fierce. Whether Shede’s performance can last remains to be seen, Cai said.

Editors: Dou Shicong, Kim Taylor