(Yicai Global) Aug. 13 -- Well-known Chinese milk tea maker Xiangpiaopiao Food turned losses into profits in the first half with its newly-debuted juice tea products.

Its net profit was CNY24 million (USD3.4 million), as against a loss of CNY55 million in the same period last year, its financial report released yesterday shows.

The company's operating income rose 58.3 percent annually to CNY1.4 billion (USD 198 million) in the first half, of which over 40 percent and CNY588 million was generated from its new product Meco juice tea released in the second half of last year, causing the company's revenue from ready-to-drink products to surge over five-fold.

Formed in 2005, Hangzhou-based Xiangpiaopiao was one of the earliest milk tea retail brands in China. Its products are mainly in-cup instant milk tea powder, which competes with fresh tea brands Heytea and Lelecha. The rapid rise of China's food delivery market has however made consumers more inclined to buy freshly made milk tea online, and this trend has precipitated a decline in Xiangpiaopiao's profits in recent years. The firm unveiled its ready-to-drink juice tea in July last year, which made up for its milk tea powder's shortcomings of needing to be brewed.

Sales of Meco juice tea had amounted to nearly CNY800 million as of the end of June, producing a shortfall in supply. The company is increasing production capacity and plans to build two factories producing tea drinks in Tianjin and Chengdu, Xiangpiaopiao said in its financial report.

Milk tea is quite popular among Chinese consumers. China's market for the bland beverage underwent a compound growth rate of over 20 percent from 2014 to last year, valuing it at CNY50 billion last year, according to data by industry information website Qianzhan.

Editors: Dou Shicong, Ben Armour