Category Archives: China Beer

Tsingtao Brewery Co grows share in FY as sales, profits rise in 2012

Source: Just-Drinks Olly Wehring

  • Full-year net profits up by 2.6% to CNY1.84bn (US$193.3m)
  • Net sales in 2012 climb by 11.3% to CNY25.78bn
  • Operating profits come in flat, down by 0.2% to CNY2.14bn
  • Volumes out-pace overall beer market, rising by 10.5%

Tsingtao Brewery Co has posted rising sales and profits for 2012, as volumes increased markedly in the year.

The Chinese brewer, which is almost 20%-owned by Japan’s Asahi, said earlier this week that net profits in 2012 came in 2.6% up on 2011 at CNY1.84bn (US$193.3m). Net sales in the year jumped by 11.3% to CNY25.78bn, although operating profits slipped by 0.2% to CNY2.14bn. Continue reading

Tsingtao brewing up the right recipe for success

Source: By Wang Zhuoqiong and Xie Chuanjiao (China Daily)

While waiting to fly back to China, Sun Mingbo, chairman of the world’s sixth-largest brewery by production volume, took a moment to examine the top sellers at an airport bookstore in the United States. Continue reading

Kingway Brewery Holdings posts FY loss as sales slump

Source: Just-Drinks by Andy Morton

Kingway Brewery Holdings has posted a marked fall in sales, pushing the Guangdong brewer into the red ahead of its acquisition by SABMiller’s China JV. Continue reading

China Resources Enterprise Announces Annual Results for 2012

Source: China Resources

Final Results for the Year Ended 31 December 2012 Chairman’s Statement- Retail, Beer and Beverges Highlights

In 2012, the global economy faced many headwinds with the ongoing European debt crisis, the imminent U.S. fiscal cliff and the looming currency war, which affected economic growth in China. Despite the market volatility, the Group continued to evaluate the market situation and to identify opportunities with its commitment to developing its core businesses – retail, beer, food and beverage. Through organic growth and acquisitions, the Group maintained steady expansion and further strengthened its leading position in the market. Our track record of sustainable business growth has not only propelled us further towards our goal of becoming the largest consumer goods company in China, but also laid a solid foundation with which we will weather any uncertainties and grasp opportunities when the economy rebounds. ” Continue reading

China Resources migrating to higher margins

Source: The Asset by Oliver Jones on March 11, 2013 | Photo: China Daily

One important transaction was the October 2009 asset swap agreement that CRE entered into with its parent company China Resources (Holdings) (华润(集团) or CRH). Continue reading

Carlsberg Offers to Raise Stake in Chongqing Brewery

Source: Bloomberg News By Clementine Fletcher

Carlsberg A/S (CARLA), the world’s fourth- biggest brewer, will offer to buy as much as 2.9 billion yuan ($466 million) of shares in Chongqing Brewery Co. (600132) as it seeks to tighten its grip on the Chinese beermaker.

Carlsberg, which already owns a 29.7 percent stake in the Chongqing municipality-based brewer, will offer 20 yuan a share for a further 30 percent stake in the maker of Shancheng beer, it said yesterday in a statement. The deal will add to earnings per share in the first year after completion.

“Strategically, we believe the deal makes a lot of sense,” Trevor Stirling, an an analyst at Sanford C. Bernstein in London, wrote in a note to clients dated yesterday. “Asia is key to Carlsberg’s long-term growth story; in particular, China is key to Carlsberg’s footprint in Asia, especially western China, including Chongqing.”

Carlsberg, which gets about 14 percent of its sales from Asia, according to data compiled by Bloomberg, is seeking to expand its operations outside the slow-growth markets of northern and western Europe. The brewer said on Feb. 1 that it’s starting a new joint venture in Myanmar, after announcing a tie- up with Thailand’s Singha Corp. on Sept. 28. Carlsberg is the biggest brewer in Russia.

The Chongqing price is 15.7 times estimated earnings before interest, tax, amortization and depreciation, based on expected profits the first year after completion, Carlsberg said. The deal will be financed through existing facilities and may take as much as 12 months to complete.

Stockholder Sells

Chongqing Beer Group Co., which owns 20 percent of Chongqing Brewery, has committed to tender all its shares at the proposed price. If the bid is oversubscribed, Carlsberg will buy any remaining shares held by Chongqing Beer Group.

“We believe that through closer cooperation with Carlsberg, the performance of this large-scale beer business will be significantly enhanced,” Joergen Buhl Rasmussen, Copenhagen-based Carlsberg’s chief executive officer, said in the statement. “Our Asian business is very important for our long-term growth strategy.”

Carlsberg’s shares rose 1.1 percent to close at 594.50 kroner in Copenhagen yesterday, giving it a market value of 91.7 billion kroner ($16 billion). Chongqing’s shares, halted since Feb. 25 pending this announcement, will resume trading today, according to a statement issued via the Shanghai stock exchange yesterday.

Chongqing is strong in western China, including Chongqing municipality, and on the east coast, Ian Shackleton, an analyst at Nomura in London, wrote in a note dated yesterday.

“Although Carlsberg will need further deals to become truly national like market leader China Snow, majority control of Chongqing is a useful building block towards this goal,” Shackleton said.

Local breweries begin exporting to Hong Kong

Source: U-T San Diego By Edward Sifuentes

VISTA — Craft beers produced in North County are on their way to Hong Kong under a pilot program sponsored by the U.S. Department of Commerce. Continue reading