Asia300

China Resources Beer (Holdings) Co. Ltd.

Hong Kong

  • 1m
  • 3m
  • 6m
  • 1y
  • 2y
  • 5y
Mar 23, 2017
Prev close: 18.04
Mar 23, 2017
Market cap:
Market cap(USD):
58,524.95M
7,535.06M
Shares: 3,244.17M

Currency in HKD

Company profile

Market(Ticker): HKG(291)
Sector:
Industry:
Consumer Non-Durables
Beverages: Alcoholic
Full time employees: --

Business summary

China Resources Beer (Holdings) Co. Ltd. engages in the retailing of beer, food, and beverage businesses. It operates through the following geographical segments: Hong Kong, Chinese Mainland, and Other Countries. The company was founded in 1992 and is headquartered in Hong Kong.

Company background

China Resources Beer is a state-owned major beverage maker and a core subsidiary of China Resources (Holdings), a conglomerate that operates electricity, food and other businesses. China Resources beer's business is well known for its "Snow" beverage, accounting for about 20% of the Chinese beer market.

Founded in 1992, the company also runs a distribution business, with about 4,800 shops, including those in the China Resources Vanguard chain. It also operates a food business under its Pacific Coffee unit and has established a mineral water brand "C'estbon" in its beverage business. The company also offers soft drink brands through a joint venture it established in 2011 with Japanese beverage giant Kirin Holdings.

In May 2015, China Resources Beer announced it will sell all its non-beer businesses to its parent company, aiming to spin off its distribution business, which has been in the red, and focus on its competitive beer business.

In 2014, the company had the largest share of China's beer market for the ninth straight year. Previously, another leading Chinese beer maker Tsingtao Brewery held the country's top market share. It is said there were 800 beer companies in China, and China Resources Enterprise acquired them one after another to reach the top. SABMiller Asia Pacific, a unit under British beer maker SABMiller, has a 49% stake in brewing company China Resources Snow Breweries, a unit under China Resources Beer and also a joint venture, providing technical cooperation for beer production.

Despite its commanding lead in the domestic beer market, China Resources Beer is little known abroad. Although China is the world's largest beer consumer, in 2014 the domestic market contracted from a year earlier, due to the country's economic slowdown and other negative factors. This shows there are signs of uncertainty about the company's outlook.

In the news

Financial highlights

Dec 2016

  • Local currency
  • US Dollar
Revenue 33,526.60M
Gross profit 11,274.07M
Operating income 2,269.06M
Income before tax 2,031.87M
Net income 734.93M
EBITDA 4,279.91M
Diluted EPS 0.25
Dividends per share 0.09
Total assets 47,559.79M
Total liabilities 27,849.75M
Total equity 19,636.40M
Operating cash flow --

Currency in HKD

Revenue 4,319.07M
Gross profit 1,452.38M
Operating income 292.31M
Income before tax 261.75M
Net income 94.67M
EBITDA 551.36M
Diluted EPS 0.03
Dividends per share 0.01
Total assets 6,134.25M
Total liabilities 3,592.05M
Total equity 2,532.70M
Operating cash flow --

Currency in USD

Valuation measures

Dec 2016

PER 59.89
ROA 1.49%
ROE 4.64%
Operating margin 6.76%
Profit margin 2.19%

Key executive

  • Chief Executive Officer & Executive Director: Hou Xiaohai
  • CFO, Secretary & Executive Director: Po Sing Lai
  • Chief Human Resources Officer & Senior VP: Xian Liang Wang

Share holders

  • China State-Owned Assets Supervision & Admn Commission(51.9%)
  • Matthews International Capital Management LLC(2.5%)
  • Fidelity Management & Research Co.(2.4%)
  • The Vanguard Group, Inc.(1.6%)
  • Genesis Investment Management LLP(1.1%)
  • First State Investment Management (UK) Ltd.(1.1%)
  • Norges Bank Investment Management(1.1%)
  • BlackRock Fund Advisors(0.9%)
  • Massachusetts Financial Services Co.(0.8%)
  • Baring Asset Management (Asia) Ltd.(0.7%)

Address

  • Website: http://www.crbeer.com.hk
  • Address: 39/F, China Resources Building, 26 Harbour Road, Hong Kong, Hong Kong
  • Phone: +852.2827.1028

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