ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Consumer Non-Durables

China Resources Beer (Holdings) Co. Ltd.

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.

Business Summary

China Resources Beer (Holdings) Co. Ltd. operates as an investment holding company. It principally engages in the manufacture, sales and distribution of beer products. The company was founded in 1992 and is headquartered in Hong Kong.

Financial Highlights

Dec 2020 HKDUSD
Revenue35,337.90M4,556.20M
Gross Profit13,496.68M1,740.16M
Operating income2,414.81M311.34M
Income before tax3,381.19M435.94M
Net income2,353.01M303.38M
EBITDA4,376.78M564.31M
Diluted EPS0.720.09
Dividends Per Share0.300.03
Total Assets51,901.40M6,693.62M
Total liabilities24,713.48M3,187.25M
Total equity25,155.72M3,244.28M
Operating cash flow5,124.04M660.65M
Currency in HKDCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 33,526.60M 34,283.57M 37,744.99M 37,634.68M 35,337.90M
Gross Profit 11,274.07M 11,537.78M 13,236.27M 13,807.70M 13,496.68M
Operating income 1,631.11M 1,678.89M 1,833.53M 2,216.80M 2,414.81M
Income before tax 2,031.87M 2,094.00M 1,814.58M 2,496.88M 3,381.19M
Net income 734.93M 1,354.87M 1,157.21M 1,487.69M 2,353.01M
EBITDA 3,641.96M 3,646.06M 3,792.62M 4,171.67M 4,376.78M
Diluted EPS 0.25 0.41 0.35 0.45 0.72
Dividends Per Share 0.09 0.17 0.13 0.18 0.30
Total Assets 47,559.79M 48,799.30M 44,782.96M 46,523.50M 51,901.40M
Total liabilities 26,866.87M 24,824.00M 21,604.06M 23,301.46M 24,713.48M
Total equity 19,636.40M 22,113.40M 21,493.45M 22,002.77M 25,155.72M
Operating cash flow 5,006.67M 4,881.01M 4,715.31M 4,694.41M 5,124.04M
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 4,319.07M 4,399.38M 4,815.92M 4,803.28M 4,556.20M
Gross Profit 1,452.38M 1,480.56M 1,688.82M 1,762.26M 1,740.16M
Operating income 210.12M 215.44M 233.94M 282.92M 311.34M
Income before tax 261.75M 268.70M 231.52M 318.67M 435.94M
Net income 94.67M 173.86M 147.64M 189.87M 303.38M
EBITDA 469.17M 467.87M 483.90M 532.42M 564.31M
Diluted EPS 0.03 0.05 0.04 0.05 0.09
Dividends Per Share 0.01 0.02 0.01 0.02 0.03
Total Assets 6,134.25M 6,242.47M 5,719.88M 5,970.82M 6,693.62M
Total liabilities 3,465.28M 3,175.52M 2,759.36M 2,990.51M 3,187.25M
Total equity 2,532.70M 2,828.77M 2,745.24M 2,823.83M 3,244.28M
Operating cash flow 644.98M 626.34M 601.63M 599.14M 660.65M

Valuation Measures

Dec 2020
PER98.44
ROA4.78%
ROE9.97%
Operating margin6.83%
Profit margin6.65%

Key executives

  • Chief Executive Officer & Executive Director: Xiao Hai Hou
  • Chief Financial Officer & Executive Director: Qiang Wei
  • Chief Human Resources Officer & Senior VP: Xian Liang Wang
  • Deputy GM-Corporate Strategy & Development: Carol Chen
  • Secretary: Wai Keung Leung

Shareholders

  • China State-Owned Assets Supervision & Admn Commission (51.9%)
  • HHLR Advisors Ltd. (4.1%)
  • The Vanguard Group, Inc. (1.4%)
  • Morgan Stanley Asia Ltd. (Investment Management) (1.2%)
  • Orient Securities Asset Management Co. Ltd. (1.2%)
  • Fidelity Management & Research Co. LLC (1.1%)
  • BlackRock Fund Advisors (1.1%)
  • E Fund Management Co., Ltd. (1.0%)
  • Penghua Fund Management Co., Ltd. (0.8%)
  • Fullgoal Fund Management Co., Ltd. (0.6%)

Contact Details

  • Website:http://www.crbeer.com.hk
  • Address: 23/F, China Resources Building, 26 Harbour Road, Hong Kong, Hong Kong
  • Phone: +852.2827.1028

Related Companies

  • Snow Beer (Guangzhou) Co., Ltd.
  • Snow Beer (Shanghai) Co., Ltd.
  • Snow Trading (Shanghai) Co., Ltd.
  • Snow Beer (Jiashan) Co., Ltd.
  • Snow Beer (Xichang) Sales Co., Ltd.
  • China Resources Snow Brewery (Guizhou) Co., Ltd.
  • China Resources Snow Brewery (Tianjin) Co., Ltd.
  • China Resources Snow Brewery (Yinyan) Co., Ltd.
  • Tianjin Binhai New Area Snow Breweries Co., Ltd.
  • China Resources Snow Beer (Qiannan) Co., Ltd.
  • China Resources Snow Beer (Hebei) Co., Ltd.
  • China Resources Snow Brewery (Gansu) Co., Ltd.
  • China Resources Snow Breweries (Wenzhou) Co., Ltd.
  • China Resources Snow Breweries (Heilongjiang) Co., Ltd.
  • China Resources Snow Brewery (Dalian) Co., Ltd.
  • China Resources Snow Beer (Guangdong) Co., Ltd.
  • China Resources Snow Beer (Beijing) Co., Ltd.
  • China Resources Snow Beer (Liaoning) Co., Ltd.
  • China Resources Snow Beer (Deyang) Co., Ltd.
  • China Resources Snow Brewery (Ningbo) Co., Ltd.
  • Wan Hsin Co. Ltd.
  • China Resources Snow Brewery (Hulunbeier) Co., Ltd.
  • China Resources Snow Breweries (Hangzhou) Co., Ltd.
  • China Resources Snow Breweries (Zunyi) Co., Ltd.
  • China Resources Snow Brewery (Yilan) Co., Ltd.
  • China Resources Snow Breweries (Sichuan) Co., Ltd.
  • China Resources Snow Breweries (Nanjing) Co., Ltd.
  • China Resources Snow Breweries (Henan) Co., Ltd.
  • China Resources Snow Breweries (Fuyang) Co., Ltd.
  • Heineken NV /China Brewing Business/

Competitors

  • Lanzhou Huanghe Enterprise Co., Ltd Class A
  • Anheuser-Busch InBev SA/NV
  • Asahi Group Holdings,Ltd.
  • San Miguel Food & Beverage, Inc.
  • San Miguel Corp.
  • Top Frontier Investment Holdings, Inc.
Last Updated on 26 Nov, 2021

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more