China Resources Beer (Holdings) Co. Ltd.

In the news

China's 'state liquor' Moutai defies downturn with spirited growth Apr 29, 2020
China's beer king to quit making brew for the masses Mar 24, 2020
Snow beer brewer says inventory hangover weighs on sales Mar 20, 2020
Asian equities rebound as dollar index retreats Mar 20, 2020
Asian stocks fall as China keeps benchmark lending rate unchanged Jan 20, 2020

See more articles on 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 2019	HKD	USD
Revenue	37,634.68M	4,803.28M
Gross Profit	13,807.70M	1,762.26M
Operating income	2,216.80M	282.92M
Income before tax	2,496.88M	318.67M
Net income	1,487.69M	189.87M
EBITDA	4,171.67M	532.42M
Diluted EPS	0.45	0.05
Dividends Per Share	0.18	0.02
Total Assets	46,523.50M	5,970.82M
Total liabilities	23,301.46M	2,990.51M
Total equity	22,002.77M	2,823.83M
Operating cash flow	4,694.41M	599.14M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019
Revenue	34,486.88M	33,526.60M	34,283.57M	37,744.99M	37,634.68M
Gross Profit	4,269.07M	11,274.07M	11,537.78M	13,236.27M	13,807.70M
Operating income	1,625.72M	1,631.11M	1,678.89M	1,833.53M	2,216.80M
Income before tax	2,125.28M	2,031.87M	2,094.00M	1,814.58M	2,496.88M
Net income	822.73M	734.93M	1,354.87M	1,157.21M	1,487.69M
EBITDA	3,758.41M	3,641.96M	3,646.06M	3,792.62M	4,171.67M
Diluted EPS	-1.76	0.25	0.41	0.35	0.45
Dividends Per Share	0	0.09	0.17	0.13	0.18
Total Assets	51,043.86M	47,559.79M	48,799.30M	44,782.96M	46,523.50M
Total liabilities	27,283.54M	26,866.87M	24,824.00M	21,604.06M	23,301.46M
Total equity	12,001.89M	19,636.40M	22,113.40M	21,493.45M	22,002.77M
Operating cash flow	5,754.18M	5,006.67M	4,881.01M	4,715.31M	4,694.41M

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019
Revenue	4,448.44M	4,319.07M	4,399.38M	4,815.92M	4,803.28M
Gross Profit	550.66M	1,452.38M	1,480.56M	1,688.82M	1,762.26M
Operating income	209.70M	210.12M	215.44M	233.94M	282.92M
Income before tax	274.13M	261.75M	268.70M	231.52M	318.67M
Net income	106.12M	94.67M	173.86M	147.64M	189.87M
EBITDA	484.79M	469.17M	467.87M	483.90M	532.42M
Diluted EPS	-0.22	0.03	0.05	0.04	0.05
Dividends Per Share	0	0.01	0.02	0.01	0.02
Total Assets	6,586.17M	6,134.25M	6,242.47M	5,719.88M	5,970.82M
Total liabilities	3,520.38M	3,465.28M	3,175.52M	2,759.36M	2,990.51M
Total equity	1,548.60M	2,532.70M	2,828.77M	2,745.24M	2,823.83M
Operating cash flow	742.22M	644.98M	626.34M	601.63M	599.14M

Valuation Measures

Dec 2019
PER	93.98
ROA	3.25%
ROE	6.84%
Operating margin	5.89%
Profit margin	3.95%

Key executives

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

Shareholders

China State-Owned Assets Supervision & Admn Commission (51.9%)
Hillhouse Capital Advisors Ltd. (4.1%)
The Vanguard Group, Inc. (1.7%)
Matthews International Capital Management LLC (1.7%)
Fidelity Management & Research Co. LLC (1.6%)
Canada Pension Plan Investment Board (1.4%)
Morgan Stanley Asia Ltd. (Investment Management) (1.2%)
BlackRock Fund Advisors (0.9%)
Massachusetts Financial Services Co. (0.8%)
Norges Bank Investment Management (0.8%)

Contact Details

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

Related Companies

Wan Hsin Co. Ltd.
Heineken NV /China Brewing Business/
Delaware Industrial Ltd.
China Resources Development & Investment Co. Ltd.
Ng Fung Frozen Meats & Aquatic Products Co. Ltd.
China Resources Textiles Co. Ltd.
China Resources Property Ltd.
CRE Beverage Trading Ltd.
China Resources Enterprise Ltd. /Non-Beer Business/
China Resources Kirin Beverages (Greater China) Co. Ltd.
Gain Land Ltd.
China Resources Vanguard (Hong Kong) Co. Ltd.
China Resources Retail (Group) Co., Ltd.
Shenzhen CR Care Investment Co. Ltd.
China Resources Logistics (Pak Sik Enterprises) Ltd.
China Resources Logistics (Group) Ltd.
Festive Wise Ltd.
Jiangsu Huilin Commerce Co. Ltd.
China Resources Vanguard Guangzhou Superstore Co. Ltd.
C'estbon Food & Beverage (Shenzhen) Co. Ltd.
Tactical Solutions, Inc.
Preparis Ltd.
China Resources Petrochems Holdings Ltd.
Best Growth International Ltd.
Zhejiang Cikelong Supermarket Ltd.
China Resources Snow Breweries Ltd.
China Resources Vanguard Co., Ltd.
Surefaith Investments Ltd.
Wealth Choice Investments Ltd.
Aiming Investments Ltd.

Competitors

Budweiser Brewing Co. APAC Ltd.
Anheuser-Busch InBev SA/NV
Asahi Group Holdings,Ltd.
San Miguel Food & Beverage, Inc.
San Miguel Corp.
Top Frontier Investment Holdings, Inc.
Yinchuan Xinhua Commercial Group Co., Ltd. Class A

Last Updated on 1 Jun, 2020