China Resources Beer (Holdings) Co. Ltd.
In the news
- China's top brewer to close a third of plants after M&A binge Aug 8, 2020
- 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 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
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
| 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%)
- Fidelity Management & Research Co. LLC (1.8%)
- The Vanguard Group, Inc. (1.6%)
- Canada Pension Plan Investment Board (1.4%)
- Morgan Stanley Asia Ltd. (Investment Management) (1.2%)
- Matthews International Capital Management LLC (1.2%)
- BlackRock Fund Advisors (0.8%)
- Norges Bank Investment Management (0.8%)
- T. Rowe Price International Ltd. (0.7%)
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
- Snow Beer (Guangzhou) Co., Ltd.
- Snow Beer (Hainan) 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.
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
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Last Updated on 7 Aug, 2020