China Resources Beer (Holdings) Co. Ltd.

In the news

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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

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 2021	HKD	USD
Revenue	40,238.37M	5,176.79M
Gross Profit	15,678.58M	2,017.09M
Operating income	3,665.04M	471.51M
Income before tax	7,515.69M	966.91M
Net income	5,528.30M	711.23M
EBITDA	5,642.79M	725.96M
Diluted EPS	1.70	0.21
Dividends Per Share	0.67	0.08
Total Assets	62,451.38M	8,010.38M
Total liabilities	30,312.52M	3,888.06M
Total equity	29,886.82M	3,833.46M
Operating cash flow	6,308.07M	811.55M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021
Revenue	34,283.57M	37,744.99M	37,634.68M	35,337.90M	40,238.37M
Gross Profit	11,537.78M	13,236.27M	13,807.70M	13,496.68M	15,678.58M
Operating income	1,678.89M	1,833.53M	2,216.80M	2,414.81M	3,665.04M
Income before tax	2,094.00M	1,814.58M	2,496.88M	3,381.19M	7,515.69M
Net income	1,354.87M	1,157.21M	1,487.69M	2,353.01M	5,528.30M
EBITDA	3,646.06M	3,792.62M	4,171.67M	4,376.78M	5,642.79M
Diluted EPS	0.41	0.35	0.45	0.72	1.70
Dividends Per Share	0.17	0.13	0.18	0.30	0.67
Total Assets	48,799.30M	44,782.96M	46,523.50M	51,901.40M	62,451.38M
Total liabilities	24,824.00M	21,604.06M	23,301.46M	24,713.48M	30,312.52M
Total equity	22,113.40M	21,493.45M	22,002.77M	25,155.72M	29,886.82M
Operating cash flow	4,881.01M	4,715.31M	4,694.41M	5,124.04M	6,308.07M

	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021
Revenue	4,399.38M	4,815.92M	4,803.28M	4,556.20M	5,176.79M
Gross Profit	1,480.56M	1,688.82M	1,762.26M	1,740.16M	2,017.09M
Operating income	215.44M	233.94M	282.92M	311.34M	471.51M
Income before tax	268.70M	231.52M	318.67M	435.94M	966.91M
Net income	173.86M	147.64M	189.87M	303.38M	711.23M
EBITDA	467.87M	483.90M	532.42M	564.31M	725.96M
Diluted EPS	0.05	0.04	0.05	0.09	0.21
Dividends Per Share	0.02	0.01	0.02	0.03	0.08
Total Assets	6,242.47M	5,719.88M	5,970.82M	6,693.62M	8,010.38M
Total liabilities	3,175.52M	2,759.36M	2,990.51M	3,187.25M	3,888.06M
Total equity	2,828.77M	2,745.24M	2,823.83M	3,244.28M	3,833.46M
Operating cash flow	626.34M	601.63M	599.14M	660.65M	811.55M

Valuation Measures

Dec 2021
PER	37.46
ROA	9.66%
ROE	20.08%
Operating margin	9.10%
Profit margin	13.73%

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
Senior Director-Department: Xin Qi

Shareholders

China State-Owned Assets Supervision & Admn Commission (51.9%)
The Vanguard Group, Inc. (1.5%)
Orient Securities Asset Management Co. Ltd. (1.5%)
BlackRock Fund Advisors (1.4%)
Fidelity Management & Research Co. LLC (1.2%)
E Fund Management Co., Ltd. (1.0%)
China Universal Asset Management Co., Ltd. (0.8%)
Zhong Ou Asset Management Co., Ltd (0.7%)
Penghua Fund Management Co., Ltd. (0.6%)
Massachusetts Financial Services Co. (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

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Heineken NV /China Brewing Business/

Competitors

Lanzhou Huanghe Enterprise Co., Ltd Class A
Anheuser-Busch InBev SA/NV
San Miguel Food & Beverage, Inc.
San Miguel Corp.
Top Frontier Investment Holdings, Inc.
Gourmet Master Co. Ltd.

Last Updated on 5 Oct, 2022