China Resources Beer (Holdings) Co. Ltd.

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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 2018	HKD	USD
Revenue	37,744.99M	4,815.92M
Gross Profit	13,236.27M	1,688.82M
Operating income	1,833.53M	233.94M
Income before tax	1,814.58M	231.52M
Net income	1,157.21M	147.64M
EBITDA	3,792.62M	483.90M
Diluted EPS	0.35	0.04
Dividends Per Share	0.13	0.01
Total Assets	44,782.96M	5,719.88M
Total liabilities	21,604.06M	2,759.36M
Total equity	21,493.45M	2,745.24M
Operating cash flow	4,715.31M	601.63M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	34,482M	34,486.88M	33,526.60M	34,283.57M	37,744.99M
Gross Profit	11,922M	10,686.87M	11,274.07M	11,537.78M	13,236.27M
Operating income	1,506M	1,625.72M	1,631.11M	1,678.89M	1,833.53M
Income before tax	2,285M	2,125.28M	2,031.87M	2,094.00M	1,814.58M
Net income	730M	822.73M	734.93M	1,354.87M	1,157.21M
EBITDA	3,659M	3,758.41M	3,641.96M	3,646.06M	3,792.62M
Diluted EPS	-0.06	-1.76	0.25	0.41	0.35
Dividends Per Share	0.24	0	0.09	0.17	0.13
Total Assets	181,364M	51,043.86M	47,559.79M	48,799.30M	44,782.96M
Total liabilities	110,876M	27,283.54M	26,866.87M	24,824.00M	21,604.06M
Total equity	48,747M	12,001.89M	19,636.40M	22,113.40M	21,493.45M
Operating cash flow	4,573M	5,754.18M	5,006.67M	4,881.01M	4,715.31M

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	4,446.60M	4,448.44M	4,319.07M	4,399.38M	4,815.92M
Gross Profit	1,537.39M	1,378.49M	1,452.38M	1,480.56M	1,688.82M
Operating income	194.20M	209.70M	210.12M	215.44M	233.94M
Income before tax	294.66M	274.13M	261.75M	268.70M	231.52M
Net income	94.13M	106.12M	94.67M	173.86M	147.64M
EBITDA	471.84M	484.79M	469.17M	467.87M	483.90M
Diluted EPS	-0.00	-0.22	0.03	0.05	0.04
Dividends Per Share	0.03	0	0.01	0.02	0.01
Total Assets	23,387.17M	6,586.17M	6,134.25M	6,242.47M	5,719.88M
Total liabilities	14,297.63M	3,520.38M	3,465.28M	3,175.52M	2,759.36M
Total equity	6,286.00M	1,548.60M	2,532.70M	2,828.77M	2,745.24M
Operating cash flow	589.70M	742.22M	644.98M	626.34M	601.63M

Valuation Measures

Dec 2018
PER	76.67
ROA	2.47%
ROE	5.30%
Operating margin	4.85%
Profit margin	3.06%

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 (51.6%)
Hillhouse Capital Management Ltd. (Hong Kong) (6.0%)
Matthews International Capital Management LLC (1.8%)
The Vanguard Group, Inc. (1.7%)
Canada Pension Plan Investment Board (1.4%)
Massachusetts Financial Services Co. (1.3%)
Fidelity Management & Research Co. (1.2%)
Morgan Stanley Asia Ltd. (Investment Management) (1.1%)
Morgan Stanley Investment Management, Inc. (1.0%)
BlackRock Fund Advisors (0.9%)

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.
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.
CRE Finance (Cayman Islands) Ltd.

Competitors

Anheuser-Busch InBev SA/NV
Tsingtao Brewery Co., Ltd. Class H
Beijing Yanjing Brewery Co., Ltd. Class A
Carlsberg A/S Class B
Budweiser Brewing Co. APAC Ltd.
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 6 Dec, 2019