Tsingtao Brewery Co., Ltd.

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See more articles on Tsingtao Brewery Co., Ltd.

Company Background

Tsingtao Brewery is China's second largest brewery after China Resources Enterprise in terms of sales. Its predecessor was founded in 1903 by the Anglo-German Brewery, which was established by German and British residents of Qingdao, Shandong Province. It has long been the top Chinese brewery along with Harbin Brewery Group.

As of the end of 2014, the company has about 60 production bases in 20 provinces and direct-controlled municipalities across China. Tsingtao Brewery now sells Tsingtao Beer in 90 countries and regions around the world, including the U.S., Japan and parts of Europe. Tsingtao Brewery became the first mainland Chinese company to be listed on an overseas exchange in 1993.

Tsingtao has a long-standing relationship with Japan. During the war, the company was under the umbrella of DaiNippon Beer, current Sapporo Breweries and Asahi Breweries. With some 19.99% stake in the company, Asahi Group Holdings provides technical assistance to the company and Asahi's plant in China produces Tsingtao beer as well as Asahi beer. Meanwhile, in 2013, the company set up 50-50 joint ventures with Suntory Holdings, one in production and one in sales, and integrated their business operations in Shanghai and neighboring Jiangsu Province. In 2015, Suntory decided to end the joint venture by selling its stakes to Tsingtao who continues producing Suntory beer under a licensing agreement.

Business Summary

Tsingtao Brewery Co., Ltd. engages in the manufacture and sale of beer and related products. It operates through the following business segments: Shandong; South China; North China; East China; Southeast; Hong Kong, Macau, and overseas; and Finance. The Shandong segment engages in the production and sale of beer in Shandong and surrounding areas. The South China, North China, East China, and Southeast segments engage in the production and sale of beer in the respective areas. The Hong Kong, Macau, and overseas segment engages in the sale of beer in Hong Kong, Macau, and overseas. The Finance segment handles the financial management and financial transactions such as payment and collection of member units. The company offer the verities of beer include Great ocean beer, Huiquan beer, Tsingtao draft beer, Tsingtao dark beer, Tsingtao beer premium and Tsingtao beer. Tsingtao Brewery was founded in August 1903 and is headquartered in Qingdao, China.

Financial Highlights

Dec 2019	HKD	USD
Revenue	29,108.13M	3,715.04M
Gross Profit	9,388.30M	1,198.22M
Operating income	1,804.88M	230.35M
Income before tax	3,068.06M	391.57M
Net income	2,100.13M	268.03M
EBITDA	3,092.35M	394.67M
Diluted EPS	1.55	0.19
Dividends Per Share	0.59	0.07
Total Assets	41,956.56M	5,384.70M
Total liabilities	16,446.01M	2,110.68M
Total equity	21,445.24M	2,752.28M
Operating cash flow	5,134.40M	655.29M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019
Revenue	31,582.39M	27,895.96M	25,650.22M	28,721.48M	29,108.13M
Gross Profit	10,262.53M	9,679.11M	7,256.08M	8,733.53M	9,388.30M
Operating income	1,352.25M	1,445.93M	1,515.62M	1,677.43M	1,804.88M
Income before tax	2,811.57M	2,487.16M	2,403.44M	2,799.04M	3,068.06M
Net income	2,113.11M	1,219.22M	1,456.36M	1,684.52M	2,100.13M
EBITDA	2,541.03M	2,788.38M	2,872.06M	3,039.40M	3,092.35M
Diluted EPS	1.56	0.90	1.07	1.24	1.55
Dividends Per Share	0.46	0.40	0.51	0.54	0.59
Total Assets	34,035.78M	33,571.87M	37,209.37M	38,903.85M	41,956.56M
Total liabilities	12,464.00M	12,371.37M	13,438.44M	14,664.39M	16,446.01M
Total equity	19,642.79M	18,200.52M	20,581.90M	20,492.75M	21,445.24M
Operating cash flow	3,670.51M	3,941.40M	2,635.10M	5,305.63M	5,134.40M

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019
Revenue	4,073.79M	3,593.70M	3,291.52M	3,664.60M	3,715.04M
Gross Profit	1,323.75M	1,246.91M	931.12M	1,114.31M	1,198.22M
Operating income	174.42M	186.27M	194.48M	214.02M	230.35M
Income before tax	362.66M	320.40M	308.41M	357.13M	391.57M
Net income	272.56M	157.06M	186.88M	214.93M	268.03M
EBITDA	327.76M	359.21M	368.55M	387.80M	394.67M
Diluted EPS	0.20	0.11	0.13	0.15	0.19
Dividends Per Share	0.05	0.05	0.06	0.06	0.07
Total Assets	4,391.62M	4,330.09M	4,759.87M	4,968.97M	5,384.70M
Total liabilities	1,608.22M	1,595.65M	1,719.06M	1,873.00M	2,110.68M
Total equity	2,534.50M	2,347.50M	2,632.86M	2,617.42M	2,752.28M
Operating cash flow	473.45M	507.75M	338.14M	676.95M	655.29M

Valuation Measures

Dec 2019
PER	33.67
ROA	5.19%
ROE	10.01%
Operating margin	6.20%
Profit margin	7.21%

Key executives

Chief Financial Officer & Executive Director: Zhu Ming Yu
Executive Director & Vice President: Rui Yong Wang
Security Relations Contact: Xiao Hang Sun
Secretary: Rui Xiang Zhang

Shareholders

Fosun International Holdings Ltd. (32.4%)
Qingdao State-Owned Assets Supervision & Administration (5.8%)
Baillie Gifford & Co. (5.2%)
Fidelity Management & Research Co. LLC (3.4%)
T. Rowe Price International Ltd. (2.7%)
Macquarie Investment Management Business Trust (2.2%)
First State Investments (Hong Kong) Ltd. (2.0%)
The Vanguard Group, Inc. (1.9%)
BlackRock Fund Advisors (1.0%)
Wells Capital Management, Inc. (0.9%)

Contact Details

Website:http://www.tsingtao.com.cn
Address: Tsingtao Beer Tower, May Fourth Square, Qingdao, 266071, China
Phone: +86.532.8571.3831

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Competitors

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

Last Updated on 14 Jul, 2020