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Consumer Non-Durables

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 HKDUSD
Revenue29,108.13M3,715.04M
Gross Profit9,388.30M1,198.22M
Operating income1,804.88M230.35M
Income before tax3,068.06M391.57M
Net income2,100.13M268.03M
EBITDA3,092.35M394.67M
Diluted EPS1.550.19
Dividends Per Share0.590.07
Total Assets41,956.56M5,384.70M
Total liabilities16,446.01M2,110.68M
Total equity21,445.24M2,752.28M
Operating cash flow5,134.40M655.29M
Currency in HKDCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 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 2015Dec 2016Dec 2017Dec 2018Dec 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
PER33.67
ROA5.19%
ROE10.01%
Operating margin6.20%
Profit margin7.21%

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. (26.8%)
  • E Fund Management Co., Ltd. (8.0%)
  • Qingdao State-Owned Assets Supervision & Administration (5.8%)
  • Baillie Gifford & Co. (5.2%)
  • Fidelity Management & Research Co. LLC (3.8%)
  • T. Rowe Price International Ltd. (2.2%)
  • The Vanguard Group, Inc. (2.1%)
  • First State Investments (Hong Kong) Ltd. (1.5%)
  • Macquarie Investment Management Business Trust (1.2%)
  • BlackRock Fund Advisors (1.0%)

Contact Details

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

Related Companies

  • Tsingtao Brewery (Minhang) Co., Ltd.
  • Tsingtao Brewery (Yangpu) Co., Ltd.
  • Tsingtao Brewery (Lianyungang) Co., Ltd.
  • Tsingtao Brewery (Huai'an) Co., Ltd.
  • Tsingtao Brewery (Kunshan) Co., Ltd.
  • Tsingtao Brewery New Songjiang Manufacturing Co., Ltd.
  • Tsingtao Brewery (Shanghai) Investing Co., Ltd.
  • Tsingtao Brewery Equipment Manufacture Co., Ltd.
  • Shandong Lulansa Brewery Co., Ltd.
  • Tsingtao Brewery (Lianyungang) Sales Co., Ltd.
  • Tsingtao Brewery (Shanghai) Market Service Co., Ltd.
  • Asia Brewery (Macau) Co., Ltd.
  • Tsingtao Brewery Beverage Co., Ltd.
  • Tsingtao Brewery Construction Co., Ltd.
  • Tsingtao Brewery (Suizhou) Co., Ltd.
  • Nanning Tsingtao Brewery Co., Ltd.
  • Shanghai Tsingtao Catering Management Co., Ltd.
  • Tsingtao Brewery (Zhangjiakou) Co., Ltd.
  • Tsingtao Brewery (Shanghai) Industrial Co., Ltd.
  • Tsingtao Brewery (Luoyang) Co., Ltd.
  • Tsingtao Brewery (Xuzhou) Enterprise Mgmt Service Co., Ltd.
  • Tsingtao Brewery (Jiujiang) Co., Ltd.
  • Tsingtao Brewery (Electronic Commerce) Co., Ltd.
  • Tsingtao Brewery (Shaoguan) Co., Ltd.
  • Tsingtao Brewery (Taiyuan) Co., Ltd.
  • Tsingtao Brewery (Shijiazhuang) Co., Ltd.
  • Tsingtao Brewery Machinery & Equipment Co., Ltd.
  • Tsingtao Brewery Chenzhou Sales Co., Ltd.
  • Tsingtao Brewery Chengyang Sales Co., Ltd.
  • Tsingtao Brewery (Yulin) Co., Ltd.

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 30 Oct, 2020

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