ArrowArtboardCreated with Sketch.Title ChevronCrossEye IconFacebook IconIcon FacebookGoogle Plus IconLayer 1InstagramCreated with Sketch.Linkedin IconIcon LinkedinShapeCreated with Sketch.Icon Mail ContactPath LayerIcon MailMenu BurgerIcon Opinion QuotePositive ArrowIcon PrintRSS IconIcon SearchSite TitleTitle ChevronTwitter IconIcon TwitterYoutube Icon
Consumer Non-Durables

Tsingtao Brewery Co., Ltd.

  • 41.85 HKD
  • -0.40
  • -0.95%
  • China
    Apr 19, 2018
  • Ticker
    HKG(168)
  • Prev. close
    42.25
  • Market cap (HKD)
    65,024.53M
  • Market cap (USD)
    8,285.01M
  • Shares
    1,350.98M

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 was founded in August 1903 and is headquartered in Qingdao, China.

Financial Highlights

Dec 2017 HKDUSD
Revenue25,650.22M3,291.52M
Gross Profit7,259.30M931.53M
Operating income1,518.83M194.90M
Income before tax2,403.44M308.41M
Net income1,456.36M186.88M
EBITDA2,872.06M368.55M
Diluted EPS1.070.13
Dividends Per Share----
Total Assets37,209.37M4,759.87M
Total liabilities13,438.44M1,719.06M
Total equity20,581.90M2,632.86M
Operating cash flow2,635.10M338.14M
Currency in HKDCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 32,884.41M 33,812.53M 31,582.39M 27,895.96M 25,650.22M
Gross Profit 11,316.74M 11,172.82M 10,262.53M 9,679.11M 7,259.30M
Operating income 2,372.82M 2,425.64M 1,352.25M 1,445.93M 1,518.83M
Income before tax 3,352.47M 3,346.62M 2,811.57M 2,487.16M 2,403.44M
Net income 2,489.83M 2,504.59M 2,113.11M 1,219.22M 1,456.36M
EBITDA 3,489.50M 3,600.00M 2,541.03M 2,788.38M 2,872.06M
Diluted EPS 1.84 1.85 1.56 0.90 1.07
Dividends Per Share 0.56 0.57 0.46 0.40 --
Total Assets 35,048.53M 33,754.23M 34,035.78M 33,571.87M 37,209.37M
Total liabilities 15,087.25M 12,350.60M 12,464.00M 12,371.37M 13,438.44M
Total equity 17,957.33M 19,234.08M 19,642.79M 18,200.52M 20,581.90M
Operating cash flow 4,355.19M 2,673.72M 3,670.51M 3,941.40M 2,635.10M
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 4,239.51M 4,360.27M 4,073.79M 3,593.70M 3,291.52M
Gross Profit 1,458.97M 1,440.78M 1,323.75M 1,246.91M 931.53M
Operating income 305.90M 312.79M 174.42M 186.27M 194.90M
Income before tax 432.20M 431.56M 362.66M 320.40M 308.41M
Net income 320.99M 322.97M 272.56M 157.06M 186.88M
EBITDA 449.87M 464.23M 327.76M 359.21M 368.55M
Diluted EPS 0.23 0.23 0.20 0.11 0.13
Dividends Per Share 0.07 0.07 0.05 0.05 --
Total Assets 4,520.20M 4,352.66M 4,391.62M 4,330.09M 4,759.87M
Total liabilities 1,945.80M 1,592.62M 1,608.22M 1,595.65M 1,719.06M
Total equity 2,315.95M 2,480.26M 2,534.50M 2,347.50M 2,632.86M
Operating cash flow 561.47M 344.78M 473.45M 507.75M 338.14M

Valuation Measures

Dec 2017
PER37.38
ROA4.11%
ROE7.51%
Operating margin5.92%
Profit margin5.67%

Key executives

  • President & Executive Director: Ke Xing Huang
  • Chief Financial Officer & Executive Director: Zhu Ming Yu
  • Executive Director, Chief Winemaker & VP: Wei Fan
  • Vice President: Rui Yong Wang
  • Board Secretary: Rui Xiang Zhang

Shareholders

  • Baillie Gifford & Co. (8.9%)
  • CHEN FA SHU (3.8%)
  • Fidelity Management & Research Co. (1.8%)
  • The Vanguard Group, Inc. (1.7%)
  • Qingdao State-Owned Assets Supervision & Administration (1.7%)
  • BlackRock Fund Advisors (1.3%)
  • JPMorgan Investment Management, Inc. (1.2%)
  • Wells Capital Management, Inc. (1.2%)
  • JPMorgan Asset Management (UK) Ltd. (1.0%)
  • Norges Bank Investment Management (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

Related Companies

  • Shanghai Tsingtao Brewery Sales Co., Ltd.
  • Tsingtao Brewery Hangzhou Co. Ltd.
  • Tsingtao Brewery (Nanning) Co. Ltd.
  • Shandong Xin Immense Brewery Co., Ltd.
  • Tsingtao Brewery South China Sales Co.
  • Tsingtao Brewery South-East Sales Co. Ltd.
  • Tsingtao Brewery (Sanshui) Co. Ltd.
  • Tsingtao Brewery Sales Co.
  • Tsingtao Brewery Xi'an Co. Ltd.
  • Tsingtao Brewery Jinan Bao Tu Quan Sales Co. Ltd.
  • Shenzhen Tsingtao Brewery South China Investment Co. Ltd.
  • Tsingtao Beer (H.K.) Trading Co. Ltd.
  • Tsingtao Beer Shanghai Songjiang Co. Ltd.
  • Tsingtao Brewery Beifant Sales Co. Ltd.
  • Tsingtao Brewery No. 5 Co. Ltd.
  • Shenzhen Huanan Tsingtao Brewery Sales Co., Ltd.
  • Shenzhen Tsingtao Brewery Huanan Holding Co. Ltd.
  • Tsingtao Brewery Culture Broadcasting Co. Ltd.
  • Tsingtao Brewery Engineering Co. Ltd.
  • Tsingtao Brewery (Xuzhou) Pengcheng Co. Ltd.
  • Tsingtao Brewery (Rizhao) Co. Ltd.
  • Tsingtao Brewery (Heze) Co. Ltd.
  • Tsingtao Brewery (Tengzhou) Co. Ltd.
  • Tsingtao Brewery (Weifang) Co. Ltd.
  • Tsingtao Brewery (Pingyuan) Co. Ltd.
  • Tsingtao Brewery (Suqian) Co. Ltd.
  • Tsingtao Brewery (Taizhou) Co. Ltd.
  • Tsingtao Brewery (Shanghai) Co. Ltd.
  • Shanghai Tsingtao Brewery Huadong (Holding) Co. Ltd.
  • Tsingtao Brewery (Wuhu) Co. Ltd.

Competitors

  • Anheuser-Busch InBev SA/NV
  • Carlsberg A/S Class B
  • Asahi Group Holdings,Ltd.
  • San Miguel Corp.
  • Top Frontier Investment Holdings, Inc.
Last Updated on 19 Apr, 2018

You have {{numberReadArticles}} FREE ARTICLE{{numberReadArticles-plural}} left this month

Subscribe to get unlimited access to all articles.

Get unlimited access
NAR site on phone, device, tablet

You have {{numberReadArticles}} FREE ARTICLE{{numberReadArticles-plural}} left this month

Subscribe to get unlimited access to all articles.

3 months for $9

Get unlimited access
NAR site on phone, device, tablet

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media