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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 2020 HKDUSD
Revenue28,699.84M3,700.34M
Gross Profit9,742.41M1,256.11M
Operating income2,604.19M335.76M
Income before tax3,619.92M466.72M
Net income2,473.61M318.92M
EBITDA3,908.35M503.91M
Diluted EPS1.830.23
Dividends Per Share0.900.11
Total Assets49,472.86M6,380.42M
Total liabilities20,152.31M2,599.00M
Total equity24,450.22M3,153.30M
Operating cash flow5,987.57M771.99M
Currency in HKDCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 27,895.96M 25,650.22M 28,721.48M 29,108.13M 28,699.84M
Gross Profit 9,679.11M 7,256.08M 8,733.53M 9,388.30M 9,742.41M
Operating income 1,445.93M 1,515.62M 1,677.43M 1,804.88M 2,604.19M
Income before tax 2,487.16M 2,403.44M 2,799.04M 3,068.06M 3,619.92M
Net income 1,219.22M 1,456.36M 1,684.52M 2,100.13M 2,473.61M
EBITDA 2,788.38M 2,872.06M 3,039.40M 3,092.35M 3,908.35M
Diluted EPS 0.90 1.07 1.24 1.55 1.83
Dividends Per Share 0.40 0.51 0.54 0.59 0.90
Total Assets 33,571.87M 37,209.37M 38,903.85M 41,847.01M 49,472.86M
Total liabilities 12,371.37M 13,438.44M 14,664.39M 16,336.46M 20,152.31M
Total equity 18,200.52M 20,581.90M 20,492.75M 21,445.24M 24,450.22M
Operating cash flow 3,941.40M 2,635.10M 5,305.63M 5,134.40M 5,987.57M
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 3,593.70M 3,291.52M 3,664.60M 3,715.04M 3,700.34M
Gross Profit 1,246.91M 931.12M 1,114.31M 1,198.22M 1,256.11M
Operating income 186.27M 194.48M 214.02M 230.35M 335.76M
Income before tax 320.40M 308.41M 357.13M 391.57M 466.72M
Net income 157.06M 186.88M 214.93M 268.03M 318.92M
EBITDA 359.21M 368.55M 387.80M 394.67M 503.91M
Diluted EPS 0.11 0.13 0.15 0.19 0.23
Dividends Per Share 0.05 0.06 0.06 0.07 0.11
Total Assets 4,330.09M 4,759.87M 4,968.97M 5,370.64M 6,380.42M
Total liabilities 1,595.65M 1,719.06M 1,873.00M 2,096.62M 2,599.00M
Total equity 2,347.50M 2,632.86M 2,617.42M 2,752.28M 3,153.30M
Operating cash flow 507.75M 338.14M 676.95M 655.29M 771.99M

Valuation Measures

Dec 2020
PER44.34
ROA5.41%
ROE10.77%
Operating margin9.07%
Profit margin8.61%

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. (16.9%)
  • Baillie Gifford & Co. (5.2%)
  • E Fund Management Co., Ltd. (4.8%)
  • Fidelity Management & Research Co. LLC (3.6%)
  • Morgan Stanley Asia Ltd. (Investment Management) (3.3%)
  • The Vanguard Group, Inc. (2.1%)
  • BlackRock Fund Advisors (1.3%)
  • First Sentier Investors (Hong Kong) Ltd. (1.3%)
  • Macquarie Investment Management Business Trust (1.2%)
  • China Universal Asset Management Co., Ltd. (1.1%)

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

  • Anheuser-Busch InBev SA/NV
  • Asahi Group Holdings,Ltd.
  • San Miguel Food & Beverage, Inc.
  • San Miguel Corp.
  • Top Frontier Investment Holdings, Inc.
Last Updated on 27 Jul, 2021

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