Tsingtao Brewery Co., Ltd.

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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 2018	HKD	USD
Revenue	28,721.48M	3,664.60M
Gross Profit	8,733.53M	1,114.31M
Operating income	1,677.43M	214.02M
Income before tax	2,799.04M	357.13M
Net income	1,684.52M	214.93M
EBITDA	3,039.40M	387.80M
Diluted EPS	1.24	0.15
Dividends Per Share	0.54	0.06
Total Assets	38,903.85M	4,968.97M
Total liabilities	14,664.39M	1,873.00M
Total equity	20,492.75M	2,617.42M
Operating cash flow	5,305.63M	676.95M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	33,812.53M	31,582.39M	27,895.96M	25,650.22M	28,721.48M
Gross Profit	11,172.82M	10,262.53M	9,679.11M	7,256.08M	8,733.53M
Operating income	2,425.64M	1,352.25M	1,445.93M	1,515.62M	1,677.43M
Income before tax	3,346.62M	2,811.57M	2,487.16M	2,403.44M	2,799.04M
Net income	2,504.59M	2,113.11M	1,219.22M	1,456.36M	1,684.52M
EBITDA	3,600.00M	2,541.03M	2,788.38M	2,872.06M	3,039.40M
Diluted EPS	1.85	1.56	0.90	1.07	1.24
Dividends Per Share	0.57	0.46	0.40	0.51	0.54
Total Assets	33,754.23M	34,035.78M	33,571.87M	37,209.37M	38,903.85M
Total liabilities	12,350.60M	12,464.00M	12,371.37M	13,438.44M	14,664.39M
Total equity	19,234.08M	19,642.79M	18,200.52M	20,581.90M	20,492.75M
Operating cash flow	2,673.72M	3,670.51M	3,941.40M	2,635.10M	5,305.63M

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	4,360.27M	4,073.79M	3,593.70M	3,291.52M	3,664.60M
Gross Profit	1,440.78M	1,323.75M	1,246.91M	931.12M	1,114.31M
Operating income	312.79M	174.42M	186.27M	194.48M	214.02M
Income before tax	431.56M	362.66M	320.40M	308.41M	357.13M
Net income	322.97M	272.56M	157.06M	186.88M	214.93M
EBITDA	464.23M	327.76M	359.21M	368.55M	387.80M
Diluted EPS	0.23	0.20	0.11	0.13	0.15
Dividends Per Share	0.07	0.05	0.05	0.06	0.06
Total Assets	4,352.66M	4,391.62M	4,330.09M	4,759.87M	4,968.97M
Total liabilities	1,592.62M	1,608.22M	1,595.65M	1,719.06M	1,873.00M
Total equity	2,480.26M	2,534.50M	2,347.50M	2,632.86M	2,617.42M
Operating cash flow	344.78M	473.45M	507.75M	338.14M	676.95M

Valuation Measures

Dec 2018
PER	25.34
ROA	4.42%
ROE	8.20%
Operating margin	5.84%
Profit margin	5.86%

Key executives

President, Executive Director & Chief Winemaker: Wei Fan
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%)
Baillie Gifford & Co. (9.0%)
Qingdao State-Owned Assets Supervision & Administration (5.8%)
T. Rowe Price International Ltd. (2.6%)
Macquarie Investment Management Business Trust (2.2%)
Fidelity Management & Research Co. (1.9%)
The Vanguard Group, Inc. (1.8%)
First State Investments (Hong Kong) Ltd. (1.7%)
Wells Capital Management, Inc. (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

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Competitors

China Resources Beer (Holdings) Co. Ltd.
Budweiser Brewing Co. APAC Ltd.
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.

Last Updated on 6 Dec, 2019