E-Malt.com News article: 1570

The China’s beer maker, Guangdong Brewery Holdings Ltd, based in Hong Kong, posted on September 15 a consolidated net profit for the first half of 2003 of HK$46.13 million, a 6.1% rise versus HK$43.49 million in the first half of 2002. Basic earnings per share increased by 5.7% from 3.5 HK cents in 2002 to 3.7 HK cents. Operating profit rose by 9% from HK$57.98 million to HK$63.17 million. Company’s turnover (sales) increased 4.8% up to HK$289.64 million in the first half of the year versus HK$276.43 million in the same period last year.

Situated in Shenzhen in Guangdong Province, Guangdong Brewery Holdings Limited is principally engaged in the production, distribution and sale of Kingway beer mainly in Guangdong Province, particularly in Shenzhen where demand has consistently outstripped supply. The production and sale of Kingway beer continued to be the Group’s core business during the first half of the year. The Group’s sales are primarily conducted in the Guangdong Province, Mainland China. The total sales volume of Kingway beer for the first half of the year amounted to 112,000 tonnes (2002: 95,000 tonnes), representing an increase of 17.9% over the same period of 2002. The consolidated turnover was HK$290 million (2002 : HK$276 million), representing an increase of 4.8% over the same period of 2002.

The sales volume of Kingway beer was lower than the management’s initial forecast as both Hong Kong and Mainland China were hit by the SARS during the period reported. However, as a result of compounded effort invested to rebuild and expand the distribution network over the past 18 months, the well-managed distribution network have been able to enable Kingway beer to reach consumers more effectively and efficiently, and have resulted in an increase in both the sales volume and turnover compared to the same period of 2002.

A principal subsidiary of Guangdong Brewery, Shenzhen Kingway Brewery Co., Ltd. is a Sino-foreign equity joint venture, which was established in 1986. Shenzhen Brewery is engaged in the production, distribution and sale of Kingway beer.


17 September, 2003