Others News
- Yanjing foresees strong profit growth
Date: 20-Sep-2007 Sources: (Shenzhen Daily)
YANJING Brewery Co., Tsingtao Brewery's main domestic rival, expects to post net profit growth in excess of 30 percent in 2007 as it rides robust consumption ahead of the 2008 Beijing Olympics.
President Li Fucheng said yesterday the Shenzhen and Hong Kong-listed firm, which competes in China with Tsingtao and China Resources Enterprises, should sell 4 million tons of beer in 2007 versus 3.53 million tons last year.
Volume sales should then rise gradually to 4.5 million tons and 5.0 million tons in 2008 and 2009, respectively, Li said.
'To reach this target, we plan to add 13 production lines to expand our capacity,'he added.
'Driven by the Olympics, sales volume and prices of mid-to- high-end products have shot up.'
Yanjing's net profit rose 11 percent to 306.9 million yuan (US$40.8 million) in 2006. It posted a net profit of 193 million yuan in the January to June period of 2007, up 25 percent.
The firm dominates its home market and the northern region of Inner Mongolia, but also maintains a presence in Guangdong, Guangxi and Hubei.
Yanjing remains the only major Chinese player yet to team up with a global partner. Foreign companies have been aggressive in past years in sealing ever-pricier acquisitions and building breweries across the country.
China still has great growth potential, since beer consumption has more than doubled in the past decade but the average person still drinks only about a third as much as the average American.
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