China: Kingway Brewery shares dropped 7% on profit decline warning

Kingway Brewery Holdings Ltd was sharply lower after the company said it may experience a 'significant decline' in net profit this year or even incur an operating loss, AFX News Limited reported December 4.

The mainland-based beer maker blamed several factors, including a decrease in the average unit price due to a shift toward more mass-market oriented products.

It also cited an increase in the average unit fixed costs of its products due to the opening of new plants in Xian and Chengdu in the first half of this year.

Heineken-APB (China) Pte Ltd holds 21 pct of the mainland brewery.

05 December, 2007