China: Huiquan Brewing Group announced on March 25 that its 2003 net profit fell by a massive 83.4% to RMB11.52 million from RMB69.55 million versus last year. The brewery attributed the losses to higher marketing costs and lower selling prices following the impact of the SARS outbreak last year. Huiquan said it was hit badly by SARS in early 2003, forcing it to cut its prices and increase marketing and management cost to cope with competition.

While operating costs rose to RMB148.45 million from 125.33 million in 2002, the brewer's core revenue fell by 2.8% to RMB880.34 million from 905.7 million. Operating profit consequently dropped, to RMB28.9m from RMB106.6 million.

No earnings forecast for this year was made, but the company said it would focus on developing new products and upgrading technology. The board said it would not issue a dividend to shareholders.

26 March, 2004