China: Tsingtao Brewery Co. Ltd, China's largest beer manufacture in terms of revenue, announced on April 11 its net profit in 2004 increased by 16.4 % versus previous year up to 285.16 mln yuan (US$34.45 million, euro26.59 million) on strong demand from the booming Chinese economy. Tsingtao’s revenue rose 14.7 % to 7.7 billion yuan (US$930 million, euro718 million) compared to 6.71 billion in 2003. Tsingtao, which has a 12.8 % market share of China, proposed a final dividend of 0.15 yuan.

“Our company is the largest mainland brewery and we have grown by being more efficient and maximizing our synergies,” Chairman Li Gui Rong told reporters. "China's brewery market registered rapid growth last year, driven by China's underlying economic growth….. China's market will face competition from foreign competitors and rising energy prices, but it is still confident it can tackle difficulties and keep business growing " Li Gui Rong added.

Also Monday, Anheuser-Busch Co. Ltd. said it has become the biggest nongovernment shareholder in Tsingtao and now holds 27 percent in the company. The U.S. brewer got the bigger stake by converting its convertible bonds in Tsingtao to H-shares, it said. Anheuser-Busch said it plans to nominate an additional director to Tsingtao's board, giving it two seats.

12 April, 2005