Mar 7 - Three Brewing Giants Bid for Kingway Brewery

Source: National Business Daily, ChinaScope Financial (Data)

+       Three giant breweries, Beijing Yanjing Brewery Co., Ltd. (SZSE: 000729), China Resources Snow Breweries Co., Ltd., and Anheuser-Busch InBev, have made bids for Kingway Brewery Holdings Ltd. (HKEX: 0124). The highest offer price was CNY 5 billion.

+       Kingway Brewery plans to sell six factories along with its marketing network. The factories are located in Tianjin, Xi’an, Dongguan and Shantou, with a total production capacity of 1.2 million metric tons of beer.

+       Kingway Brewery used to be one of the major players in the Pearl River Delta, with a Shenzhen market share of 70%. The bid shows that the industry is undergoing restructuring. 

Even though Kingway Brewery Holdings Ltd.’s (0124. HK) sales growth rebounded after 2008, the general trend is down. Beijing Yanjing Brewery Co. Ltd.’s (000729.SZ) sales growth remains robust

Among public brewing companies, Beijing Yanjing Brewery Co., Ltd. (000729.SZ) has the highest gross and net margin, while Kingway Brewery Holdings Ltd. (0124. HK) has the lowest.

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