Tsingtao Brewery Co Ltd H Shares  00168

Summary (from latest quarterly report – 2015)

• Total equity  : 2.52 billion USD
• Market Cap is 41.1 billion HKD = 5.3 billion usd ( last price of the stock is 30.40 HKD)
• Tsingtao Brewery Co Ltd is engaged in the production and sell of beer. The Company's subsidiaries and associated companies are mainly engaged in the production, sales and domestic trade of beer
• Equity of total company increased from 2.35 billion USD in 2014 to 2.52 billion in 2015
• Company has 1.39 billion USD in cash on account
• Total equity – cash on account = 2.52 billion usd – 1.39 billion usd = 1.13 billion usd
• In 2015 company has 0.30 million usd long-term debt, short – term debt was 89.6 million usd

In 2014 company had 0.45 million usd long-term debt, short-term debt was 80.4 million usd

•  Tsingtao Brewery balance sheet has become stronger in 2015 (In latest quarterly report - total equity increased to 2.52 billion USD from 2.35 in 2014, total debt was 89.9 million usd in 2015)
• Company's revenue increased in latest annual report  to 4.44 billion usd from 4.32 billion in 2013
•  Net income in 2014 was 304 million usd  , net income in 2013 was 301 million usd
•  In 2014 company paid 104 million usd dividend to its shareholders

Tsingtao Brewery Subsidiaries

Tsingtao Brewery Company Limited is a beer producer and distributor. The Company is engaged in the business of production and sales of beer, and other related businesses. Tsingtao Brewery is one of the largest beer producers and distributors in China, its segments include :

• Shandong region, which is responsible for the production and distribution of beer in Shandong region and surrounding regions - subsidiaries in this region worth 2.5 billion usd
• Huanan region, which is responsible for the production and distribution of beer in South China region – subsidiaries in this region worth 840 million usd
• Huabei region, which is responsible for the production and distribution of beer in North China region - subsidiaries in this region worth 1 billion usd
• Huadong region, which is responsible for the production and distribution of beer in East China region – subsidiaries in this region worth  610 million usd
• Dongnan region, which is responsible for the production and distribution of beer in Southeast China region - subsidiaries in this region worth 500 million usd
• Hong Kong, Macau and other overseas, which is responsible for the distribution of beer in Hong Kong, Macau and other overseas – subsidiaries in this region worth 80 million usd
• About 60 subsidiaries operate under the Tsingtao Brewery name
• Subsidiaries which operate under the own name are : Nanjing Sales Company, Huaihai Sales Company, Langfang Company, Hong Kong Company, Hanzhong Company, Beifang Sales Company, Qingdao Guangrunlong Logistics Co., Ltd, Dongnan Sales Company, Machinery and Equipment Company, Finance Company, New Shanghai Sales, Sales Company, Qingdao Hongjiweiye Investment Co., Ltd., Zhangjiakou Company, Construction Company, Baotuquan Company, Immense Brewery Company, Macau Company, Shanghai Market Service, The Prince Sales, Lulansa Brewery, Equipment Manufacture

Tsingtao Brewery bought the 50 percent stake it does not own in its loss-making joint venture with Japanese beverage conglomerate Suntory Holdings Ltd for 822.9 million yuan ($129.5 million) to boost efficiency - today worth about 260 million usd

Total = 5.8 billion usd

Opinion about the company

Fundamentally it is a very good company and in the future we can expect its growth (Total debt is small (89.9 million usd), big amount of cash on company's account, ROE is around 9 %).