Tsingtao Brewery reports slight loss in Q4

BEIJING, April 21 (Xinhua) -- Tsingtao Brewery Co., part owned by the world's largest beer maker Anheuser-Busch Cos., reported an expected fourth-quarter loss of two million yuan due to weak sales in the winter and rising costs.

The annual net profit was 27.7 percent to 558 million yuan (80 million U.S. dollars), or 0.43 yuan per share, in 2007, up from 437 million yuan, or 0.33 yuan per share, in 2006, the company said in a statement to the Shanghai Stock Exchange late Monday, citing domestic accounting standards.

The country's leading beer producer adjusted its profit for the first nine months to 560 million yuan from 695 million yuan on April 16. It said the corporate income tax would be 33 percent, rather than 15 percent. The figures were used to calculate the fourth-quarter loss.

Profitability of the whole industry in China was low because of fierce market competition, tight monetary policy and rising costs of raw materials, it stated.

However, factors, including the rising living standards and relatively low per capita beer consumption, would provide further room for growth of the beer giants.

The company proposed an annual cash dividend of 0.22 yuan per share, flat from 2006.

Revenue increased 15.9 percent to 13.7 billion yuan last year, said Tsingtao Brewery, which is based in the eastern coastal city of Qingdao.

Rapid rises in personal incomes in China, the world's largest beer producer and consumer, have boosted its beer sales by 13.8 percent to 39.3 billion liters in 2007.

Tsingtao Brewery reported beer sales of 5.05 billion liters last year, up 11 percent from a year ago.

The company expected its beer sales to hit 5.7 billion liters in 2008, when it takes the opportunity of being an Olympic sponsor to boost brand recognition and market share.

Anheuser-Busch owns 27 percent of the company.