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4-2017

Global hop market

A local alternative to mass beer suggested by independent brewers has been successful and is now altering the global market. Beer is becoming more diversified, so transnational companies have to accept the new game rules and to switch focus to young and fast growing markets. All these processes increased the demand for aroma and bitter hop as well as their acreage expansion on two continents. However now there appeared a downward trend of alcohol consumption in the world, so even special sorts can soon turn to be sufficient. In this connection the dynamic American hop market is already facing some problems. EU hop producers have become more cautious, they are not racing to exceed the demand and look forward with more confidence, judging by the contract terms. 

Hop Market in Russia

Germany still dominates the Russian market, yet over the recent two years one has been able observe a continuous success of Czech hop suppliers. Their expansion and growing popularity of hops from the United States became the drivers of supplies growth in 2016 despite the preceding modest harvest crop in the EU, as well as the factor of relative stability in 2017. In this connection, in 2017, the ratio of the varieties continued to shift towards the aroma ones, and the supplies of Magnum hop and other alpha varieties were reduced. However, the import of bitter hop pellets is partially replaced by extracts, especially from the major beer manufacturers. Total volumes of alpha acid supplies, according to our estimation, decreased by approximately 5% and returned to the level of 2015. Barth Haas Group continues dominating the hop products market; HVG also increased its weight. At the same time, Morris Hanbury significantly reduced the supplies in 2017.

China. Tsingyuan Holding’s revenue soars 339% to $52.3 Million

Tsingyuan Holding Inc. formally known as Sabre Industrial Inc., a Shandong-based leading manufacturer and distributor of brewer’s malt and beer in China, on Monday announced its 2010 financial results and provided a business update. The company’s revenue soared 338.8% to $52.3 million compared to $11.9 million for 2009. Gross profit increased by 345.7% to $11.8 million versus $2.6 million for 2009. Operating income rose by 371.2% to $11.0 million versus $2.3 million for 2009. Net income for 2010 increased by 392.5% to $8.3 million, or $0.07 per basic and diluted share, versus $1.7 million, or $0.01 per basic and diluted share, for 2009

Zhang Dingyou, Chief Executive Officer, commented, “We are very pleased to report a 339 percent increase in revenue to $52.3 million for 2010 and a 393 percent increase in net income to $8.3 million for the full year. In 2010, we produced 72,770 metric tons of malt products and 6,159 metric tons of beer products compared to just 17,592 metric tons and 878 metric tons of malt products and beer products, respectively, in 2009. As the largest malt producer and one of the leading beer producers in Shandong Province, we benefit from economies of scale and a broader distribution network than our local competitors. Additionally, by internally producing the malt for our beer, we are able to keep costs low and offer attractive incentives to our beer distributors. Our malt is now distributed to breweries across three provinces, our beers are distributed by retailers in seven provinces, and we look forward to further expanding our footprint in the coming months and years. Lastly, as we further increase our capacity utilization we expect to benefit from significant operating leverage and thereby increase profitability as we continue to raise our production levels. ”

Mr. Zhang continued, “The beer industry in China continues to grow rapidly and Chinese consumers perceive Tsingyuan beer to be an excellent value that is well-crafted yet moderately priced. Given the rapid urbanization, increasing disposable income of the Chinese consumer, and the relatively low per capita consumption of beer in China, we believe the demographic trends that have helped bolster domestic beer demand will continue for many years. Our 2010 performance clearly demonstrates that we are well-positioned to exploit the growth trends in this rapidly evolving market.”

2010 Financial Highlights

Revenue for the year ended December 31, 2010, increased 338.8% to $52.3 million, as compared to $11.9 million for the 2009. Gross profit increased 345.7% to $11.8 million, as compared with $2.6 million for 2009. Operating income increased 371.2% to $11.0 million as compared with $2.3 million for 2009. Net income for 2010 increased 392.5% to $8.3 million, or $0.07 per basic and diluted share, as compared with $1.7 million, or $0.01 per basic and diluted share, for 2009.

The Company ended the year at December 31, 2010, with $1.1 million in cash and cash equivalents, no debt and $21.2 million of shareholder’s equity.

About Tsingyuan Holding Inc.

Tsingyuan Holding Inc., located in Shandong province, is a leading manufacturer and distributor of brewer’s malt and beer throughout northern and eastern China. Tsingyuan Holding has two business lines: brewer’s malt and beer production. The brewer’s malt is currently shipped to brewers in three provinces across China. The beer products are distributed throughout seven provinces, and are well-renowned for their high quality yet affordable price. The company utilizes the latest German brewing techniques and uses the highest quality barley, water and hops. Tsingyuan promotes eight products under its trademarked brand names “Qinglin,” “Qingyi,” and “Qingyuan.”

21 Apr. 2011

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