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2007-12-5 09:07:00 a.m. HKT, XFNA
Hong Kong-listed Kingway Brewery issues 2007 profit warning
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HONG KONG (XFN-ASIA) - Kingway Brewery Holdings Ltd said the group may
experience a ""a significant decline"" in net profit this year or even incur an
operating loss.
It blamed several factors, including a decrease in the average unit price
of its beer due to a shift toward more mass-market oriented products.
It also cited an increase in the average unit fixed costs of its products
due to the commencement of operation of its new plants in Xian and Chengdu in
the first half of this year.
The company also cited increased prices of raw materials, such as malt,
and increased administrative expenses due to expansion.
The group's finance costs also rose as Kingway increased its bank
borrowings during the year.
Kingway said its forecast of a decline in profit and a possible operating
loss was based on preliminary estimates.
Heineken-APB (China) Pte Ltd holds 21 pct of the mainland brewery.
jun.concepcion@xfn.com xfnjcc/xfjamesa
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