---
title: "Financial Report | Tsingtao Brewery 2019 Revenue 27.98 Billion Yuan, Net Profit 1.85 Billion Yuan, Up 30.2% Year-on-Year"
description: "This afternoon, Tsingtao Brewery, one of the five major industrial beer giants, released its 2019 performance announcement. According to the financial report, the company achieved revenue of 27.98 billion yuan in 2019, a year-on-year increase of 5.3%; net profit reached 1.85 billion yuan, a significant year-on-year increase of 30.2%. Among them, the main brand Tsingtao achieved revenue of 17.38 billion yuan, up 7.83% year-on-year. Other brands represented by Laoshan achieved revenue of 10.24 billion yuan, a slight increase of 1.21% year-on-year. While revenue grew, the operating cost of Tsingtao Brewery in 2019 increased by 3.17% year-on-year, which the financial report attributed to rising prices of major raw materials and packaging materials and changes in product structure."
author: "New Distribution"
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published: "2020-03-29"
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# Financial Report | Tsingtao Brewery 2019 Revenue 27.98 Billion Yuan, Net Profit 1.85 Billion Yuan, Up 30.2% Year-on-Year

> This afternoon, Tsingtao Brewery, one of the five major industrial beer giants, released its 2019 performance announcement. According to the financial report, the company achieved revenue of 27.98 billion yuan in 2019, a year-on-year increase of 5.3%; net profit reached 1.85 billion yuan, a significant year-on-year increase of 30.2%. Among them, the main brand Tsingtao achieved revenue of 17.38 billion yuan, up 7.83% year-on-year. Other brands represented by Laoshan achieved revenue of 10.24 billion yuan, a slight increase of 1.21% year-on-year. While revenue grew, the operating cost of Tsingtao Brewery in 2019 increased by 3.17% year-on-year, which the financial report attributed to rising prices of major raw materials and packaging materials and changes in product structure.

This afternoon, Tsingtao Brewery, one of the five major industrial beer giants, released its 2019 performance announcement. According to the financial report, **the company achieved revenue of 27.98 billion yuan in 2019, a year-on-year increase of 5.3%; net profit reached 1.85 billion yuan, a significant year-on-year increase of 30.2%.**
Among them, **the main brand Tsingtao achieved revenue of 17.38 billion yuan, up 7.83% year-on-year. Other brands represented by Laoshan achieved revenue of 10.24 billion yuan, a slight increase of 1.21% year-on-year.**
While revenue grew, the operating cost of Tsingtao Brewery in 2019 also increased by 3.17% year-on-year. The financial report stated that this was mainly due to rising prices of major raw materials and packaging materials and changes in product structure.
In addition, **for the revenue growth, Tsingtao Brewery pointed out that the main reason was the optimization of the company's product structure and price increases of some products, leading to an increase in operating income.**
**-01-**
In terms of sales volume, according to the financial report, in 2019, Tsingtao Brewery achieved a total beer sales volume of 8.05 million kiloliters.
Among them, the main brand Tsingtao Beer achieved sales of 4.051 million kiloliters, a year-on-year increase of 3.49%.
High-end products such as "Auguste, Hongyun Dangtou, Classic 1903, and Pure Draft Beer" achieved sales of 1.856 million kiloliters, a year-on-year increase of 7.08%, maintaining the company's competitive advantage in the domestic mid-to-high-end beer product market.
During the reporting period, **Tsingtao Brewery, guided by the market demand for high-end, diversified, and distinctive consumption upgrades in the beer market, promoted the brand strategy of "Tsingtao Beer main brand + Laoshan Beer second brand", continuously optimized product structure upgrades, and accelerated the transformation and upgrading to high value-added products represented by canned beer and craft beer.**
In addition, while continuing to unswervingly strengthen and optimize the beer main business, **Tsingtao Brewery also integrated platform resources to explore new business areas of "Beer+", and developed and produced new products such as marine health drinks represented by Prince Seaweed Soda Water.**
**-02-**
By region, the Shandong region, which achieved nearly 18.3 billion yuan in revenue, still accounted for the highest proportion, with a year-on-year increase of 8.11%. However, the South China region had the fastest revenue growth rate of 8.44%, with operating revenue reaching 3.431 billion yuan. In contrast, the East China region showed a downward trend in operating revenue, with a year-on-year decrease of 5.2% to 2.759 billion yuan, and beer sales volume also decreased by 70,000 kiloliters compared with 2018.
In the financial report, Tsingtao Brewery also specifically pointed out that **the gross margin in the Southeast region increased by 8.52 percentage points year-on-year, mainly due to the optimization of products and price chains in the Southeast region in 2019.**
The financial report also pointed out that China, as the world's largest and most promising beer production and consumption market, after decades of continuous development and adjustment and recovery in recent years, the beer industry has gradually entered a mature stage, forming a relatively stable market competition pattern. **In the future, with economic growth, through further capacity optimization, product structure improvement, and price adjustments, the Chinese beer market still has considerable room for improvement in overall consumption and profit levels. However, the beer industry still faces impacts such as overcapacity, insufficient overall market demand, and greater cost increase pressure, and market competition remains relatively fierce.**
**-03-**
As for the impact and shock of the COVID-19 pandemic on consumer markets such as catering, Tsingtao Brewery frankly stated in the financial report that the company's product sales were also seriously affected. During the period when the epidemic impact was severe, **consumption channels such as catering and nightlife were basically stagnant. From January to February 2020, the company's revenue decreased by about 20% year-on-year, and profit decreased by about 40% year-on-year (unaudited); from March to April 2020, the company's overseas orders and export volume also declined significantly due to the impact of the global epidemic.**
However, Tsingtao Brewery also stated that in the face of the difficult market environment, the company implemented new marketing measures such as "community marketing promotion and contactless delivery", strengthened the construction of the online sales system, and continuously improved the three-dimensional e-commerce channel system of "online supermarket + official flagship store + authorized distribution specialty store + WeChat mall", to meet consumers' multi-variety, convenient, and efficient purchase needs through multiple channels, achieve online and offline resource sharing and complementary advantages, and strive to restore and grow the company's market sales as soon as possible.
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