NEWS
BULLETIN
Tuesday, August 15, 2000
CBR Brewing Company, Inc. Reports
Second Quarter 2000 Operating Results
HONG KONG, Aug 15, 2000
/PRNewswire via COMTEX/ -- CBR Brewing Company, Inc. (OTC Bulletin Board:
CBRB) (the "Company") announced its results of operations for the three
months ended June 30, 2000, reporting net sales of $33,834,563 and net
income of $539,886, as compared to net sales of $33,523,810 and net income
of $928,915 for the three months ended June 30, 1999. Net income per common
share (basic and diluted) was $0.07 in 2000 as compared to $0.12 in 1999.
Weighted average common shares outstanding (basic and diluted) were 8,010,013
in 2000 and 1999.
For the six months ended
June 30, 2000, the Company reported net sales of $69,615,145 and net income
of $1,112,751, as compared to net sales of $67,212,069 and net income
of $1,831,304 for the six months ended June 30, 1999. Net income per common
share (basic and diluted) was $0.14 in 2000 as compared to $0.23 in 1999.
Weighted average common shares outstanding (basic and diluted) were 8,010,013
in 2000 and 1999.
During the three months
ended June 30, 2000 and 1999, the Company sold 56,625 metric tons and
55,830 metric tons of beer, respectively, an increase of 1.4%. During
the six months ended June 30, 2000 and 1999, the Company sold 115,019
metric tons and 108,393 metric tons of beer, respectively, an increase
of 6.1%. Beer sales increased in 2000 as compared to 1999 primarily as
a result of an increase in the volume of domestic branded beer sold, which
the Company marketed as a result of the weakening in customer demand for
foreign branded premium beer in China. Net income decreased in 2000 as
compared to 1999 primarily as a result of softening sales and increased
marketing, advertising and promotional expenses. The Company expects a
continuing deterioration in net income for the remainder of 2000 as compared
to 1999.
CBR Brewing Company,
Inc., through its subsidiaries and affiliates, is engaged in the production,
distribution and marketing of Pabst Blue Ribbon beer in the People's Republic
of China. As of June 30, 2000, the Company owned effective interests of
60%, 24%, 33% and 9% in four brewing facilities currently producing Pabst
Blue Ribbon beer in the People's Republic of China, all of which are managed
by the Company. The Company produces Pabst Blue Ribbon beer under a sublicense
agreement with Guangdong Blue Ribbon Group Co. Ltd. ("Guangdong Blue Ribbon"),
a related company, which expires on November 6, 2003.
Noble China Inc., a
public company listed on the Toronto Stock Exchange, issued a press release
on May 27, 1999 to announce that it had acquired from Pabst Brewing Company
the exclusive rights to brew and distribute Pabst Blue Ribbon beer throughout
China for a period of 30 years from 2003 to 2033. Management has consulted
with legal counsel regarding the legitimacy of the purported license and
the Company's potential responses. In addition, management has consulted
with Guangdong Blue Ribbon, the current owner of the Pabst Blue Ribbon
trademark in China, regarding potential responses, and has met with representatives
of Noble China Inc. in an attempt to explore a potential settlement.
Management of the Company
has requested that Guangdong Blue Ribbon take appropriate action to protect
its rights and its sub-licensee's rights to utilize the Pabst Blue Ribbon
trademark in China. The Company has been advised that Guangdong Blue Ribbon
is still evaluating the situation and has not yet determined how it will
respond to this matter. Once Guangdong Blue Ribbon has responded, the
Company expects to be in a position to evaluate and revise its future
business plan and strategy accordingly. The Company is currently unable
to predict the effect that this development may have on future operations.
However, the inability of the Company to obtain a sub-license from Noble
China Inc. on acceptable terms and conditions that would allow the Company
to continue to produce and distribute Pabst Blue Ribbon beer in China
would have a material adverse effect on the Company's future results of
operations, financial position and cash flows.
For further information,
contact investor relations at (818) 789-0488.
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