NEWS
BULLETIN
Friday, April 20, 2000
CBR Brewing Company, Inc. Reports
2000 Operating Results
HONG KONG, April 20 /PRNewswire
Interactive News Release/ -- CBR Brewing Company, Inc. (OTC Bulletin Board:
CBRB - news; the "Company") announced the results of its operations for the
year ended December 31, 2000, reporting net sales of $113,391,270 and net loss
of $3,482,553, as compared to net sales of $118,850,462 and net income of
$2,850,012 for the year ended December 31, 1999. Net loss per common share
(basic and diluted) was $0.43 per common share in 2000 as compared to net income
per common share (basic and diluted) of $0.36 in 1999. Weighted average common
shares were 8,010,013 in 2000 and 1999 (basic and diluted).
During the years ended December
31, 2000 and 1999, the Company sold 195,510 metric tons and 204,226 metric tons
of beer, respectively, a decrease of 4.3%. Beer sales decreased in 2000 as compared
to 1999 as a result of a decrease in volume of beer sold, reflecting a weakening
in consumer demand for foreign branded premium beers in China and the intense
competition among all breweries in China. The Company expects that these pressures
will continue in 2001, resulting in a net loss for at least the three months ending
March 31, 2001. Although the Company has commenced an overhaul of its operations
and marketing programs in order to return to profitability in the near future,
there can be no assurances that the Company will be successful in this regard.
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
December 31, 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., an affiliated company, which expires concurrently with the expiration of
the existing master license agreement between Guangdong Blue Ribbon Group Co. Ltd.
and Pabst Brewing Company on November 6, 2003.
In May 1999, Noble China Inc.,
a public company listed on the Toronto Stock Exchange, 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 of the Company has met
with representatives of Noble China Inc. in an attempt to explore a potential
relationship subsequent to November 2003, and a management committee was established
to evaluate and implement measures to improve the coordination of human, financial,
production and marketing activities related to the production and marketing of Pabst
Blue Ribbon beer in China. Management is currently unable to predict the effect that
this development may have on the Company's operations subsequent to November 2003.
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 (310) 274-5172.
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