NEWS
BULLETIN
Wednesday, April 22, 1998
CBR BREWING COMPANY REPORTS
RECORD YEAR-END EARNINGS
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Los Angeles, California, April 22, 1998 --- CBR Brewing Company,
Inc (OTC:CBRB), the leading foreign label beer producer and marketer
in China, today reported that net income for the year ended December
31, 1997 increased to a record $3,706,374, or $0.46 per share, compared
with net income of $2,435,158 or $0.30 per share, for 1996.
"CBR's 1997 financial results reflect the company's position
as one of the most established and profitable brewing companies
in China through its exclusive sublicense of the Pabst Blue Ribbon
brand", said Chen Zi Shou, President of CBR Brewing Company.
"Our results were achieved primarily through a shift of product
mix to respond to the changing market conditions, together with
continued productivity gains."
"Through intensive acquisition, marketing and sales programs,
we are preparing for a year of steady growth for CBR in 1998,"
said Mr. Chen. "We expect to further capitalize on the brand
recognition of Pabst Blue Ribbon in China as we aggressively push
to increase our market share in China's beer market, the second
largest in the world. We see extremely attractive acquisition opportunities
throughout the highly fragmented Chinese brewing industry. CBR is
extraordinarily well-positioned to continue its industry leading
growth well into 1998 and beyond."
Net sales for the year ended December 31, 1997 were $140,877,890,
compared with net sales of $148,587,666 for 1996. The decrease in
net sales is primarily attributable to the company's elimination
of mineral water, non-carbonated soft drinks and red wine in 1997.
Approximately 99% of total sales in 1997 were from products with
the Pabst Blue Ribbon brand name, compared with 94% in 1996.
For the year ended December 31, 1997, total gross profit was $25,099,614,
an increase of 7% over gross profit of $23,390,173 for the year
ended December 31, 1996. Gross margin from beer sales increased
to 17.8% compared with 16.3% in 1996, resulting from a shift in
the sales mix to higher margin products in 1997 in response to changing
market conditions, as well as the effect of cost control measures.
"Our expanded advertising and marketing programs are designed
to stimulate consumer demand, provide distributor incentives and
to maintain the market position of Pabst Blue Ribbon Beer in China.
Combined with our acquisition strategy, these programs are the foundation
of our growth plan for 1998 and 1999," concluded Mr. Chen.
CBR Brewing is a US company whose subsidiary companies are engaged
in the production, distribution, and sales of Pabst Blue Ribbon
Beer in China, via license from Pabst Brewing Company USA. China
has recently become the world's second largest beer producer. Pabst
Blue Ribbon was first produced in China in 1990 and is now the second
leading premium beer in China behind 80 year old Tsing Tao Beer.
Pabst Blue Ribbon is the leading foreign label beer sold in China
today.
(Note: Statements in this press release which are not historical
may be deemed forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Although CBR Brewing
Company believes the expectations reflected in any forward-looking
statements are based on reasonable assumptions, it can give no assurance
that its expectations will be attained. Factors that could cause
actual results to differ materially from CBR Brewing Company's expectations
include completion of pending acquisitions, continued availability
of acquisitions, the availability and cost of capital for acquisitions
and for renovations, the ability to maintain existing licenses,
competition within the brewing industry, foreign exchange fluctuations,
China's economic conditions, and other risks detailed from time
to time in CBR Brewing Company's SEC reports, including quarterly
reports on Form 10-Q, reports on Form 8-K and annual reports on
Form 10-K)
[Financial Tables Follow]
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| CBR Brewing
Company, Inc. and Subsidiaries
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Year Ended
December 31,
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1997 |
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1996 |
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| Consolidated
Statements of Income Data: |
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Sales, net
of sales taxes |
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$140,877,890 |
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$148,587,666 |
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Gross profit |
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25,099,614 |
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23,390,173 |
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Operating income |
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1,351,188
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|
3,051,263
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Net income |
|
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3,706,374
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2,435,158
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Net income
per common share |
$0.46
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$0.30
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| Consolidated
Balance Sheet Data: |
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Net working
capital (deficiency) |
$(12,376,537)
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$(10,066,796)
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Total assets |
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100,613,799
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99,578,572
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Long-term liabilities |
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1,989,500
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1,911,150
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Advance from
shareholders |
8,869,585
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8,869,585
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Shareholders'
equity |
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$21,488,118
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$17,781,745
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