Chinese Brewery Tsingtao's Profits Rise 27%

Tsingtao Brewery Co., 27% of which is owned by Anheuser-Busch Cos., said profit surged last year as rising incomes allowed Chinese to buy more beer.

Net income climbed 46% to 447.9 million yuan ($58 million), or 0.34 yuan per share, from 306.6 million yuan, or 0.25 yuan a share in 2005, China's oldest brewer said in a statement to the Hong Kong Stock Exchange late Wednesday, citing international accounting standards. Sales rose 17% to 11.7 billion yuan.

Rising affluence and increased marketing spurred a 16% surge in beer sales in China to 83.9 billion yuan last year, generating a profit of 3.68 billion yuan for the industry, according to the country's statistics bureau. Per capita beer consumption in the world's biggest beer market will double to 50 liters a year within a decade, according to Anheuser-Busch.

Tsingtao, which is facing increasing competition from rivals such as InBev NV and Heineken NV, last year lost its position as China's biggest brewer by sales to SABMiller Plc's Chinese venture, according to the London-based brewer.