Core Viewpoint - Tsingtao Brewery has terminated its proposed acquisition of Jimo Yellow Wine Factory due to unmet conditions for completion [1][2]. Group 1: Acquisition Details - The original agreement, announced in May, involved Tsingtao acquiring Jimo Yellow Wine for 665 million yuan (approximately $92 million), purchasing 45.45% from Hiking Group and 54.55% from Lujin Group [2]. - Tsingtao aimed to expand its non-beer business portfolio and promote diversified development through this acquisition [2][3]. Group 2: Product and Market Impact - Jimo Yellow Wine produces huangjiu, a traditional Chinese yellow wine, which is typically brewed using rice, wheat, and millet [3]. - The acquisition was expected to enrich Tsingtao's product line, expand market channels, and provide consumers with more diverse choices [3][4]. - Tsingtao anticipated that the complementary nature of Jimo Laojiu and its beer products would enhance market competitiveness and create new growth points [4]. Group 3: Financial Performance - In the first half of 2025, Tsingtao Brewery reported a revenue increase of 2.1% year-on-year to 20.49 billion yuan, with operating profit rising 6.9% to 5.25 billion yuan and net profit up 6.8% to 3.97 billion yuan [5].
Tsingtao calls off planned purchase of Jimo Yellow Wine