Guangdong Brewery Holdings said yesterday it would meet its profit forecast of more than $90 million for last year, even though production fell short of target.
Financial controller Donald Chau Kam-wing said last year's profit was on target because it had taken into account the negative impact of an exceptionally long, rainy winter when the forecast was made last August.
The brewery spin-off from Guangdong Investment produced about 140,000 tonnes of beer last year - about 30,000 tonnes below the original forecast.
It has scaled back its production target this year to between 250,000 tonnes and 270,000 tonnes, down from 280,000 tonnes set last year based on recent market surveys.
Guangdong Brewery has an annual production capacity of 400,000 tonnes after its second factory in Shenzhen, with annual production capacity of 200,000 tonnes, came into operation last month.
The earlier than expected completion of the second brewery plant and a fall in the deutschemark helped save the company about $60 million, or 6 per cent of estimated investment.
Mr Chau said: 'We have basically made all [necessary] investments in the two factories [in Shenzhen]. We do not expect there is the need to make big capital investment this year.