Sober analysis

China Resources Enterprise expects its loss-making beer unit to have turned around in the second quarter, with newly acquired breweries and demand growth driving earnings, according to chairman Song Lin. Speaking after the red chip's annual shareholder meeting yesterday, Mr Song said he was confident of achieving profitability at the brewing subsidiary this year despite a loss of $35.67 million in the first quarter - down from a loss of $15.49 million in the same period last year. The group's quarterly profit surged 106 per cent to $660 million, including a one-off gain of $209 million from property revaluation and deferred tax.