Beijing Enterprises says interim earnings will be affected by a share reform for unit Yanjing Brewery
Beijing Enterprises Holdings says earnings for the first half of this year will be affected by the share reform of subsidiary Yanjing Brewery.
Under a revised plan, the firm is planning to give shareholders 2.7 non-tradable shares for every 10 tradable shares in China's third-biggest beer maker, at a total cost of $290 million.
Beijing Enterprises Holdings, the Hong Kong-listed investment arm of the municipal government, yesterday reported a 13.3 per cent rise in profit attributable to shareholders to $570.42 million. Turnover rose 13.8 per cent to $11 billion.
Originally, shareholders were to be given 2.1 non-tradable shares for every 10 tradable shares in order to increase the incentive for shareholders to participate in the reform programme.
The official announcement of the new plan, details of which were given at a press conference yesterday, is due to be released today.
'Beijing Enterprises Holdings hopes to book the cost of the Yanjing Brewery share reform in the first half of this year. This would be a one-off impact. Undoubtedly this would pose some pressure on profit attributable to shareholders but we have already communicated with the fund investors,' Tam Zhenfai, chief financial officer of the group, said.
