Profits of Tsingtao Brewery rises 21.62% in H1 of 2011

Tsingtao Brewery Co., China's second-largest brewer by volume, said that its first-half profits rose 21.62% year-on-year due to higher sales volume and expanded production capacity.

Net profits rose to 989.9M Yuan (US$155M), or 0.73 Yuan/share, from 813.9M Yuan, 0.6Yuan, one year earlier.

Sales climbed 21.1% to 11.87billion Yuan. The company sold 3.75M kilolitres of beer during the first half, a rise of 20.6% year-on-year.

The brewer increased its production capacity and introduced diversified products to cater to growing demand in the world's most populous country.

The company aims for annual beer sales of 10M kilolitres in 2014.

However the company said exchange rate fluctuations are likely to affect its margins as it relies on imported barley to brew beer.

The countries beer output increased 11.4% from one year earlier to 23.5M kilolitres during the first half, according to data from the National Bureau of Statistics.

Outsourcing your Manufacturing to China.

The main reason for outsourcing manufacturing to China are the low labour costs which allow components/products to be manufactured competatively. Many companies, world wide, manufacture goods competatively in China and other low cost areas. Below, are some of the things to consider when outsouring:

1. Ensure that your product can be manufactured easily and it is essential that a cost reduction exercise is carried out to investigate improvements for manufacture.
2. Re-assess the strategies of your Company to ensure the benefits of outsourcing and offshore manufacturing achieve the goals your company requires.
3. Research your prospective Outsourcing requirement and process.
4. Costs which need to be considered, and are normally overlooked, are the costs for Project Managements and Travel. Doing outsourcing yourself, may eventually cost your savings generated in your manufacture.
5. Use a recognised outsourcing company like SOURCE-IN-ASIA TODAY LIMITED to generate prospective suppliers in China to carry out your work.
6. Ensure, that through your Outsourcing Company, dedicated lines of communication are available, especially in English.
7. Give as much information relating to the product, including any previously encountered difficulties and concerns, as these need to be included in the setting up of the product, to maintain a like for like situation. REMEMBER, you cannot expect the product to be improved by outsourcing.
8. Using a UK outsourcing company will allow you pass all the required information to the Chinese supplier, as the company should visit the supplier to discuss the project and go through the requirements face to face, as SOURCE-IN-ASIA TODAY LIMITED would do.
9. Get your outsourcing company to give you as much information as possible on the supplier who will be carrying out your manufacturing. Information to obtain are items like a process audit for your product, Company Information, Accreditations for Quality Requirements.
10. Before placing large orders, place a sample order, obtaining as much manufacturing information as possible. This will allow you to go through the sample batch in detail and understand the quality and whether they meet your expectations of the product. This will also allow you to carry out possible changes prior to volume production.
11. Make sure that your outsourcing sourcing company is using suppliers which conform to the Environmental/Ethical policy for companies in China.
12. Transportation is also a cost which needs to be taken into account when outsourcing, as again, these costs can be large. Using an outsourcing company will ensure that the goods are transported by a reputable company, at the most economical solution, air freight or sea freight. All costs should include door to door carriage, insurance, duties and taxes.

For further information please visit SOURCE-IN-ASIA TODAY LIMITED website www.source-in-asiatoday.co.uk or contact lynnjones@source-in-asiatoday.co.uk