On February 5, CR Snow Beer and Kingway Brewery Holdings Limited signed a agreement for CR Snow Beer’s acquisition of the beer production, distribution and sales businesses of Kingway Brewery as well as its relevant shareholder loans and debts and seven Kingway breweries in Chengdu, Dongguan, Foshan, Shantou, Tianjin, Xi'an and Shenzhen, with a total yearly capacity of 1.45 million ton, at a consideration of 5.38 billion yuan.

According to CR Snow Beer, Kingway beer is well recognized by consumers for its good quality and enjoys a remarkable market share, sound distribution network and competent production equipment in China, especially in Guangdong Province. The acquisition will help increase the production capacity and economies of scale of CR Snow Beer, further complete its distribution network in China and constantly promote the leading position of CR Snow Beer in the beer Industry of China.

Statistics show that as of the end of 2011, the sales volume of Kingway Beer was 934,000 ton, realizing a business turnover of 1.7 billion yuan. Meanwhile, the sales volume of CR Resource was 10.235 million ton, realizing a business turnover of 26.689 million yuan. After the acquisition of Kingway Brewery, the production capacity of CR Resource will be increased from 17 million ton in 2012 to 18.45 million ton this year.