updated 4/18/2011 8:16:24 AM ET 2011-04-18T12:16:24

NEW YORK and SHANDONG, China, April 18, 2011 (GLOBE NEWSWIRE) -- Tsingyuan Holding Inc. (OTCQB:BEER), a Shandong-based leading manufacturer and distributor of brewer's malt and beer in China, today announced its 2010 financial results and provided a business update.

Full Year Highlights

  • Revenue increased 338.8% to $52.3 million compared to $11.9 million for 2009
  • Gross profit increased 345.7% to $11.8 million versus $2.6 million for 2009
  • Operating income increased 371.2% to $11.0 million versus $2.3 million for 2009
  • Net income for 2010 increased 392.5% to $8.3 million, or $0.07 per basic and diluted share, versus $1.7 million, or $0.01 per basic and diluted share, for 2009

Zhang Dingyou, Chief Executive Officer, commented, "We are very pleased to report a 339 percent increase in revenue to $52.3 million for 2010 and a 393 percent increase in net income to $8.3 million for the full year. In 2010, we produced 72,770 metric tons of malt products and 6,159 metric tons of beer products compared to just 17,592 metric tons and 878 metric tons of malt products and beer products, respectively, in 2009. As the largest malt producer and one of the leading beer producers in Shandong Province, we benefit from economies of scale and a broader distribution network than our local competitors. Additionally, by internally producing the malt for our beer, we are able to keep costs low and offer attractive incentives to our beer distributors. Our malt is now distributed to breweries across three provinces, our beers are distributed by retailers in seven provinces, and we look forward to further expanding our footprint in the coming months and years. Lastly, as we further increase our capacity utilization we expect to benefit from significant operating leverage and thereby increase profitability as we continue to raise our production levels. "

Mr. Zhang continued, "The beer industry in China continues to grow rapidly and Chinese consumers perceive Tsingyuan beer to be an excellent value that is well-crafted yet moderately priced. Given the rapid urbanization, increasing disposable income of the Chinese consumer, and the relatively low per capita consumption of beer in China, we believe the demographic trends that have helped bolster domestic beer demand will continue for many years. Our 2010 performance clearly demonstrates that we are well-positioned to exploit the growth trends in this rapidly evolving market."

2010 Financial Highlights

Revenue for the year ended December 31, 2010, increased 338.8% to $52.3 million, as compared to $11.9 million for the 2009. Gross profit increased 345.7% to $11.8 million, as compared with $2.6 million for 2009. Operating income increased 371.2% to $11.0 million as compared with $2.3 million for 2009. Net income for 2010 increased 392.5% to $8.3 million, or $0.07 per basic and diluted share, as compared with $1.7 million, or $0.01 per basic and diluted share, for 2009.  

The Company ended the year at December 31, 2010, with $1.1 million in cash and cash equivalents, no debt and $21.2 million of shareholder's equity.

About Tsingyuan Holding Inc.

Tsingyuan Holding Inc., located in Shandong province, is a leading manufacturer and distributor of brewer's malt and beer throughout northern and eastern China. Tsingyuan Holding has two business lines: brewer's malt and beer production. The brewer's malt is currently shipped to brewers in three provinces across China. The beer products are distributed throughout seven provinces, and are well-renowned for their high quality yet affordable price. The company utilizes the latest German brewing techniques and uses the highest quality barley, water and hops. Tsingyuan promotes eight products under its trademarked brand names "Qinglin," "Qingyi," and "Qingyuan."

This release contains certain "forward-looking statements" relating to the business of the Company. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website ( www.sec.gov ). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.

– financial tables follow –

TSINGYUAN BREWERY LTD. AND SUBSIDIARIES
(formerly known as SABRE INDUSTRIAL, INC.)
CONSOLIDATED BALANCE SHEETS
  December 31,
  2010 2009
     
ASSETS    
Current Assets:    
Cash and cash equivalents  $ 1,117,383  $ 3,731,802
Accounts receivable  2,710,730  505,464
Inventories  2,358,178  569,886
Advances to suppliers  214,671  --
Other receivables  35,945  --
 Total Current Assets  6,436,907  4,807,152
     
Plant and equipment, net of accumulated depreciation of $2,747,621 and     
$1,675,766 at December 31, 2010 and 2009, respectively  17,462,287  16,836,710
Deferred tax assets  --  71,158
Intangible asset, net  1,442,271  1,419,029
     
Total Assets  $ 25,341,465  $ 23,134,049
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
Current Liabilities:    
Short-term loans  $ -- $ 6,581,642
Accounts payable and accrued expense  346,798  3,835,656
Advances from customers  322,943  --
Taxes payable  2,978,635  91,834
Due to related parties  519,381  371,106
Total Current Liabilities  4,167,757  10,880,238
     
Stockholders' Equity:    
Preferred stock, Series B - ($0.001 par value, 1,000 authorized, no

shares issued and outstanding)
 --  --
Common stock ($0.0001 par value, 300,000,000 shares authorized,

126,857,289 and 125,107,671 shares issued and outstanding)
 126,857  125,108
Additional paid in capital  11,012,046  11,033,425
Statutory surplus reserves  832,981  --
Retained earnings (accumulated deficit)  7,155,952  (264,851)
Accumulated other comprehensive income  2,045,872  1,360,129
Total Stockholders' Equity  21,173,708  12,253,811
Total Liabilities and Stockholders' Equity  $ 25,341,465  $ 23,134,049
 
TSINGYUAN BREWERY LTD. AND SUBSIDIARIES
(formerly known as SABRE INDUSTRIAL, INC.)
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
     
  For the Year Ended December 31,
  2010 2009
     
Sales  $ 52,303,074  $ 11,919,013
Cost of goods sold  40,510,932  9,273,236
Gross profit  11,792,142  2,645,777
     
Operating expenses:    
General and administrative expenses  569,295  307,092
Selling expenses  232,604  6,280
Total operating expenses  801,899  313,372
     
Income from operations  10,990,243  2,332,405
     
Other income (expense):    
Interest expense  (119,637)  (893,090)
Interest income  16,947  321,491
Other income  127,542  476,933
Total other income (expenses)  24,852  (94,666)
     
Income before income taxes  11,015,095  2,237,739
Income taxes expense  2,761,311  561,767
     
Net income attributable to common stockholders  8,253,784  1,675,972
     
Other comprehensive income:    
Foreign currency translation adjustment  685,743  27,134
Comprehensive income $ 8,939,527 $ 1,703,106
     
Earnings per share - basic and diluted:     
Weighted-average shares outstanding, basic and diluted  125,630,160  125,107,671
Earnings per share, basic and diluted $ 0.07 $ 0.01
 
TSINGYUAN BREWERY LTD. AND SUBSIDIARIES
(formerly known as SABRE INDUSTRIAL, INC.)
CONSOLIDATED STATEMENTS OF CASH FLOWS
     
  For the Year Ended December 31,
  2010 2009
     
CASH FLOWS FROM OPERATING ACTIVITIES     
Net income   $ 8,253,784  $ 1,675,972
Adjustments to reconcile net income to net cash 

provided by operating activities: 
   
Depreciation and amortization   1,013,063  501,153
Income tax expense   71,972  546,204
Changes in operating assets and liabilities:     
Accounts receivable   (2,131,757)  (133,310)
Advances to suppliers   (207,828)  2,519,407
Inventories   (1,722,855)  (234,425)
Other receivables   (36,526)  --
Accounts payables and accrued expense   (3,541,384)  3,605,484
Taxes payable   2,811,328  53,509
Advances from customers   314,874  --
Total adjustments   (3,429,113)  6,858,022
Net cash provided by operating activities   4,824,671  8,533,994
     
CASH FLOWS FROM INVESTING ACTIVITIES     
Purchase of intangible assets   --  (268,791)
Purchase of plant and equipment   (980,784)  (9,210,161)
Net cash used in investing activities   (980,784)  (9,478,952)
     
CASH FLOWS FROM FINANCING ACTIVITIES     
Proceeds from short-term loans   --  9,209,341
Repayments to short-term loans   (6,656,903)  (16,079,803)
Proceeds from related parties   1,696,475  --
Repayment to related parties   (1,584,560)  9,603,670
Net cash (used in) provided by financing activities   (6,544,988)  2,733,208
     
NET (DECREASE) INCREASE IN CASH   (2,701,101)  1,788,250
     
EFFECT OF EXCHANGE RATE CHANGES ON CASH   86,682  5,781
     
CASH, BEGINNING OF YEAR   3,731,802  1,937,771
CASH, END OF YEAR   $ 1,117,383  $ 3,731,802
CONTACT: Crescendo Communications, LLC
         David Waldman or Vivian Huo
         Tel: 212-671-1020 ext. 304
         E-mail:  beer@crescendo-ir.com

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