Tsing Tao Brewery

Tsing Tao Brewery

1. I believe the profit and dividend forecast is the more important. These areas of the prospectus give you an indication of what the returns for your investment can provide down the road.

2. 317,600,000 H shares will be listed at a price of $2.80 HKD on the HK stock exchange.

3. 100,000,000 A shares will be listed at 6.38 RMB on the Shanghai Market

4. 317,600,000 X 2.8 = 889,280,000 H Shares; 100,000,000 x 6.38 = 638,000,000 RMB A Shs

5.

| |1990 |1991 |1992 |

|Oper Profits |12,887,000 |47,969,000 |101,947,000 |

|Profit after Tax |19,568,000 |28,948,000 |32,138,000 |

6. Forecast 141,000,000 HKD, 32,138,000 was the profit in 1992.

7. There is a concern from the foreign currency loans, possible loss exposure. Also, the profit forecast for 1993 doesn’t seem reasonable with the 1992 figures.

8. The P/E ratio is 17.89 or 12.80 depending on how it’s calculated in the notes.

9.

| |Forecast earning (1993) |Number of shares |H Share Price (RMB) |Earning Per Share |P/E Ratio |

|Fully diluted |193,000,000 |644,037,260 |3.836 |0.2997 |12.8 |

|Prospective |193,000,000 |900,000,000 |3.836 |0.2144 |17.89 |

10. I think the prospective is more reasonable for the investor since it is less optimistic than the fully diluted amount.

11. Devaluation of the RMB caused a headache to the bankers.

12. AB was interested in making this purchase as a way to tap into the Chinese beer market. It was an easy way to gain access to the market by purchasing shares.

13. Due to the high amount...