Fosun to Acquire 17.99% in Tsingtao Brewery

SHANGHAI and HONG KONG, December 20, 2017

Fosun International Limited and its subsidiaries announced today the signing of an agreement with Asahi Group Holdings, Ltd. to acquire 243,108,236 H-shares in Tsingtao Brewery Company Limited for HKD27.22 per share. The total consideration of approximately HKD6.6bn will upon completion, see Fosun owning approximately 17.99% in the total issued shares in Tsingtao.

Tsingtao, one of the oldest beer producers in China, was founded in 1903 by German and British merchants under the name Nordic Brewery Co., Ltd. Tsingtao Branch. Today, Tsingtao continues to be a leading brewery in China, now the world’s largest beer market with sales into more than 100 different countries and regions. With more than 60 breweries across 20 provinces, municipalities and autonomous regions in China, Tsingtao produces 8 billion liters annually.

Tsingtao has a product matrix including middle and high-end products, and its leading brands include Tsingtao, Laoshan, and Hans, etc. In the first three quarters of 2017, Tsingtao recorded total revenues of RMB 23.38 billion (c.US$3.5 billion) and a net profit of RMB1.87 billion (c.US$276 million).

“Tsingtao is both a leading brewery in China, and a leading Chinese brand that has successfully penetrated the international markets. We are delighted to be the shareholder and strategic partner of Tsingtao,” said Mr Guo Guangchang, Chairman of Fosun International. “By partnering Tsingtao’s brand and product mix with Fosun’s efficient operating model and global happiness ecosystem, we are confident of Tsingtao’s future prospects. In its pursuit to better serve customers by leveraging the consumption upgrade in the brewery market, Tsingtao’s brand value and market share can be further enhanced.”

Huang Kexing, President of Tsingtao said: “We are very pleased to welcome Fosun as the shareholder of Tsingtao. Leveraging the resource synergies generated from the partnership, it is expected that Tsingtao can create new opportunities and drive future growth.”

Pursuant to the announcement, the proposed transaction is expected to close in the first quarter of 2018.

About Fosun

Fosun International Limited is a family focused multinational company that has been listed on the main board of the Hong Kong Stock Exchange (00656:HK) since 2007. Founded in 1992, Fosun’s total assets exceed RMB500 billion (c.US$75 billion). With its roots in China, and through technology and innovation, Fosun’s mission is to create customer-to-maker (C2M) ecosystems in health, happiness and wealth, providing high-quality products and services for families around the world.

About Tsingtao Brewery

Tsingtao Brewery Co., Ltd., one of the oldest beer producers in China, was founded in 1903 by German and British merchants under the name Nordic Brewery Co., Ltd. Tsingtao Branch. The brand value of Tsingtao is as high as RMB 129.762 billion, making Tsingtao the top Chinese beer company among the world’s top 500 brands.

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