Tsingtao Brewery Co. has posted a healthy lift in sales and profits for 2007.

The Chinese company, which is 27%-owned by Anheuser-Busch, said today (22 April) that net profit last year leapt by 15.8% on 2006, hitting CNY558.1m (US$79.8m). Sales also headed north, climbing by 11% in volume terms to 5.05bn litres, and by 15.9% in value terms to CNY13.5bn. Tsingtao's namesake flagship beer brand delivered a sales increase of 19% in volume terms to 1.93bn litres.

Operating costs also rose sharply, however, leaping by 13.9% year-on-year, due in part to soaring wheat prices. Going forward, rising raw material costs, coupled with the appreciation of the yuan, will make their presence felt more keenly in 2008, the company said.

Tsingtao said it will pay shareholders CNY2.2 per 10 shares by way of an annual dividend.

The profit figures may be due for revision, however. Earlier this week, Tsingtao said that net profit for the first nine months of last year was CNY560.2m, as opposed to the CNY695.4m initially posted. The change came about after the tax authority of Qingdao alerted Tsingtao that its income tax rate for last year was actually 33% as opposed to the 15% used in its financial results.