Yanjing Beer has announced that it is to form a new company in Cangzhou, Hebei Province, trading as Hebei Yanjing Beer Company.

The new company will be set up with an investment of CNY50m (US$6.2m) and will be 99%-owned by Beijing Yanjing Brewery Co., Ltd., with Beijing Yanjing Beverage Co., Ltd. owning the remaining 1%.

The aim is to reinforce the Chinese brewing group's position in the Hebei Province market. Hebei Yanjing Beer Company is expected to be up and running by next May.

Yanjing Beer posted sales of CNY1.889bn (US$234.0m) for the third quarter of 2005, up 18% from last year, with net profit for the quarter rising by 8.6%. For the first three quarters of 2005, net profit rose by 6.8% to CNY282m (US$34.9m), on sales up 15.3% at CNY4.46bn (US$550.8m).