Tsingtao Brewery has scrapped its proposed acquisition of Chinese rice wine producer Jimo Yellow Wine Factory. 

In a stock exchange filing today (27 October), the brewer said the acquisition transaction had been terminated as “the conditions of the completion have not been met”.  

"The company shall not be liable for any breach of contract arising from the termination of the transfer agreement", it added.

Under the original agreement announced in May, Tsingtao was set to acquire Jimo Yellow Wine for 665m yuan ($92m), purchasing 45.45% of the company from international trade firm Hiking Group and the remaining 54.55% from its subsidiary Lujin Group. 

In a stock exchange filing at the time, Tsingtao said the deal “actively expands the cross-industry portfolio of [our] non-beer business, promotes diversified development and brings new development opportunities for the company in the future”. 

Jimo Yellow Wine makes huangjiu, also known as Chinese yellow wine, under the Jimo Laojiu brand.  

The grain-fermented drink, typically 8–20% abv, is brewed using rice, wheat and millet. 

When the deal was announced, Tsingtao said the acquisition “will further enrich the company’s product line, expand market channels, and provide consumers with more diversified choices”.

It then added: “From the peak and off-peak seasons of market sales, Jimo Laojiu and the company’s beer products can form a complementary effect of market sales, build a cross-category product combination with stronger market competitiveness, and open up new growth points while consolidating the market position of the company’s traditional products, and inject new momentum into the company’s development.”

Tsingtao’s portfolio is largely dominated by beer, including its classic lager, alcohol-free lager and IPA, alongside a Prince-branded soda line. 

In its first half of 2025, Tsingtao Brewery saw revenue increase 2.1% year on year to 20.49bn yuan. Operating profit rose 6.9% to 5.25bn yuan and net profit was up 6.8% to 3.97bn yuan.