Beijing Yanjing Brewery Co., Ltd. is principally engaged in brewery and distribution of beer. The Company provides its products under the brands named Yanjing, Liquan, Huiquan and Xuelu. The Company also provides mineral water, raw materials of beer, feedstuffs, yeast and plastic boxes, among others. The Company distributes its products in domestic market, with North China and South China as its major markets. During the year ended December 31, 2010, the Company produced and sold out approximately 5.03 million kiloliters of beer.

The Yanjing Beer Group was established in 1993, but early in 1980 its brewery was founded. During the course of its development, the Yanjing Beer Group adheres to the business idea of “conducting ourselves lovingly, doing our work honestly, and undertaking our business creditably”. The Yanjing Beer Group has taken the road of development by inner expanded and rotating reproduction, with its practical strength raised due to annual technological renovation. The Yanjing Beer Group promotes self-development through technological progress, establishes a national-level scientific research center, introduces professional talents, and grasps market opportunities by reliance on science and technology. Actively involved in the market, the Yanjing Beer Group takes the lead in setting up a consummate marketing network to meet the demand of market economy. At present, Yanjing beer covers a market share of more than 11% nationwide, including 50% of the market share in North China and 85% of the market share in Beijing. The Yanjing Beer Group actively completed the stock system reconstruction and pursued the transformation from product operation to both product and capital operation. In 1997, the Yanjing Beer Group was listed (went public) in the stock markets of both the mainland and Hong Kong. The special mode of the “A-stock status on a Red-chip background” provided abundant funds for the rapid and steady development of the Yanjing Beer Group. The Yanjing Beer Group elaborately creates its corporate culture by a long-term cultivation of the spirits of “being wholeheartedly dedicated to work, starting an undertaking through hard labor, struggling against formidable tasks, working with the overall situation in mind in tandem with the colleagues, and sharing the worries of the enterprise as the enterprise owner”. The Yanjing Beer Group practices the wage system of combining the dedication to work with the stimulation mechanism in pursuit of the rapid, steady and healthy development of the enterprise.