Beer Volume Surge, Baijiu Destocking: CHINA RES BEER's Dual-Track Divergence

CHINA RES BEER's beer business continues to grow, but the pressure from its baijiu segment has not yet subsided.

On August 19, CHINA RES BEER released its 2026 Interim Statements. In the first half of the year, the company achieved a turnover of RMB 24.24 billion, a year-on-year increase of 1.2%; net profit attributable to shareholders was RMB 5.169 billion, a year-on-year decrease of 10.7%. Net cash inflow from operating activities amounted to RMB 6.729 billion, a year-on-year increase of 5.6%.

The decline in profit was mainly affected by higher one-time gains in the same period last year. In the first half of 2025, CHINA RES BEER recognized approximately RMB 827 million in gains related to joint ventures and relocation matters concerning its Shenzhen headquarters. This figure dropped to approximately RMB 80 million in the same period this year.

Compared with the group's profit performance, the operational trend of the core beer business is more stable, with improvements in volume, price, and scale.

In the first half of the year, CHINA RES BEER achieved beer sales volume of approximately 6.6 million kiloliters, a year-on-year increase of 1.7%; beer business turnover reached RMB 23.67 billion, a year-on-year increase of 2.2%, with the average selling price rising by 0.5% year-on-year.

Among these, sales volume of sub-premium and above beers increased by more than 10% year-on-year in the first half, accounting for more than 26% of total sales volume; sales volume of mid-range and above beers grew by approximately 15%.

Heineken sales maintained growth of over 20%, Laoxue grew by more than 40%, and Amstel grew by more than 80%.

The three new sub-premium products launched in the second quarter—Snow Gold Label, Snow White Beer, and Brave the World SuperDry Pure Draft—contributed more than 7% of the incremental sales volume of sub-premium and above products.

However, the price increases driven by premiumization have not yet fully offset the pressures on costs and expenses.

At the results briefing, Zhao Chunwu, Executive Director and Chairman of the Board of CHINA RES BEER, explained the profit performance by stating that, in addition to non-operating gains and other non-comparable factors from the same period last year, as well as rising material costs, the company also increased its expense investments.

Zhao Chunwu stated that the company continued to increase investment in mainstream mid-range products and new products launched in the second quarter to cultivate growth momentum.

He pointed out that national beer production remained flat overall in the first half of the year. Sub-premium and mid-range and above products generally grew, while low-to-mid-end products declined significantly, driving a slight increase in the industry's total volume.

Against this backdrop, strategic judgments vary among different enterprises. CHINA RES BEER believes that in large-scale industrial manufacturing industries, scale remains a key factor.

Compared to beer, baijiu remains a more significant source of pressure.

In the first half of the year, CHINA RES BEER's baijiu business revenue was RMB 570 million, down approximately 27% from RMB 781 million in the same period last year; EBITDA fell from RMB 218 million to RMB 84 million, a drop of more than 60%.

CHINA RES BEER summarized the current baijiu industry as characterized by "sluggish total volume, structural divergence, and high inventory levels."

In the first half of this year, the company further streamlined and organized its channels, including gradually eliminating inefficient and severely defaulting customers, stabilizing prices, controlling cross-region shipments and finished goods inventory, while increasing efforts in e-commerce, instant retail, and direct sales within the China Resources system.

For the second half of the year, CHINA RES BEER will continue to prioritize "growth" in its beer business, further expanding core high-end products and promoting sub-premium and innovative products. For baijiu, it will continue to emphasize core markets, price stability, channel governance, and refined operations.

Notably, despite the decline in net profit attributable to shareholders in the first half, the company raised its Interim Dividend payout ratio from 26% in the same period last year to 28%, with a dividend per share of RMB 0.446.