CHINA RES BEER continues to see growth in its beer operations, but the pressure from its baijiu business has yet to ease. On August 19, the company released its interim results for 2026. In the first half of the year, the company posted revenue of RMB 24.24 billion, up 1.2% year-on-year, while net profit attributable to shareholders fell 10.7% to RMB 5.169 billion. Net cash inflow from operating activities rose 5.6% to RMB 6.729 billion.

The profit decline was mainly attributed to a high base of one-off gains recorded in the same period last year. In the first half of 2025, CHINA RES BEER recognised approximately RMB 827 million in gains related to the joint venture and relocation of its Shenzhen headquarters. This figure dropped to around RMB 80 million in the same period this year.

Compared with the group's overall profit performance, the beer main business has shown a more stable trend, with improvements in volume, price, and scale. In the first half, beer sales volume reached approximately 6.6 million kilolitres, up 1.7% year-on-year. Revenue from the beer segment grew 2.2% to RMB 23.67 billion, while the average selling price rose 0.5% year-on-year. Among this, sales of premium and above beer increased by over 10% year-on-year, with their share of total volume climbing further to above 26%. Mid-range and above beer sales grew by about 15%.

Heineken maintained sales growth of over 20%, while Laoshan surged more than 40% and Amstel grew over 80%. The three new premium products launched in the second quarter, Snowflake Gold Label, Snowflake White Beer, and Brave the World SuperDry Draft, contributed over 7% of the incremental sales volume for the premium and above segment. However, the price increases driven by premiumisation have not yet fully offset the cost and expense pressures.

At the results briefing, Executive Director and Board Chairman Zhao Chunwu explained the profit performance, citing non-operating gains from the same period last year, rising material costs, and increased expense investment. He noted that the company has continued to increase investment in mainstream mid-range products and newly launched products in the second quarter to cultivate growth momentum.

Zhao pointed out that national beer production remained broadly flat in the first half, with premium and mid-range and above products generally growing, while low-to-mid-end products saw notable declines, leading to a slight increase in overall industry volume. Against this backdrop, different companies have adopted varied strategic approaches. CHINA RES BEER believes that in large-scale industrial production, scale remains a key factor.

Compared with beer, baijiu continues to be the more obvious drag. In the first half, the baijiu segment recorded revenue of 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 decline of over 60%. CHINA RES BEER described the current baijiu industry as experiencing "sluggish overall volume, structural divergence, and high inventory levels."

During the first half, the company further contracted and reorganised its distribution channels, including phasing out inefficient and seriously non-compliant distributors, stabilising prices, curbing cross-regional selling and finished goods inventory, while expanding e-commerce, instant retail, and direct sales channels within the China Resources system. For the second half, the company will continue to prioritise "growth" in its beer business, expanding core premium products and advancing premium and innovative offerings. For baijiu, the focus remains on core markets, price stability, channel governance, and refined operations.

Notably, despite the decline in attributable net profit 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.