Live Coverage of China Resources Beer Earnings Conference: New CEO Zhao Chunwu Fully Supports the Liquor Business and Will Relaunch Some Regional Beer Brands

Source: Times Finance Author: Lin Xinlin

Leading company China Resources Beer is still exploring its second growth curve.

On March 23, China Resources Beer (00291.HK) announced its 2025 performance, achieving a revenue of 37.985 billion yuan, a decrease of 0.76% year-over-year; net profit attributable to shareholders was 3.371 billion yuan, down 28.87%. The company also announced a dividend of RMB 1.021 per share for 2025, a 34.3% increase year-over-year.

Due to goodwill impairment in its baijiu business, China Resources Beer’s profit in 2025 hit a near five-year low.

At the earnings conference, Zhao Chunwu, who has been the chairman of the board for less than a year, expressed support for the baijiu business, stating, “We have long-term confidence in baijiu.” Zhao openly said that China Resources’ layout in baijiu has been less than three years, and questioning or considering strategic adjustments at this stage is still premature.

China Resources Beer Earnings Conference, Chairman Zhao Chunwu speaking

Beer sales stabilize, some local brands restart

Over the past year, China Resources Beer’s core management team was replaced, and the new team has taken the helm.

“Among the four of us here today, only Liang Weiqiang (company secretary) and I have attended previous press conferences; the other senior executives are new, and the outside world is especially interested in whether we will adjust our strategy,” Zhao Chunwu said at the earnings conference.

On September 3 last year, Zhao Chunwu was appointed chairman of the board after serving as CEO; in October, Jin Hanquan took over as CEO, and former CR Vanguard CFO Yang Hongxia was appointed as the company’s CFO, both from China Resources.

The new team at China Resources Beer faces multiple industry challenges, including shrinking volume, intensified competition, and the continuous decline of ready-to-drink channels.

In 2025, China Resources Beer maintained its “growth pursuit” goal, with total beer sales reaching approximately 11.03 million kiloliters, up 1.4% year-over-year.

High-end beer products continued to grow. According to the performance report, in 2025, sales of sub-premium and above beers increased by mid-to-high single digits year-over-year, accounting for nearly 25% of total sales; premium and above beers grew by nearly 10% year-over-year.

Regarding the sub-premium market, Zhao Chunwu gave an optimistic outlook, saying it will continue to grow over the next five years. He pointed out that although “premiumization” is no longer a hot narrative due to macroeconomic and consumption environment changes, sales of premium products in the beer industry, including China Resources and its peers, continue to grow.

Despite the overall slowdown in the beer industry, this domestic giant remains optimistic about its development potential. Zhao Chunwu emphasized that beer, with its low alcohol content, has unique value, and the company remains cautiously optimistic about the industry’s future.

Notably, over the past year, China Resources Beer reintroduced some regional brands it had previously acquired to the market, including West Lake Beer from Hangzhou, Zhejiang, and Huangguoshu Waterfall Beer from Guizhou.

Zhao Chunwu admitted that during Snow Beer’s national expansion from Shenyang, many local brands were integrated during the M&A and consolidation phase; after the nationwide promotion of the Snow brand strategy, these local brands gradually phased out.

After completing its national branding layout, Zhao Chunwu believes that with consumer upgrades and diversified demands, China Resources Beer now needs some differentiated brands to supplement its portfolio.

“The brand library contains hundreds of brands, but only a few are actually launched, and these are brands with unique IP value and regional cultural characteristics, including Yalu River, Hailar, etc.” He emphasized that these revitalized brands are generally positioned at the sub-premium level or above, not targeting mass markets.

The management also revealed plans for international expansion. Previously, China Resources Beer collaborated with global brewing giant Heineken to handle Heineken’s sales in China; now, it plans to leverage Heineken’s global distribution network to explore overseas markets.

“We aim to prepare for internationalization during the 14th Five-Year Plan (2026-2030),” Zhao Chunwu said. As the domestic market approaches saturation, China Resources Beer is actively pushing its global strategy. He disclosed a three-step plan: first, rely on Heineken’s channels to establish a presence; second, focus on key countries that are culturally friendly to China; and third, reduce risks through partnerships.

28 billion yuan impairment in baijiu, but “strategic adjustment is still premature”

The nearly three-year layout of the baijiu business remains a focus at the performance conference.

On January 10, 2023, China Resources Beer completed the transfer of 55.19% equity in Jinsha Liquor, officially becoming the controlling shareholder. However, amid the cooling and adjustment of the baijiu industry in recent years, Jinsha Liquor, especially its high-end brand “Summary Liquor,” faces inventory reduction and price inversion challenges.

China Resources Beer’s baijiu business is mainly contributed by Jinsha Liquor. Financial reports show that in 2025, the revenue from baijiu was 1.496 billion yuan, down nearly 30% from 2.149 billion yuan in 2024.

The weakness of the baijiu business further impacted China Resources Beer’s profitability. The financial report disclosed that the profit decline was mainly due to a goodwill impairment of 2.877 billion yuan related to the acquisition of baijiu assets.

Excluding goodwill impairment, fixed asset impairments from capacity optimization, and related expenses, China Resources Beer’s profit attributable to shareholders before interest, taxes, depreciation, and amortization (EBITDA) in 2025 was 5.724 billion yuan, a double-digit increase year-over-year.

More importantly, does this impairment mean a one-time divestment? Zhao Chunwu straightforwardly said that the goodwill impairment last year was based on comprehensive considerations of macroeconomic factors and industry cycles. “Impairment is not something we designed or controlled; it’s a prudent financial requirement, and we conduct stress tests every year.”

After a significant impairment of 2.8 billion yuan, how the company views and advances its baijiu business remains critical.

The baijiu layout was initiated during the tenure of former CEO Hou Xiaohai. Zhao Chunwu did not shy away from “reviewing” this strategy’s gains and losses, saying, “Looking back now, our baijiu business indeed faced unprecedented difficulties and industry upheaval.” He also acknowledged that the integration of brewing and white spirits did not meet expectations.

However, at the conference, Zhao Chunwu still supported the baijiu business. “The Chinese beer market has entered a period of turbulence and adjustment. For China Resources Beer, to continue growing, we need a second growth curve.” He believes the size and tolerance for risk in the baijiu industry are substantial.

Therefore, despite current industry turbulence, Zhao Chunwu stated that compared to other alcoholic beverages like wine and whiskey, baijiu remains a better choice. “You can choose not to do it, and that’s not wrong, but for the company’s development, doing nothing might lead to being left behind by the times without realizing it.”

He expressed that it’s important not to doubt the original strategic direction due to industry fluctuations, maintaining long-term confidence in baijiu, and recharging for a new start.

How to truly resolve the integration challenges in the baijiu sector is an urgent issue for the new management team to address.