On March 23, China Resources Beer (00291.HK) held its 2025 annual results conference in Hong Kong. On the surface, due to a 2.877 billion yuan impairment of baijiu goodwill, the company's profit attributable to shareholders was 3.371 billion yuan. However, excluding special items such as goodwill impairment, relocation gains, and capacity optimization, profit attributable to shareholders reached 5.724 billion yuan, up 19.6% year-on-year. Beer business EBITDA increased 17.4% year-on-year to 9.611 billion yuan. Consolidated turnover was 37.985 billion yuan, with cumulative growth of 6.537 billion yuan during the 14th Five-Year Plan period. The signals behind China Resources Beer's annual report are clear: the beer main business is accelerating its profitability, and while the baijiu segment is under pressure, its strategic logic remains unshaken. New Distribution has specially sorted out several key points from China Resources Beer's 2025 annual results conference to help readers gain a comprehensive and in-depth understanding of this leading liquor company that is navigating through cycles.

Beer Main Business:

A Model of High-Quality Growth in the Stock Era

China's beer industry has been fluctuating around 35 million kiloliters for years, with the total volume ceiling clearly visible. In such a stock pattern, China Resources Beer achieved beer sales of approximately 11.03 million kiloliters in 2025, up 1.4% year-on-year, outperforming the industry. The quality of growth is more noteworthy than growth itself. In 2025, beer business turnover was approximately 36.489 billion yuan, with gross margin up 1.4 percentage points to 42.5%. The continued advancement of premiumization and savings in raw material procurement costs jointly drove the improvement in profitability. Premiumization is the core engine of China Resources Beer's profit growth—sales of sub-premium and above products achieved mid-to-high single-digit growth, accounting for nearly 25% of total sales; sales of premium and above products grew by nearly 10%. Specifically for major products, Heineken still grew nearly 20% on a high base, Old Snow grew 60%, and Red爵 doubled. These three represent international premium, regional IP breakout, and personalization paths, forming a multi-tiered premium product matrix. Zhao Chunwu, Chairman of China Resources Beer, judged at the briefing that, following the evolution patterns of markets such as Japan and South Korea, by 2030 the share of sub-premium and above products in China's beer industry is expected to exceed 10 million kiloliters, approaching one-third of the total volume. Zhao Chunwu pointed out that premiumization has entered the "second half," with the upper-middle part of the product pyramid thickening rather than forming an inverted triangle. From the second half of last year to the start of the first quarter this year, the momentum of premium growth has not weakened.

Channel Restructuring: Instant Retail Opens New Scenarios

Channel transformation is another main line of change for China Resources Beer in 2025. In 2025, overall online business growth exceeded 30%, and instant retail growth exceeded 50%. Although online share is still less than 10%, the growth momentum is rapid. Zhao Chunwu described a noteworthy consumption scenario at the briefing: Meituan data shows that after 10 p.m. is the peak for beer instant retail consumption. Consumers finish watching TV at home, want a drink, and order, with delivery in 10 to 20 minutes. The purchase volume is small—one or two cans, two or three cans—but there are high requirements for quality and freezing, and the price tier selected is also higher. Such scenarios simply did not exist before instant retail. Meanwhile, new formats such as draft beer stations are also emerging. In Henan, Hubei and other places, freshly dispensed alcoholic beverages are being launched, with a single cup priced above 15 yuan, far exceeding traditional on-premise channels. Zhao Chunwu bluntly stated that these "hand-held drinking" scenarios, which are neither at home nor in restaurants, are redefining the boundaries of beer consumption.

Baijiu Layout: Strategic Resolve Amidst Pain

Baijiu is an unavoidable topic in this financial report. In 2025, baijiu business turnover was 1.496 billion yuan, with goodwill impairment of 2.877 billion yuan. Excluding goodwill impairment, baijiu EBITDA was 264 million yuan. The numbers are indeed heavy, but they need to be viewed against the industry backdrop. In 2025, the baijiu industry underwent deep adjustment, with consumption scenarios shrinking, a significant decline in the second half, intensifying divergence, and more concentration among leading enterprises. This is not a predicament unique to China Resources, but a common challenge for the entire sauce-flavor baijiu segment. Zhao Chunwu systematically elaborated on the baijiu strategy at the briefing. He frankly admitted: "We think this is all normal; you cannot foresee changes in the entire industry, especially those affected by external forces." He further pointed out that finding a second growth curve beyond beer is an inevitable choice for corporate development, with the basic logic being limited diversification in alcoholic beverages. Among options such as baijiu, yellow wine, wine, and whisky, "even in the face of drastic industry fluctuations, looking at baijiu, yellow wine, and wine now, choosing baijiu is still the better choice." In response to external doubts, Zhao Chunwu's reply was straightforward: "We at China Resources have been making beer for over 30 years, and now we have been making baijiu for a full 3 years. Judging our strategy from just 3 years, whether we need to question this strategy and readjust it, I think it is a bit premature. We cannot question the strategic direction at that time based on industry fluctuations." At the operational level, President Jin Hanquan revealed that the company has shifted from the past extensive channel-stuffing model to refined operations: stabilizing brands, stabilizing price systems, stabilizing channels, improving efficiency, and seeking long-term development. Measures such as unified national cost control, full-chain traceability, and shifting distributors from "stuffing channels for rebates" to "selling through for profits" have begun to show results. The price barometer at Bairong Market has continued to stabilize and rebound since the end of last year.

Management Upgrade and Shareholder Returns

2025 is also the year of management transition for China Resources Beer. Zhao Chunwu has worked at China Resources Snow for over 22 years, growing from regional markets to Chairman of the Board, making him a typical hands-on manager. After the new team took office, they quickly launched a review of the "14th Five-Year Plan" strategy and simultaneously formulated the "15th Five-Year Plan" (2026-2030) development plan. China Resources Beer's "15th Five-Year Plan" strategic framework has been basically clarified:

  • The premiumization direction remains unchanged, but more emphasis is placed on accelerating penetration in the sub-premium market;
  • Accelerate filling gaps in emerging businesses, covering craft beer, e-commerce, and personalized needs;
  • Begin international layout, leveraging the Heineken cooperation network to expand overseas markets. In terms of operational efficiency, the company continues to advance the "streamline, lean, and fine" strategy, effectively reducing various expense ratios. In 2025, four beer plants were closed, one new Shenzhen smart craft brewery was put into operation, and 59 plants were operating at year-end, with annual capacity of approximately 19.1 million kiloliters. Net cash inflow from operating activities was 7.127 billion yuan, up 2.9% year-on-year. In 2025, dividend per share was 1.021 yuan, up 34.3% year-on-year, with a payout ratio of 98.2%. China Resources Beer's 2025 report card should not be interpreted from a single dimension. The goodwill impairment is a reflection of the baijiu industry cycle, not a regression in corporate operational capability. Stripping away this fog, the beer main business profit growth of 17.4%, gross margin of 42.5%, continued volume growth of premium products, and record-high dividends—these data outline the profile of a leading enterprise navigating through cycles. As Zhao Chunwu said, adhere to long-termism without wavering, while regrouping and setting off anew. For China Resources Beer, 2025 is both the closing year of the "14th Five-Year Plan" and the starting line for a new round of growth.