---
title: "China Resources Beer: Profit Hits New High, Net Profit Attributable to Parent Reaches RMB 4.705 Billion in H1"
description: "On August 19, China Resources Beer (HK00291) released its 2024 interim results. Benefiting from the continued premiumization strategy in both beer and baijiu businesses, the company achieved consolidated turnover of RMB 23.744 billion. Net profit attributable to the parent for the first half rose 1.2% year-on-year to RMB 4.705 billion, indicating improving operations and profitability. Beer continued to premiumize, while baijiu grew rapidly."
author: "New Distribution"
publisher: "New Distribution"
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published: "2024-08-19"
language: "en"
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# China Resources Beer: Profit Hits New High, Net Profit Attributable to Parent Reaches RMB 4.705 Billion in H1

> On August 19, China Resources Beer (HK00291) released its 2024 interim results. Benefiting from the continued premiumization strategy in both beer and baijiu businesses, the company achieved consolidated turnover of RMB 23.744 billion. Net profit attributable to the parent for the first half rose 1.2% year-on-year to RMB 4.705 billion, indicating improving operations and profitability. Beer continued to premiumize, while baijiu grew rapidly.

On August 19, China Resources Beer (HK00291) released its 2024 interim results.
The report shows that, benefiting from the continued premiumization strategy in both beer and baijiu businesses, the consolidated turnover reached **RMB 23.744 billion.** Net profit attributable to the parent for the first half was RMB 4.705 billion, **up 1.2%** year-on-year, indicating improving operations and enhanced profitability.
**Beer Continues Premiumization, Baijiu Grows Rapidly**
In the beer business, China Resources Beer's continued premiumization drove the average selling price of overall beer up 2.0% year-on-year. With some packaging costs declining, the gross margin for the first half of 2024 increased by 0.6 percentage points to 45.8%.
At the same time, China Resources Beer continued to implement various cost reduction and efficiency enhancement measures. The beer business achieved profit before interest and tax of RMB 6.365 billion, up approximately 2.6% year-on-year.
Data shows that in the first half of 2024, the sales volume share of mid-range and above beer exceeded 50% for the first time, and recurring profit also hit a record high. The firm and sustained premiumization strategy will continue to benefit China Resources Beer in the future.
In the baijiu business, sales scale grew rapidly. In the first half of 2024, the consolidated turnover of China Resources Beer's baijiu business was RMB 1.178 billion, up approximately 20.6% year-on-year, driving the gross margin up 2.1 percentage points to 67.6%.
Particularly noteworthy is that **the high-end baijiu brand "Zhaiyao" under Jinsha Wine Industry grew over 50% during the same period, contributing 70% of the baijiu business turnover.**
This data strongly responds to external doubts over the past period about whether China Resources Beer could successfully manage baijiu.
**Three Highlights from China Resources Beer's Interim Report**
A careful interpretation of China Resources Beer's interim results reveals three operational highlights. In the first half, overall consumption was weak, and beer faced challenges such as unfavorable weather and a high comparison base from the same period last year. These highlights are particularly commendable.
**First, profit reached a new high, with continued dividends.**
Net profit attributable to the parent in the first half was RMB 4.705 billion, a record high, with a dividend per share of RMB 0.373, up 30% year-on-year.
Continued high dividends are not only a return to investors but also a sign of robust cash flow and the management team's confidence in sustained growth.
Data shows that in the first half, cash inflow from operating activities increased significantly by 25.6% year-on-year. Whether cash inflow is healthy is also a key concern for all FMCG companies at present.
**Second, continued efforts to win in the premium segment.**
The sales volume share of mid-range and above beer exceeded 50% for the first time, and the e-commerce channel performed excellently, growing 60%. Among premium brands, Heineken, Laosnow, and Red爵 (Red Label) grew over 20% year-on-year.
Sustained premium growth is especially rare amid the current price war in the FMCG sector. Price wars are the most direct way to gain sales volume but also the most damaging to brands. Currently, price wars are often a last resort; achieving growth without engaging in price wars is quality growth.
**Third, Jinsha integration is showing results, and the high-end brand "Zhaiyao" is growing steadily and rapidly.**
The baijiu business grew 20.6% overall, with gross margin improving to 67.6%, and the "Zhaiyao" brand grew over 50% year-on-year.
Since 2024, the baijiu industry has entered a deep adjustment period, with widespread pessimism. From channels to manufacturers, all are reluctantly "reducing inventory." The first-half performance of the baijiu business not only proves that China Resources Beer is capable of doing well in baijiu but also in the most challenging high-end baijiu segment.
At the interim results press conference, Hou Xiaohai, Chairman of China Resources Beer, stated: 2024 marks the 30th anniversary of China Resources Beer, and it is also a pivotal year in the last "3" of the company's "3+3+3" development strategy, serving as a link between the past and the future.
China Resources Beer will "adhere to growth as the first strategy," continue to promote the "beer + baijiu" dual-empowerment business model, and strive to consolidate the fundamentals and enhance operational management capabilities to meet the challenges of the new consumer world.
**From August 20-22, 2024, the "2024 6th China FMCG Conference" with the theme "Navigating the Era of Shrinking Volume" will be grandly held in Shanghai. Concurrently, the "3rd China FMCG Distributor Conference" and the "3rd China FMCG Hard Discount Conference" will also be held.**
**At the conference, the "Guidance Report on B2b Platformization Strategy for FMCG Distributors," "2024 Survey Report on the Operating Conditions of FMCG Distributors," "Practical Implementation Guidance Report on O2O Regional Strategies in the FMCG Industry," and "2024 China Hard Discount Development - FMCG Industry Insights Report" will be released.**
**Interested friends should not miss it!**


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