---
title: "China Resources Beer's Sharp Move Succeeds: Profit Alert Forecasts Over 50% YoY Increase in 2020 Net Profit!"
description: "China Resources Beer recently issued a positive profit alert, announcing that its profit attributable to shareholders last year increased by at least 50% year-on-year. The company attributed this to reduced employee compensation and resettlement costs related to capacity optimization and organizational restructuring, as well as increased income from glass bottle usage and gains from disposal of fixed assets. Earlier in November, CEO Hou Xiaohai stated at the first National Channel Partners Conference that the company expects its premium sales volume to approach major competitors by 2022, and to surpass them in premium, profit, and market value by 2025."
author: "New Distribution"
publisher: "New Distribution"
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published: "2021-01-25"
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# China Resources Beer's Sharp Move Succeeds: Profit Alert Forecasts Over 50% YoY Increase in 2020 Net Profit!

> China Resources Beer recently issued a positive profit alert, announcing that its profit attributable to shareholders last year increased by at least 50% year-on-year. The company attributed this to reduced employee compensation and resettlement costs related to capacity optimization and organizational restructuring, as well as increased income from glass bottle usage and gains from disposal of fixed assets. Earlier in November, CEO Hou Xiaohai stated at the first National Channel Partners Conference that the company expects its premium sales volume to approach major competitors by 2022, and to surpass them in premium, profit, and market value by 2025.

Recently, China Resources Beer issued a positive profit alert, announcing that the company's **profit attributable to shareholders last year increased by at least 50% year-on-year.** **The company attributed this to reduced employee compensation and resettlement costs related to capacity optimization and organizational restructuring, as well as increased income from glass bottle usage and gains from disposal of fixed assets.**

As early as November, China Resources Beer CEO Hou Xiaohai stated at the first National Channel Partners Conference that the company expects its premium sales volume to approach major competitors or high-volume players in the industry by 2022, and to surpass them in premium, profit, and market value by 2025.

China Resources Beer's performance and sales volume are leading in the industry, with the main reason for the surge in profit being that its premium beer performance exceeded expectations.

From a product perspective, **in 2020, China Resources Beer's 4+4 portfolio made rapid progress, comprising four Chinese brands: Brave the World SuperX, Mars Green, Master's Craft, and Hualian, as well as four international brands: Heineken Silver, Sol, Red Stripe, and Tiger.**

In addition to the continued strength of Chinese brands led by Brave the World SuperX, among the premium international brands, Yushi and Sol hold premium positions, Heineken expands stores, and Red Stripe and Tiger drive volume, each with distinct roles and mutual support.

Bi Chaojiao, General Manager of the Marketing Center of China Resources Snow Breweries (China) Co., Ltd., revealed during a New Distribution cross-year live broadcast that China Resources Beer's marketing strategy will develop competitive advantages in five aspects:

**1. Continue to develop the "4+4" portfolio: establish a deep brand image.**

**2. Develop key accounts:** Through the "Sword Casting Action" to introduce quality distributors and empower them, help them grow together, while strengthening channel operations, and build the highest-quality channel in China's FMCG or beer industry within 3-5 years.

**3. Seize the high ground:** In two provinces and five cities, eight central cities, and N provincial capital city markets, carry out terminal profiling, product portfolio design, help channel terminal promotion, drive channel product sales, and thereby strengthen customers.

**4. Develop premium capabilities:** Build teams to handle high-ground terminals, cultivate and introduce talent, conduct training, and improve the overall team's capabilities.

**5. Achieve high-quality development of the company.**

Regarding whether China Resources Beer's premium multi-brand portfolio strategy is correct and whether it can continue to gain market share, beer expert Fang Gang once said:

"As the beer industry shifts toward mid-to-high-end, the market is bound to be highly fragmented. It is no longer possible for a single brand or a single variety or category to dominate the high-end or super-high-end segment.

Furthermore, the industry will show a pattern of the strong getting stronger and the tail getting bigger, meaning that the volume of leading brands and the industry concentration of giant brands will increase, but progress will be moderate. There will also be a large number of niche brand groups, including craft beer or a large number of high-end niche brand groups formed by imported beer.

In the future, the ceiling of the high-end and super-high-end market will be opened and will become higher; the high fragmentation of the head market has been established, and the diversified state of brand groups, category groups, and variety groups will emerge in a blowout."

At present, 2020, as the opening year of its high-quality development, has already preliminarily demonstrated the transformation of China Resources Beer's scale advantage into quality advantage against the trend. In 2021, the development speed of China Resources Beer's core brand portfolio, especially its premium brands, may further accelerate.

It is worth mentioning that China Resources Beer also issued a connected transaction announcement, stating that the company, through its wholly-owned subsidiary, entered into an investment cooperation agreement, a relocation compensation agreement, and a construction agency service contract with a wholly-owned subsidiary of China Resources Land.

According to the disclosure, **the project company will pay China Resources Snow a maximum additional amount of RMB 4.35 billion, so the maximum relocation compensation China Resources Snow will receive is RMB 9 billion.**

Tips will be paid 400-2000 yuan once adopted.


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