CBC(SH:600132) Hua Xia Shi Bao·2025-05-23 13:01Core Viewpoint - The ongoing legal disputes between Chongqing Beer and its subsidiary, Jiawei Beer, are significantly impacting the company's financial performance, with a reported 16.61% decline in net profit for 2024 amid a weak beer consumption market [2][5][6]. Trademark Registration - Carlsberg Chongqing Beer, a subsidiary of Chongqing Beer, successfully registered the "Mountain City Beer" trademark on May 21, 2024, after multiple applications [3][4]. - The company has filed over ten applications for the "Mountain City Beer" trademark as part of its routine management and protection of trademark assets [3][4]. Financial Performance - In 2024, Chongqing Beer reported a revenue of 14.645 billion yuan, a decrease of 1.15% year-on-year, and a net profit of 1.115 billion yuan, down 16.61% [5][6]. - The decline in net profit is attributed to provisions for losses related to the ongoing disputes with Jiawei Beer, amounting to 254 million yuan [6]. Internal Disputes - The disputes primarily revolve around a 20-year exclusive distribution agreement signed in 2009, with allegations of breach of contract from Jiawei Beer against Chongqing Beer [5][6]. - Jiawei Beer claims that Chongqing Beer has violated the agreement since 2011, leading to a court ruling in 2023 that ordered Chongqing Beer to pay 353 million yuan to Jiawei Beer [5][6]. Market Conditions - The overall beer market in China is under pressure, with both international and local brands experiencing declining sales [7]. - In 2024, the revenue from international brands was 5.308 billion yuan, a modest increase of 0.58%, while local brand revenue fell to 8.862 billion yuan, a decrease of 3.3% [7]. Future Outlook - Chongqing Beer maintains a cautiously optimistic view for the beer industry in 2025, anticipating a more favorable environment due to improving macroeconomic conditions, despite ongoing challenges such as increased competition and cost fluctuations [8][9].