Chang Jiang Shang Bao·2025-08-04 01:52Core Viewpoint - China Resources Beer is undergoing significant asset disposals, including the transfer of several brewery facilities, which raises concerns about its dual business model of beer and liquor facing challenges in the current market environment [2][4][12]. Group 1: Asset Disposals - China Resources Beer is planning to transfer assets from its Snow Beer factories located in Zhumadian, Shantou, and Dazhou, as part of a broader strategy to optimize its production capacity [4]. - The company has reduced its number of factories from 98 in 2016 to 62 by the end of 2024, indicating a net closure of 36 factories over eight years [2][4]. - The decision to dispose of these factories is attributed to their smaller production capacities and outdated equipment, as the company aims to eliminate inefficient production and adjust its capacity layout [4][11]. Group 2: Financial Performance - In 2024, China Resources Beer experienced a rare decline in both revenue and net profit, with total revenue of 38.635 billion yuan, down 0.76% year-on-year, and net profit of 4.739 billion yuan, down 8.03% [15][16]. - The beer sales volume was approximately 10.8774 million kiloliters, reflecting a year-on-year decrease of about 2.5%, while the liquor business generated revenue of 2.149 billion yuan, growing only 4% [15][16]. Group 3: Leadership and Strategic Challenges - The leadership of Hou Xiaohai, who has been pivotal in the company's growth and strategic direction, will transition as he steps down as chairman in June 2025 [2][16]. - The dual business model of "beer + liquor" initiated by Hou has not yielded significant results in the liquor segment, with the liquor business facing challenges in achieving growth targets [12][14][16]. - The liquor segment's performance has been disappointing, with significant revenue declines in subsidiaries like Jinzhongzi and Jingzhi, raising questions about the sustainability of the dual business strategy [14][15][16].