Zhong Guo Ji Jin Bao·2025-08-20 01:20Core Insights - The acquisition of Jinsha Liquor by China Resources Beer for over 12.3 billion yuan in 2022 has faced significant scrutiny as the expected growth has not materialized [1][2] - In the first half of 2025, the revenue from the liquor business was only 7.81 billion yuan, with a pre-tax loss of 1.52 billion yuan, indicating a stark decline in performance [1][6] Financial Performance - For the first half of 2025, China Resources Beer reported a revenue increase of 0.8% to 23.942 billion yuan and a net profit increase of 23.0% to 5.789 billion yuan [1] - Jinsha Liquor's revenue for 2023 was 20.83 billion yuan, with a pre-tax profit of 1.3 billion yuan [3] - In 2024, Jinsha Liquor's revenue slightly increased by 3.7% to 21.61 billion yuan, but pre-tax profit decreased by 6.9% to 1.21 billion yuan [5] Market Challenges - The liquor business has been adversely affected by declining consumer demand and increased competition due to excessive production capacity in the sauce liquor segment [6] - The core product "Zhai Yao" has seen a significant price drop, with wholesale prices falling over 800 yuan per bottle since the beginning of the year [7] Strategic Misalignment - The attempt to replicate the fast-moving consumer goods model from the beer industry to the liquor sector has been criticized for overlooking fundamental differences in consumer behavior and market dynamics [11] - The acquisition of Jinsha Liquor and investment in other liquor companies occurred at a peak in the market, leading to challenges as the industry faced a downturn post-2021 [12] Recommendations for Future Strategy - To address the ongoing challenges, it is suggested that China Resources Beer may need to divest from consistently underperforming assets and focus on building a specialized team for Jinsha Liquor to enhance brand culture and consumer engagement [12]