BUD APAC(HK:01876) 3 6 Ke·2025-10-31 00:55Core Viewpoint - The company reported weak performance in the Chinese market for Q3 2025, with a focus on addressing challenges in the on-premise channel and inventory management [1][5][17] Financial Performance - In Q3 2025, the company's sales in China decreased by 11.4%, and revenue fell by 15.1%, with revenue per hectoliter down by 4.1% due to increased investment in innovative products and brand promotion [5][17] - For the first nine months of 2025, sales in China decreased by 9.3%, while revenue and revenue per hectoliter decreased by 11.3% and 2.2%, respectively [5][17] - Overall, for the first nine months of 2025, the company's total sales decreased by 7.0%, and revenue decreased by 6.6%, with revenue per hectoliter increasing by 0.4% [17] Market Strategy - The company aims to restore growth and rebuild market share by focusing on improving market channel execution and product mix [2][5] - There is a significant shift towards home consumption, with the company increasing its investment in family consumption channels and e-commerce [9][11] - The company has introduced new packaging formats, such as larger cans, to cater to the home consumption trend [9][11] Inventory Management - The company has actively managed its inventory, reporting that inventory levels and turnover days are lower than the previous year and below industry averages [8][11] Brand Development - The company is focusing on the Harbin brand as a core product line and expanding its presence in both on-premise and home consumption markets [14][16] - The company believes that the Harbin brand has strong potential to compete regionally, especially in traditional strongholds [14][16] Future Outlook - The company anticipates continued growth in the home consumption channel, driven by rising disposable incomes and market maturity [13] - The company is optimistic about expanding its non-on-premise sales to align more closely with industry averages [13]