Group 1: Financial Performance - In the first half of 2025, China Resources Beer (控股) Limited reported revenue of 23.942 billion yuan, a year-on-year increase of 0.8% [1] - The gross profit margin rose by 2 percentage points to 48.9% due to the high-end beer strategy and cost savings in raw material procurement [1] - Shareholder profit attributable to the company was 5.789 billion yuan, reflecting a year-on-year growth of 23% [1] Group 2: Beer Business - The beer segment achieved an unaudited revenue of 23.161 billion yuan, up 2.6% year-on-year, with sales volume reaching approximately 6.487 million kiloliters, an increase of 2.2% [1] - High-end beer products saw significant growth, with sales of premium and above beer increasing by over 10% year-on-year; "Heineken" sales grew by over 20%, while "Snow" beer sales surged by over 70% [1] Group 3: White Spirit Business - The white spirit segment reported an unaudited revenue of 0.781 billion yuan, down from 1.178 billion yuan in the same period last year, with the major product "Abstract" contributing nearly 80% of the revenue [2] - The white spirit industry is undergoing a deep adjustment, and future improvements depend on the performance during the peak seasons of Mid-Autumn and Spring Festival [2] Group 4: Management and Strategy - Following the departure of former chairman Hou Xiaohai, the current management led by Zhao Chunwu aims to continue the existing strategic direction without major changes [3] - The company is focusing on developing online business channels, which have seen significant growth, with overall GMV increasing by nearly 40% and instant retail business by nearly 50% year-on-year [3] - The company is exploring new business models, including customization and contract manufacturing, and sees instant retail as a crucial channel for future growth and consumer engagement [3] Group 5: Market Trends - Competitors like Yanjing Beer and Chongqing Beer are diversifying into beverage products to meet consumer demands across various consumption scenarios [4]

Core Insights - China Resources Beer Holdings Company Limited reported an unaudited revenue of RMB 23.942 billion for the first half of 2025, representing a year-on-year growth of 0.8% [1] - The company's gross profit margin increased by 2.0 percentage points to 48.9%, achieving a historical high due to the ongoing high-end strategy and effective cost control [1] - The unaudited profit before interest and tax reached RMB 7.691 billion, while the profit attributable to shareholders was RMB 5.789 billion, marking year-on-year increases of 20.8% and 23.0% respectively [1] Beer Business Performance - The beer segment achieved a sales volume of approximately 6.487 million kiloliters, a year-on-year increase of 2.2% [1] - High-end products showed significant growth, with mid to high-end beer sales increasing by a mid to high single-digit percentage, and premium and above beer sales growing by over 10% [1] - Specific brands like "Heineken" saw over 20% growth, "Snow" experienced over 70% growth, and "Red Baron" sales doubled, indicating strong product competitiveness [1] Production and Innovation - As of June 30, 2025, the company operated 60 breweries in China with an annual production capacity of approximately 19.2 million kiloliters [2] - The company launched various innovative products, including German-style wheat beer and specialty beers, to meet personalized consumer demands [2] - The high-end product "Ken 14" was introduced, exploring new barley varieties cultivated in China [2] White Spirit Business - The white spirit segment reported an unaudited revenue of RMB 0.781 billion, with a major product contributing nearly 80% of the revenue [2] - The white spirit business maintained a stable gross profit margin, with an unaudited profit before interest, tax, depreciation, and amortization of RMB 0.218 billion [2] Strategic Outlook - The company aims to continue its high-quality and high-end development strategy, enhancing the "beer + white spirit" dual empowerment model [2] - The management expressed commitment to the "decisive victory in high-end and excellent development" strategy, focusing on consumer trends and innovative marketing to enhance competitiveness [2] - The long-term vision is to become a world-class liquor enterprise [2]

Core Viewpoint - China Resources Beer (00291.HK) reported a revenue of 23.942 billion RMB for the six months ending June 30, 2025, reflecting a year-on-year growth of 0.8% and a net profit attributable to shareholders of 5.789 billion RMB, which is a 23% increase [1][2] Group 1: Beer Business Performance - The beer segment achieved a sales volume of approximately 6.487 billion liters, representing a year-on-year increase of 2.2% [1] - The revenue from the beer business was 23.161 billion RMB, up 2.6% year-on-year, driven by the continued high-end strategy and cost savings in raw material procurement [1] - The gross margin for the beer business increased by 2.5 percentage points to 48.3% due to a rise in average selling prices by 0.4% and cost savings [1] Group 2: High-End Product Growth - Sales of premium and above beer products grew by over 10% year-on-year, with Heineken® experiencing over 20% growth despite a high base last year [1] - The sales of Old Snow beer increased by over 70% year-on-year, while the sales of Red Duke beer doubled compared to the same period last year [1] Group 3: Dividend and Profitability - The company proposed an interim dividend of 0.464 RMB per share, with basic earnings per share reported at 1.78 RMB [1] - The overall gross margin for the group reached a record high of 48.9%, up 2.0 percentage points year-on-year [1] Group 4: White Spirit Business Performance - The unaudited revenue for the white spirit business was 0.781 billion RMB, with major products contributing nearly 80% of the revenue [2] - The gross margin for the white spirit business remained stable, with an unaudited EBITDA of 0.218 billion RMB [2]

Group 1: Financial Performance - The company reported a revenue of RMB 23.942 billion for the six months ending June 30, 2025, representing a year-on-year increase of 0.83% [1] - The net profit attributable to shareholders was RMB 5.789 billion, a year-on-year increase of 23.04% [1] - The basic earnings per share were RMB 1.78, with an interim dividend proposed at RMB 0.464 per share [1] Group 2: Profitability and Margins - The gross profit margin increased by 2.0 percentage points to a record high of 48.9% due to the high-end beer strategy and cost savings in raw material procurement [1] - The company's unaudited EBITDA and net profit attributable to shareholders reached record highs of RMB 7.691 billion and RMB 5.789 billion, respectively, with year-on-year growth of 20.8% and 23.0% [1] - The beer segment's unaudited EBITDA and net profit attributable to shareholders grew by 13.8% and 17.3% year-on-year [1] Group 3: Beer Business Performance - The company achieved beer sales of approximately 6.487 billion liters in the first half of 2025, a year-on-year increase of 2.2% [1] - High-end beer products continued to perform well, with sales of premium and above beer increasing by over 10% year-on-year [1] - Notable brands such as "Heineken®" saw sales growth exceeding 20%, "Snow" experienced over 70% growth, and "Red爵" sales doubled compared to the same period last year [1] Group 4: Liquor Business Performance - The liquor business reported an unaudited revenue of RMB 0.781 billion in the first half of 2025, with the major product "摘要" contributing nearly 80% of this revenue [2] - The gross profit margin for the liquor business remained stable, with unaudited EBITDA of RMB 0.218 billion [2]

Investment Rating - The report assigns a rating of "Buy" for the company, expecting a relative increase of 5% to 15% compared to the CSI 300 index over the next six months [19][18]. Core Views - The company's beer business is steadily progressing towards high-end products, while the white liquor segment is experiencing counter-cyclical growth [1][10]. - The company achieved total revenue of 38.635 billion yuan in 2024, a year-on-year decrease of 0.8%, and a net profit of 4.739 billion yuan, down 8% year-on-year [3][9]. - The high-end beer sales grew by over 9% year-on-year, with Heineken seeing close to 20% growth, and the overall product structure is upgrading with mid-range and above beer sales exceeding 50% for the first time [4][5]. Summary by Sections Financial Performance - In 2024, the company reported total revenue of 38.635 billion yuan and a net profit of 4.739 billion yuan, with EBIT at 4.567 billion yuan, reflecting a slight increase of 0.2% year-on-year [3][9]. - The overall gross margin improved to 42.6%, up 1.3 percentage points year-on-year, with the beer segment's gross margin at 41.1% [6][9]. Sales and Growth - The beer sales volume in 2024 was 10.874 million tons, with a price of 3,355 yuan per ton, showing a decrease of 2.5% in volume but an increase of 1.5% in price year-on-year [4][5]. - The white liquor business generated revenue of 2.149 billion yuan, up 4% year-on-year, with a gross margin increase of 5.6 percentage points to 68.5% [5][6]. Future Projections - Revenue growth is projected at 6% for 2025, 5% for 2026, and 4% for 2027, with net profit growth expected at 9% for 2025 and 8% for the following years [9][12]. - The estimated earnings per share (EPS) are projected to be 1.59 yuan for 2025, 1.72 yuan for 2026, and 1.86 yuan for 2027 [9][12].