Core Insights - The beer sales are being tested due to weak consumption in on-premise channels like dining and nightlife [1][2] - Both Chongqing Beer and Budweiser APAC reported declines in revenue and profit in their recent financial results [1][4] Group 1: Financial Performance - Chongqing Beer reported a revenue of 8.839 billion yuan in the first half of the year, a slight decrease of 0.24% year-on-year, with a net profit of 865 million yuan, down 4.03% [1] - Budweiser APAC's revenue for the first half of the year was 3.136 billion USD, reflecting a 5.6% decline year-on-year, with a 7.4% drop in sales volume in China during Q2 [1][4] Group 2: Market Trends - The production of beer by large-scale enterprises in China decreased by 0.3% year-on-year, totaling 19.044 million kiloliters in the first half of the year [2] - Despite the weak on-premise sales, the high-end beer segment continues to grow, with Chongqing Beer reporting that high-end beer (priced above 8 yuan) accounted for the highest revenue share at 5.265 billion yuan, a slight increase of 0.04% [2] Group 3: Strategic Initiatives - Chongqing Beer is focusing on expanding its non-on-premise market by optimizing product structure and increasing the proportion of canned products, achieving a nearly 29% increase in canning rate for non-on-premise channels [3] - The company launched nearly 30 new products in the first half of the year, including craft beers and flavored beverages, to cater to diverse consumer preferences [3] - Budweiser APAC is also enhancing its non-on-premise channel strategy, with a focus on high-end products, and has seen growth in sales and revenue contributions from this segment [4]