Summary of the Conference Call for Chongqing Beer Industry Overview - In the first ten months of 2025, China's beer sales remained flat compared to the previous year, with expectations to maintain this level for the entire year due to a contraction in on-premise dining and entertainment channels [2][4][17] - The beer industry exhibits distinct seasonal characteristics, with peak consumption typically starting in March for southern markets and April for northern markets [4] Company Performance - As of Q3 2025, Chongqing Beer reported that on-premise sales accounted for approximately 44% of total sales, while off-premise sales made up 56%, indicating a shift towards non-on-premise channels [2][6] - The overall market share (冠化率) of Chongqing Beer exceeded 29% in Q3 2025, up from 18% in 2019, although still below the national average [2][9] - The company has seen significant growth in its Uusu beer brand, driven by brand reinforcement and increased market investment, with new products like Uusu White Beer and 1-liter cans contributing to this growth [2][10] Strategic Focus - Chongqing Beer is focusing on enhancing its non-on-premise channel strategies to adapt to the slow recovery of on-premise consumption [2][7] - The company plans to launch 8 new 1-liter canned products in 2025, aiming to capture the 8-10 RMB price range to improve average selling price (ASP) and consumer demographics [2][12] - The company is also exploring new beverage lines, such as water and tea drinks, to improve capacity utilization and gross margins [18] Financial Outlook - Cost savings are expected in 2026, but the contribution to gross margin is anticipated to be less significant than in 2025 [3][15] - The company maintains a conservative outlook for Q2 2026, expecting sales volume and pricing to be on par with 2025 or slightly improved [3][17] Market Strategy - Chongqing Beer aims to implement different strategies in high-share markets to enhance profitability while being flexible in competitive markets to optimize resource allocation [8] - The company is committed to increasing its presence in the mid-to-high-end beer market, with plans to introduce more premium products in 2026 [21] Challenges and Opportunities - The company acknowledges the challenges posed by the fragmented market and the need for distributors to focus on non-on-premise channel development [7] - Chongqing Beer is leveraging channel transformation and product innovation to find growth opportunities in a stagnant market, including the introduction of new demand-driven products [19] Conclusion - Chongqing Beer is navigating a challenging market environment with a focus on strategic channel shifts, product innovation, and cost management to sustain growth and profitability in the coming years [20]