Group 1 - The fourth Changsha International Construction Machinery Exhibition opened on May 15, showcasing North Benz Foton's six major brands and over ten star products, emphasizing advancements in new energy and intelligent equipment [2] - North Benz Foton displayed a diverse product matrix including heavy trucks, light trucks, and specialized vehicles, with over 50% of the showcased products being new energy innovations, highlighting the company's commitment to the "dual carbon" strategy [2] - The Omaka Smart Blue ES1·120 electric light truck was a focal point, designed for cold chain transport with integrated power supply and extended warranty periods, significantly reducing maintenance costs for users [2] Group 2 - The exhibition featured specialized equipment such as the Foton Proco brand's emergency response vehicles, focusing on urban emergency rescue and environmental protection, enhancing municipal maintenance efficiency [3] - At the 2025 Xiang-Zhe-Wan-Lu-Pu five-province construction machinery industry cooperation conference, North Benz Foton's marketing center manager introduced the brand and product structure, promoting local manufacturing resources [3] - North Benz Foton is recognized as the largest commercial vehicle manufacturer in China, covering a full range of commercial vehicles and providing comprehensive mobility solutions across 253 scenarios [3]

Core Viewpoint - Budweiser APAC is facing significant challenges as evidenced by declining sales, revenue, and net profit in both the first quarter of 2025 and the full year of 2024, indicating pressure on the company's growth strategy [1][4][5] Financial Performance Summary - In Q1 2025, total sales volume was approximately 1.974 billion liters, a decrease of 6.1% year-on-year; revenue was $1.461 billion, down 7.5%; gross profit was $745 million, also down 7.5%; and net profit was $234 million, reflecting an 18.47% decline [1] - For the full year 2024, revenue was $6.246 billion, a decline of 8.9%; net profit was $750 million, down 14.77%; and sales volume was 8.48 billion liters, a decrease of 8.8% [1] - The stock price of Budweiser APAC has dropped over 40% since 2024, currently trading just above 8 HKD [1] Market Dynamics - The Chinese market is crucial for Budweiser APAC, contributing over 75% of revenue in 2022, but has recently shown a "volume and price drop" due to weak domestic beer consumption [2] - In 2024, the Chinese market saw a sales volume and price decline of 11.8% and 1.4% respectively, with a market share decrease of 1.49 percentage points [2] - Conversely, the Indian market has shown strong growth, with revenue growth close to 20% in both 2024 and Q4, positioning it as one of the top four global markets for the company [2] Competitive Landscape - Budweiser APAC's high-end market share in China has declined from nearly 50% in 2015 to around 40% currently, as local brands gain market share [6] - The competition in the high-end beer segment has intensified, particularly in the 8 RMB price range, which has become a key battleground for market share [7][8] - The overall beer production in China decreased by 0.6% in 2024, while the high-end beer market is expected to reach 280 billion RMB, accounting for 40% of the total market [8] Strategic Adjustments - The new CEO, Cheng Yanjun, is focusing on strengthening the Budweiser and Harbin beer brands and optimizing supply chains while deepening local market engagement [6][10] - Budweiser APAC is shifting its strategy to include more competitive pricing in the 8-10 RMB range to enhance its market position [8][9] - Future strategies will likely involve product innovation, channel diversification, and enhanced supply chain efficiency to address the challenges posed by local brands and changing consumer trends [9][10]