Core Viewpoint - The performance of China Resources Beer’s liquor business, particularly the brand Jinsha Liquor, has significantly declined, with a reported revenue drop of over 30% in the first half of the year, highlighting challenges in the market and pricing issues [1][3][5]. Revenue Performance - In the first half of the year, the liquor business of China Resources Beer generated revenue of 7.81 billion yuan, a decrease of 33.7% compared to 11.78 billion yuan in the same period last year [3][4]. - The core product, Jinsha Liquor, contributed nearly 80% of the liquor business's revenue, indicating its critical role in overall performance [3]. Market Challenges - The decline in sales is attributed to a combination of factors, including a significant drop in domestic dining market activity due to policy impacts and increased competition in the liquor sector [3][5]. - The pricing strategy has led to a situation where the retail price of Jinsha Liquor has fallen below production costs, creating a "price inversion" issue [6][7]. Pricing Issues - The retail price for the 53-degree 500ml Jinsha Liquor has been observed at 488 yuan in physical stores and as low as 450 yuan on e-commerce platforms, indicating a downward trend in pricing [1][6]. - The company has acknowledged the need to address high inventory levels and pricing discrepancies, with plans to establish a national price management committee to oversee pricing strategies [7]. Strategic Adjustments - To combat the declining performance, Jinsha Liquor is focusing on expanding its product flow and cash flow, with an emphasis on group purchases and banquet markets [8][9]. - The company is implementing measures such as targeted marketing strategies and enhancing customer experiences to improve sales performance [9]. Future Outlook - Industry experts suggest that the challenges faced by China Resources Beer’s liquor business stem from a mismatch between aggressive capital-driven strategies and the inherent dynamics of the liquor market [9]. - For future success, the company may need to consider restructuring its approach, focusing on brand culture and genuine consumer engagement rather than relying solely on fast-moving consumer goods marketing strategies [9].