E-Malt.com News article: China: Chongqing Beer reports nearly flat revenues in Q3

Amid weak consumer spending, China’s Chongqing Beer reported nearly flat revenue in Q3, while net profit declined by approximately 13% year-on-year, showing a trend of worsening performance quarter by quarter. The extent of the Q3 decline also exceeded the expectations of some brokerages, Futubull reported on October 30.

In the first three quarters, the company achieved revenue of RMB 13.059 billion, representing a slight decrease of 0.03% year-on-year. Net profit attributable to shareholders reached RMB 1.241 billion, down 6.83% year-on-year, while non-GAAP net profit attributable to shareholders was RMB 1.222 billion, a decrease of 6.4%. In terms of sales volume, the company sold 26.681 million kiloliters of beer in the first three quarters, up 0.42% year-on-year, underperforming the overall industry growth rate.

Regarding the decline in performance, Chongqing Beer stated that it was mainly due to the consumer market still being in a recovery phase, intensified market competition, and the impact of fluctuating costs for raw materials, packaging materials, and energy, all of which pressured profitability.

On a quarterly basis, in Q3 this year, the company generated revenue of RMB 4.22 billion, an increase of 0.41% year-on-year; net profit attributable to shareholders was RMB 376 million, down 12.71% year-on-year and approximately 4% lower than Q2. By comparison, Chongqing Beer’s year-on-year growth rates for net profit attributable to shareholders in Q1 and Q2 were 4.59% and -12.7%, respectively.

In fact, Cailian Press reporters noted that Chongqing Beer's Q3 performance fell short of estimates from several brokerages. Previously, Huachuang Securities, China Merchants Securities, and Zheshang Securities estimated that Chongqing Beer's Q3 net profit growth would be -3%, -5%, and -6%, respectively; however, Shenwan Hongyuan projected a Q3 net profit decline of -20% for Chongqing Beer.

Premiumization is at the core of Chongqing Beer’s strategy. In recent years, the company has frequently engaged celebrities such as Wu Lei, Fan Chengcheng, Jike Junyi, and Yang Chaoyue as brand ambassadors, but these endorsements have not effectively driven sales growth.

In the first three quarters of this year, Chongqing Beer’s revenue from high-end products (priced at RMB 8 per bottle or above) reached RMB 7.715 billion, increasing by only 1.18% year-on-year. Weak sales of high-end products may indicate challenges to the company’s premiumization strategy. Meanwhile, revenue from mainstream products (priced between RMB 4 and 8 per bottle) amounted to RMB 4.685 billion, a decrease of 1.66% year-on-year; revenue from economy products (priced below RMB 4 per bottle) was RMB 314 million, down 1.21% year-on-year.

By region, in the first three quarters, the company’s Northwest region generated revenue of RMB 3.755 billion, up 2.23% year-on-year, remaining the core growth engine; the Central region achieved revenue of RMB 5.268 billion, down 1.53%; the Southern region generated revenue of RMB 3.692 billion, roughly flat year-on-year.

Amid a decline in performance, Hong Kong Central Clearing Limited (Northbound Stock Connect) continued to reduce its holdings of the company’s shares in Q3 this year, with the ownership ratio dropping from 6.24% at the end of Q2 to 1.75%, reflecting to some extent a lack of foreign investors’ confidence in the company’s future growth. However, the Penghua Zhongzheng Liquor Exchange-Traded Open-Ended Index Securities Investment Fund increased its holdings in Q3 this year, raising the ownership ratio from 1.04% to 1.57%.


30 October, 2025