China Resources Beer forecasts up to 39% profit drop after Baijiu impairment charge 

CHINA – China Resources Beer, the maker of Snow beer, has warned that its profit for 2025 could fall by as much as 38.6% following a significant impairment charge related to its baijiu business. 

In a filing to the Hong Kong Stock Exchange, the company said it expects annual profit to reach between 2.92 billion yuan and 3.35 billion yuan (US$420 million to $490 million). 

The projected figures represent a year-on-year decline of around 29.6% to 38.6% compared with the 4.76 billion yuan (about $690 million) reported in 2024. 

The anticipated drop in earnings is largely attributed to an impairment of goodwill estimated at between 2.79 billion yuan and 2.97 billion yuan (US$402 million to $428 million).  

The impairment relates to the company’s acquisition of a 55.19% stake in Guizhou Jinsha Jiaojiu Winery Industry, a baijiu producer, which was completed in January 2023. 

According to the company, the write-down reflects weakening conditions in the baijiu market and reduced consumer spending. 

The brewer said the impairment was linked to “softened demand” in the baijiu sector and “contracted consumer demand scenarios,” which have resulted in lower spending levels. 

China Resources Beer added that the figures were based on a preliminary review of its unaudited consolidated management accounts. 

The company said the numbers remain “subject to finalisation and potential adjustments” following a review by its independent auditors and audit committee. 

The Hong Kong-listed brewer is scheduled to publish its full-year financial results later this month. 

For the first half of 2025, the company reported unaudited consolidated turnover of 23.94 billion yuan (US$3.45 billion), representing a year-on-year increase of 0.8%. 

During the period, the company said its gross profit margin rose by two percentage points to a record 48.9%, supported by continued premiumisation of its beer portfolio and savings in raw material procurement costs. 

Unaudited earnings before interest and tax increased 20.8% to 7.69 billion yuan (US$1.11 billion), while profit attributable to shareholders rose 23% to 5.79 billion yuan (US$835 million). 

Beer sales volumes reached about 6.48 million kilolitres in the first half of 2025, marking a 2.2% increase compared with the previous year. 

As of June 30, the company operated 62 breweries with an annual production capacity of approximately 19.2 million kilolitres. 

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