China Resource Beer (291) announces the interim result for the six-month period that ended on 30 June. During the period, turnover increased by 7.2% to RMB 18.825 billion. Profit attributable to shareholder amounts to RMB 1.871 billion, representing an increase of 24.1 yoy. Earning per share goes RMB 58 cents, and interim dividend at RMB 12 cents.

The overall sales volume of the Group outperformed that of last year, delivering a 2.6% yoy growth to approximately 6.375 million kiloliters. The overall average selling price of the Group increased by 4.5% yoy. Benefiting from the brand repositioning strategy, further upgrade of product mix and contribution from the acquisition of Heineken China, the sales volume of the mid- to high-end beer expanded by 7% year on year. The Group’s overall average selling price increased by 4.5% compared with the same period last year.

During the period, one brewery site ceased operation. In the meantime, 3 breweries were added after the acquisition of Heineken China. As of the end of June 2019, the Group operated 80 breweries across 25 provinces, municipalities and autonomous regions in mainland China, with an aggregate annual production capacity of approximately 21.6 million kiloliters.

Looking into the future, the competition in the industry is expected to remain intense. The Group will continue to adjust product mix, strengthen channel development as well as elevate the brand positioning and competitiveness in the premium market through key marketing strategies, such as advertising campaigns of the Group’s new brands. In addition, in a bid to unleash the potential of the long-term strategic partnership with the Heineken Group, the Group will continue to focus on promoting the integration of the Heineken China. This long-term strategic partnership will help the Group capture the opportunities in the rapidly growing premium beer market in China.