Net Profit Rose 10% Against the Trend, Breaking 1.2 Billion Yuan—Did Chongqing Beer Win Its Comeback Battle with 1L Packaging?

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Text | Times Weekly

As the first A-share listed beer company to disclose its 2025 annual report, Chongqing Beer (600132.SH) delivered a net profit increase of over 10%.

On the evening of March 10, Chongqing Beer announced its 2025 annual report, with revenue of 14.722 billion yuan, up 0.53% year-on-year; net profit attributable to shareholders of 1.231 billion yuan, up 10.43%; however, the company’s non-recurring net profit was 1.188 billion yuan, down 2.78% year-on-year.

Chongqing Beer stated that in the face of a slowing overall consumer market and intensified industry competition in 2025, the company maintained steady operations, continuously optimized product structure, deepened channel development, and improved operational capabilities, achieving steady growth in sales, revenue, and profit.

“From the current beer market, competition is definitely becoming more intense. Everyone is launching a variety of products. 1L bottles are the future focus. Compared to regular sizes, they are slightly more expensive, which is a good thing,” said Li Zhigang, President of Chongqing Beer, at the earnings presentation on March 11.

Changes in product structure and the large-scale construction of 1L production lines have become the focus of institutional attention at Chongqing Beer’s performance meeting.

Guotai Securities research report pointed out that in 2025, Chongqing Beer reached a mediation agreement with Chongqing Jawi Beer Co., Ltd. regarding a contract dispute, reversing an estimated liability of 254 million yuan, and also recognizing a one-time payment of 217 million yuan as a new liability, increasing the company’s attributable net profit for 2025 by 19.08 million yuan.

High-end products grow against the trend

The Chinese beer industry as a whole is under pressure, entering a phase of intensified stock competition in 2025.

According to the National Bureau of Statistics, in 2025, the total beer production of large-scale enterprises in China was 35.36 million kiloliters, down 1.1% year-on-year. That year, Chongqing Beer achieved sales of 2.9952 million kiloliters, up 0.68%, with high-end products growing against the trend.

Chongqing Beer’s 2025 report shows that high-end products (consumed at 8 yuan or above), mainly Carlsberg, LeBao, 1664, etc., achieved a total sales of 1.5043 million kiloliters, up 3.23% year-on-year, with sales revenue of 8.78 billion yuan, up 2.19%.

Mainstream products (priced between 4 yuan and 8 yuan), including Chongqing Beer, Wusu Beer, Dali Beer, etc., achieved sales of 1.3786 million kiloliters, down 1.95%, with sales revenue of 5.189 billion yuan, down 1.03%.

Economical products (priced below 4 yuan), such as Xixia Beer and Shancheng Beer, achieved sales of 112,200 kiloliters, up 0.53%, with sales revenue of 328 million yuan, down 1.8%.

In comparison, in 2024, Chongqing Beer’s economical product sales increased by over 15% year-on-year, while high-end and mainstream products declined. In the first half of 2025, the company’s economical product sales grew year-on-year, mainstream products declined, and high-end products saw a slight increase.

Source: Chongqing Beer Earnings Conference

While high-end products are making a comeback, Chongqing Beer’s sales and management expenses are also rising.

In 2025, Chongqing Beer’s selling expenses were 2.655 billion yuan, up 5.7%, with the sales expense ratio increasing by 0.8 percentage points, including advertising and marketing expenses of 1.295 billion yuan, up 6.7%. Management expenses reached 598 million yuan, up 15.7%, with the management expense ratio rising by 0.6 percentage points.

Cheng Weihao, Vice President of Chongqing Beer’s finance, explained at the earnings meeting that the increase in sales expenses mainly supports sales growth through market investment; the rise in management expenses is due to increased personnel costs and information service fees to accelerate digital transformation.

Expansion of 1L bottle production lines

Times Weekly found that in 2025, Chongqing Beer’s various brands are all expanding into the 1L bottle segment, accelerating the construction of 1L product lines across different regions.

Chongqing Beer’s 2025 report shows that Wusu Beer launched six 1L craft products, with Chongqing Beer, Fenghua Xueyue, Dali Beer, etc., also following suit. Chongqing Beer stated that new 1L products have become an important growth driver outside of on-premise channels.

Meanwhile, Chongqing Beer is increasing its 1L product line capacity. The 2025 report indicates that four production lines are under construction, three of which are 1L can lines, including Carlsberg Beer (Anhui) Co., Ltd. 1L can line (already in operation, planned investment of 11.2 million yuan, with a total investment of 11.15 million yuan), Xinjiang Wusu Beer Co., Ltd. 1L can line (planned investment of 23.55 million yuan, with a total investment of 13.08 million yuan), and Carlsberg Chongqing Beer Co., Ltd. 1L can line (planned investment of 17.87 million yuan, with a total investment of 10.9 million yuan).

On March 9, Chongqing Dazhu Lin Brewery’s flexible 1L can production line was officially put into operation, becoming Chongqing Beer’s second flexible 1L can line nationwide.

At the Chongqing Beer earnings presentation, institutions like Goldman Sachs and Nomura also paid close attention to the development of 1L products.

Regarding the current development of 1L products, Li Zhigang responded to Times Weekly’s question, stating that in 2025, the company launched multiple 1L canned products. Compared to traditional products, these craft beers are larger in capacity, more flexible for drinking scenarios, and also enhance quality and consumer value. For the company, 1L canned beer can optimize product structure and better provide consumers with diverse consumption experiences.

In 2026, Carlsberg will launch its first high-end 1L craft beer globally; Chongqing Beer has released Wusu New Year Limited 8.88L products, and 1L options include “Wusu Jin Junmei Craft,” “Wusu Amber Lager,” “Chongqing State Guest Double Hops,” and “Fenghua Xueyue Four Seasons Brew.”

Looking ahead to 2026, Chongqing Beer also stated that non-on-premise channels will remain a key focus, with 1L products continuing to serve as an important tool for promoting high-endization, enriching product flavors to meet different consumption scenarios.

Guotai Haitong Securities’ research report believes that China’s beer demand is at a turning point. Generation Z is gradually becoming the main consumer group, and drinking culture is shifting from prioritizing pleasure to prioritizing self-satisfaction. For beer manufacturers, emphasizing brand and high-end positioning in a linear way may not attract new consumers; exploring new scenarios and offering differentiated emotional value could be the dominant direction for new product development.