Tsingtao Brewery H1 2026 Revenue Falls 4.08%, Net Profit Edges Up 0.4%

Tsingtao Brewery reported first-half revenue of RMB 19.655 billion, a year-on-year decrease of 4.08%. Net profit attributable to shareholders reached RMB 3.92 billion, up 0.4% from the same period last year. In the second quarter, revenue was RMB 9.37 billion, down 6.93% year-on-year, while net profit attributable to shareholders was RMB 2.12 billion, a decline of 3.37%.

First-half beer sales volume totaled 4.5 million kiloliters, down 4.9% year-on-year. Main brand sales reached 2.708 million kiloliters, of which premium-and-above products accounted for 2.044 million kiloliters, up 2.6%. Selling expenses decreased by 12.52% year-on-year, and fair value gains amounted to RMB 181 million, an increase of 238.27%.

In its interim report, Tsingtao said it would accelerate expansion into high-potential channels such as instant retail and premium dining. During the reporting period, online, instant retail, and modern retail sales all hit record highs, with instant retail maintaining rapid growth for six consecutive years. Founded in 1903, the company listed in Shanghai and Hong Kong in 1993 and is currently the world's fifth-largest brewer. As of the end of June, it operated 56 wholly-owned and controlled beer production enterprises in China, along with two associates and joint ventures. Its controlling shareholder is Tsingtao Brewery Group, with the Qingdao State-owned Assets Supervision and Administration Commission as the ultimate controller.

While consolidating its core beer business, the company is advancing biotech projects, with main products including yeast extract, brewer's yeast protein, and barley malt protein. It is also continuing its whisky business and building a fashion and cultural tourism ecosystem. According to the National Bureau of Statistics, June 2026 industrial beer production above designated size was 4.049 million kiloliters, down 3.1% year-on-year; cumulative production from January to June was 19.362 million kiloliters, up 0.2%.

Among listed brewers that have released interim results, Yanjing Brewery posted net profit attributable to shareholders of RMB 1.399 billion in H1, up 26.86%, with its core product Yanjing U8 maintaining growth of over 25%. Budweiser APAC reported profit attributable to equity holders of USD 473 million, up 15.65%, while its China market sales volume and revenue fell 6.0% and 6.4%, respectively. China Resources Beer saw H1 profit attributable to shareholders of RMB 5.169 billion, down 10.71%. Chongqing Brewery reported net profit attributable to shareholders of RMB 796 million, down 7.98%.

Tsingtao's first-half gross margin was 44.86%, slightly higher year-on-year, mainly due to lower barley and other raw material costs. Growth in premium-and-above product sales slowed compared with the 5.1% increase in the same period of 2025. The company said it would continue to consolidate share in northern base markets and raise the premium mix in the second half, optimize distribution networks in key southern markets, and focus on breakthroughs in key cities. It will also concentrate resources on strengthening its classic, pure draft, and white beer products, while promoting new products such as whole-grain and non-alcoholic/low-alcohol beers. As of the close on August 26, Tsingtao shares were trading at RMB 51.54, up 0.59%.