China Resources Beer expects its profits to have fallen at least 30% in 2025 due to an impairment charge tied to its baijiu business.

In a stock exchange filing, the Hong Kong-listed brewer said its profit for the year is expected to be in the range of 2.92bn yuan to 3.35bn yuan ($420m to $490m).

The figure represents a year-on-year decrease of around 29.6% to 38.6% from the 4.76bn yuan recorded in 2024.

The anticipated decline is mainly driven by an “impairment of goodwill” of approximately 2.79bn yuan to 2.97bn yuan related to China Resources Beer's purchase of a 55.19% stake in baijiu producer Guizhou Jinsha Jiaojiu Winery Industry. The transaction closed in January 2023.

China Resources Beer, which owns the Snow beer brand, said the write-down reflects “softened demand” in the baijiu market.

It also cited “contracted consumer demand scenarios”, which had led to reduced spending.

The company said the figures are based on a preliminary review of unaudited consolidated management accounts.

The numbers are “subject to finalisation and potential adjustments” after review by its independent auditors and the audit committee, it added.

China Resources Beer is due to publish its full-year results later this month.

For the first half of 2025, the company reported unaudited consolidated turnover of 23.94bn yuan, up 0.8% year-on-year.

Unaudited EBIT rose 20.8% to 7.69bn yuan, while profit attributable to shareholders increased 23% to 5.79bn yuan.

Beer sales volumes in the period were approximately 6.48 million kilolitres, up 2.2% year-on-year.

As of 30 June, China Resources Beer owned 62 breweries, with annual production capacity of about 19.2 million kilolitres.

In October, the company appointed Jin Hanquan as president and executive director.