Tsingtao Brewery Company (168) H1 2026 earnings summary

Executive summary

• Achieved operating revenue of RMB19.65 billion and net profit attributable to shareholders of RMB3.92 billion for H1 2026, reflecting robust operational resilience and sustainable growth despite weak consumer demand.

• Product sales reached 4.5 million kiloliters, with mid-to-high-end, premium, and health-oriented products driving growth, accounting for 2.044 million kiloliters, up 2.6% year-over-year.

• Continued optimization of product mix, expansion into emerging segments and channels, and strong performance in convenience retail, online, and overseas markets.

Financial highlights

• Revenue decreased by 4.08% year-over-year to RMB19.65 billion, mainly due to lower sales volume.

• Cost of sales declined by 6.07% year-over-year, reflecting lower sales volume and reduced raw material costs.

• Net profit attributable to shareholders was RMB3.92 billion, nearly flat year-over-year.

• Basic and diluted EPS were RMB2.873, up from RMB2.862 in H1 2025.

• Operating cash flow increased by 14.69% to RMB5.50 billion.

• Net cash flow from investing activities was negative RMB5.22 billion, reflecting increased investment in wealth management products.

• Net cash flow from financing activities improved to negative RMB74 million, mainly due to timing of dividend payments.

Outlook and guidance

• Focus remains on brand-led high-quality development, product innovation, and channel transformation to drive future growth.

• Continued investment in new product development, digital transformation, and construction, with sufficient internal funds to support capital needs.