China Brewing: Read across from Yanjing

Research evidence excerpt

China Brewing: Read across from Yanjing

Equity Research

20 July 2026 | 6:56AM HKT

China Brewing: Read across from Yanjing: Read across from Yanjing

investor meeting: Widening divergence in key SKU performance

We observed a continued structural divergence within the beer industry in 2Q26 Leaf Liu

+852-3966-4169 | leaf.liu@gs.com

(preview here), expecting a c.4% volume decline for Tsingtao/Chongqing and a Goldman Sachs (Asia) L.L.C.

low-teens% contraction in Bud China, vs. maintained LSD% growth in CR Beer Christina Liu

(Exhibit 4). Against a softer macro backdrop for the broader sector, we note that +852-2978-6983Goldman Sachs (Asia)| christina.liu@gs.comL.L.C.

selected blockbuster SKUs/localized portfolios have continued to show notable Valerie Zhou

resilience, gaining share through stronger channel penetration/incentives and solid +852-2978-0820Goldman Sachs (Asia)| valerie.zhou@gs.comL.L.C.

execution. Specifically, CR Beer’s Heineken and Yanjing Beer’s flagship U8 in the

premium/sub-premium segment have consistently outperformed in 2025-2026 YTD.

According to Yanjing’s recent public investor meeting, U8 has maintained close to

30% volume growth in 1Q26 after reaching c. 0.9mn KL in 2025, while the strategic

rollout of the A10 portfolio is gaining early traction after its launch in end-March

2026. Looking into 2H26, we see weather swings/on-trade recovery as the key swing

factors, and we reiterate our positive view on CR Beer given its beer growth

visibility underpinned by a strong portfolio/solid execution, particularly as it moves

into a lower base in 2H26, with an attractive risk/reward profile at 11x/10x

2026E/27E P/E and a 5.5% 2026E dividend yield on GSe.

Key takeaways from Yanjing’s investor meeting on 16 July: 1) U8 continues to