Chongqing Brewery to settle dispute, set for 2025 profit boost

Chongqing Brewery Co., Ltd. and Chongqing Jiawei Beer Co., Ltd. plan to reach a mediation agreement during the second-instance litigation phase, potentially concluding their contract dispute. The agreement stipulates that Chongqing Brewery or its subsidiary will make a one-time payment of 100 million yuan (excluding tax) to Jiawei for all quantity-price difference settlement payments due by December 31, 2025.

Under the proposed settlement, Chongqing Brewery's subsidiary, Carlsberg Chongqing Brewery Co., Ltd., will reverse a previously accrued estimated liability of 254.0292 million yuan, while simultaneously accruing a new liability of 216.9237 million yuan for the one-time quantity-price difference settlement payment. This accounting treatment is projected to increase Chongqing Brewery's 2025 total profit by 37.1055 million yuan and net profit attributable to shareholders by 19.0796 million yuan.

The agreement also outlines future cooperation from 2026 to 2028, with Chongqing Brewery procuring a fixed volume of 142,600 kiloliters of beer annually from Jiawei at an average purchase price of 4,000 yuan per kiloliter (excluding VAT). The company's board has approved the mediation agreement, which awaits shareholder approval.