Budweiser Brewing Co

And welcome to the 2026 First Half Results Announcement Conference Call for Budweiser Brewing Company, APAC Limited. Hosting the call today from Budweiser APAC is Mr. Y.J. Chung, Chief Executive Officer and Co-Chair for the Board, and Mr. Bernardo Novick, Chief Financial Officer. The results for the six months ended 30th June 2026 can be found in the press release published earlier today and available on the Hong Kong Stock Exchanges website and Budweiser APAC websites. Before proceeding, let me remind you that some of the information provided during this results call, including our answers to your questions on this call, may contain statements of future expectations and other forward-looking statements, and these expectations are based on the management's current views and assumptions and involve known and unknown risks, uncertainties, and other factors beyond our control. It is possible that Budweiser APAC's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in this forward-looking statement. Budweiser APAC is under no obligation to and expressly disclaims any such obligation to update the forward-looking statement as a result of new information, future events, or otherwise. For discussion of the sum of the risk and the important factors that could affect the Budweiser impact's future results, the risk factors in the company's prospectus dated 18th September 2019, the 2025 annual report published, and any other documents the Budweiser impact has made public. I would also like to remind everyone that the financial figures discussed today are provided in US dollars unless stated otherwise. The percentage changes that will be discussed during today's call are both organic and normalized in nature and unless otherwise stated. Percentage changes refer to comparisons with the same periods in 2025. Normalized figures refer to performance measures before exceptional items, which are either income or expenses that do not occur regularly as a part of a Budweiser APAC's normal activities. As normalized figures are non-GAAP measures the company disclosed the consolidated profits EPS, EBIT and EBITDA on a fully reported basis in the press release published earlier today. Further details over the 2026 first half results can also be found in the press release. It is now my pleasure to pass the time to Y.J. Sir, you may begin.

Thank you, Ray. And good morning, everyone. Thank you for joining today's call. In the first half of 2026, our business in China continued to be impacted by a slower than effective recovery. However, it continues to be built momentum across South Korea and India, where strong commercial execution and power of our brand supported continued market share gains. In the second quarter, we underperformed a soft industry in China, which was impacted by a wise weather and continued weakness in on-premise channels, winning down both our top and bottom line result. This was partially offset by continued momentum in South Korea where we gain market share and in India where favorable industry momentum and strong growth in our premier and super premier portfolio contributed double-digit volume growth. I will now hand it over to Novik to discuss our performance in more details. Thank you.

Thank you, YJ, and good morning, everyone. In the first half of 2026, total APAC volumes decreased by 2.2%. Revenue decreased by 1.4%, while revenue per hectolitre increased by 0.8%. Our normalized EBITDA decreased by 8.9%, while our normalized EBITDA margin contracted by 236 basis points. In the second quarter, total volumes decreased by 4.1%, impacted by performance in China, partially offset by growth in South Korea and in India. Revenue decreased by 2.1%, while revenue per exoliver increased by 2.1%, benefiting from a positive country mix and run mix in China. Our normalized EBITDA decreased by 9.7%, impacted by our top-line performance in China, increased marketing investments, and reduced and Operating Income. In the first half of 2026, our profits attributable to equity holders of APAC increased by 15.6%, lapping one of the one-offs or say non-recurrent items in 2025 and also benefited by tax facing between second quarter and the third quarter. Now, let me cover some of the highlights for each of our major markets. In China, volumes decreased by 9.7% in the second quarter. Revenue decreased by 8.6%, while revenue per hectolitre increased by 1.2%, driven by positive brand leaks. Normalised EBITDA decreased by 15.9%, increased by our top-line performance and reduced other operating income. We made further progress in our channel expansion strategy, focusing on premiumizing the in-home channel and expanding our penetration in the O2O channel. We deliver strong double-digit growth in the O2O in both the second quarter and the first half, supported by brand and package innovations. South Korea. In South Korea, volumes in the second quarter increased by low teams, cycling and easier comparable, caused by shipments facing ahead of our price increase that happened in April 2025. Revenue per hectolitre decreased by low single digits, impacted by negative packaging. Normalised EBITDA increased by strong double digits, with our normalised EBITDA margin expanding substantially by 400 basic points, supported by our strong top-line performance and operational leverage. Given this shift in spacing, it's important to look at the first half to get a more normalized view of our South Korea performance. In the first half overall, volumes were flat. We continued market share gains in both on-premise and in-home channels. Revenue per exoliter increased by low single digits, driven by revenue management initiatives. Normalized EBITDA increased by mid single digits, with our normalized EBITDA margin expanding substantially. And then finally, India. We continue to invest in India to accelerate growth across our portfolio. We deliver double-digit revenue growth in both the second quarter and the first half of the year, while gaining market share in the states we operate, supported by share gains in premium and above segments. And with that, YJ and I are here to answer any questions you might have. Thank you.

Thank you, ladies and gentlemen. The floor is now open for questions. Please press star 1 to ask a question. If you wish to cancel your request, press star 2. In the interest of time, may we ask our participants to limit themselves to two questions and please ask one question at a time in both English and Mandarin. Our first question is coming from Anne Lane from Jefferies. Please go ahead.

Hey, hello, management team. Thank you for taking my question. I have two questions. First one is regarding the weather in China, whether there's any impact. Has the recent floods in the northeast China, as well as Guangxi, and heavy rainfall across, like, you know, east and south of China, does it have any, like, noticeable impact on the south volume in June and July? If so, would you help quantify the extent of the disruption and indicate whether demand has normalized in the affected regions subsequently? That's my first question. And shall I continue with my second one, or?

One question at a time, please.

Okay, yeah. So my first question is about the weather. In China, we have recently seen floods in the north of China or in Guangxi. There is also heavy rain in the east and south of China. I would like to know if we have seen any impact on the sales in June and July. If so, how many disruptions? Thank you for your question. If you don't mind, I'm going to ask you in Chinese. Thank you for your question. I'm YG. I'm going to answer this question. Actually, every year,

China China China's beer industry has changed. In fact, in the past few years, it has been moving towards diversification, new scenarios, and health development. so you want to make a lot of消費者的需求消費者為為中心怎麼樣從產品的多元化創造一些新場景以及呢能夠提供更健康的這種啤酒產品所以這是我們重心研究的所以你剛才提到的呢天氣問題啦或者大環境問題啦這都是會經常發生的所以呢 Brewing Co

Thank you, YJ. My second question is also a channel question from China. I would like to ask about the trend of the current market volume. Can you share with us the general trend uh uh uh uh uh um um um regarding the um china's entree volume trend uh would you comment on the volume trajectory across channels um has the entree volume declined you can't stabilize and are you seeing like you know any signs of recovery in the entree channel in particular you know the chinese restaurant segment um given the easier comparison in the second half of 26. Do you expect the on-trade volume to return to a positive growth at some point during second half of 26? Thank you so much. Thank you.

Let me answer this question. I am YJ. You are right. In fact, the current Chinese consumer market, the current consumer market is indeed under some pressure. We are all aware that uh uh Co Co Co So, ah ah For our beer company, Tofu Beer, in addition to providing good products to consumers, how to create some new scenarios and be able to achieve consumer joy, communication, and bring happiness, such an immersive consumer experience. So, consumption in different weather conditions, in different economic forms, there may be some dynamic changes. Okay, thank you.

Thank you. Our next question is coming from Lillian Lo from Morgan Stanley. Please go ahead.

Thank you, YJ and Bernardo. I have two questions as well. I will start the first one on China first. It is actually a follow-up question regarding the volume trend, in particular into third quarter and fourth quarter. What's the status of the sell-in and the sell-out situation? Because if I remember correctly, last year, second Q, we started to apply the lean model with the distribution with our distributor wholesalers. So that means actually running into third quarter and fourth quarter, we are more on the same calm base. So how do we see these volume year-on-year trend changes? Maybe it's a weather or a chance to be bottoming out on the young year basis. 我第一个问题是一个跟进中国这边量的问题,可能比较接近这个经营上的操作。 主要是想问一下我们公司现在整个发货和零售整个的这个趋势上面是怎么样的, 也就是说渠道的库存的状况是怎么样的。 Can we go to Novick to answer this question?

Okay, great. Hi, Lilian. Nice to hear from you. Thank you for the question. So maybe recapping a little bit on the industry. So we saw a slightly positive industry in Q1. We saw a negative, at least from our side, industry in Q2. The main two drivers being macro environment and bad weather. Regarding channels, we continue to see weakness in on-premise. We haven't seen any recovery so far in Q2. And regarding your question about moving forward, in July, we still see weakness in the market. So we remain cautious. At this point, it's difficult to, you know, foresee improvement in Q3 in top and bottom line. But look, the priority continues to be to stabilize volumes in China, and we believe the right thing to do is to continue investing behind our brands to recover in the medium term. But thanks for the question.

Thanks, Orlando. My second question is overall EBITDA margin. So can you actually give us a little bit more detail in terms of how to – How to project the second half EBITDA margin because a few variables based on what we already achieved in second Q. One is the China pressure that could be some still lingering deleveraging effect and commercial investment as well as the Korea volume recovery and the Indian growth of this negative positive, how it works out. in terms of the EBITDA margin outlook in the second half, and also whether we can see a bit of EBITDA margin improvement toward the year end or 2027. My second question is about the company's profit rate, which is the direction of the EBITDA margin. If we look at the second quarter, when China's pressure is still relatively high, in the second half of the year, there are still some, as Bernardo just said, So so the中国的这个量的压力还是存在那么我们还是持续在做渠道的投入另外呢我们也看到韩国其实有不错的量的恢复印度也有量的增长我们还有一些这种成本的节约那么我们怎么把所有这些因素考虑在一起去构想下半年我们一笔大妈这个一个走向同时呢我们会不会看到一些 Thank you, Lillian. You're right.

I mean, I think it's important to mention that we are still in investment mode in China. You know, our priority continues to be stabilizing volumes. When we look at APAC first overall, I mean, the three reasons our drivers are for our EBITDA performance are, of course, number one, China top line. Number two, increased investments. And then number three, other operating income that has been negative, but offset, of course, that strong top line in Korea and India. So maybe speaking a little bit about each, in Korea, we have a good second quarter. So as I mentioned earlier in the call, for Korea, it's very important that we look at the first half overall, because there is a little bit of a you know, facing between Q1 and Q2. When you look at, you know, first half overall, we had slattish volume in a negative industry, which means that we continue to have good commercial performance, and we see some margin expansion. Looking forward, we start to have some, you know, higher costs because of our hedging for H2 and probably H27. India continues to surprise us in positive ways, you know, strong double-digit top-line growth and EBITDA also improving, so it's small, but, you know, starting to make a bigger difference for us. And China, as I was saying before, priority continues to be to stabilize volumes. We continue to invest in our brands, and we expect this investment to continue in the second half, okay? So, yes, margins might continue under pressure for a bit, in China because the priority is now to invest in our brand, which we believe is the right thing for the long term. Thank you for the question.

Thanks a lot, Bernardo and Wei-Jie.

Thank you.

Thank you. Our next question is coming from Chen Luo from Bank of America. Please go ahead.

Hi, YJ and Norvik. This is Chen from BOFA. I've got two questions. First, I will start with the margin size. So if I'm right, I think we have a one-year cost hedging policy. And given the rising cost pressure in 2026, are we actually seeing a delayed GP margin pressure in 2027? And if that is correct, are we going to focus on SG&E control or continue with commercial investment to revive the top line growth going forward? 我这边再翻一下中文吧,就是我们通常在原材料采购的时候是有一个一年的这个hedging the policy. No. Thank you, General. You're completely correct. We have a 12-month hedging policy, which means that, you know, the recent increase in commodity prices has a

Delay Impact For Us When You Look For Example On Aluminum Right The Current Prices And Increase You Know 10-20% Depending With Which Period You Are Comparing We Are Going To Start To Have Those Effects In The Second Half And Some Of Those Effects For 2027 On The Other Hand We Have Some Good News On Barley Which Helps Offset But Not Totally The Increases So You Are Right Also That You Know We Are trying to have initiatives to offset. I think the supply team in the company has done a very good job of trying to bring efficiencies to offset some of these impacts. And to the question about whether that is going to stop us from making investments in the market, the answer is no. We believe the right thing to do now is to keep investing behind our brands and to recover the volumes in China. Thank you for the question.

Okay, thank you, Nong. That's very helpful. So my second question is on dividends. So given the fact that China has seen volume decline for almost three years, and we have also seen several years of earnings decline, will there be any implication to our dividend policy as I understand that our dividend has been largely fixed for quite a few years despite the earnings volatility? Thank you.

Yes, I mean, it's taking us longer than we expected to recover. I think I always repeat this part about that, you know, the capital allocation priorities remain the same for us. And our number one priority is organic growth. So that's why we believe that we need to keep investing in our business. It's the priority number one. Selective M&A is number two, if it comes. And then number three is return the money to our shareholders. But I think you're right. It's fair to assume that, you know, if results don't improve, if, you know, they end up being below our expectations, it's going to be difficult to maintain the dividends at the levels that we have. Having said that, it's too early. We are still like half the year, and we'll keep working hard to try to improve the performance. So thanks for the question.

Okay. Thanks a lot, Bruce. This was really helpful.

Thank you. Our next question is coming from Xiaopo Wei from SIFI. Please go ahead.

Hello, everyone. I'm Xiaopo Wei from SIFI. I have two questions. The first question is about China. I'll translate it in Chinese first. Just now, Bernardo also talked about a lot of Chinese brand investments, long-term investments. Recently, in the recent few weeks, I've seen a lot of adverts. I want to This question is related to earlier commentaries about the commercial investment and branding. We have noticed many successful people work on campaign advertisement. Is there any visible impact on the volume in the short term? We understand that investment is for long-term brand equity, so if it is not, there's no short-term volume positive impact. How long do you think it will be monetized in the volume operation? Thank you.

Hi, Xiaobo. Sometimes these investments take a little bit longer to see the benefits, but these are the right long-term investments for the brands. We're very proud of our partnership with FIFA. I think it was an amazing workup. I personally had the luck to go to one of the games with my kids, and they really enjoyed it. I think it was a great way to show soccer overall and to showcase the partnership at Budweiser as a big brand that it is in China and globally. I've been partnering with FIFA for 40 years, so it's 11 different editions. We have actually a themed packaging featuring the 11 different editions of the Budweiser can that is still in the market in many places in China. We also take advantage of the opportunity to do a partnership with Erling Haaland. I don't know how many of you know him. He's a Norwegian striker that had a very good workup and is helping us with the launch and the rollout, more than the launch, of Budweiser Magnum. That is one of our biggest bets in premium in China, and this partnership has been very successful so far. Again, the main objective for this, and particularly for China, right, that is not in the same time zone, more than volumes, is strengthen our brand equity. Our results overall in our brands despite the negative volumes and the share loss. We're good in this first half in terms of brand and brand equity. And we are committed, we are here for the long term and we'll continue to invest behind our brands. But at the end are the most important assets of our company. Thank you for the question.

Thank you. I have the follow up question to you Bernardo, since you are very new to the CFO chair. we have to ask you this question for you. So since I'm CEO of the company, we have seen great, great growth about India, and it is the all-real validation of the competition model in the non-China, non-Corea, APEC markets. So would you slightly pivot towards inorganic growth opportunity in the region after seeing the Indian high growth and also the China weakness? And even I don't see him in the CFO. No, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no. Thanks for the question.

I think that the growth in India and Southeast Asia overall highlights one of the advantages I see, you know, for our company, which is our geographic footprint. I think we have, in a way, a competitive advantage versus our regional competitors of our exposure to some of these growth areas. and having said that, that doesn't change our capital allocation priorities. Again, I will repeat them. Number one is still organic growth and that's why we keep investing in our business to recover. But yes, number two continues to be inorganic and you know how it is with inorganic possibilities. They might appear at some point. They not only depend on whoever is interested in buying but whoever is interested in selling. So we are still engaged and having conversations and we will be in the table in case an opportunity comes. But there is no big shift in priorities regarding the importance of inorganic. Of course, we don't have anything to announce at the moment, and if something arrives, you know, we'll let you guys know. But, yeah, thank you for the question.

Thank you, Bernardo. We're just inspired that you give us some surprise in the future. Thank you.

Thank you. Our next question is coming from Joanne McLeish from Bernstein. Please go ahead.

Hi, good morning. Thanks for taking my question, James. So, yeah, Bernardo, you've been really clear that trying to avoid growth is your top priority. Historically, your main driver of the top line was this geographic route to market expansion strategy. And then probably, I don't know, 18 months ago or so, you sort of pivoted to much more about the in-home channel route to market expansion. Was this a good choice for you? And how do you think about the relative attractiveness of the two growth strategies as we go forward?

Thank you, Johan, for the question. You are correct. I think if you look back in our history, a lot of our growth particularly for Budweiser in the early years was of course growing the brand where we were but a lot of geographical expansion of course the more you grow that expansion growth is slower and but doesn't mean that we don't have opportunities and I think regarding the market you know our expansion strategy was always starting more with the high end more in the you know nightlife and out of home and at The market is shifting, and now it's going more to the 0-2-0. We're trying to see different ways to penetrate new markets, so we're shifting a little bit the strategy there, but we still see opportunities to cover places where we are not, although, of course, it's not at the same rate as it was in the past. But we do see opportunities, and we keep working on trying to fight for, you know, New Growth Opportunities in China Okay, thanks.

It seems that the margin declines in China kind of accelerated when you made this shift to the in-home expansion strategy. Is this more about kind of I think it's probably a little bit of both.

I think as I've been mentioning, we are increasing investments as a percentage of net revenue in China to get to this priority that we have. Of course, when you do that, the ROI of the investments are lower, right? Because volumes are decreasing as you see. But we still believe it's the right thing to do. We need to be patient and the results will come. But on the other hand, on the O2O expansion, you know, the margins are lower. We have been able to offset some of those, you know, the extra cost of operating O2O by premiumizing. I think the O2O is a channel, it's a more premium channel than the in-home overall. So that's offset. Then we have an advantage there versus the competition because we have a more premium average portfolio to play and super premium, by the way, that helps in the O2O. But I think when you look at the margins, the answer is both. You know, some of the things we are doing or the things that are happening are structural, and some are investments that we are doing now to try to recover. Thank you, Ewan, for the questions.

Thank you. Our next question is coming from Lee from Goldman Sachs. Please go ahead.

Thanks a lot for the opportunity. I have two questions I will ask one by one. So the first one is on China about the China inventory. So what are the China inventory levels right now in terms of our days and turnover? Do you maintain across China's distribution network? and how does this compare to the ideal level also we will still continue to focus on a lower healthier channel inventory into the second half in order for a longer term more healthy volume recovery or we are already like at the ideal level right now I will also translate into Chinese Thank you Liv

Yes, we have been taking steps to adjust our inventory. Our inventory today is lower than it was at the same time last year. Having said that, we are not yet at what you're asking if we are in the ideal level. I don't think we are yet. I think we are still a little bit, we still have some room to improve in both Tier 1 and Tier 2 inventories. So we, you know, going forward, we remain judged, but we, you know, look at inventories and There might be a little more adjustments in the second half, but we are getting close to what we think is the ideal level for inventors. Thank you for the question.

Thank you so much. That's very clear. The second question is about queer, about queer consumer environment. So how do we look at this consumption environment in Korea, given the volatility in the equity market? Also, any benefits to local beer consumption increase or beer consumption upgrade from the equity market wealth effect? And how do we look at into the second half? Thank you, Liv.

Again, in Korea, it's important that we look at the first half overall, reminding you that our volumes were flat, but our estimate is that the industry actually declined low single digits. Overall, the economy is doing well. Consumer confidence is up. Of course, the stock market was really up. In recent days, not so much. But overall, these positive economic sentiments that we were seeing in the first half of the year has not self-inflated yet into overall recovery in alcohol consumption. On the positive side for us in beer, beer is gaining share of throat in the first half versus soju. And we believe this is some of the more beer-friendly occasions are gaining some traction, which is good for us. We also see in a declining industry some pockets of growth. particularly around non-alcohol, flavor beer, RTD. This is gaining popularity and this is helping us. Again, it's important to mention that we have positive momentum and we are outperforming the industry in both the in-home and out-of-home and that we remain focused on our strategy of innovating. I think as market leaders, we need to lead and lead with innovation, with balanced choices. That is the future in a market like Korea and developing new occasions particularly in the patients that are growing and are helping us on the share of growth side. Thank you.

Thank you.

Thank you. Our next question is coming from Jesse Xu from J.P. Morgan. Please go ahead.

Thanks. Hi, Bernardo, Y.J., Jesse Xu from J.P. Morgan. Thanks for taking my questions. My first question is a follow-up on South Korea and non-alcohol categories. We know that South Korea has often been an early mover in Asia, leading other countries across different consumer trends. So could you share the latest developments you are seeing in non-alcohol beer and the broader beyond beer category in South Korea, particularly in terms of consumer behavior, adoption, and consumption occasions? and how are you positioning your portfolio there, including the key investment priorities in Korea to capture that growth? 感谢管理层给我这个提问的机会,我是摩根大通的Jesse Xu。 My first question is about Korean non-beer products and new products. This season, our market is very good in Korea. And Korea has always been leading in many consumer behaviors and preferences. Can you share some of the situations in the Korean market? For example, in terms of consumer concepts, taste preferences, or application scenarios, are there any new changes or trends? Thank you, Jessie.

I think one of the advantages of being a global company is that we can see and compare situations that we see in Korea and other developed markets. And in mature markets, it's important to lead with innovation, particularly on what we call balanced choices. and there are a lot of pockets of growth that are, you know, important and growing like non-alcoholic, flavor, and RCD. Maybe I can share with you all like two examples that I think are important to share in South Korea. One is Cas0 that we relaunched as Cas0.00. And in this case, we are using a new technology, you know, that helps with the alcohol removal. And, you know, it's bringing like a new cap that you know is closer in original flavor and a crispy texture and is now the number one non-alcoholic you know segment in the segment so I think we are happy to see that this is also an advantage of being a global company and having some of these technologies that are like you know very advanced another example and it's also an advantage of being a global company is the launch that we just did of Neutral in July Neutral I feel close to it because it's one of the brands that I was responsible when we acquired them in North America. It's a Canadian vodka soda that, you know, we acquired in Canada and then we launched in the U.S. and it's doing very well in both cases. And we brought it to Korea, which has launched it. The team was very creative and we launched it with a, you know, partnership with the two of the 17 K-pop groups There, it's targeted, of course, through LDA, but the younger consumers. It's a lemon-flavored vodka-parting beverage with zero sugar. And it's up into this ready-to-drink category that is, you know, growing. And I think, you know, the advantage that we have in Korea is having these, you know, global brands and having a strong route to market that can, you know, allow us to keep innovating. It's why we are managing to have stable volumes even in a soft industry. We believe that this RTD represents a very good opportunity for the future and the team is actively working and talking with consumers to see how else can we develop new products for new occasions in South Korea. Thank you for the question, Jessica.

Thank you, Bernardo. That's very helpful. And then my second question is on China and pricing. Well, cost inflation started to come through from the second quarter and into the third quarter while the overall demand is fairly still weak in China. But given some competitors already took price up in April, how are you thinking about your pricing strategy as of now? Do you anticipate taking any pricing action soon? If so, would they be broad-based or more targeted by market, by channel or brand tier? Or put it differently, how are you balancing protecting volume or share versus protecting margins into the second half? And what would be the key triggers for acting on price? My second question is about the Chinese market and our pricing problem. Because of some of the cost of common materials, the inflation started from the second quarter and continued to the third quarter, but the demand of the entire Chinese market is still relatively weak. The competition is also quite intense. Thank you

Maybe to answer, I think it's always good to start with the strategy, right? So our priority in China continues to be to stabilize volumes. And as you can see in our results, because of the soft industry and our underperformance in share, we still like focus on trying to stabilize volumes. So yes, we are aware of some competitive reactions in some regions, in some packs. We continue to monitor, but at this point, we don't have any news to share about price increases. In the first half, we invested in some areas. We had a positive mix, but we have some investments, particularly to support our wholesalers that, of course, are under pressure given this volume decline. We are also investing behind our brands. We are also investing behind the growth in O2O. Some of these things take a while to see effects, but we believe are the right movements for the long term. so I think the message to you about pricing is that at this point we continue to have a focus on stabilizing volumes and we expect to continue investing in the second half Thank you Thank you

In the interest of time, final questions will come from Christine Pong from UBS. Please go ahead.

Thank you, management, for the opportunity to raise the questions. So I also have two questions. So one is about China. So I appreciate management's earlier commentary in terms of the China strategy. you know, channel extension. You also talk about portfolio diversification. But on the other hand, the timeline in terms of volume recovery and margin seems uncertain. So given the external environment, especially considering volumes still declining, industry competition still very fierce. So I'm just wondering whether The management will consider any strategic pivots beyond these measures you just talked about. And if that happens, what's going to be the financial impact on the company's revenue and EBITDA margin going forward? Thank you.

I'll answer this question. I'll answer this question.

I'll answer this question. Yes, I am very grateful that the management team talked to us a lot about the changes in China's strategy, including that it is still necessary to continue to invest in the in-home channel and continue to enrich the brand. But at the same time, we also noticed that the amount of the industry is still declining, and the competition is also very intense. So I would like to ask the management team, in addition to these strategies, are there any other uh uh uh

That's our advantage. So this is our strategy and strategy. On the second hand Brewing Co She goes over to the same time you do not see and I'm not able to teach them shall we just don't see it from our guide I want to show them to teach them to see some people to teach them to a young woman did she tell the same thing from what she asked the team power told you her team are used to eat you she thought that told you Thank you, YJ. Thank you, YJ. Thank you, YJ.

So I have the second question is about Indian as well as Southeast Asian markets. So we all understand management is now privatizing revenue over profitability for Indian markets, but I was just wondering whether there will be any pathway or timetable in terms of improving the Indian market profitability in the next 12 months. and also for Southeast and Asia market, which we also understand is probably not making much money. So what's going to be the plan to improve that market probability in the next 12 months? Thank you.

Do you want to translate Chinese?

Thank you.

Taiwan China uh uh Shantung what she said so far that what you're not so much of a lot so you need to know that you're not gonna work out so we can kind of what she said I don't know how you're going to be out that's the only kind of woman that yet you know she did not want to see her and she didn't see him she didn't really don't know how you're going to be out that's the only kind of woman that yet you know This is a very important key. This is actually a very good practice. It is also a very important factor in our success in Korea. What about India? You mentioned India. In fact, India is also uh uh uh uh uh uh uh uh uh uh uh uh So you're talking about this kind of our profit situation, our cash flow situation is actually going to be greatly improved. It is very much to look forward to. So India is moving in a very good direction. What about Southeast Asia? You said that although our business is relatively small now, in fact, in addition to our organic growth, we are also looking for some non-organic opportunities. uh uh uh This concludes our Q&A session today.

I would like to turn the conference back over to Y.J. for the closing remarks.

Thank you, Eric. Our priority in 2026 is still to stabilize the volume and rebuild our market share momentum in China. We continue to invest behind our mega brand and innovations, strengthening execution and expanding our in-home China presence. Despite current performance softness, we remain confident in our people and will focus on our strategy going forward. Thank you all for joining us today and I am looking forward to speaking to you soon.

This concludes today's results call. Please disconnect your lines. Thank you.