Hou Xiaohai, long-time executive and architect of China Resources Beer's sweeping transformation, has resigned as chairman and executive director of the company effective June 27. According to a filing on the Hong Kong Stock Exchange, the departure comes as Hou seeks to devote more time to his family after over two decades of leadership. Zhao Chunwu, current president and executive director, will temporarily assume chairman responsibilities.
A pivotal figure at China Resources Beer since 2001, Hou rose through the ranks, taking over as general manager in 2016 and chairman in April 2023. Under his leadership, the company—known for the iconic Snow beer brand—pursued a bold strategy centered on high-end product expansion, internal restructuring, and the introduction of the 3+3+3 strategic framework. The initiative, launched in 2017, modernized operations and shifted the company toward international competitiveness and improved profitability.
Hou was also instrumental in securing a strategic alliance with Heineken, which in 2018 acquired a 40% stake in CBL (CRH Beer Limited), the holding company of China Resources Beer, contributing its Chinese operations and granting CR Beer licensing rights for the Heineken brand in China (inside.beer, 03.08.2018). This partnership accelerated China Resources Beer’s push into the premium segment and helped lift gross margins from 33.71% in 2016 to 42.6% in 2024. During Hou’s tenure, annual revenue rose from 28.7bn yuan to 38.6bn yuan (USD 5.39bn), and net profit climbed from 629m yuan to 4.74bn yuan (USD 662m). He also led the company’s diversification into baijiu, though it currently contributes just 5.56% of total revenue.
Despite speculation, Hou denied any plans to join Heineken, attributing his departure solely to personal reasons, including his desire to spend time with his aging in-laws and daughter, whose upbringing he missed due to career demands. His resignation follows two share disposals in May and closes a chapter that redefined China Resources Beer’s position in the market.
Zhao Chunwu, who joined CR Snow Beer in 2003 and has held various leadership positions across regions, is viewed as a steady hand with international experience from Pepsi, Wrigley, and Nanjing Interbrew. Analysts from DBS expect strategic continuity, especially with the company in the final year of its 3+3+3 plan, which emphasizes operational efficiency and retail expansion in channels such as instant delivery and private-label offerings.
Though Hou leaves before the official move into the company’s newly built Shenzhen headquarters, he expressed no regret. "I am a person who builds buildings, not a person who sits in them," he said, emphasizing his belief in transformation over tradition. Despite a demanding travel schedule of up to 170 trips annually, Hou maintained a clear sense of purpose. "Tomorrow will be better," he said, echoing a song that symbolized both his career and his vision for the company.
The market may initially respond with caution to Hou’s departure due to his strong personal influence, but analysts predict continued recovery in 2025, driven by premium beer growth and improved margins.
