Eastroc Beverage(SH:605499) Zhi Tong Cai Jing·2025-10-09 00:19Core Viewpoint - Dongpeng Beverage Group Co., Ltd. has submitted a listing application to the Hong Kong Stock Exchange, with Huatai International, Morgan Stanley, and UBS as joint sponsors. This follows a previous application submitted on April 3, 2025 [1]. Company Overview - Dongpeng Beverage is the leading functional beverage company in China, ranking first in revenue growth among the top 20 listed soft drink companies globally. The company's market share in the Chinese functional beverage market has increased from 15.0% in 2021 to 26.3% in 2024 [3]. - The company has established a strong brand presence over 30 years, providing high-quality beverages and achieving nearly 100% coverage of prefecture-level cities in China with over 4.2 million sales points as of June 30, 2025 [3]. Business Strategy - Dongpeng Beverage employs a refined channel management strategy and a unique "product + service" model, supported by a sales team of over 7,000. The company has implemented advanced tracking technologies to enhance product traceability and operational efficiency [4]. - The company has built a comprehensive digital operation system that connects with over 250 million consumers and interacts efficiently with over 4.2 million sales points and more than 3,200 distribution partners [4]. Industry Insights - The Chinese soft drink market is projected to reach approximately RMB 1.3 trillion in retail sales by 2024, making it the second-largest soft drink consumption market globally. The functional beverage segment is the fastest-growing, with a compound annual growth rate (CAGR) of 8.3% from 2019 to 2024 [5]. - The energy drink sector in China is expected to reach RMB 180.7 billion by 2029, with a CAGR of 10.3% from 2025 to 2029 [5]. Financial Performance - Dongpeng Beverage's revenue for the fiscal years 2022, 2023, 2024, and the first half of 2025 was approximately RMB 8.5 billion, RMB 11.26 billion, RMB 15.83 billion, and RMB 10.73 billion, respectively. The total comprehensive income for the same periods was about RMB 1.43 billion, RMB 2.06 billion, RMB 3.36 billion, and RMB 2.35 billion [7][8].