Eastroc Beverage(SH:605499) Xin Lang Cai Jing·2025-10-10 06:59Core Viewpoint - Dongpeng Beverage Group Co., Ltd. has submitted an application for listing on the Hong Kong Stock Exchange, aiming to leverage its leading position in the functional beverage market in China and expand its operations further [3][4]. Company Overview - Dongpeng Beverage is recognized as the leading functional beverage company in China, with the highest revenue growth among the top 20 listed soft drink companies globally [4]. - The company has maintained its position as the number one in the Chinese functional beverage market for four consecutive years, increasing its market share from 15.0% in 2021 to an expected 26.3% in 2024 [4]. - As of October 9, 2023, Dongpeng Beverage's stock price was 301.51 RMB per share, with a market capitalization of 156.79 billion RMB [3]. Financial Performance - Revenue figures for Dongpeng Beverage are projected as follows: approximately 8.5 billion RMB for 2022, 11.26 billion RMB for 2023, 15.83 billion RMB for 2024, and 10.73 billion RMB for the first half of 2025 [9]. - The total comprehensive income for the same periods is estimated at around 1.43 billion RMB, 2.06 billion RMB, 3.36 billion RMB, and 2.35 billion RMB respectively [9]. Industry Insights - The Chinese soft drink industry is substantial, with a projected retail value of approximately 1.3 trillion RMB in 2024, making it the second-largest soft drink market globally [9]. - The functional beverage segment is the fastest-growing within the soft drink industry, with a compound annual growth rate (CAGR) of 8.3% from 2019 to 2024, surpassing the overall soft drink market growth of 4.7% [9]. - The energy drink sector in China is expected to reach a market size of 180.7 billion RMB by 2029, with a CAGR of 10.3% from 2025 to 2029 [10]. - The sports drink market is also expanding, with an expected size of 54.7 billion RMB in 2024, projected to grow to 99.7 billion RMB by 2029, reflecting a CAGR of 12.2% [10]. Strategic Initiatives - The net proceeds from Dongpeng Beverage's IPO are intended for enhancing production capacity, upgrading the supply chain, strengthening brand influence, expanding national and international market presence, and improving digital operations [10]. - The company has established a comprehensive digital operation system that connects with over 250 million consumers and collaborates with more than 3,200 distribution partners [6][9].