Eastroc Beverage(SH:605499) Sou Hu Cai Jing·2025-10-16 09:52Core Viewpoint - Dongpeng Beverage is seeking a secondary listing on the Hong Kong Stock Exchange to enhance its capital strength and address growth challenges despite having substantial cash reserves [2][3]. Group 1: Company Overview - Dongpeng Beverage, established in 1994, is a leading player in China's functional beverage market, primarily known for its flagship product, Dongpeng Special Drink [3][6]. - The company has achieved significant financial success, with a revenue of 15.84 billion yuan in 2024, representing a 40.62% year-on-year increase, and a net profit of 3.33 billion yuan, up 63.09% from the previous year [8]. Group 2: Financial Position - As of the end of 2024, the company had cash on hand amounting to 5.653 billion yuan, with total cash assets exceeding 14.223 billion yuan, indicating strong liquidity [3]. - The company has a high dividend payout ratio of 63.62%, totaling 6.6 billion yuan in dividends since its A-share listing in 2021 [4]. Group 3: Market Position and Challenges - Dongpeng Beverage has maintained its position as the market leader in China's functional beverage sector for four consecutive years, with market share increasing from 15.0% in 2021 to 26.3% in 2024 [6]. - The company heavily relies on its core product, which accounted for 91.77% of its revenue in 2023, although this dependency has slightly decreased to 78% in the first half of 2025 [9]. Group 4: Strategic Initiatives - To diversify its product offerings and reduce reliance on a single product, the company has implemented a "1+6 multi-category strategy," with the electrolyte drink "Bushi La" showing remarkable growth, achieving 1.493 billion yuan in revenue in the first half of 2025, a 213.71% increase [11]. - The company is also attempting to expand into new consumer segments, such as students and white-collar workers, while facing competition from alternative beverages like coffee [10][11]. Group 5: International Expansion - Dongpeng Beverage's international revenue remains minimal, accounting for only 1.481 million yuan in the first half of 2025, which is approximately 0.14% of total revenue [11]. - The company has initiated the construction of a production base in Hainan and is preparing to establish a subsidiary in Indonesia to penetrate the Southeast Asian market [11].