Eastroc Beverage(SH:605499) Feng Huang Wang Cai Jing·2025-10-21 13:33Core Viewpoint - Dongpeng Beverage, a leading player in the A-share market with a market capitalization of 156.5 billion RMB, is making another attempt to list on the Hong Kong Stock Exchange after its initial prospectus submitted in April 2025 expired. The updated prospectus shows impressive financial performance, but there is a significant divide in market perception regarding the health implications of its core product, energy drink Dongpeng Special Drink [1][4]. Financial Performance - Dongpeng Beverage's projected revenues for 2022, 2023, and 2024 are 8.5 billion RMB, 11.26 billion RMB, and 15.83 billion RMB, respectively. In the first half of 2025, the revenue reached 10.7 billion RMB, marking a year-on-year growth of 36.5%. The net profits for the same years are projected at 1.44 billion RMB, 2.04 billion RMB, and 3.33 billion RMB, with a compound annual growth rate of 52.0%. In the first half of 2025, net profit was reported at 2.37 billion RMB [1][2]. Market Position - Dongpeng Beverage holds a 26.3% market share in China's functional beverage industry, ranking first among the top five companies. The sales volume of its energy drinks is expected to grow at a compound annual growth rate of 41.9% from 2022 to 2024, with 2024 sales reaching 3.08 million tons, a year-on-year increase of 29.1% [2][3]. Health Concerns - There are growing concerns regarding the health implications of Dongpeng Special Drink, particularly related to its high sugar content and potential health risks. Reports indicate that some consumers have experienced health issues, such as elevated uric acid levels and diabetes, after regular consumption. However, there is currently no direct evidence linking these health problems to the drink [5][14]. Consumer Behavior - Many consumers express a sense of dependency on Dongpeng Special Drink, with reports of individuals consuming multiple bottles daily. This dependency raises questions about the long-term health effects of such consumption patterns [6][10]. Product Composition - Dongpeng Special Drink contains ingredients such as taurine, caffeine, and high levels of sugar, with each 500ml bottle containing 66.5g of sugar, exceeding the recommended limit. The drink's formulation has been approved by health authorities, but its high sugar content poses potential health risks [12][15]. Marketing Strategies - The company employs aggressive marketing strategies, including promotional activities that encourage repeat purchases. These strategies have been criticized for potentially increasing consumption among vulnerable populations, particularly minors [20][22]. Social Responsibility - As Dongpeng Beverage navigates its path to a public listing, it faces the challenge of balancing commercial success with social responsibility, particularly in addressing the health concerns associated with its products [25].