Eastroc Beverage(SH:605499) Zhi Tong Cai Jing·2026-01-14 13:01Core Viewpoint - Dongpeng Beverage Group Co., Ltd. is set to list on the Hong Kong Stock Exchange, with Huatai International, Morgan Stanley, and UBS serving as joint sponsors. The company is recognized as the leading functional beverage enterprise in China, with significant growth in market share and revenue [1][2]. Company Overview - Dongpeng Beverage is the largest functional beverage company in China, ranking first in market share for four consecutive years since 2021, with a market share increase from 15.0% in 2021 to 26.3% in 2024 [2]. - The company is projected to be the second-largest functional beverage company in China by retail revenue in 2024, holding a market share of 23% [2]. Sales Network - The company has established a comprehensive sales network covering over 4.3 million retail outlets across nearly all prefecture-level cities in China as of September 30, 2025 [3]. - Dongpeng Beverage collaborates closely with its sales team and distribution partners to enhance product visibility and penetration rates [3]. Financial Performance - Revenue figures for Dongpeng Beverage are as follows: approximately 8.5 billion RMB in 2022, 11.26 billion RMB in 2023, and projected 15.83 billion RMB in 2024 [6][7]. - The gross profit for the same periods is reported as 3.53 billion RMB (41.6% margin) in 2022, 4.76 billion RMB (42.3% margin) in 2023, and 6.98 billion RMB (44.1% margin) in 2024 [7]. Industry Insights - The retail value of China's soft drink industry is expected to reach approximately 1.3 trillion RMB in 2024, making it the second-largest soft drink market globally [4]. - The functional beverage sector is the fastest-growing segment, with a compound annual growth rate (CAGR) of 8.3% from 2019 to 2024, significantly outpacing the overall soft drink market growth of 4.7% during the same period [4]. - The energy drink market in China is projected to reach 180.7 billion RMB by 2029, with a CAGR of 10.3% from 2025 to 2029 [5][6]. - The sports drink market is expected to grow to 997 billion RMB by 2029, with a CAGR of 12.2% from 2025 to 2029 [6].