Chinese Beverage Company Dongpeng Beverage’s First Half Revenue Growth Slows
In the first half of the year, Dongpeng Beverage, a mainland functional beverage company, saw a 15.89% increase in revenue, marking the lowest growth rate for the same period since its A-share listing in 2021. The core energy drink business grew by only 1.4% in the second quarter, while the electrolyte drink “Hydrate Now” saw a decrease in growth rate to 11.98% for the first half of the year.
According to a report from “21st Century Economic News” on July 31, Dongpeng Beverage’s operating income for the first half of the year was 12.443 billion yuan (RMB), representing a 15.89% year-on-year increase. The net profit attributable to the parent company was 2.867 billion yuan, up by 20.72%.
The revenue growth rate of the company decreased from 31.8% for the full year of 2025 to 21.46% in the first quarter of this year, further dropping to 11.3% in the second quarter.
Dongpeng Beverage released its semi-annual report on the evening of July 30. The following day, its A-shares closed at 135.90 yuan per share, a decline of 1.66%, while its H-shares closed at 125 Hong Kong dollars per share, a rise of 0.81%.
The energy drink business, dominated by Dongpeng’s special energy drinks and accounting for over 70% of the company’s revenue, had revenues of 8.937 billion yuan in the first half of the year, a mere 6.89% increase. The revenue for the second quarter was 4.525 billion yuan, with a growth rate dropping to 1.4%.
The electrolyte drink “Hydrate Now” saw a growth of 11.98% in revenue for the first half of the year, compared to a full-year growth rate of 118.99% in 2025.
As Dongpeng Beverage’s core product growth slows down, the Chinese beverage market also experiences a decline. Data from the National Bureau of Statistics of China shows that the output of beverages above a certain scale decreased by 0.5% year-on-year in the first half of this year, following a 1.5% decline in the first half of 2022, marking another half-year decline. Retail monitoring agency “Win Instantly” data indicates that sales of beverages through traditional offline channels dropped by 11.78% year-on-year in the second quarter.
Dongpeng Beverage’s revenue from tea drinks in the first half of the year increased from 3.42 billion yuan to 10.58 billion yuan, representing a nearly 209% growth. However, the gross profit margin for this business was only 23.66%, lower than the 54.67% for energy drinks and 40.59% for electrolyte drinks.
Chinese food industry analyst Zhu Danpeng told “Xingdao” that the deceleration in growth of Dongpeng’s special energy drinks and “Hydrate Now” is attributed to intensified competition in the functional beverage market, as well as the impact of continuous rainfall, abnormal temperatures, typhoons, and other factors in southern China.
Zhang Yi, Chief Analyst at iMedia Consulting, also expressed to “Xingdao” that it is difficult for a single brand relying on its main products to sustain explosive growth in the long term. As the revenue scale expands, external expectations for Dongpeng Beverage’s growth need to be adjusted accordingly.
According to a report from “China Business News,” Citigroup lowered its profit forecasts for Dongpeng Beverage for 2026 and 2027 by 10% and 15%, respectively, while also reducing revenue forecasts by 7% and 12% for the same period. The target price for H-shares dropped from 310.8 Hong Kong dollars to 161.7 Hong Kong dollars.
Additionally, Morgan Stanley revised its profit forecast for 2026 down by 13%, with the target price adjusted from 227 Hong Kong dollars to 195 Hong Kong dollars. Both institutions mentioned factors such as weak demand, weather conditions, and market competition.