Eastroc Beverage Group Co Ltd605499
Mentioned
Impact on assets 1
Others
Eastroc Beverage Group Co LtdDongpeng Beverages first-half revenue rose 15.89% to 12.443 billion yuan; second-quarter slowdown prompts response to price war
3▲0 ▼0Impact / 5
Dongpeng Beverages disclosed its 2026 semi-annual results briefing announcement on September 18, in which management responded to investor questions on first-half operating data, slowing regional growth, and the price war in the electrolyte beverage segment. In the first half, the company achieved operating revenue of 12.443 billion yuan, up 15.89% year on year, and net profit attributable to the parent of 2.867 billion yuan, up 20.72% year on year. However, growth weakened noticeably in the second quarter, with single-quarter revenue rising only 11.31% year on year, net profit attributable to the parent up 15.39%, and net profit excluding non-recurring items up only 6.56%. Core energy beverage revenue grew only 1.46% year on year in the second quarter, while the electrolyte product Bishuila slowed from 118.99% growth last year to 11.98%. The company's overall gross margin for the first half was 48.36%, up 3.5 percentage points year on year, mainly due to locked-in procurement prices for raw materials such as PET. The company said the locked-in procurement arrangements are sufficient to cover near-term production needs, and it will offset cost pressure through procurement management, optimization of production base layout, and product mix adjustment. Regarding the roughly 8.8 percentage point gap between second-quarter net profit attributable to the parent and net profit excluding non-recurring items, the company acknowledged that the difference mainly came from foreign exchange gains and losses. The large foreign exchange loss caused by exchange rate fluctuations in the second quarter is a recurring item, while the relatively large investment income is a non-recurring item. On the electrolyte beverage price war, the company said it will not simply choose one approach over another, but will dynamically adjust strategy based on competitive dynamics in different regions, consumer base, channel inventory, and input-output efficiency. In fiercely competitive markets it will maintain necessary price competitiveness and channel investment, while in mature markets it will focus on improving product structure, promotion efficiency, and output per point of sale. Overseas business is centered on Southeast Asia and is still in its early stages, with limited short-term contribution to group revenue. The A-share dividend plan will be implemented according to the profit distribution plan approved by the shareholders' meeting.
Eastroc Beverage Group Co Ltd