New Stock News | China Resources Beverage conducts hearing at HKEX, owning a portfolio of 13 branded products including "C'est bon".

According to the disclosure from the Hong Kong Stock Exchange on September 25, China Resources Beverage (Holdings) Limited (hereinafter referred to as China Resources Beverage) held a hearing at the Hong Kong Stock Exchange, with BofA Securities, CCB International, CITIC SEC, and UBS Group serving as its joint sponsors. According to the PwC Advisory Report, China Resources Beverage is one of the earliest companies in China to specialize in the production of packaged drinking water. It has grown to become the second largest packaged drinking water company in China and the largest drinking purified water company in China (based on retail sales in 2023). According to the PwC Advisory Report, the retail sales of the company's "Nestle" branded drinking purified water products reached 39.5 billion yuan in 2023, making it the number one brand in the Chinese drinking purified water market. It is reported that the company mainly owns 13 brands including "Nestle", "Zhiben Qingrun", "Mishui series", "Holiday series" and "Zuowei Chashi", with a total of 56 SKUs. According to the PwC Advisory Report, in 2023, in terms of regional distribution, the company's packaged drinking water products had the highest market share in the packaged drinking water markets of six major provinces in China (Guangdong, Hunan, Sichuan, Hainan, Guangxi, and Hubei). In 2023, the market size of packaged drinking water in these six provinces accounted for approximately 30% of the total market size of China's packaged drinking water market. In terms of finance, in the fiscal years 2021, 2022, and 2023, China Resources Beverage achieved revenues of approximately 11.34 billion, 12.62 billion, and 13.51 billion yuan respectively; with annual profits of approximately 858 million, 989 million, and 1.331 billion yuan respectively. During the reporting period, the company's revenue growth was mainly driven by the packaged drinking water products, mainly due to strengthening the penetration of sales networks and expanding the sales areas of some products, which increased customer demand for our products. Additionally, during the reporting period, the absolute amount of revenue generated from the sale of beverage products and the percentage of total revenue both increased, primarily due to: (i) the continuous expansion of product portfolio; (ii) expansion of sales network for beverage products; and (iii) increase in brand awareness of beverage products. As of the end of 2023 and the four months ended on April 30, 2024, the gross profit margin of beverage products remained relatively stable at 32.0% and 31.0% respectively, mainly due to changes in the beverage product portfolio, which led to a decrease in the average selling price of the company's beverage products by the end of April 30, 2024, offset by a decrease in the market price of certain raw materials and increased production efficiency.