New Stock News | Eastroc Beverage (605499.SH) ranked first in the Chinese functional beverage market for four consecutive years after being listed on the Hong Kong Stock Exchange.

According to the disclosure by the Hong Kong Stock Exchange on January 14, Eastroc Beverage (Group) Co., Ltd. (referred to as Eastroc Beverage (605499.SH)) has conducted a listing hearing on the main board of the Hong Kong Stock Exchange, with Huatai International, Morgan Stanley, and UBS Group serving as joint sponsors. The prospectus shows that Eastroc Beverage is the leading functional beverage company in China, with revenue growth ranking first among the top 20 listed soft drink companies globally. According to Frost & Sullivan's report, the company has ranked first in the Chinese functional beverage market by volume for four consecutive years since 2021, with market share increasing from 15.0% in 2021 to 26.3% in 2024. By retail sales, the company is the second largest functional beverage company in 2024, with a market share of 23%. The company has established a nationwide sales network, covering over 4.3 million terminal sales outlets across China as of September 30, 2025, achieving nearly 100% coverage of prefecture-level cities in China. The sales team works closely with distribution partners to continuously improve product distribution rates and optimize product displays to increase visibility and penetration. The company continues to expand its omni-channel sales network to meet consumers' daily consumption needs in a variety of scenarios. The details of the gross profit and gross profit margin of beverage products are as follows: According to Frost & Sullivan's report, the retail sales of China's soft drink industry reached approximately 1.3 trillion yuan in 2024, making it the second largest soft drink consumption market in the world. Among them, functional beverages refer to soft drink products containing specific ingredients that act on specific body functions, including energy drinks, sports drinks, and other functional beverages. Functional beverages have become the fastest-growing segment, with an annual compound growth rate of 8.3% in market size from 2019 to 2024, higher than the overall soft drink market growth rate of 4.7% during the same period. With the acceleration of life pace and continued consumer focus on health, the demand for beverage products with specific functions such as energy supply and nutritional element supplements continues to grow, indicating huge market potential for the functional beverage industry. By retail sales, the market size is expected to reach 281 billion yuan in 2029, with an annual compound growth rate of 10.9% from 2025 to 2029, far exceeding the 5.8% growth rate of the soft drink market during the same period. For energy drinks, the demand for energy drinks in China has been continuously growing in recent years, with expanding consumer groups, consumption scenarios, and diverse packaging, flavors, and functional requirements. According to Frost & Sullivan's report, the retail sales of China's energy drink industry are expected to reach 180.7 billion yuan by 2029, with an annual compound growth rate of 10.3% from 2025 to 2029. As for sports drinks, with the popularization of the concept of national fitness, sports drinks that can timely replenish water, electrolytes, and energy are increasingly accepted by the general public, expanding from sports fitness scenarios to more consumption scenarios with daily hydration needs. According to Frost & Sullivan's report, the retail sales of China's sports drink industry reached 54.7 billion yuan in 2024 and are expected to increase to 99.7 billion yuan by 2029, with an annual compound growth rate from 2025 to 2029 of 12.2%. Financially, in the fiscal years 2022, 2023, 2024, the nine months ended September 30, 2024, and the nine months ended September 30, 2025, Eastroc Beverage's revenues were approximately 8.5 billion yuan, 11.257 billion yuan, 15.83 billion yuan, 12.552 billion yuan, and 16.838 billion yuan respectively. During the same period, comprehensive income for the year/period was approximately 1.426 billion yuan, 2.059 billion yuan, 3.364 billion yuan, 2.699 billion yuan, and 3.71 billion yuan respectively.