New stock news | Eastroc Beverage (605499.SH) submits application to Hong Kong Stock Exchange, ranked first in China's functional beverage market for four consecutive years.

According to the disclosure from the Hong Kong Stock Exchange on April 3, Eastroc Beverage Group Co., Ltd. (referred to as Eastroc Beverage (605499.SH)) filed with the Hong Kong Stock Exchange Main Board, with Huatai International, Morgan Stanley, and UBS Group as joint sponsors. The prospectus shows that Eastroc Beverage is China's first and the world's leading functional beverage company, with revenue growth ranking first among the top 20 listed soft drink companies globally. According to the Frost & Sullivan report, based on sales volume, the company has been ranked first in the Chinese functional beverage market for four consecutive years since 2021, with its leading position continuously solidifying. The market share has increased from 15.0% in 2021 to 26.3% in 2024. In 2024, the company's energy drinks recorded revenue of 13.036 billion RMB, with a compound annual growth rate of 27.3% from 2022 to 2024. In the sports drink sector, the company's "Dongpeng Hydration" product, launched in January 2023, quickly rose to prominence by emphasizing its "rapid replenishment of electrolytes" function associated with sweating and hydration scenes, recording revenue of nearly 1.5 billion RMB in its second year, with a year-on-year growth rate of 280.4%. Eastroc Beverage has established a nationwide three-dimensional sales network, covering nearly 4 million terminal sales outlets by December 31, 2024, achieving nearly 100% coverage of prefecture-level cities in China. The Chinese soft drink industry is large in scale, with the Frost & Sullivan report stating that the retail sales of the Chinese soft drink industry reached about 13 trillion RMB in 2024, making it the world's second-largest soft drink consumption market. Among them, functional beverages, as the fastest-growing segment, have shown remarkable performance in recent years, with a compound annual growth rate of retail sales of 8.3% from 2019 to 2024, higher than the overall soft drink market's 4.7% during the same period. With the faster pace of life and consumers' continued focus on health, the demand for beverage products with specific functions such as energy supply and nutrient supplement continues to grow. The market potential for functional beverages is enormous, with an expected market size of 281 billion RMB by retail sales in 2029 and a compound annual growth rate of 11.0% from 2024 to 2029, far exceeding the 6.2% growth rate of the soft drink market during the same period. In terms of energy drinks, the demand for energy drinks in China has been steadily increasing in recent years, with expanding consumer base, diversification in packaging, flavors, and functional needs. According to the Frost & Sullivan report, the size of the Chinese energy drink industry is expected to reach 180.7 billion RMB by retail sales in 2029, with a compound annual growth rate of 10.2% from 2024 to 2029. Regarding sports drinks, with the popularization of the concept of nationwide fitness, sports drinks that can timely replenish fluids, electrolytes, and energy are increasingly accepted by the general public. Consumption scenarios have expanded from sports and fitness to more daily hydration needs. According to the Frost & Sullivan report, the size of the Chinese sports drink industry reached 54.7 billion RMB in 2024 and is expected to increase to 99.7 billion RMB by 2029, with a compound annual growth rate of 12.8% from 2024 to 2029. In terms of financials, Eastroc Beverage's revenue was approximately 8.5 billion RMB, 11.257 billion RMB, and 15.83 billion RMB in 2022, 2023, and 2024 respectively. During the same period, the comprehensive income totaled approximately 1.426 billion RMB, 2.059 billion RMB, and 3.364 billion RMB respectively.