Dongpeng Beverage 2025 Annual Report Review

Source: Yiliu Investment Research Notes

Disclaimer: This article is for research and discussion only and does not constitute any investment advice. The stock market carries risks; decisions require independent thinking. Build your own logic framework and risk-control system, and be sure to avoid blindly following others.

E-Pen Beverage can be said to be the leader in functional beverages, especially near large freight transport trucks, you often see it. Yesterday, the company also released its 2025 annual report. Let’s see what this financial statement says: we first use Python to parse the PDF into a TXT file, then use deer-flow and the attached annual report review skills, and finally manually cross-check the data and adjust the formatting.

I. Financial Summary: Both Revenue and Profit Increase, and Profitability Is Excellent

In 2025, the company achieved operating revenue of 20.875 billion yuan, up 31.80% year over year. Net profit attributable to shareholders was 4.415 billion yuan, up 32.72% year over year. The profit growth rate was higher than the revenue growth rate, and profitability continued to improve.

By quarter, the first three quarters maintained steady growth. In the third quarter, single-quarter revenue was 6.107 billion yuan and net profit attributable to shareholders was 1.386 billion yuan, setting a historical high. In the fourth quarter, revenue fell slightly due to the春节错峰 factor. For the full year, the weighted average return on net assets reached 51.61%, up 4.68 percentage points year over year, remaining at a leading level in the industry.

Net cash flow from operating activities for the full year was 6.174 billion yuan, up 6.65% year over year. Cash reserves were sufficient, with a safe liquidity buffer. The contract liability balance at period end was 5.974 billion yuan, up 25.50% year over year. This was mainly for advance payments from distributors and rebates payable, reflecting strong payment enthusiasm from downstream channels and ample order reserves, laying a solid foundation for performance growth in 2026.

II. Business Structure: Breakthrough Through Multi-Category Synergy, Deepening the National Layout

The product structure was continuously optimized, and the effectiveness of the “1+6” multi-category strategy was significant. For the core large single product, E-Pen Special Drink, full-year revenue was 15.599 billion yuan, up 17.25%. Nielsen data shows that its share of market sales value increased to 38.3%, officially ranking first in both sales volume and sales value in China’s energy drink market.

The second growth curve, “E-Pen Hydration,” saw explosive growth. Full-year revenue was 3.274 billion yuan, with a year-over-year growth rate of 118.99%. Its revenue share rose to 15.7%, making it a 3-billion-yuan-level large single product.

For other categories such as Guozhi Tea and E-Pen Big Coffee, combined revenue was 1.986 billion yuan, up 94.08%. The overall share of non-specialty beverage categories increased from 15.9% in 2024 to 25.2%. The company successfully transformed from a single functional beverage leader into a comprehensive beverage group.

The regional layout became more balanced. In South China, the traditional base achieved revenue of 6.215 billion yuan, up 18.09%. In North China and Southwest China, growth momentum was strong, with revenue growth rates of 67.86% and 40.77%, respectively. The results of national penetration were evident. On the channel side, the number of distributors exceeded 3,400, and effectively active terminal outlets exceeded 4.5 million. While continuing to deepen traditional channels, growth rates in key-account customers and online channels reached 35.55% and 40.24%, respectively. The company’s full-channel synergy capabilities continued to strengthen.

III. R&D: Focus on Healthy Demand, with Technical Support for Innovation

In 2025, the company’s R&D investment was 66.3384 million yuan, up 5.85%. The R&D team totaled 150 people. Among them, the proportion of personnel under 30 years old was 57.3%, showing a clearly younger team profile with ample innovation energy. The R&D directions focused on three core areas: upgrading health-oriented formulations, validating efficacy, and applying new processes. The company conducted systematic research around consumers’ demand for low sugar, low burden, and functional benefits.

During the reporting period, the company launched multiple new products aligned with health-consumption trends, including sugar-free energy drinks, sugar-free electrolyte water, the “Baked Good Tea” series, and low-sugar Hongshi milk tea. At the same time, it deepened industry-university-research cooperation, jointly with 9 authoritative institutions such as Beijing Sport University and South China University of Technology, to conduct product efficacy research. This provided scientific data support for functional claims such as “E-Pen Special Drink alleviates fatigue” and “E-Pen Hydration water’s hydration function.” The layout of intellectual property for core formulas and processes continued to improve, building a solid technical barrier.

IV. Core Competitiveness: Strong Advantages Across the Full Chain, and Significant Brand Momentum

The company has built multi-layer competitive barriers covering product strength, channel strength, brand strength, supply strength, and digital strength.

On the channel side, it formed a nationwide network with deep sink-down coverage. Terminal coverage density leads the industry. On the production side, it completed a layout of 14 production bases nationwide, with 10 already in operation. This significantly shortened delivery radius. Unit manufacturing costs were lower than the industry average. Combined with the advantages of large-scale procurement, the company formed a sustainable cost-leading capability.

The digital “Five Codes Linkage” system enables end-to-end traceability from production to consumption. Channel inventory and sell-through data are monitored in real time, and operational efficiency is significantly higher than the industry average.

On the brand side, the mindset of “When you’re tired or sleepy, drink E-Pen Special Drink” is deeply ingrained. E-Pen Special Drink ranks among the global top ten beverage brands by value. Each sub-brand precisely targets different consumption scenarios, and multi-dimensional marketing such as sports events, esports, and variety shows continues to strengthen brand awareness.

The management team is stable. The “There is no reason not to grow” culture of striving has been deeply integrated into the organization, and execution strength is strong. After the company’s listing in Hong Kong in 2026, its pace of globalization strategy will accelerate, further opening up long-term growth space.

V. Shareholder Returns: Stable Dividend Policy, and Equity Continues to Improve

The company adheres to a sustained and stable dividend policy. Since the listing,累计 cash dividends have exceeded 6.6 billion yuan, allowing shareholders to share the fruits of development. The 2025 profit distribution proposal is to pay a cash dividend of 25 yuan for every 10 shares (including tax). At the same time, it will increase shares by 3 shares for every 10 shares from capital reserve funds. The expected cash dividend amount is 1.412 billion yuan. The dividend payout ratio is 31.98%, maintaining the company’s consistently high-dividend level, with continued strengthening of shareholder return efforts.

At the end of 2025, net assets attributable to shareholders of the listed company reached 9.421 billion yuan, up 22.54% year over year. Net assets per share were 18.12 yuan. Basic earnings per share were 8.49 yuan. The continued improvement in profitability provides solid support for growth in shareholders’ equity. After the company’s listing in Hong Kong, its corporate governance structure was further optimized. Information disclosure became more standardized, regulated, and transparent, and mechanisms to protect the rights of minority shareholders were further improved.

VI. Risk Warning: Disturbances from Multiple Factors Require Cautious Response

Risk of intensifying industry competition: The current soft drink market shows clear characteristics of stock competition. International brands continue to consolidate their advantages, and emerging brands keep entering niche tracks. If the industry engages in irrational price wars or if marketing expenses are投入 significantly, it may create some pressure on the company’s profitability.

Risk of fluctuations in key raw material prices: Raw material costs such as PET and white sugar account for a relatively high proportion. Affected by multiple factors including commodity market conditions, agricultural product cycles, and exchange rates, if prices rise sharply in the future and the company cannot effectively pass on cost pressure, it may lead to a decline in gross margin.

Food safety risk: As a food manufacturer, product quality is the lifeline for the company’s survival and development. If quality and safety issues occur in production and distribution stages, it will have a major adverse impact on brand reputation and operating performance.

Risk of overseas expansion falling short of expectations: The company is pushing forward with overseas market layout such as Southeast Asia. It faces multiple challenges including cultural differences, policy and regulatory oversight, and localized operations. If expansion progress falls short of expectations, it may affect the implementation timeline of the globalization strategy.

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