At present, Dongpeng Beverage's ace product Dongpeng Special Drink still contributes more than ninety percent of the revenue, although the company is also constantly carrying out multi-category layout, but the situation of relying on large single products is still very significant.
Punctuation financial researcher Wang Zixi.
The functional drinks giant has terminated its plans to list overseas.
Dongpeng Beverage (Group) Co., Ltd. *** hereinafter referred to as Dongpeng Beverage, 605499SH) announced that it would terminate the overseas issuance of Global Depositary Receipts (GDRs). According to the announcement, the company's termination of overseas GDR issuance is a prudent decision made in combination with various factors and the actual situation, and will not have a significant adverse impact on the company's normal operation and sustainable development.
Recently, Dongpeng Beverage has been in constant news. Among them, the company's second largest shareholder plans to **1200 again after 2022 and 2023030,000 shares. After the general election, Liu Meili will no longer serve as the company's director and vice president, Lin Daiqin and Li Dawen will no longer serve as the company's directors, and Cai Yunsheng, Chen Yimin and others will no longer serve as the company's supervisors. At the end of last year, Liu Lihua, vice president and secretary of the board of directors of the company, had resigned from relevant positions.
From June 20 to December 17, 2023, Liu Meili, Cai Yunsheng, Li Dawen, Liu Lihua and many other directors, supervisors and senior executives have cashed out. Behind this series of "changes" is the overall performance of Dongpeng Beverage has increased significantly - the company expects that its revenue will exceed 11 billion yuan in 2023, and the net profit attributable to the owners of the parent company (hereinafter referred to as the net profit attributable to the parent company) will increase to about 2 billion yuan.
It is worth noting that Dongpeng Beverage's ace product, Dongpeng Special Drink, still contributes more than ninety percent of the revenue, and although the company continues to carry out multi-category layout, the situation of relying on large single products still exists significantly. In addition, from the perspective of the competitive landscape, Red Bull is still the "Dragon One", and Dongpeng's sales share will rank first in 2022.
Second, it exceeds the second echelon of physical energy and Lehu, but the company's stable market share relies on the high cost performance of products, and its terminal gross profit margin is much lower than that of physical energy.
Termination of the GDR Offering
Dongpeng Beverage recently announced that in view of the changes in objective factors such as the internal and external environment, the company decided to terminate the issuance of GDR through a comprehensive review of the financial and operating conditions, capital needs and strategic development plans.
Punctuation financial researchers noticed that Dongpeng Beverage's overseas listing began in 2022. At the end of June of that year, the company announced that in order to expand the company's international financing channels, meet the needs of business development at home and abroad, and enhance the company's international brand and corporate image, it planned to issue GDR overseas and list on the Swiss ** exchange.
The company has established a Hong Kong subsidiary in 2021 to carry out the construction of an overseas sales system and the promotion of overseas brands, hoping to achieve the development of overseas markets through the issuance of global depositary receipts, and hope to enhance brand competitiveness and make the brand bigger and stronger through internationalization like the leaders of the energy drink industry, "Red Bull Red Bull" and "Monster Energy".
At that time, just a few months after the China Securities Regulatory Commission issued the "Regulatory Provisions on the Depositary Receipt Business of the Interconnection of Domestic and Foreign Exchanges". The amendment expands the scope of domestic and foreign exchanges participating in the depositary receipt business of Stock Connect, from the Shanghai Stock Exchange to the Shenzhen Stock Exchange, which means that eligible companies listed on the Shanghai and Shenzhen Stock Exchanges can apply for the issuance of GDRs in overseas markets authorized by the China Securities Regulatory Commission; Overseas, it expanded from the UK to Switzerland and Germany.
According to the information on the official website of the China Securities Regulatory Commission, as of mid-February 2024, the China Securities Regulatory Commission has approved the issuance of GDRs by more than 20 listed companies, including Huayou Cobalt (603799SH), Yongtai Technology (002326SZ), Yangjie Technology (300373SZ) and most of the companies are listed in Switzerland.
Some analysts said that from the perspective of the overseas policy environment, the regulatory requirements of the Swiss Stock Exchange for GDR issuers have not been significantly tightened; However, the overseas capital market is also adjusting, and it is worth paying attention to whether it will affect the enthusiasm of enterprises to issue GDR overseas.
Income depends on large single items
Dongpeng Beverage was established in 1987. In 2009, the company became a "dark horse" in the energy drink market with its differentiated packaging and only half of the bottled Dongpeng Special Drink of the competition. Since then, the advertising slogan "tired and sleepy, drink Dongpeng special drink" has occupied the minds of consumers.
In 2018, the company completed the share reform and was successfully listed in May 2021, and the company's stock price soared to 285 in the early days of listing70 yuan shares (not reinstated), for a while in the limelight.
From 2019 to 2022, Dongpeng Beverage's revenue grew at a year-on-year rate. 9%, and the year-on-year growth rate of net profit attributable to the parent company was. 9% and 208%, except for 2022, the company's profit growth rate is above 40%. And the company expects to achieve revenue of 110 in 2023$5.7 billion to $1131.2 billion yuan, a year-on-year increase of 30% to 33%; The net profit attributable to the parent company was between 19$8.9 billion to $206.1 billion yuan, an increase of 38% to 43% over the same period last year.
Although the company's performance is still growing steadily, the company's reliance on large single products has not improved.
Dongpeng Beverage is famous for its functional drink "Dongpeng Special Drink". In 2021 and 2022, the sales volume of Dongpeng special drinks will account for about 90%. In the above two years, the beverage contributed 65% of revenue9.2 billion yuan, 817.2 billion yuan, accounting for more than 94% of revenue. If roughly estimated according to the proportion of ninety-percent, the sales revenue of Dongpeng Special Drink in 2023 may have exceeded 10 billion yuan, becoming a "10 billion large single product".
On the other hand, the company launched "Citrus Lemon Tea" and "Tangerine Peel Special Drink" a few years ago. In 2021, it will launch "Dongpeng 0 Sugar Special Drink" and low-sugar coffee drink "Dongpeng Big Coffee", and sell women's energy drink "She Can" on e-commerce platforms; Since then, it has launched electrolyte drink "Dongpeng Hydration" and sugar-free tea "Oolong Shangcha". In January this year, the company launched a new brand "Vivi Cocktail" to enter alcoholic beverages.
At the 2023 annual summary meeting, Lin Muqin, chairman of the company, proposed that "Dongpeng Beverage will fully implement the 1+6 multi-category strategy and build a leading beverage group in China". But so far, the results of diversification are still not significant. In 2021, other beverages contributed only 37.2 billion yuan in revenue, accounting for 533%；In 2022, the revenue contribution fell to 31.9 billion yuan, with a revenue ratio of 375%。In the first three quarters of 2023, other beverage revenue increased by 165 times to 64 billion yuan, but the proportion of revenue is still below 10%, 740%。
Dongpeng Beverage's revenue by product in recent years(100 million yuan).
Data**: Company earnings report.
Shareholder frequency**
Under the growth of performance, the company's shareholders are also frequent. On the evening of January 25, the company announced that it held 3083 shares of the company460,000 shares (accounting for 771%), the second largest shareholder of Tianjin Junzheng Venture Capital Partnership (Limited Partnership) (hereinafter referred to as Junzheng Investment), plans to ** the company's shares do not exceed 1200030,000 shares. If calculated according to the **price and top price of the day**, Junzheng Investment cashed out more than 1.9 billion this time.
Junzheng Investment's shareholding** was acquired before the IPO, and from October 19, 2022 to January 17, 2023, and from February 17, 2023 to August 16, 2023, the shareholder has ** about 1.41 million shares and 3.75 million shares respectively, with a total of 9$2.9 billion. In other words, if this top-level ** is completed, Junzheng Investment will cash out a total of more than 2.9 billion yuan in more than a year.
Not only Junzheng Investment, but also other shareholders and directors, supervisors and senior executives of the company. Among them, 8 directors, supervisors and senior executives, including Cai Yunsheng, Li Dawen, Chen Yimin, Li Zengyong, Liu Meili, and Liu Lihua, have had varying degrees of ** from June 20, 2023 to December 17, 2023; The shareholders Dongpeng Yuandao, Dongpeng Zhiyuan, and Dongpeng Zhicheng also totaled nearly 5.73 million shares during this period, cashing out 106.8 billion. After this **, the number of shares held by Dongpeng Zhiyuan and Dongpeng Zhicheng dropped to 20,000 shares and 50,000 shares, which was almost "cleared".
It is worth noting that the above-mentioned shareholders and directors, supervisors and senior executives are all from before the company's IPO, and the time for lifting the restriction and listing for circulation will be from May 29, 2023, which can be said to be cashed out when the ban is lifted. Dongpeng Yuandao, Dongpeng Zhiyuan, and Dongpeng Zhicheng are the company's employee shareholding platforms; According to the enterprise investigation, the current chairman Lin Muqin holds Dongpeng Zhicheng 348%, Dongpeng Yuandao 3383%, Dongpeng Zhiyuan 132% stake.
In addition, on the same day as the announcement of the completion of the announcement by the above-mentioned shareholders and directors, supervisors and senior executives, that is, on December 20, 2023, Dongpeng Beverage also issued an announcement stating that Liu Lihua, the company's director, vice president and secretary of the board of directors, resigned from relevant positions due to personal development reasons. In the introduction of Liu Lihua's performance, the company mentioned that as the person in charge of the IPO, she successfully completed the company's listing on the main board of the Shanghai Stock Exchange, and played an important role in the group's fund management, information disclosure, corporate governance and capital operation.
Chairman Lin Muqin's equity penetration chart
Facts**: Enterprise Chacha
Presenting a competition pattern of one super and three strong
According to data from the Toubao Research Institute, the market size of China's soft drink industry has increased from 3,726 in 2018100 million yuan increased to 4637 in 2022900 million yuan, with a compound annual growth rate of 56%；It is expected that the market size will exceed 470 billion yuan in 2027, while the compound annual growth rate from 2022 to 2027 will be 03%。
Soft drinks can be subdivided into carbonated drinks, coffee, tea, juice, functional drinks, etc., energy drinks are one of the functional drinks, and representative products include Red Bull, Dongpeng Special Drink, Lehu and Physical Energy. China's energy drinks started late, and Red Bull was once synonymous with energy drinks and occupied the first position in the industry. However, in recent years, affected by trademark disputes, Red Bull's market share has declined sharply, while brands such as Dongpeng, Physical Energy and Lehu have risen rapidly.
According to the Hua'an ** research report, energy drinks are a booming business in the 60 billion yuan market, with a competitive pattern of one super three strong, and Red Bull is still the absolute dragon, with a sales share of 36% in 2022; Dongpeng, Physical Energy, and Lehu are the second echelon, with sales shares of % and 12% in 2022, respectively; The third echelon is War Horse and Monster, Monster is a brand of Coke, which ranks first in sales share in the United States, but lags behind in China with a share of only 11%。
The brokerage believes that Dongpeng can break through from the second echelon, relying on the high cost performance of the product, Dongpeng special drink per 100ml** is less than half of Red Bull, and the following ** belt of Red Bull is fully covered, and the 500ml package further improves the cost performance; In addition, compared with the physical energy with lower pricing and no "blue hat" certification, Dongpeng's advantages lie in formula and marketing.
Dongpeng Beverage used to be a large-scale distribution and large-circulation system, but now it has changed to adopt omni-channel intensive cultivation and direct control terminals in the core markets of Guangdong, Guangxi, East China and Central China; In the market to be developed, the large circulation model is continued, and the powerful merchants are selected to lead the sales and terminal maintenance. However, the gross profit margin of Dongpeng dealers is lower than that of physical energy and Lehu, and the gross profit margin of the terminal is about 10 percentage points lower than that of physical energy, but higher than that of Lehu.
Sales market share of energy drink manufacturers (unit: %)
Data**: Huaan** research report.