Soft Drinks and Non-alcoholic Beverages

NONGFU SPRING

Nongfu Spring

Conference Minutes

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Below is Dolphin Research's Trans of $NONGFU SPRING(09633.HK) FY2025 earnings call. For the earnings analysis, please see 'Nongfu Spring: From defense to offense, Water Moutai on a tear!': I. Core highlights recap:1. Shareholder returns: The BOD proposes a final cash DPS of RMB 0.99 for FY2025, totaling approx. RMB 11.134 bn. Payout ratio stays around 70%, with the dividend up 30.9% YoY.2. Guidance: For 2026, the company targets double-digit revenue growth. This is a revenue target. ...

Nongfu Spring (Trans): No price hikes planned; still targeting double-digit growth---

Financial Analysis

Packaged water OPM hits record high

Nongfu Spring: From defense to offense, the 'Water Maotai' powers higher!

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The following are the minutes of the Nongfu Spring Q2 2025 earnings call organized by Dolphin Research. For an interpretation of the financial report, please refer to &#34;Nongfu Spring: Green Bottle Exits, Red Bottle Takes Over, 'Water Mao' Makes a Comeback!&#34;

Nongfu Spring (Minutes): first steps finally made towards global markets

On the afternoon of August 26th, Beijing time, Nongfu Spring (9633.HK) released its H1 2025 performance report. As the public opinion impact gradually subsided in the first half of the year, Nongfu increased the promotion of its red bottle water and reduced subsidies for its green bottle water, driving the overall performance of the company to fully recover, exceeding market expectations. It is a good performance report.

Nongfu Spring: Green bottle exits, red bottle takes the stage, the 'Water Moutai' makes a comeback!

Nongfu Spring 25H1 Quick Interpretation: As the impact of public opinion gradually faded in the first half of the year, Nongfu increased the promotion of red bottled water and reduced subsidies for green bottled water, leading to a comprehensive recovery in the company's overall performance, which is a very good result. 1. Bottled Water Business: With the weakening of public opinion impact, the 25H1 bottled water business achieved revenue of 9.44 billion yuan, a year-on-year increase of 10.7%. After two consecutive financial reports of decline, the bottled water business has resumed positive growth. Additionally, with the increase in the proportion of red bottled water, the operating profit margin of the bottled water business has risen back to 35%, basically returning to the level before the impact of public opinion. 2. Tea Beverage Business: Tea beverages achieved revenue of 10.09 billion yuan, a year-on-year increase of 20%. Dolphin Research speculates that the core reason is the &#34;One Yuan Enjoyment&#34; campaign launched by the company in April for the sugar-free tea flagship product, Oriental Leaves, which effectively increased consumer repurchase rates and drove high growth in sugar-free tea. Moreover, with the release of operating leverage, the more impressive aspect is that the operating profit margin of the tea beverage business increased by 4 percentage points to 48%, setting a historical high. 3. Functional Drinks &amp; Juice Business: As a relatively weak segment for Nongfu, the functional drinks and juice business benefited from the rapid distribution of Electrolyte Water Power Emperor and the new 17.5° NFC Orange Juice, exceeding market expectations, with operating profit margins reaching new highs. 4. Significant Decline in Sales Expense Ratio: Due to the company's significant reduction in subsidies for green bottled water in the first half of the year, combined with more precise expense allocation, the sales expense ratio fell by 2.8 percentage points to 19.6%, while the management expense ratio remained stable, ultimately achieving a net profit margin of 22.1%, exceeding market expectations. $NONGFU SPRING(09633.HK)

Today’s Key News Recap

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0506｜Dolphin Research key focus: 🐬 Macro/Industry 1. With the end of the Labor Day holiday, the national consumer market maintained its recovery, with sales growth rates of key retail and catering enterprises rebounding compared to the Spring Festival. According to the Ministry of Commerce's big data monitoring, sales of key retail and catering enterprises during the holiday increased by 6.3% year-on-year, higher than the 4.5% and 4.1% during the 2024 National Day holiday and 2025 Spring Festival holiday. Today, the catering and cultural tourism sectors performed well, with Dolphin Research's focus stocks like Nongfu Spring and Meituan rising. 🐬 Stocks 1. Ant Group during the holiday...

MEITUAN-WR

Meituan

MEITUAN

ANT GROUP

Meituan HK SDR 5to1

May Day holiday consumption heats up; Ant plans to spin off overseas business for Hong Kong listing | Today's important news recap

The following is the Minutes of the conference call for Nongfu Spring's 2024 second half financial report organized by Dolphin Research. For the financial report interpretation, please refer to &#34;Nongfu Spring: Has the Nature Mover Stopped Moving?&#34; 1. Core Financial Information Review 1. Sales and Distribution Expenses: The marketing expense ratio for 2024 decreased from 21.8% in the same period of 2023 to 21.4%. Among them, although advertising and promotional expenses increased, logistics costs decreased due to the impact of the product sales volume structure. 2. Administrative Expenses: In 2024, it amounted to RMB 1.962 billion, accounting for 4.6% of total revenue...

Nongfu Spring (Minutes): Profits are high, margins are not essential

On the afternoon of March 25th, Beijing time, Nongfu Spring (9633.HK) released its 2024 H2 performance, with all core businesses falling short of market expectations. The specific points are as follows: 1. The decline in bottled water has widened: The 24H2 bottled water business achieved revenue of 7.42 billion yuan, a year-on-year decline of 24%, continuing to slow down compared to the first half of the year (-18%), significantly below market expectations (10.09 billion yuan). The market originally expected that in the second half of the year, as the impact of public opinion weakened, the expansion of green bottle water supply, and the bottled water business could significantly recover...

Nongfu Spring: "The carrier of nature" can not carry?

$NONGFU SPRING(09633.HK) 24H2 performance quick interpretation: The company's performance in 24H2 significantly missed expectations. The market originally expected that in the second half of the year, with the weakening of public opinion, the expansion of green bottled water supply, and the packaging water business could significantly recover, but the actual situation is that the packaging water business missed market expectations significantly due to weakened subsidies and intensified competition, while the tea beverage business, which was in high growth momentum, also saw a decline in growth rate compared to the same period last year due to a high base, slightly missing market expectations.1. Packaging water business: The packaging water business in 24H2 declined by 24% year-on-year, continuing to slow down compared to the first half of the year (-18%). Dolphin Research believes the main reason is that the company increased the supply of green bottled water in the second half of the year. Although green bottled water helped boost market share, its factory price is lower than that of red bottled water, which lowered the overall revenue of packaging water.2. Tea beverage business: The tea beverage business grew by 13% year-on-year in 24H2, partly due to the high base from the same period last year, and partly due to intensified competition in sugar-free tea, with many new entrants, causing the growth rate of the tea beverage business to decline compared to the over 50% high growth rate in the previous two years.3. Stable expense investment: Due to the low price of green bottled water, the required channel promotion expenses are relatively low, so the overall control of expenses exceeded market expectations. Although the company controlled expenses relatively less, the core operating profit in 24H2 still declined by 11% year-on-year, falling short of expectations.4. Dolphin Research believes that Nongfu Spring in the second half of the year is basically in the most difficult stage. In 2025, as the supply of green bottles narrows and subsidies weaken the company's profitability is expected to improve marginally.

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In 2024, whether it is store-based social service consumption (hotels, dining, ready-to-drink) or mass consumer goods, the common dilemma faced is deflation in prices and shrinking demand leading to oversupply and heightened deflation expectations. When core faith assets like Nongfu Spring start to lower prices and the price of Moutai collapses, market confidence approaches a breakdown. The large consumption in China in 2024 can be described as the &#34;darkest hour.&#34; However, new life is born from despair. In the summary of large consumption in 2023, Dolphin said that domestic large consumption is &#34;drawing a line in the sand.&#34; As we move into 2024...

Moutai

Is the worst yet to come for the consumer sector? The path is forged through struggle, and brand globalization is the vast ocean of consumption | Year-End Summary Series (5)

Nongfu Spring Maintains Dealer Price Order to Ensure Company Health

Nongfu Spring's Haikou Water Source Factory Officially Starts Production

Huatai International Raises Target Price for Nongfu Spring to HKD 59.8

CMB International Raises Target Price for Nongfu Spring to HK$60.88

Nongfu Spring's Financial Report: Tea Drinks Become Largest Business Segment

Jefferies Raises Nongfu Spring's Target Price to HKD 50.50

CLSA Raises Target Price for Nongfu Spring to HKD 59.6

UBS Raises Target Price on Nongfu Spring but Maintains Sell Rating

Deutsche Bank Raises Target Price for Nongfu Spring

Nongfu Spring Shifts to Offensive Strategy with Strong Stock Performance

CICC Maintains Target Price and Outperform Industry Rating for Nongfu Spring

NONGFU SPRING released FY2025 Q3 earnings on March 24, 2026 (BJT), actual revenue HKD 14.72 B, actual EPS HKD 0.4007

Nongfu Spring released FY2025 9 Months Earnings on March 24, 2026 (BJT), with actual revenue of HKD 42.46 B and EPS of HKD 1.1346

Nongfu Spring Announced Last Year's Profits with a 30.9% YoY Increase

Nongfu Spring Shareholders Approve Multiple Proposals at 2025 Annual General Meeting

Nongfu Spring Announces Significant 2025 Earnings Increase and Dividend Distribution

NONGFU SPRING released FY2025 Q4 earnings on March 24 During-Market (BJT), actual revenue HKD 14.97 B, actual EPS HKD 0.4077

NONGFU SPRING released FY2025 earnings on March 24 During-Market (BJT), actual revenue HKD 57.44 B (forecast HKD 56.2 B), actual EPS HKD 1.5422 (forecast HKD 1.4741)

NONGFU SPRING to Release FY2025 Earnings on March 24 During-Market (BJT), Forecast Revenue HKD 57.19 B, EPS HKD 1.5001

NONGFU SPRING(09633.HK)

NONGFU SPRING Stock Performance Chart