The multi-category strategy met expectations, and the net profit of Dongpeng Beverage (605499.SH) surged 56.17% in the first half of the year to 1,731 billion yuan, and plans to transfer 25 yuan for every 10 shares to increase 3 shares

According to Zhitong Finance App News, Dongpeng Drinks (605499.SH) released its 2024 semi-annual report. During the reporting period, the company achieved operating income of 7.873 billion yuan, an increase of 44.19%; net profit attributable to shareholders of listed companies was 1,731 billion yuan, an increase of 56.17% year on year; net profit attributable to shareholders of listed companies deducted non-recurring profit and loss of 1,707 billion yuan, an increase of 72.34% year on year; basic earnings per share were 4.3264 yuan/share.

Profit distribution plan or provident fund share capital transfer plan for the reporting period approved by the board of directors resolution: it is proposed to distribute a cash dividend of 25 yuan (tax included) to all shareholders based on the company's total share capital of 400,010,000 shares as of June 30, 2024, and to transfer 3 shares for every 10 shares from the capital reserve fund to all shareholders without bonus shares.

In the first half of 2024, in accordance with the comprehensive implementation of the “1+6” multi-category strategy formulated by the company's management team, we are methodically advancing the development and evolution from a single energy drink to a multi-category business. Based on the original deep and long-term technical reserves, the market feedback results for the 2023 new product retail trial sales were quick, accurate and effective, as reflected in the timely interaction of management with channels, terminals, and regional market sales services and marketing support. As a result, during the reporting period, the categories launched by the company gradually gained recognition from channels and consumers in the market segment, and the share contribution of new types of beverages began to show.

In terms of the core category - energy drinks, although Dongpeng Special Drink's market share and sales reached new highs, contributing 6.855 billion yuan to the company's revenue, up 33.49% year on year, judging from Dongpeng Specialty Drink's share of the company's total sales revenue, it fell from 94.13% in the same period last year to 87.19%. Therefore, the company's management believes that the progress and results of the multi-category strategy promotion during the reporting period have reached initial expectations. The market-side performance of some of the new products reflects the company's ability to replicate the brand recognition, channel advantages, merchant terminal guidance and management support experience, and industry expertise accumulated over more than 20 years of hard work in Dongpeng Special Drinks into new product categories.

The company's Dongpeng Hydration has won widespread recognition and love from consumers with its high quality and price ratio, fresh blue and white healthy color, and pleasant taste; during the reporting period, Dongpeng Hydration achieved sales revenue of 476 million yuan, an increase of 281.12% over the previous year.