Good News on Listing | Frost & Sullivan Assists Dongpeng Beverage (Group) Co., Ltd. to Successfully List on the Hong Kong Stock Exchange (9980.HK)

Dongpeng Beverage (Group) Co., Ltd. (hereinafter referred to as 'Dongpeng Beverage') successfully listed on February 3, 2026. The company plans to issue 4,088.99 million H shares, of which 90% will be international offerings and 10% will be public offerings. The maximum offering price per share is HK$248.00, raising a net amount of approximately HK$9.994 billion.

During the process of listing on the Hong Kong Stock Exchange, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, investment banks, and other intermediaries in completing the relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business, and other important sections), helping the issuer communicate with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange, etc.

Frost & Sullivan has always been a leader in helping companies go public in Hong Kong. According to LiveReport's big data, from January to December 2025, and over the past 36 months, Frost & Sullivan provided listing industry advisory services for 82 (market share of 73%) and 180 (market share of 71%) Hong Kong-listed IPOs respectively, ranking first in terms of number. It has rich industry experience and communication skills with regulatory authorities, exchanges, investment and financing institutions, and various related organizations.

• Strong growth and solid profitability have consolidated the company's position as a leading enterprise in the functional beverage industry;

   

• Differentiated and high-quality-price products positioning drive strong growth while sharing benefits with channel partners and consumers;

   

• An efficient three-dimensional sales network covering the whole country;

   

• Based on consumers and scenarios, we established a precise marketing and Dongpeng brand methodology, creating a well-known national beverage brand;

   

• Continuous innovation and a leading digital operation system, empowering businesses across the entire chain and leading the industry in multiple dimensions;

   

• A stable supply chain that combines quality assurance and production-sales collaboration, continuously consolidating our full-cost leadership advantage;

   

• An experienced and dedicated management team, adhering to a simple and pragmatic corporate culture, and actively taking on social responsibilities.

According to the Frost & Sullivan report, the company:

• In terms of sales volume, it has maintained the leading position first in China's functional beverage industry for four consecutive years since 2021;

   

• In terms of sales volume, it has seen the fastest growth rate among China's top five functional beverage companies from 2022 to 2024;

   

• Ranked second in China's functional beverage industry by retail sales in 2024;

   

• In terms of retail sales, it experienced the fastest growth rate among the top five functional beverage companies in China from 2022 to 2024;

   

• In terms of sales volume, it has maintained the leading position first in China's energy drink industry for four consecutive years since 2021;

   

• In terms of sales volume, it has seen the fastest growth rate among China's top five energy drink companies from 2022 to 2024;

   

• Ranked second in China's energy drink industry by retail sales in 2024;

   

• In terms of retail sales, it has seen the fastest growth rate among the top five energy drink companies in China from 2022 to 2024.

China is the world's second-largest soft drink market. In terms of retail sales, the scale of China's soft drink industry in 2024 was RMB 1,250.2 billion, accounting for about 12.7% of the global soft drink market. The core categories of soft drinks include functional beverages, tea beverages, fruit juices, packaged drinking water, coffee beverages, carbonated beverages, protein beverages, and others. Soft drinks have gradually become one of the daily consumer products, with stable growth in the market as the economy develops.

Driven by factors such as the growth in per capita disposable income among residents, the expansion of product categories, the refinement of sales channels, and the enhancement of consumers' health awareness, China's soft drink market has continued to grow. Calculated by retail sales, the compound annual growth rate from 2019 to 2024 was 4.7%, and it is expected to further increase to 5.8% per annum from 2025 to 2029, reaching RMB1.686 trillion. Among them, functional beverages are the fastest-growing segment in China's soft drink industry.

In particular, consumers' growing awareness of health has played a key role in expanding the consumer base of the soft drink industry and increasing consumption frequency. As consumers pay more attention to health, beverage companies have introduced products with low sugar, low calories, and zero additives. These products have successfully attracted previously less concerned about health individuals, turning them into active consumers and opening up previously underserved market segments. Moreover, the increasing awareness of fitness and health has also driven an increased demand for hydration and nutritional supplementation solutions. Functional beverages such as energy drinks and sports drinks have become common consumption in daily exercise, shifting from occasional enjoyment to habitual purposeful consumption. This behavioral change has significantly increased purchase frequency and further solidified the important position of soft drinks in healthy lifestyles.

●The increase in per capita disposable income has driven growth in per capita soft drink product consumption

The growth in per capita disposable income in China has increased consumers' ability to consume soft drinks, thereby driving market growth. In 2024, the annual consumption of soft drinks per capita in China was about 197.8 liters, still far lower than markets such as the United States (554.5 liters), Germany (470.4 liters), and Japan (355.9 liters) during the same period. This indicates that the soft drink industry in China has great growth potential. Cultivating consumers' soft drink consumption habits and enhancing their purchasing power will promote an increase in consumption frequency. It is expected that by 2029, the annual consumption of soft drinks per capita in China will increase to 258.8 liters. In addition, the consumption of soft drinks varies among different urban levels. In 2024, the annual consumption of soft drinks per capita in third-tier and lower-tier cities was about 173.7 liters, lower than the per capita consumption of about 296.8 liters in first-tier cities, indicating significant regional growth potential.

●Trend of high quality-price ratio

With the transformation of people's consumption concepts, consumers' demand for high-quality products continues to grow, but they remain sensitive to prices. This consumption philosophy drives soft drink companies to not only produce safe and healthy high-quality products with stable ingredients but also to strengthen cost control and provide consumers with products that offer high quality for their price.

●Detailed requirements drive category expansion

Factors such as the expansion of soft drink consumption scenarios and differences in consumer group needs continuously drive product innovation, prompting soft drink companies to optimize their product development strategies. They launch products with different packaging capacities and flavors to meet diverse consumption scenarios and individual needs. For example, in the fast-paced modern life, coffee has become an important companion for urban dwellers. Leading soft drink companies have established a series of coffee beverages, offering a diversified flavor system that includes classic flavors and innovative specialty blends, effectively satisfying personalized flavor preferences. In addition, soft drink companies have also introduced products with different packaging capacities to meet diverse consumption needs, such as small-sized packages suitable for mobile scenarios and large-sized bottles suitable for family gatherings. By implementing packaging solutions, they achieve precise market segmentation, maximizing proximity to the living habits and consumption scenarios of specific consumer groups, thereby increasing consumption frequency.

●Refined sales channels

The rise of diversified sales channels has further driven strong growth in China's beverage industry. Although online channels such as comprehensive e-commerce platforms and live streaming e-commerce platforms have developed rapidly, offline physical stores remain crucial due to the real-time product satisfaction feature. In addition to traditional channels, the catering channel is also on the rise because beverage manufacturers tend to place more products in restaurants and dining venues to increase brand exposure and purchase conversion rates. At the same time, smart vending cabinets, as a highly convenient 'last mile' solution, are favored by more and more consumers. Smart vending cabinets are strategically distributed in office buildings, fitness centers, shopping malls, providing unparalleled convenience that expands consumer coverage, enhances interaction between brands and consumers, and creates new sales opportunities beyond traditional channels. Moreover, among all these channels, the lower-tier market still has significant penetration potential. Successfully entering these markets that have not been fully served will help further increase the market share of industry participants.

●Health awareness is constantly increasing

Soft drink companies have seized the development opportunity of growing consumer health awareness, expanding into new product categories, and launching zero-addition, low-sugar, low-calorie, and low-fat soft drink products to meet the growing demand for healthier beverages. For example, sugar-free tea drinks not only cater to consumers' preference for diverse tea flavors but also meet their urgent need for healthy and sugar-free choices. In addition, the fast-paced modern life has brought significant pressure to people's physical and mental health, further enhancing public awareness of the importance of maintaining good health. Therefore, people's demand for energy-replenishing and nutritious beverages is increasing day by day. Functional beverages can effectively help consumers recover the energy and key nutrients lost due to fatigue or overwork.

Functional beverages refer to soft drink products containing specific ingredients that act on specific bodily functions. Functional beverages mainly include: (i) Energy drinks, which refer to beverages that contain energy and nutritional components or specific ingredients to replenish energy for the body, or accelerate the release and absorption of energy; (ii) Sports drinks, which refer to beverages containing minerals and other nutritional components that can replenish water, electrolytes, or other nutrients consumed by the body during metabolism or exercise, including electrolyte drinks, nutrient drinks, etc.; and (iii) Other functional beverages.

With the acceleration of life rhythms and the enhancement of consumers' health awareness, the demand for beverages with specific functions such as energy replenishment and nutritional element supplementation continues to grow. At the same time, leading companies in the industry have further deepened consumers' understanding and acceptance of functional beverages through promotion. In addition, the diversification of consumption scenarios has further expanded the consumer base, driving sales growth of functional beverages. In terms of retail sales, the market size of functional beverages in China increased from RMB 111.9 billion in 2019 to RMB 166.5 billion in 2024, with an annual compound growth rate of 8.3%. It is expected that it will further grow to RMB 281 billion by 2029 at a compound annual growth rate of 10.9%. In terms of sales volume, the market size of functional beverages in China increased from 8.9 billion liters in 2019 to 13.9 billion liters in 2024, with an annual compound growth rate of 9.2%. It is expected that it will further grow to 22.7 billion liters by 2029 at a compound annual growth rate of 10.1%.

According to a Frost & Sullivan report, energy drinks are the largest segment in China's functional beverage industry. In 2024, they accounted for 66.9% of the total retail sales of functional beverages with a retail value of RMB 111.4 billion, and are expected to grow at a compound annual growth rate of 10.3% to reach RMB 180.7 billion by 2029.

According to a Frost & Sullivan report, sports drinks are the fastest-growing segment in China's functional beverage industry. In 2024, the sports drink market accounted for 32.8% of the total functional beverage market retail sales with a retail value of RMB 547 billion, and it is expected to grow at an annual compound rate of 12.2% to reach RMB 997 billion by 2029.

Compared to developed countries such as the United States, Germany, and Japan, China's annual per capita consumption of functional beverages is still relatively low. In 2024, China's annual per capita consumption of functional beverages was 9.9 liters, lower than the per capita consumption in the same period in the United States (54.9 liters), Germany (20.1 liters), and Japan (21.9 liters). Southeast Asian countries represented by Thailand and Vietnam also have a high demand for functional beverages due to factors such as hot weather, consumption habits, and taste preferences. In 2024, the annual per capita consumption of functional beverages in Thailand and Vietnam was 16.5 liters and 13.8 liters respectively. With an increasing awareness of functional beverages, expanding consumption scenarios, and growing demand, China's annual per capita consumption of functional beverages is expected to grow at a compound annual growth rate of 10.1% to reach 16.2 liters by 2029.

●Diversified demand promotes expansion of consumer groups and diversification of scenarios

With the acceleration of modern life's pace, consumers' demand for energy-replenishing and nutritional supplements continues to rise. At the same time, continuous brand promotion and consumer education have enhanced consumers' awareness of the benefits of functional beverages. As a result, the consumption scenarios of functional beverages have gradually expanded beyond sports and fitness to include various and daily activities such as physical labor, study and work, staying up late for energy, outdoor activities, esports, and leisure gatherings, further expanding the consumer base and increasing consumption frequency. For example, mental stress caused by long hours of study or physical labor leads to an urgent need for improved concentration, clear-headedness, and energy endurance - functional beverages can be a direct solution to these situations, quickly replenishing energy, resisting fatigue, and restoring vitality, thereby combating brain fog and improving work efficiency.

●Leading brands maintain their dominant market position

Leading enterprises have consolidated their market share over the years through scale advantages, brand influence, and a deeply covered sales network. In terms of sales volume, the market share of the top five companies in China's functional beverage industry increased from 57.8% in 2022 to 61.6% in 2024, further increasing industry concentration.

●Local brands are developing rapidly

Local brands, with their profound consumer insights and accumulated knowledge, can adopt precise marketing strategies. Relying on strong supply chain capabilities and diverse sales channels, they meet consumers' growing demand for products with high quality and cost-effectiveness. In addition, local brands are closer to the preferences of Chinese consumers in terms of product design and packaging, thereby continuously enhancing their competitiveness.

●Product matrix expansion

As consumers' awareness of functional beverages continues to grow, their demand for different flavors, functional ingredients, prices, and packaging is increasing day by day. As a result, functional beverage companies have launched products with various tastes, health benefits, price ranges, and packaging to meet the different needs of different consumer groups and consumption scenarios. This has driven industry sales growth and product innovation.

●Digitalization drives industry development

The impact of digital tools and modern technologies on functional beverage companies is constantly deepening. Advanced technologies such as digital marketing systems, big data analysis, Internet of Things (IoT), and artificial intelligence empower companies to optimize production plans and improve production efficiency. In addition, these tools enhance supply chain management capabilities and further improve profitability through real-time sales data analysis and dynamic adjustment of marketing and sales strategies.

●Brand recognition

Top functional beverage companies with high brand value have built long-term trust relationships with consumers, thereby establishing competitive advantages. These leading enterprises have established an in-depth brand image through their consistent high-quality products and diverse and effective marketing strategies (such as popular brand slogans, social media marketing, sponsoring sports events with broad audiences, and embedding content into high-traffic TV dramas), attracting a large consumer base, especially young consumers. New entrants find it difficult to form a mature brand marketing system in a short time and invest substantial funds to build brand awareness and capture consumer minds.

●Product quality and efficacy

The quality and efficacy of products that are guaranteed are one of the important considerations for consumers when choosing functional beverages. According to the 'Regulations for the Implementation of the Food Safety Law of the People's Republic of China (Revised in 2019)', only products that have passed the 'health food' certification can publicly promote their ability to relieve physical fatigue. Currently, only some functional beverage companies have obtained 'health food' registration or filing, constituting an entry barrier for new entrants.

●Efficient omni-channel sales network

Headquartered in China, the company has established a robust omnichannel sales network. With its experienced sales team, it maintains a solid and stable cooperative relationship with distributors and terminal sales outlets, thereby enhancing brand influence and sales efficiency. New entrants find it difficult to acquire the professional knowledge and resources necessary to establish an equally reliable and scalable sales network in a short period.

●A mature supply chain system

Headquartered beverage companies typically invest heavily in production and warehousing facilities, leveraging digital tools and facilities to optimize the entire supply chain process from end to end. This not only improves operational efficiency but also enhances bargaining power with suppliers and cost advantages brought about by economies of scale. New entrants find it difficult to obtain reliable upstream and downstream supply chain resources in a short period and invest significant capital to build a complete supply chain system.

With trends such as accelerating life rhythms and the popularization of sports and fitness, more consumers choose energy drinks to replenish energy in real time and improve concentration. At the same time, young consumers' demand for energy drinks is increasing day by day, helping energy drinks become a daily consumer product and driving diversification of consumption scenarios, covering learning and office work, leisure entertainment, outdoor activities, and other scenarios. Diversified consumption scenarios have stimulated an increase in consumption frequency, thereby promoting the rapid development of the energy drink industry. In terms of retail sales, the market size of energy drinks in China increased from 77 billion yuan in 2019 to 1114 billion yuan in 2024, with an annual compound growth rate of about 7.7%. It is expected to grow to 1807 billion yuan in 2029 at a compound annual growth rate of 10.3%. In terms of sales volume, the market size of energy drinks in China increased from 5.1 billion liters in 2019 to 7.5 billion liters in 2024, with an annual compound growth rate of 8.1%. It is expected to grow to 117 billion liters in 2029 at a compound annual growth rate of 9.5%.

China's annual per capita energy drink consumption is relatively low, with an average annual consumption of 5.3 liters in 2024. In contrast, developed countries such as the United States, Germany, and Japan had annual per capita consumption of 17.1 liters, 16.3 liters, and 7.5 liters respectively during the same period. Additionally, consumers in Southeast Asian regions such as Thailand and Vietnam have developed a high level of awareness and acceptance of energy drinks. Due to factors such as local hot weather, consumption habits, and taste preferences, per capita energy drink consumption is relatively high. Thailand and Vietnam had annual per capita energy drink consumption of 9.4 liters and 6.1 liters respectively in 2024. With economic development and accelerating living rhythms, Chinese consumers' demand for energy supplements and anti-fatigue drinks has increased. At the same time, driven by advertising campaigns, people's acceptance and awareness of energy drinks have further improved, further promoting the penetration of the energy drink market in China. It is estimated that by 2029, China's annual per capita energy drink consumption will increase by 9.6% annually to reach 8.4 liters.

According to the Frost & Sullivan report, the company has maintained its leading position as the top-selling brand in China's functional beverage industry for four consecutive years since 2021. In terms of sales volume in 2024, the company's market share was 26.3%. From 2022 to 2024, the company had the fastest sales growth rate among China's top five functional beverage companies, with a compound annual growth rate of 41.9%.

According to a Frost & Sullivan report, ranked second in the Chinese functional beverage industry by retail sales in 2024, with a market share of 23.0%, the company has seen the fastest retail sales growth rate among China's top five functional beverage companies from 2022 to 2024, with a compound annual growth rate of 32.6%.

According to a Frost & Sullivan report, the company has maintained its leading position as the top-selling energy drink brand in China for four consecutive years since 2021. In terms of sales volume in 2024, the company's market share was 40.1%. From 2022 to 2024, the company had the fastest sales growth rate among China's top five energy drink companies, with an annual compound growth rate of 28.5%.

According to a Frost & Sullivan report, based on China's retail sales in 2024, the company ranks second in the energy drink industry in China, with a market share of 31.4%. From 2022 to 2024, the company had the fastest retail sales growth rate among China's top five energy drink companies, with a compound annual growth rate of 26.7%.