Dongpeng Beverage H1 2026 Tea Revenue Up 208.99% to RMB1.058 Billion

Dongpeng Beverage released its 2026 interim report. In the first half of 2026, Dongpeng Special Drink revenue grew 6.89% year on year, electrolyte-drink revenue rose 11.98%, and tea-drink revenue climbed 208.99%, surpassing RMB1 billion in a half-year for the first time. Tea drinks generated revenue of RMB1.058 billion, lifting their share of total revenue by five percentage points to 8.52% and becoming the fastest-growing category. The share of energy drinks in sales fell to 71.92%. The company separately disclosed tea-drink sales in an interim report for the first time.

Channel penetration was an important driver of tea-drink growth. The company leveraged its nationwide deep distribution network to accelerate penetration into county and township markets, using more than 4.6 million effective active terminal outlets nationwide, together with terminal promotions such as '1-yuan Enjoy' and 'Free Enjoy'. Sell-through and repurchase rates rose steadily. The company said tea drinks have covered multiple scenarios including household consumption, office leisure, and dining, and the user base is broadening.

On pricing, Dongpeng's sugar-free tea products 'Bei Hao Cha' and 'Wu Long Shang Cha' are priced in the RMB3-RMB4 band, while mainstream brand Nongfu Spring's Oriental Leaf 500ml format is in the RMB5-RMB6 band. The company has also launched large-format packages of 750ml, 1 litre and 1.25 litres to spread unit costs and expand household consumption.

Dongpeng Beverage listed on the Shanghai Stock Exchange in 2021 and on the Hong Kong Stock Exchange in 2026. Since listing, its product structure has changed: in 2021, Dongpeng Special Drink accounted for about 95% of sales. In 2023, Dongpeng Special Drink sales exceeded RMB10 billion for the first time, and the company launched the electrolyte drink 'Dongpeng Bu Shui La' and the sugar-free tea 'Wu Long Shang Cha', adopting a multi-category strategy. In the energy-drink business, sales exceeded RMB15 billion for the first time in 2025, maintaining double-digit growth; in the first half of 2026, growth slowed to 6.89%, the first time this category's growth fell to single digits. Electrolyte-drink sales exceeded RMB3 billion in 2025.

Profitability differs by product. In 2025, the company's gross margin was 50.79% for energy drinks, 34.77% for electrolyte drinks, and 15.53% for other beverages. The company said it controls total annual marketing resources and allocates them across categories; with Dongpeng Special Drink as a mature core category, marketing resources are moderately tilted toward newer categories. The company said its operations do not aim solely at revenue or profit, but will be based on a long-term sustainable development strategy and flexibly adapt to the competitive market environment.