China Resources Beverage, the parent company of the pure water brand "Cestbon", hit the Hong Kong stock IPO.
According to the disclosure of the Hong Kong Stock Exchange on April 22, China Resources Beverage (Holdings) Co., Ltd. (hereinafter referred to as "China Resources Beverage") submitted a listing application to the main board of the Hong Kong Stock Exchange, with BOFA Securities, BOCI, CITIC Securities and UBS Group as its joint sponsors.
According to the CIC report, CR Beverage is one of the earliest enterprises in China to specialize in the production of packaged drinking water. CR Beverage has grown into the second largest packaged drinking water company in China and the largest purified drinking water company in China in terms of retail sales in 2023.
According to the prospectus, from 2021 to 2023, the revenue of China Resources Beverage will be 11.340 billion yuan, 12.623 billion yuan and 13.515 billion yuan respectively.
Among them, the sales of "Cestbon" brand drinking purified water products in 2023 will be 39.5 billion yuan, with a market share of 32.7%, and more than 14.6 billion bottles of water products will be sold, which is the main revenue of China Resources Beverage.
Revenue contributed by beverage products increased from 4.6% in 2021 to 7.9% in 2023.
In 2023, the revenue will be 13.5 billion yuan, and the number of dealers will exceed 1,000
Behind the growth of CR Beverage's performance for three consecutive years, sales expenses are also increasing year by year.
According to the data disclosed in the prospectus, from 2021 to 2023, the revenue of China Resources Beverage will be 11.340 billion yuan, 12.623 billion yuan and 13.515 billion yuan respectively, the gross profit will be 4.971 billion yuan, 5.259 billion yuan and 6.035 billion yuan respectively, and the profit for the year will be 858 million yuan, 989 million yuan and 1.331 billion yuan respectively.
According to the prospectus, the distribution and sales expenses of China Resources Beverage from 2021 to 2023 will be 3.757 billion yuan, 3.878 billion yuan and 4.087 billion yuan respectively.
From the perspective of channels, CR Beverage cooperates with more than 1,000 distributors across the country, covering more than 2 million retail outlets in China.
In terms of production capacity, as of December 31, 2023, CR Beverage had 12 self-owned factories and 34 cooperative production partners in China that have been put into operation, producing packaged drinking water and beverage products.
As of December 31, 2023, CR Beverage's total annual standard production capacity of packaged drinking water and beverage products from its own factories and cooperating production partners was 18.8 million metric tons, and the actual total annual production of packaged drinking water and beverage products in 2023 was 13.5 million metric tons.
CR Beverage's expansion in the sinking market has been continuously strengthened.
According to the prospectus, as of December 31, 2021, 2022 and 2023, the proportion of retail outlets covered by CR Beverage in third-tier cities and below in China was 51.2%, 54.6% and 55.9% respectively, and the proportion continued to grow.
As of December 31, 2023, CR Beverage had more than 8,700 front-line sales personnel.
According to the CIC report, CR Beverage is one of the companies with the strongest self-owned sales teams in China's ready-to-drink soft drinks industry in terms of team size and sales efficiency.
According to the prospectus, the funds raised by CR Beverage this time are mainly used to enhance the company's competitiveness, including strategic expansion and optimization of production capacity, strengthening the expansion of sales channels and customer development capabilities, and enhancing sports marketing and new media marketing capacity building, as well as enhancing R&D investment.
In 2023, the retail sales of "Cestbon" will contribute more than ninety percent to 39.5 billion packaged drinking water
China Resources Beverage, China's second-largest packaged drinking water company, sold 39.5 billion yuan of "Cestbon" last year.
In 2023, packaged drinking water products will contribute more than 90% of revenue, while other beverage products will contribute less than 8%.
According to the CIC report, CR Beverage's "Cestbon" brand of drinking purified water products has a market share of 32.7%, making it the No. 1 brand in China's drinking purified water market.
According to the prospectus, from 2021 to 2023, the revenue of packaged drinking water products of China Resources Beverage will be 10.818 billion yuan, 11.906 billion yuan and 12.447 billion yuan respectively, and the revenue of beverage products will be 522 million yuan, 717 million yuan and 1.068 billion yuan respectively.
From 2021 to 2023, CR Beverage's revenue from packaged aquatic products accounted for 95.4%, 94.3% and 92.1% of the total revenue.
Revenue from beverage products accounted for 4.6%, 5.7% and 7.9% of total revenue respectively.
CR Beverage mainly has a product portfolio of 13 brands, including "Cestbon", "Zhiben Qingrun", "Honey Water Series", "Holiday Series" and "Flavored Tea", with a total of 56 SKUs.
As of December 31, 2023, CR Beverage's packaged drinking water products include bottled water products under the brands "Cestbon", "Cestbon Lu", "Benyou" and "FEEL", as well as bottled water products under the brands "Cestbon" and "Garinshan".
In 2023, in addition to "C'estbon", CR Beverage's other five beverage product brands (i.e. "Zhiben Qingrun", "Honey Water Series", "Holiday Series", "Fire Coffee" and "Afternoon Milk Tea") all exceeded 100 million yuan in retail sales.
According to the data, in 2023, the total output of packaged drinking water and beverage products of CR Beverage will reach 13.5 million metric tons, with a daily production capacity of up to 4.4 million cases, which is at the industry-leading level.
According to the CIC report, in 2023, CR Beverage ranked fifth among ready-to-drink soft drink companies in China in terms of retail sales.
According to public information, China Resources Group, one of the controlling shareholders of China Resources Beverage, is a leading state-owned enterprise group headquartered in Hong Kong, ranking 74th in the Fortune Global 500 in 2023. Its core businesses include big consumption, integrated energy, urban construction and operation, big health, industrial finance, technology and emerging industries.
Produced by | Sohu Finance Author | Edited by Chai Xinyang | Li Wenxian operation editor | Xue Suwen
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