Eastroc Beverage is focused on global strategy
On March 7, Chinese beverage brand Eastroc Beverage (605499.SH) announced its plan to issue H shares and list on the main board of the Hong Kong Stock Exchange. Previously, Bloomberg reported that Eastroc Beverage was close to hiring Morgan Stanley and UBS, among other banks, to prepare for a secondary listing in Hong Kong, with Huatai Securities also possibly participating.
Eastroc Beverage traces its roots back to 1994 when its predecessor, Eastroc Beverage Factory, was established in Shenzhen, mainly producing herbal tea and soy milk. In 2021, Eastroc Beverage successfully listed on the A-share main board and was hailed as the "Energy Drink Pioneer."
The company's 2024 annual performance forecast shows that it achieved significant growth in operating revenue and net profit. In 2024, Eastroc Beverage realized an annual operating revenue of CNY 15.839 billion, up 40.63% year-on-year; it achieved a net profit attributable to shareholders of CNY 3.327 billion, with year-on-year growth of 63.09%; and its net profit after deducting non-recurring gains and losses was CNY 3.262 billion, up 74.48% from the previous year's CNY 1.87 billion.
Eastroc's core product, Eastroc Special Drink, continued to show strong market performance in 2024. Nielsen IQ data shows that Eastroc Special Drink's market share in China's energy drink market increased from 43.0% in 2023 to 47.9% in 2024, making it the best-selling energy drink in China for four consecutive years; its sales share also rose from 30.9% to 34.9%.
In recent years, as domestic brands have accelerated their pace of "going global," many beverage companies have taken the lead in expanding abroad. Eastroc Beverage's move to seek a listing in Hong Kong undoubtedly demonstrates its determination and ambition to explore international markets.
Eastroc Beverage has adjusted its product formulations and packaging for overseas markets, including EDRAGON Energy Drink for export to the United States, Vitamin Energy Drink for Korea, and Eastroc Flavored Drink for Malaysia. By the end of 2024, the company's products had been successfully exported to 25 countries and regions, including Vietnam, Malaysia, and the United States. The company has established subsidiaries in Indonesia and Vietnam, and the construction of production bases in Hainan and Kunming will serve as important hubs for production and exports to the Southeast Asian market in the future. Additionally, the company will continue to explore North America, Europe, and the Middle East markets, steadily advancing its global layout.