Nongfu Spring (9633) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 reached RMB25,622 million, up 15.6% year-over-year, with all major product categories showing double-digit growth and profit attributable to owners at RMB7,622 million, a 22.1% increase year-over-year.

• Gross profit increased 18.6% to RMB15,456 million, and gross margin improved to 60.3% from 58.8% due to lower procurement and packaging costs.

• No interim dividend was declared for the period; a final dividend for 2024 of RMB0.76 per share was approved and will be paid in August 2025.

Financial highlights

• Revenue: RMB25,622 million (+15.6% YoY); Gross profit: RMB15,456 million (+18.6% YoY); Net profit: RMB7,622 million (+22.1% YoY).

• Gross margin: 60.3% (+1.5 ppt YoY); EPS: RMB0.677 (+22% YoY).

• Selling and distribution expenses: RMB5,011 million (+0.8% YoY), 19.6% of revenue (down 2.8 ppt YoY); administrative expenses: RMB1,068 million (+17% YoY), 4.2% of revenue.

• Other income and gains: RMB808 million (-22.3% YoY), mainly due to lower interest income; other expenses: RMB127 million (+2,016.7% YoY), mainly from donations and FX losses.

• Finance costs decreased to RMB25 million from RMB39 million year-over-year.

Outlook and guidance

• The beverage industry in China is expected to see intensified competition and robust growth in health-focused segments like sugar-free tea and functional beverages.

• The company will continue to expand its water source network, optimize production costs, and explore international markets, including Hong Kong and further overseas expansion.