NONGFU SPRING (09633) rose more than 5%, with the stock up 5.03% to HKD 48.48 at the time of writing, generating a turnover of HKD 265 million. The company reported annual revenue of RMB 52.553 billion for 2025, a 22.5% year-on-year increase, marking the first time it has surpassed the RMB 50 billion mark. Net profit attributable to shareholders reached RMB 15.868 billion, up 30.9% compared to the previous year. The packaged water business resumed growth, with revenue of RMB 18.709 billion, a 17.3% increase from 2024. The tea beverage segment showed strong performance, with revenue surging 29.0% to RMB 21.596 billion, accounting for 41.1% of total revenue and becoming the largest revenue category for NONGFU SPRING. Analysts noted that the company's strategic direction remains firm: its packaged water business has steadily recovered market share as public sentiment concerns eased, and it has capitalized on the sugar-free tea trend, with its brand Dong Fang Ye maintaining a leading position. Furthermore, despite intense competition from food delivery platforms offering substantial subsidies, which impacted demand for bottled soft drinks, the company leveraged its strong channel control, extensive retail penetration, and effective marketing to mitigate the effects of increased competition. Looking ahead, it is anticipated that the packaged water segment will continue its recovery, while the sugar-free tea business is expected to maintain a high growth trajectory, supported by a low base and promotional campaigns such as "win prizes by opening the cap."
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