Caishang News September 30th (Reporter Lu Tingting) Dongpeng Beverage (605499.SH) nationalization strategy continues to attract attention. At the company's semi-annual performance briefing today, the "going north" process once again became a focus. Dongpeng Beverage's Chairman and Group President Lin Muqin stated that the company is continuously expanding channels and cultivating consumers in the northern market, improving its distribution system and refined management, enhancing product coverage, driving sales growth, and actively promoting the construction of its production base in Tianjin.

It is understood that Dongpeng Beverage has set up 12 major production bases covering the country's main markets. Among them, nine production bases have been completed and put into operation, such as the Zengcheng base, South China base, and Dongguan base. The Tianjin and Kunming bases are under construction, while the Zhongshan base is in preparation.

Dongpeng Beverage officials stated at the meeting that "the progress of the Tianjin base construction will meet the needs of the northern market, and the planning of the Kunming base reflects the company's forward-looking readiness for the southwestern region market and even the Southeast Asian market."

According to information obtained by Caishang News reporters from Dongpeng Beverage, the Tianjin production base is the company's first base in the northern region and will be the headquarters center for the future North China region. The total area of this base is 200 mu, with plans to build no less than 6 production lines. The expected annual output value after the new project is put into operation is not less than 800 million yuan, with a planned production time by the end of 2025.

A Dongpeng Beverage securities department personnel, speaking to Caishang News reporters as investors, mentioned that the construction of the Tianjin production base started at the beginning of the year and is currently in progress. Specific progress and whether it will be put into operation as scheduled can be followed up through subsequent announcements.

In the first half of this year, Dongpeng Beverage achieved sales revenue of 21.14 billion yuan in its original base Guangdong region, a year-on-year increase of 13.79%. The revenue share decreased from 34.07% to 26.90%. Sales revenue in the national region increased by 57.02% to 46.98 billion yuan, with the revenue share increasing from 54.84% to 59.75%. Sales revenue in the North China region was 9.87 billion yuan, with a year-on-year growth rate exceeding 99%.

Regarding the mid-to-long-term development plan and objectives in the North China market, Lin Muqin, in response to questions from Caishang News reporters, stated that the company will rely on digital marketing systems to continuously improve its distribution system, deepen channel expansion, enhance consumer stickiness, broaden its audience, and gradually increase its market share in the northern region through sales conversion.

In addition, Dongpeng Beverage was previously heavily reliant on the large single product Dongpeng Special Drink to contribute to its performance. In recent years, the company has also aimed to build a diverse product matrix, making the effectiveness of its multi-category strategy implementation a key concern for investors.

In terms of product breakdown, Dongpeng Special Drink remains the core product with the largest proportion of revenue. In the first half of this year, sales revenue reached 6.855 billion yuan, with the proportion decreasing from 94.13% to 87.19%. In terms of the performance of the second growth curve product, Dongpeng Beverage stated that Dongpeng Rehydration H1 revenue accounted for 6.05%, an increase of 3.76 percentage points year-on-year; sales volume accounted for 10.21%, an increase of 6.78 percentage points year-on-year.

Financial data shows that in the first half of the year, Dongpeng Beverage achieved operating revenue and net income of 7.873 billion yuan and 1.731 billion yuan respectively, an increase of 44.19% and 56.17% year-on-year.