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On the evening of August 30th, Dongpeng Beverage (605499.SH) disclosed its semi-annual report for 2024. The performance in the first half of the year slightly exceeded the upper limit of the previous forecast range. With the progress of nationalization, the initial results of its expansion to the north are becoming apparent, with sales in the North China region growing at a 99% year-on-year rate, higher than the national average growth rate. At the same time, the company plans to distribute profits for the first half of 2024 to ordinary shareholders based on 0.4 billion shares of common stock, with an estimated cash dividend of about 1 billion yuan (tax included), and a bonus issue of 3 shares for every 10 shares from the capital surplus.

According to the financial report, Dongpeng Beverage achieved operating income of 7.873 billion yuan in the first half of the year, a year-on-year increase of 44.19%; the net profit attributable to shareholders of the listed company was 1.731 billion yuan, a year-on-year increase of 56.17%. The company previously estimated that the net profit attributable to the parent company in the first half of the year would be between 1.6 billion yuan and 1.73 billion yuan, a year-on-year increase of 44.39% to 56.12%.

In response to the performance changes, Dongpeng Beverage stated that in the first half of the year, the company continued to promote nationalization, fully implemented a multi-category strategy, expanded sales outlets, and strengthened the freezing display of channel operation capabilities and sales terminals, aiming to continuously improve the output per point and drive revenue growth.

Dongpeng Beverage's nationalization strategy has always attracted market attention. The semi-annual report shows that the company's sales revenue in the Guangdong region in the first half of the year increased by 13.79% to 2.114 billion yuan, accounting for a decrease from 34.07% to 26.90%; sales revenue in the national region increased by 57.02% to 4.698 billion yuan, accounting for an increase from 54.84% to 59.75%. Among them, the Southwest region achieved sales revenue of 0.922 billion yuan, a year-on-year increase of 75.57%; the North China region achieved sales revenue of 0.987 billion yuan, a year-on-year increase of 99.14%, higher than the national average growth rate.

As of the end of the reporting period, the company has 2,982 dealer partners, with a sales network covering over 3.6 million active terminal stores nationwide, an increase of 9.09% compared to the end of the previous year. The company has reached more than 0.21 billion non-repetitive consumers.

For a long time, Dongpeng Specialty Drink has been the main source of income for Dongpeng Beverage. In order to reduce dependence on a single product, the company intends to cultivate new performance growth points by focusing on electrolyte drinks, coffee (type) beverages, and other categories.

In terms of performance, the sales revenue of Dongpeng special drinks in the first half of the year increased by 33.49% year-on-year to 6.855 billion yuan, and the revenue proportion decreased from 94.13% to 87.19%; the sales revenue of Dongpeng hydration increased by 281.12% year-on-year to 0.476 billion yuan, and the revenue proportion increased from 2.29% to 6.05%; the sales revenue of other beverages increased by 172.16% year-on-year to 0.531 billion yuan, and the revenue proportion increased from 3.58% to 6.76%.

The company also announced a profit distribution plan, planning to distribute a cash dividend of 25 yuan (including tax) for every 10 shares to all shareholders, and to issue 3 bonus shares for every 10 shares from the capital reserve. As of June 30, 2024, the total share capital of the company is 0.4 billion shares. Based on this calculation, the total planned cash dividend is approximately 1 billion yuan (including tax), and the total bonus shares are expected to be 0.12 billion shares. After the bonus issue, the total share capital of the company is expected to increase to 0.52 billion shares.

Wind data shows that Dongpeng beverages distributed cash dividends of 1.2 billion yuan, 0.8 billion yuan, and 1 billion yuan in 2021-2023 respectively. Adding the proposed dividend amount, Dongpeng beverages' accumulated dividends since its listing will reach 4 billion yuan.