China Securities News, September 30th (Reporter Lu Tingting) Dongpeng Beverage (605499.SH)'s national strategy has continued to attract attention. At the company's semi-annual performance briefing today, the "northbound" process once again became the focus. Lin Muqin, Chairman and CEO of Dongpeng Beverage, stated that the company is continuously expanding channels and cultivating consumers in the northern market, improving the distribution system and refining management, expanding product coverage, driving sales growth, and actively promoting the construction of the Tianjin production base.

It is understood that Dongpeng Beverage has set up 12 major production bases covering the main markets nationwide. Among them, nine production bases including Zengcheng Base, South China Base, and Dongguan Base have been built and put into operation, while Tianjin and Kunming bases are under construction, and Zhongshan Base is in preparation.

At the meeting, the person in charge of Dongpeng Beverage stated 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 preparation for the southwestern region market and even the Southeast Asian market.

China Securities News previously learned from Dongpeng Beverage that the Tianjin production base is the company's first base in the northern region and will be the headquarters center of the future North China region. The base covers a total area of 200 mu, will build no less than 6 production lines, and the annual output value is expected to be no less than 0.8 billion yuan after the new project is put into operation. The planned production time is the end of 2025.

An individual from Dongpeng Beverage's securities department, speaking to China Securities News reporters as an investor, stated that the foundation of the Tianjin production base started early this year and is currently under construction. 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 home base, Guangdong region, a year-on-year increase of 13.79%. The revenue proportion 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 proportion rising from 54.84% to 59.75%. The sales revenue in the North China region was 9.87 billion yuan, with a year-on-year growth rate exceeding 99%.

Regarding the medium and long-term development plan and goals in the North China market, Lin Muqin responded to questions from China Securities News reporters, stating that relying on digital marketing systems, the company will continue to improve the distribution system, deepen channel expansion, increase consumer stickiness, broaden the audience, etc., to achieve sales conversion and gradually increase market share in the northern region.

In addition, Dongpeng Beverage used to rely more on the large single product Dongpeng Special Drink to contribute to its performance. In recent years, the company has also aimed to build a diversified product portfolio, making the implementation effectiveness of its multi-category strategy a key concern for investors.

Looking at the products, Dongpeng Special Drink is still the core product with the largest revenue share, with sales revenue reaching 6.855 billion yuan in the first half of this year, a decrease in share from 94.13% to 87.19%. Regarding the performance of the second growth curve product, Dongpeng Beverage indicated that Dongpeng Rehydration H1 revenue accounts for 6.05%, an increase of 3.76 percentage points year-on-year; sales volume accounts for 10.21%, an increase of 6.78 percentage points year-on-year.

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