Recently, after the listing of 15 consecutive stops and attention, the market value of Dongpeng drink once exceeded 100 billion yuan released the first half-yearly report. During the report period, the company realized operating income of 3.682 billion yuan, an increase of 49.11%; to achieve net profit attributable to shareholders of listed companies 676 million yuan, a year-on-year surge of 53.14%.

Dongpeng Beverage said that in the first half of 2021, the company continued to plow the Guangdong market while actively exploring the national market, 500ml gold bottle sales continued to improve to drive the company's sales revenue and net profit grew rapidly. In the second half of the year, the company will further improve the national layout of the sales network, strengthen the channel construction, to ensure market supply, and gradually to the national region to promote the company's new products, and actively research and development of health efficacy of drinks, to meet the diversified consumer demand.

From the category point of view, the company's energy drinks to achieve operating income of 3.547 billion yuan, an increase of 56.11%. Among them, in the first half of this year, the leading product Dongpeng Special Drink sales revenue accounted for more than 98% of the proportion of energy drinks, "Dongpeng plus 気" to achieve sales revenue of 31,139,200 yuan; and the new product launched in April this year, "0 sugar Special Drink" in Guangzhou, Zhongshan and other regions for test marketing. Trial sales in Guangzhou, Zhongshan and other regions, and since June this year in Guangdong Province, Guangxi Province and online channels to promote the full range of sales revenue of 30.742 million yuan during the reporting period.

It is understood that the 0 sugar special drink and Dongpeng Jiaqi is still in Guangdong test marketing, if you want to do large-scale marketing, it must be in the national paving basically completed before doing, but at present the country has not been completely paved, there are still a lot of blank market waiting to be developed.

However, during the reporting period, Dongpeng Beverage non-energy drinks only realized operating income of 130 million yuan, down 33% year-on-year. The series of products mainly include by Citrus Lemon Tea, Chenpi Special Drink, cool drinks (chrysanthemum tea, winter melon juice drink, cool tea) and milky beverages.

Sub-regional point of view, in the first half of the year, Dongpeng Special Drinks Guangdong region to achieve sales revenue of 1.655 billion yuan, a year-on-year increase of 39.47%; Guangdong outside the region to achieve sales revenue of 1.648 billion yuan, a sharp increase of 60.25% year-on-year, the directly managed headquarters revenue also increased 51.31% to 370 million yuan. It can be said that the Dongpeng beverage Guangdong region to maintain the momentum of development at the same time, East China and Central China market also showed better growth.

In the mid-year conference call, the person in charge of Dongpeng Special Drinks said that the growth momentum of the Guangdong market mainly comes from two aspects: First, the channel and the broadening of the drinking population, upward penetration of the middle and high-end, in the Guangdong market launched 250 ml and 335 ml cans of Zero Sugar Special Drinks, 355 ml cans of Dongpeng Plus Gas, focusing on the penetration of the medium- and high-end population, 250 ml PET stay Technology Park, to the white-collar crowd penetration; the second aspect is that the company in the Guangdong market for the channel sinking action, the college market and Internet cafe market brought new increment.

In the body energy strong East China market, Dongpeng Special Drinks also harvested a good growth in the cracks. A Dongpeng drink distributor in East China, said last year's task of about 80,000 boxes, this year's task is doubled, the requirement to do 160,000 boxes, before the completion of 48%, the third quarter is expected to be better. This year, the main increment comes from the 500 ml PET package.

According to reports, Dongpeng in the south of Jiangsu, the situation is better than in the north, with product positioning, price, market conditions, consumer awareness are related to the consumption of the north can be a little weak. Before, the overall market share in Jiangsu is the first red, the first is the body energy, Dongpeng special drink ranked third.

Dongpeng drinks internal communication minutes show that, at present, Dongpeng sales growth in central China is also relatively substantial. The company's projected production capacity can meet the demand in central China before 2023, with the development of the market, after 2023 may face some capacity pressure. Therefore, the company laid out in advance of the Changsha plant, if the land auction procedures go smoothly, Changsha plant is expected to be put into operation in March 2024, after the commissioning of Hunan, Hubei, Jiangxi provinces will mainly bear the task of delivery.

It is worth noting that, at the same time as the substantial growth in performance, Dongpeng beverage sales costs are also synchronized growth. The financial report shows that the first half of the Dongpeng beverage sales costs year-on-year surge of 76.61%. Among them, publicity and promotion costs increased by 114.04%.

In this regard, Dongpeng Beverage said, the company listed on the success of the increased investment in brand building promotional activities, the new listing promotional film project promotion costs 66,676,200 yuan, as well as increased over the same period of the previous year, such as freezers and super promotions channel promotional costs of about 97,141,300 yuan, these initiatives have led to a substantial increase in publicity and promotional costs year-on-year, but also to further expand the sales channel! These initiatives resulted in a significant year-on-year increase in publicity and promotion expenses, but also further expanded the influence of sales channels and increased the market share of our products.

In short, in the first half of the year, Dongpeng Beverage further increased the cost of publicity and display end.

Among them, the increasing investment in publicity is due to the industry leader Red Bull by the trademark dispute dragged, gradually stopped brand promotion, in the new growing generation of consumers brand influence gradually weakened. As the industry's second largest, Dongpeng Special Drinks needs to continue to strengthen consumer education, build the brand at the same time to show the strength of the company, so as to empower the new investment work.

The growth of terminal expenses and the continuous spread of the sales network is very relevant. As of the end of the reporting period, Dongpeng beverage has 2002 dealers, sales network covering about 1.79 million terminal stores across the country, compared with 1.2 million at the beginning of the growth rate of up to 40% or more.

According to the person in charge of Dongpeng Beverage, for the case of outlets not yet covered, but registered in the household, the company can verify whether the data tool for its own outlets, if the merchant is only registered, but no moving sales, no sweep, is not considered an effective merchant. In addition, a valid outlet usually takes off in 3-6 months basically, and if it still hasn't taken off in 3-6 months, the outlet may be an invalid outlet.

In the view of Dongpeng Beverage, the 1.79 million outlets are solidly covered by the sales force. Newly opened outlets, cultivate the surrounding consumer population is time-consuming; and, the new terminal will increase the freezer and display fees, so open up the blank market sales costs are relatively large.

In addition, due to the company carried out a new incentive program, the general increase in employee compensation adjustment. During the reporting period, the company's administrative expenses of 132 million yuan, an increase of 50% year-on-year, management expense ratio of 3.59%, an increase of 0.20%. Due to the company's listing of new roadshows, cocktail parties and other expenses and research and development costs have brought a certain increase in the company's costs.

It seems that Dongpeng Beverage is trying to increase effective investment in exchange for more market share. However, in the second half of the year, in addition to the marketing challenges generally faced by the FMCG industry, Dongpeng Beverage has to face the risk of market competition and the risk of fluctuations in raw material prices .

Although, this year, PET prices began to gradually upward, the production side of the beverage industry has brought greater challenges; however, Dongpeng Beverage scale effect can form a hedge, so as to control the gross margin fluctuations in the range of 2-3 percentage points. For example, the South China base **** there are four production lines put into production, the scale effect has grown significantly; Nanning base was a phase, now there is a second phase, Chongqing base in April-June to put into production a line, and next year will increase a number of production lines, production capacity gradually in place the scale effect can be offset by the impact of the upward movement of costs.

In addition, due to the 500 ml PET bottle sales revenue accounted for the highest proportion of its gross margin higher than 250 ml PET bottle products, 500 ml PET bottle rise will also lead to the overall gross margin trend.

And the risk of market competition, specifically how to continue to challenge the Red Bull at the same time, build a moat against competitors such as physical energy.

From the current point of view, Dongpeng drinks on the Huabin is still in the active catch up and seize the Red Bull market share stage.

The objective reality is that the current total profit amount is still red more, because the volume of red more. But at the same time, Red Bull distributors due to inventory and prepayment pressure is relatively large, profit margins are lower, the willingness of the agent downturn. In addition, Huabin has not made more investment, mainly because Taste and Anegi have not posed enough threat; the price war with Anegi and Taste is not worthwhile. In addition, even if the price war can not affect the Dongpeng, on the contrary, it will cause harm to the brand.

It is worth noting that part of the main market in the restaurant side of the Dongpeng can do about a quarter of the sales of the red, while other competitors are currently in the restaurant side of the lack of layout, therefore, catering is also the future of Dongpeng a point of increase.

On the other hand, in the competition with the body energy and Lehu, Dongpeng drinks through the differentiation of the channel operation to achieve a breakthrough.

A Dongpeng beverage distributor said, from the brand point of view, the main market in the suburban counties, can reflect the price advantage of the ground, the more the pursuit of sales, investment is also mainly in the display, and did not pay much attention to branding, etc.; Le is a business + distribution model, there is no more fee investment; and Dongpeng is the omni-channel operation, and would like to make the brand.

He said, "against the red words, Dongpeng store market rate can reach 70% of the red store market rate, and physical energy is almost the same. The sales gap may be due to the nuclear city red sold better, rural areas, body energy bottle of 5 yuan phase Dongpeng cheaper so sell better." However, from the sales point of view, the increase in body energy space has been more limited, looking ahead, functional drinks have the opportunity or Dongpeng.

An industry insider summarized, "Dongpeng publicity investment is more, body energy display investment is more. But for the national layout of the brand, the investment stage must do the amount of advertising, this part of the report on the consumer's side is not, mainly to let dealers see the company's real, so the dealers are very happy to accept the Dongpeng. In addition, although the store display is for consumers, but now Dongpeng drinks gradually increase the investment in consumer education, progress in the display end is also very often."