Nongfu Spring released its audited results for the year ended 31 December 2025.
Revenue and Profit • Full-year revenue reached 52.55 billion yuan, up 22.5% year-on-year. • Net profit attributable to shareholders rose 30.9% to 15.87 billion yuan; basic EPS was 1.411 yuan. • Gross margin improved 2.4 percentage points to 60.5%, driven by lower PET, carton and sugar costs and stricter channel price management.
Segment Performance • Tea beverages became the largest contributor, generating 21.60 billion yuan (41.1% of revenue), a 29.0% increase. • Packaged drinking water posted 18.71 billion yuan (35.6%), up 17.3%. • Functional drinks delivered 5.76 billion yuan (11.0%), up 16.8%. • Juice beverages rose 26.7% to 5.18 billion yuan (9.8%). • Other products contributed 1.31 billion yuan (2.5%), up 10.7%.
Cost & Expense Dynamics • Selling and distribution expenses grew 6.8% to 9.80 billion yuan, falling to 18.6% of revenue (-2.8 ppt) after lower Olympic-year advertising spend. • Administrative expenses increased 25.0% to 2.45 billion yuan, holding at 4.7% of revenue. • Other income and gains declined 19.2% to 1.72 billion yuan, reflecting lower deposit interest. • Net foreign-exchange loss of 0.20 billion yuan contributed to a rise in other expenses to 0.29 billion yuan.
Cash, Debt and Capital • Cash, bank balances, restricted and pledged deposits plus long-term bank deposits totalled 22.29 billion yuan at year-end. • Interest-bearing borrowings stood at 4.39 billion yuan; gearing ratio remained low at 11.4%. • Inventories increased to 5.85 billion yuan, equal to 95.5 days of turnover (2024: 82.3 days). • Capital commitments amounted to 4.91 billion yuan, mainly for new production facilities.
Dividend The board recommends a final dividend of 0.99 yuan per share, representing a cash payout of roughly 11.13 billion yuan, subject to shareholder approval at the 2025 AGM.
Use of IPO Proceeds Unspent IPO proceeds of HK$0.73 billion earmarked for “strengthening fundamental capabilities” will be re-allocated to “purchasing production facilities and building new factories”. The utilisation deadline for the remaining HK$4.30 billion has been extended to 31 December 2027.
Operational Highlights • Three new water sources were added in 2025—Badagong Mountain (Hunan), Longmen Mountain (Sichuan) and Nyainqêntanglha Mountains (Tibet); Jiaozi Snow Mountain (Yunnan) was added in early 2026, bringing the total to sixteen. • Tea product innovation included the launch of “Iced Tea”, a carbonated tea beverage, and new East Leaf flavours “Chenpi White Tea” and “Chrysanthemum Pu-erh”. • Industrial tourism at water-source plants attracted over 700,000 visits, nearly 40% from educational research tours. • R&D expenditure reached 0.31 billion yuan.
Outlook On its 30th anniversary in 2026, management reiterated the strategy of steady expansion, further water-source investment and accelerated global market entry, after introducing core products to Hong Kong and Singapore in 2025.