Dongpeng Beverage, aiming for platformization, is still waiting for its third blockbuster product.

Against the backdrop of intensifying competition in the functional beverage sector, Dongpeng Beverage has delivered a generally steady first quarter report. However, changes in growth pace and structural differentiation have further heightened market attention on its multi-category strategy.

In the first quarter, the company achieved operating revenue of 5.888 billion RMB, a year-on-year increase of 21.46%. Net profit attributable to the parent company was 1.257 billion RMB, up 28.31% year-on-year. This represents a noticeable slowdown compared to the full year 2025 revenue and net profit growth rates of 31.8% and 32.7%, respectively.

After experiencing a phase of rapid growth driven by channel expansion and the scaling-up of major products, Dongpeng Beverage is entering a "growth rate shift" phase.

The performance between the core product and the second growth curve is clearly differentiated.

Dongpeng Special Drink achieved revenue of 4.41 billion RMB in the first quarter, up 13.1% year-on-year. It maintained resilience under a high base and remains the main source of profit and cash flow.

In comparison, "Bushuaila" (Refuel) achieved revenue of 645 million RMB, up 13.2% year-on-year, with growth markedly slowing down.

Several securities firms pointed out in research reports that Bushuaila's shipment end slowed. Besides the high base in the same period last year, there were also short-term operational factors: the company adjusted its packaging production lines to support Mbappé's endorsement and World Cup marketing activities, and added tight capacity before peak season, modestly transferring production capacity to new products such as Haidao Coconut and Hong Kong-style Milk Tea. From actual terminal sales, performance was better than reported revenue growth, and channel inventories decreased.

However, aside from short-term factors, Bushuaila faces deep challenges that cannot be ignored.

In 2025, China's electrolyte beverage market size is approaching 20 billion RMB. This high-growth sector is attracting more and more competitors. Alien from Yuanqi Forest ranks first with nearly 50% market share, while Dongpeng Bushuaila comes second with about 34% share.

In early 2026, Nongfu Spring launched a new electrolyte beverage under its main brand, priced below 4 RMB per bottle, and rapidly distributed via its more than 3 million terminal outlets. Brands like Mengniu, Evergrande Ice Spring, and Haowangshui are also entering the sector, making competition significantly fiercer.

The biggest structural highlight of this first quarter report comes from the "Other Beverages" category, which achieved revenue of 830 million RMB, up 120.4% year-on-year. Its proportion of total revenue soared from 7.74% last year to 14.03%.

Among them, Haidao Coconut gift-box products performed excellently during the Spring Festival, and new products like fruit tea, coconut juice, and milk tea also received positive feedback. These high-growth categories show Dongpeng's channel repurposing capabilities in multi-category expansion, with terminal outlets already reaching the million mark.

However, in terms of absolute scale, the Other Beverage category (excluding Bushuaila) remains limited overall, with growth mainly driven by gift box sales during Spring Festival. Whether the high growth momentum can be sustained remains to be seen.

Against the backdrop of shifting growth rates, the company's core proposition for the next stage is becoming clearer: while stabilizing its foundations, can it incubate a third blockbuster product and turn channel advantages into sustainable growth? This not only concerns short-term flexibility but will also determine whether it can cross cycles and achieve platform-based transformation.

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