One year after listing performance 'flipped': China Resources Beverage (华润饮料) net profit falls 40%

Shock decline after a strong IPO year

China Resources Beverage (华润饮料, 2460.HK) reported a sharp reversal in fortunes: management said 2025 net profit attributable to shareholders is expected to fall about 40% versus 2024, leaving full-year profit near HK$1 billion based on last year’s HK$1.637 billion. The stock briefly hit a fresh near-term low and closed at HK$10.03, roughly 40% below its early post-listing high. One year after the market celebrated the company’s IPO performance, investors are facing a very different reality.

Market and competitive pressures

The company attributes the drop to heavier marketing spending, product‑mix adjustments and a channel overhaul, as well as persistent weakness in its packaged water business. Yibao (怡宝), China Resources Beverage’s flagship bottled-water brand that historically accounted for over 80% of revenue, has reportedly lost share during a recent price war that pulled minerally and purified water brands into lower‑price segments. Rivals named in filings and market reports include Nongfu Spring (农夫山泉), Wahaha (娃哈哈), Master Kong (康师傅) and Jingtian (景田, parent of Baishan/百岁山). It has been reported that some competitors gained traction in 2025 while Yibao’s monthly market share declined between March and October.

Strategy, payouts and management change

To arrest the slide, the company ramped up marketing, launched 14 beverage SKUs in H1 2025 and accelerated self-built production capacity to lift margins — its gross margin was 46.7% in H1 versus about 60.3% at Nongfu Spring. It has been reported that the company plans new plants in Zhejiang and other provinces. To calm investors, China Resources Beverage pledged a 2025 dividend of no less than 90% of attributable net profit, up from roughly 70% in 2024. The turnaround comes amid leadership churn: long-serving sales chief Zhang Weitong stepped down as chairman in January and was replaced by finance veteran Gao Li (高立), and the CFO role also turned over in February.

Bigger picture: can finance fix market share?

China Resources Beverage is a key consumer arm of state-linked China Resources Group, so its challenges highlight a broader theme in China’s fast‑moving consumer sector: fierce domestic competition, margin pressure and the need to move from contract manufacturing to higher‑margin in‑house production. Will a financially focused chair and higher payouts be enough to restore Yibao’s market position and investor confidence? Investors and competitors will be watching whether new products and capacity investments translate into sustained share gains — or simply extend a costly transition.