---
title: "Nongfu Spring IPO! Prospectus Discloses 2019 Revenue of 24 Billion Yuan"
description: "In March this year, internal sources revealed that the CSRC had received Nongfu Spring's IPO approval materials. Early this morning, Nongfu Spring officially submitted its prospectus to the Hong Kong Stock Exchange. This marks the end of the nearly two-decade-long IPO rumor marathon for the industry veteran, and it will be the first time the company publicly discloses its operating conditions."
author: "New Distribution"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2020-04-30"
language: "en"
canonical: "https://xinjignxiao.com/en/articles/nongfu-spring-ipo-prospectus-discloses-2019-revenue-of-24-billion-yuan-fdb96048/"
markdown: "https://xinjignxiao.com/en/articles/nongfu-spring-ipo-prospectus-discloses-2019-revenue-of-24-billion-yuan-fdb96048.md"
original_source: "https://mp.weixin.qq.com/s/y20Z--9Cr8uWITjssxS5XQ"
translation: "https://xinjignxiao.com/zh/articles/%E5%86%9C%E5%A4%AB%E5%B1%B1%E6%B3%89ipo-%E6%8B%9B%E8%82%A1%E4%B9%A6%E6%8A%AB%E9%9C%B22019%E5%B9%B4%E8%90%A5%E6%94%B6240%E4%BA%BF%E5%85%83-fdb96048.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/nongfu-spring-ipo-prospectus-discloses-2019-revenue-of-24-billion-yuan-fdb96048/"
usage_policy: "https://xinjignxiao.com/ai-policy.txt"
---

# Nongfu Spring IPO! Prospectus Discloses 2019 Revenue of 24 Billion Yuan

> In March this year, internal sources revealed that the CSRC had received Nongfu Spring's IPO approval materials. Early this morning, Nongfu Spring officially submitted its prospectus to the Hong Kong Stock Exchange. This marks the end of the nearly two-decade-long IPO rumor marathon for the industry veteran, and it will be the first time the company publicly discloses its operating conditions.

In March this year, internal sources revealed that the CSRC had received Nongfu Spring's IPO approval materials. Early this morning, Nongfu Spring officially submitted its prospectus to the Hong Kong Stock Exchange.
This means that the industry veteran will put an end to the nearly two-decade-long IPO rumor marathon and will, for the first time, formally disclose its operating conditions to the public.
**-01-**
**24 Billion Yuan Steadily Surpasses Uni-President**
According to Nongfu Spring's prospectus, **from 2012 to 2019, Nongfu Spring maintained the No.1 market share in China's packaged drinking water market for eight consecutive years.** Moreover, in the three years from 2017 to 2019, Nongfu Spring's performance soared, with revenue increasing from 17.49 billion yuan to 20.475 billion yuan and then to 24.021 billion yuan.
From 2017 to 2018 and 2018 to 2019, revenue grew by 17.1% and 17.3% year-on-year, respectively. According to a Frost & Sullivan report, this growth rate is significantly higher than the 5.0% and 6.6% growth rates of China's soft drink industry and the 2.7% and 3.4% growth rates of the global soft drink industry during the same periods.
In terms of profit, Nongfu Spring's net profit for the past three years was 3.386 billion yuan, 3.612 billion yuan, and 4.954 billion yuan, respectively, with net profit margins of 19.4%, 17.6%, and 20.6%, also far higher than the average profitability of less than 10% in the domestic and international soft drink industries.
Here, profit is close to 5 billion yuan, and revenue exceeds 24 billion yuan. What does this simple number mean?
This reminds me of the recent release of Uni-President's 2019 financial report, which showed revenue of 22 billion yuan, of which beverage business revenue was 12.73 billion yuan, and net profit increased to 1.366 billion yuan. Uni-President's beverage business can be seen as a barometer for the industry. In comparison, **Nongfu Spring's revenue has steadily surpassed Uni-President's.**
Even so, rumors about Nongfu Spring's listing continued to circulate during this period, and it even underwent listing guidance itself, but in the face of external speculation, Nongfu Spring remained tight-lipped.
**-02-**
**Drinking Water Ranks First**
With the progress of Nongfu Spring's listing, its 2019 sales data for products has also been disclosed for the first time.
According to Nongfu Spring's prospectus, **in the past three fiscal years, drinking water products accounted for the majority of Nongfu Spring's revenue, with drinking water revenue accounting for over 57% in 2017, 2018, and 2019, and slightly increasing to 59.7% (14.35 billion yuan) in the most recent year. The annual growth rate of drinking water revenue remained around 17%.**
Apart from drinking water, Nongfu Spring's tea drinks had annual sales of 3.138 billion yuan, functional drinks 3.779 billion yuan, juice drinks 2.311 billion yuan, and other products 447 million yuan.
The prospectus also shows that Nongfu Spring, founded in 1996, is a leading enterprise in China's packaged drinking water and beverages. Currently, it has long moved beyond the single category of "spring water," with main products covering four major series and dozens of products, including packaged drinking water, tea drinks, functional drinks, and juice drinks.
Based on 2019 retail sales, Nongfu Spring ranked among the top three in market share in China in drinking water, tea drinks, functional drinks, and juice drinks, with drinking water ranking first.
**-03-**
**Frequent Big Singles and Disruptive New Products**
**As the leader in bottled water, Nongfu Spring's impressive performance is mainly attributed to its frequent big singles and continuous new products.** According to incomplete statistics by the author, in 2019, Nongfu Spring launched 11 new products in succession, many of which were disruptive.
1\. In January 2019, it launched two new sports drink products under the Scream brand. The sports drink Scream was actually introduced in 2003, following the trend of functional drinks.
Afterwards, Scream was once a product with sales "second only to bottled water" under Nongfu Spring. Nongfu Spring focused on intensive cultivation of the market, shrinking first-class stores and transferring Scream to second- and third-class stores, making it a highly competitive sports drink for Nongfu Spring.
2\. In March 2019, it fully launched the star product Tea π with a new packaging and a new celebrity spokesperson. Nongfu Spring had already launched its third tea drink, "Tea π," in March 2016. Within just seven months of launch, Tea π alone achieved sales of 1 billion yuan, becoming one of the most successful big singles in 2016. Some in the industry even exclaimed: "Every step of Tea π can be regarded as a standard example of product upgrade."
3\. In May 2019, Nongfu Spring disruptively launched the ready-to-drink carbonated coffee drink Tanbing. Shortly after launching Tanbing, Nongfu Spring also introduced a new product under the "Tanbing" brand: drip coffee.
4\. In June 2019, to further improve its NFC juice product line, Nongfu Spring launched a new low-temperature NFC juice product. The emergence of NFC room-temperature juice was extremely strategic.
In November 2014, Nongfu Spring launched a fresh orange product called 17.5° Orange, which was well received by consumers upon its release. This is where Nongfu Spring's brilliance lies: it began laying out the upstream 10 years ago—17.5° Orange and 17.5° Apple were just a primer. What it really wanted to launch to make consumers addicted was NFC room-temperature juice. Facts have proven that this can be a big single with a potential of 10 billion yuan.
5\. In September 2019, Nongfu Spring revamped its representative mid-concentration juice brand, Nongfu Orchard, upgrading the concentration of the new product to 50%, distinguishing it from traditional juice flavors.
Earlier, in 2003, when Nongfu Orchard was first launched, as a mixed juice drink that could meet the needs of people with different tastes, it held an important position in the domestic juice market and was even popular for a time thanks to its unique advertising slogan.
6\. Finally, let's return to Nongfu Spring's origin—bottled water. In the past two years, Nongfu Spring has aggressively attacked the home, kitchen, and meeting water markets, launching Nongfu Spring infant water and high-end bottled water, and also launching a new 5L product to increase channel investment.
In 2019, Nongfu Spring also made two major moves: one was launching a lithium-containing natural mineral water in June, directly filling the gap in the lithium-containing water category and the middle-aged and elderly market segment; the other was launching a new soda mineral water product based on natural mineral water in December.
In 2011, Nongfu Spring squeezed Kangshifu off the top spot and took the leading position. In 2015, C'estbon took the top spot by a slight margin, but in 2017, Nielsen data showed that Nongfu Spring returned to the top spot in bottled water.
From the past three years, it can be seen that Nongfu Spring has gradually consolidated its position.
**-04-**
**COVID-19 Pandemic**
In the prospectus, when discussing the impact of this year's pandemic, Nongfu Spring stated that since the end of December 2019, the COVID-19 pandemic has had a significant adverse impact on the global economy. During the pandemic, sales of beverage products declined compared to the same period in 2019. Revenue and net profit for the three months ended March 31, 2020, decreased compared to the three months ended March 31, 2019.
Production base operations were temporarily suspended after the Spring Festival in 2020. As of the latest practicable date, all production bases have resumed operations. The company's directors expect that the pandemic will not have a significant adverse impact on the results for the 12 months ending December 31, 2020, and long-term business development.
Once the tip is adopted, a payment of 400-2000 yuan will be made.


---

## Copyright and AI use

This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL.

Contact: zhaobo258@gmail.com · +86 158 5481 7671