Investment highlights
Nongfu Spring has been pursuing the “dual-engine” development of drinking water and beverages. On
one hand, it meets the daily drinking needs of consumers and on the other hand, it satisfies the diverse
and personalized drinking demands of consumers. Diversified product varieties enhancing flexible
product mixes has enabled companies and distributors to achieve differentiating advantages in different
markets and channels, to improve scale of business, distribution efficiency and profitability.
The world’s second largest packaged drinking water company
Nongfu Spring’s packaged drinking water products include natural drinking water and natural mineral
water. The company is the second largest packaged drinking water company in the world in terms of
sales volume. It is also the only company, among the top 5 PRC packaged drinking water companies,
that uses solely natural water to produce packaged drinking water, pledging “Every drop of Nongfu
Spring has its source”. In 2020, the company’s market share of packaged drinking water in China reached
20.9% (in terms of retail sales value), which is 1.5 times that of the second largest player. In 2018, 2019
and 2020, the revenue generated from packaged drinking water products accounted for 57.5%, 59.7%
and 61% of the company’s total revenue, respectively.