Nongfu Spring： 2023 revenue 42.667 billion yuan, net profit growth of 28.36%, market share of 23.6%

[Nongfu Spring has been the richest man in China for four consecutive years, and the founder Zhong Shansui’s wealth has reached 450 billion yuan]

The Hurun Rich List in 2024 shows that the founder of Nongfu Spring, Zhong Shanyuan, has become the richest man in China for the fourth time with a total wealth of 450 billion yuan, breaking the highest record for the richest man in China for more than 20 consecutive years. At the same time, Zhong Shanyuan topped the list with a shareholding market value of 456.27 billion yuan in the 2024 New Fortune 500 Rich List.

As one of the "Top 20" in China’s beverage industry, Nongfu Spring owns the well-known trademark "Nongfu Spring" in China. Since 1997, the company has established twelve international leading natural drinking water and fruit juice beverage production bases in several national first-level water resource reserves.

In 2023, Nongfu Spring’s share of China’s packaged drinking water market reached 23.6%, ranking first in the industry, far exceeding competitors such as Yibao, Jingtian, Wahaha, and Master Kong. The company’s fundamentals are strong, with revenue reaching 42.667 billion yuan in 2023, an increase of 28.36% year-on-year, and net profit margin of 28.15%, far exceeding the industry average.

The financial performance of Nongfu Spring is equally outstanding. From 2017 to 2023, the compounded growth rate of revenue is nearly 16%, and the compounded growth rate of net profit is 27%. The company’s return on net assets (ROE) reached 45.88% in 2023, indicating a high return on shareholder investment.

The company’s product line covers drinking water, tea beverages, functional beverages, fruit juices and coffee, and the beverage business will account for 49.5% of the total revenue in 2023, surpassing the drinking water business for the first time. In addition, Nongfu Spring covers more than 2.37 million end point retail outlets across the country through 4,280 dealers, building a strong channel barrier.

Since its listing in 2020, Nongfu Spring has achieved a net profit of 33 billion yuan, a cash dividend of 23.10 billion yuan, and a dividend ratio of up to 70%. The company’s current total market value exceeds 440 billion yuan and is in a reasonable valuation range.

Despite facing some brand trust crises, such as past packaging infringement and public opinion turmoil, Nongfu Spring has maintained its market leadership and strong financial performance.