Distribution of Revenues by Industry:

• Packaged Water: approx. 60%
• Tea Beverages: approx. 20%
• Fruit Juices: approx. 10%
• Other Beverages: approx. 10%

TOP 3 Markets:

• China: approx. 85%
• Southeast Asia: approx. 10%
• Other International Markets: approx. 5%

Nongfu Spring Co., Ltd. generates the majority of its revenues from the sale of packaged water, accounting for approximately 60% of total revenue. Tea beverages and fruit juices are also significant revenue drivers, with tea beverages representing about 20% and fruit juices about 10%.

The main market for Nongfu Spring is China, which accounts for approximately 85% of revenue. This underscores the company's strong market presence and brand awareness domestically. Southeast Asia is the second largest market with a share of about 10%, followed by other international markets, which together make up about 5% of revenue.

Production Sites: 10 main production facilities in China (as of 2023)

Nongfu Spring Co., Ltd. mainly produces its products in China. The company operates several production sites strategically located in different provinces of the country. These locations are chosen to have access to natural water sources, which is crucial for the quality of their products.

Some of the well-known production sites include locations in the provinces of Zhejiang, Jiangxi, and Hubei. This geographical distribution allows Nongfu Spring to produce efficiently and optimize logistics costs while ensuring the freshness and quality of their products.

Revenue growth: 10.5% (estimated 2024)
Market share in China: 26% (estimated 2024)

Nongfu Spring Co., Ltd. is pursuing a strategy aimed at diversification and international expansion. The company plans to expand its product portfolio beyond traditional mineral water to establish a presence in other beverage segments, such as tea drinks and functional beverages.

Another focus is on tapping into new markets outside of China, especially in Southeast Asia and Europe. Nongfu Spring relies on strategic partnerships and expanding its distribution networks to increase brand awareness and attract new customers.

Furthermore, the company is investing in sustainable production methods and environmentally friendly packaging solutions to meet the increasing demands for sustainability and strengthen the brand image. This is intended not only to improve customer loyalty but also to appeal to new target groups that value environmentally conscious products.

Main raw materials: Water, PET (Polyethylene terephthalate), sugar, flavors

Main importing countries: No specific importing countries known

Nongfu Spring Co., Ltd. is known for the production of bottled water and other beverages. The main raw material, water, is sourced from various natural springs within China, including well-known locations such as Moya Mountain and Changbai Mountain.

PET is used for packaging, which is usually sourced locally or from nearby Asian countries. Sugar and flavors needed for the production of sweetened beverages are also mostly sourced locally or from the region.

Since Nongfu Spring mainly relies on local resources, specific importing countries for the raw materials are not detailed. The company places great emphasis on using domestic sources to ensure the quality and freshness of its products.

Market share in China for packaged water: approx. 20% (2023)
Gross margin: 59.3% (2023)
Rank in brand awareness in China: 1st place (2023)

Nongfu Spring Co., Ltd. has a significant competitive advantage in the market for packaged water in China. With a market share of about 20%, the company is a leader in this segment. The high gross margin of 59.3% indicates strong pricing power and efficient cost structures.

The competitive advantage is further supported by strong brand awareness, as Nongfu Spring is considered the most well-known brand for packaged water in China. This brand strength enables the company to foster customer loyalty and mitigate price pressure from competitors.

Additionally, Nongfu Spring benefits from a broad distribution network and a diversified product range, allowing the company to cater to various consumer preferences and secure market shares in different segments.

Institutional investor share: 35% (estimated for 2025)
Insider purchases/sales: No significant transactions reported (2025)

The institutional investor share in Nongfu Spring Co., Ltd. is estimated to be around 35%. This reflects the interest of large financial institutions investing in the company to benefit from its stable market position in the beverage industry.

Regarding insider transactions, no significant purchases or sales were reported in 2025. This could indicate that the management has confidence in the current company strategy and market position. However, it is important to regularly review this data as market conditions may change.

Market share of Nongfu Spring Co., Ltd.: 26% (2025, estimate)

Top competitors and their market shares:

1. Nongfu Spring Co., Ltd.: 26%
2. China Resources C'estbon Beverage Co., Ltd.: 22%
3. Hangzhou Wahaha Group Co., Ltd.: 18%
4. Tingyi (Cayman Islands) Holding Corp.: 15%
5. Coca-Cola China: 10%
6. PepsiCo China: 9%

Nongfu Spring Co., Ltd. is the leading provider in the Chinese bottled water market. The 26% market share demonstrates a strong market position supported by a wide range of products and a strong brand presence.

Nongfu Spring's moat is derived from several factors:

• Brand awareness: The brand is very well-known in China and enjoys high consumer trust.
• Distribution channels: A well-established distribution network enables high product availability.
• Product diversification: In addition to water, Nongfu Spring also offers teas and juices, diversifying the risk.

Compared to competitors, Nongfu Spring has a significant advantage in brand awareness and market presence. China Resources C'estbon and Hangzhou Wahaha are also strong brands, but not as dominant as Nongfu Spring. Coca-Cola and PepsiCo have strong global brands, but are less present in the Chinese bottled water market.

Overall, Nongfu Spring has a significant moat, but it is challenged by strong competition and their own brand strength and distribution networks. The ability to maintain this moat will be crucial for future market positioning.

Revenue growth: 10.5% (2024) Profit growth: 8.2% (2024) Market share in the Chinese bottled water market: 26% (2024)

Nongfu Spring Co., Ltd. recorded a revenue growth of 10.5% in 2024, indicating strong demand for its products and an effective market strategy. The company has expanded its market share in the Chinese bottled water market to 26%, highlighting its leading position in the industry.

The profit growth of 8.2% shows that Nongfu Spring is able to effectively manage its costs while increasing profitability. Continuous investment in product innovations and expansion into new markets could further support future growth.

Given these solid fundamentals and strong market position, Nongfu Spring could be an attractive investment opportunity, especially for investors looking to invest in an established company with growth potential.

Dividend yield: 2.5% (2024) Dividend growth: 5% annually (last 3 years)

Nongfu Spring Co., Ltd. regularly pays a dividend to its shareholders. The dividend yield was recently around 2.5%, which can be considered moderate compared to other companies in the industry.

Over the past three years, the company has increased its dividend by an average of 5% per year. This indicates a reliable payout policy supported by stable earnings and a healthy financial foundation.

Analysts expect that Nongfu Spring will continue its dividend policy in the coming years, provided there are no significant economic or company-specific challenges.