Chinese energy-drinks group Eastroc Beverage is preparing to raise as much as HK$10.14bn ($1.3bn) through a Hong Kong share offering.
In a filing to the Hong Kong stock exchange yesterday (26 January), the Shanghai-listed group said it plans to issue 40.9 million ‘H’ shares, with a maximum offer price set at HK$248 per share.
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Based on that upper pricing level, Eastroc’s market value would exceed HK$166bn after listing.
Cornerstone investors named in the filing are Qatar Investment Authority, Singapore state fund Temasek Holdings BlackRock and Chinese tech group Tencent.
Eastroc intends to use the proceeds to boost its production capacity, bolster in its supply chain and invest in marketing.
The company also plans to use part of the funds to strengthen its distribution and pursue overseas expansion, including potential investments and acquisitions.
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By GlobalDataEastroc’s portfolio spans energy and sports drinks, tea and coffee, plant-based protein drinks and fruit juices.
As of 30 September, Eastroc operated nine production bases across China, the filing read.
By the same date, it had begun expanding production capacity at four existing sites and was building four new production bases.
The company said it is China’s largest maker of functional beverages, including energy and sports drinks, in terms of sales volume since 2021, citing data from Frost & Sullivan.
The company’s revenue increased from 8.5bn yuan in 2022 to 15.83bn yuan in 2024, delivering a 36.5% CAGR over the period.
Growth continued into 2025, with revenue for the nine months ended 30 September rising 34.1% year-on-year to 16.83bn yuan.
Net profit rose from 1.44bn yuan in 2022 to 3.32bn yuan in 2024, representing a 52% compound annual growth rate.
Momentum continued into 2025. For the nine months ended 30 September, net profit reached 3.76bn yuan, up 38.9% year-on-year.
Profitability also strengthened steadily, with net profit margin expanding from 16.9% in 2022 to 18.1% in 2023 and 21% in 2024, further improving to 22.3% for the nine months ended 30 September 2025.
In 2024, revenue from energy beverages reached 13.3bn yuan, reflecting a compound annual growth rate of 27.3% from 2022 to 2024.
Net cash flow from operating activities was 2.02bn yuan in 2022, 3.28bn yuan in 2023, 5.78bn yuan in 2024 and 3.13bn yuan for the nine months ended 30 September 2025.
Lin Muqin, chairman and chief executive of Eastroc Beverage, directly holds 49.74% of the company’s total issued share capital.
