Nongfu Spring (HKEX: 09633; OTC: NNFSF) posted a bottom-line beat for the full year 2020, marking its first financial report as a public company.
The Chinese retailer of bottled beverages said in a filing with the Stock Exchange of Hong Kong today after the markets closed that it earned 5.28 billion yuan ($809 million) in 2020, up 7% from a year earlier. Its revenues dropped to 22.88 billion yuan, down 5% from 2019.
The drop in Nongfu’s revenues came as beverage consumption declined on business closures, daily mask-wearing, and less travel during the coronavirus pandemic, according to a statement to shareholders written by chairman Zhong Shanshan.
“We will continue to promote the development of the dual-engine development approach underpinned by packaged drinking water and beverage,” Zhong said.
He added, “On the other hand, based on research and development, we will launch high-quality beverage products that meet consumer needs.”
Beyond the sale of water bottles, the product portfolio consists of flavored water, tea, and juice beverages, as well as plant-based yogurt and fresh fruits.
In addition, Nongfu proposed to pay a 17 cents yuan per share dividend.
In September, Nongfu completed its Hong Kong IPO, raising $1.1 billion through the sale of 388.2 million shares priced at HK$21.50 each. At the time, Nongfu’s IPO was subscribed 1,147 times--the largest ever until short video app Kuaishou Technology (HKEX: 01024) surpassed in February, according to the South China Morning Post.
Nongfu's stock has nearly doubled its IPO price.
At the close of trading in Hong Kong today, Nongfu traded 5% higher at $HK49.50 per share. Nongfu’s OTC stock last traded at $5.59 apiece on Tuesday.