The biggest winner of "Zhang Xue Motorcycle" winning the championship, dropped 9.97% in a single day, with the stock price hitting a new low in a year!

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Since reaching a historical high of 336.42 yuan in June 2025, “the first stock of functional beverages” Dongpeng Beverage (605499.SH) has entered a long downward trend. On March 31, Dongpeng Beverage closed down 9.97%, nearly hitting the limit down during trading, with a quote of 205.27 yuan, hitting a new low in nearly a year, a decline of nearly 40% from its peak, with a market value of about 115.93 billion yuan.

CICC had lowered its target price by 6% to 330 yuan at the beginning of the year; currently, the company’s stock price is only 62% of that target.

Interestingly, this round of sharp decline occurred after a vigorous marketing victory. Just a few days ago, Dongpeng Tequ sponsored Zhang Xue’s motorcycle team to win at the World Superbike Championship (WSBK). This should have been a “battle of branding” victory, but it did not prevent the capital market from voting with its feet.

01 Marketing “Surprise Attack” Fails to Overcome Capital Cold Snap

Recently, Chinese motorcycle brand Zhang Xue Motor won consecutive championships at the WSBK Portugal round, ending a 37-year monopoly by European and American brands in this category. Along with the race car, the prominent “Dongpeng Tequ” logo was also on the highest podium.

It is reported that this is considered a classic “small investment, big gain” marketing case. Rumors say Dongpeng Tequ sponsored the team with only about 50k yuan, yet in top global events, it “shook up” major teams sponsored by giants like Red Bull, Yamaha, Ducati, etc. The related topics quickly flooded social media, making Zhang Xue Motor the biggest winner of the victory.

However, this “huge victory” in marketing did not translate into the capital market. On March 31, Dongpeng Beverage’s stock price fell sharply, approaching the limit down, seemingly declaring through actual performance: short-term brand buzz is not enough to reverse market doubts about its long-term growth logic.

02 Bright Financial Report’s “Hidden Concerns”

From the company’s just-released 2025 “performance report,” Dongpeng Beverage’s fundamentals do not seem bad.

The financial report shows that in 2025, Dongpeng Beverage achieved operating revenue of 50k yuan, a year-on-year increase of 31.80%; net profit attributable to parent was 20.88B yuan, up 32.72% year-on-year. Its core product, Dongpeng Tequ, surpassed 15 billion yuan in annual revenue, with a market share of 51.6% in the energy drink market, topping China’s energy drink industry rankings.

Meanwhile, the company’s second growth curve, “Dongpeng Hydrate,” performed impressively, with revenue reaching 4.42B yuan, up 118.99%, successfully entering the “30-billion-level big product” category. From the data, this is a consumer leader in rapid growth.

But the focus of the capital market is often on the “future,” not the “past.” Despite the impressive annual report data, the previously disclosed third-quarter report already revealed signs of sluggish growth in core categories.

On one hand, the growth of the “Dongpeng Tequ” main product is slowing. In Q3 2025, energy drink revenue growth slowed to 15% year-on-year, the lowest in nearly three years. Analysts point out that as Dongpeng Tequ approaches 20 billion yuan in volume, its penetration rate is gradually reaching the ceiling, revealing a market cap limit.

On the other hand, growth in the flagship market has stagnated. The foundational Guangdong market saw only 2% year-on-year growth in Q3 2025, nearing saturation. Although emerging markets like North China and West China grew rapidly (e.g., North China’s 67.86% increase), nationwide expansion’s management costs and logistics pressures are eroding profits.

03 Valuation Game of Multi-Brand Strategy

Currently, Dongpeng Beverage is at a critical stage of transforming from “single big product” to “platform beverage company.”

The company is vigorously implementing the “1+6” multi-category strategy. Besides Tequ and Hydrate, new products like Guozhi Tea and Dongpeng Daka are accelerating volume growth, with non-core product revenue now accounting for 25.2%. However, market expectations for new categories vary. In the red ocean tracks of sugar-free and sugared teas, Dongpeng faces fierce competition from Kangshifu, Uni-President, and many emerging brands. The profitability and growth potential of new products still need time to verify.

The continuous decline in stock price reflects market concerns about the “transition period” from old to new growth drivers. When the core engine slows down, and the second growth curve is fast but not yet large enough to fully fill the gap, the company’s previously high valuation logic of over 30 times is under re-evaluation pressure.

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Editor: Yang Hongbu