What happened
In the first half of 2026, China Resources Beverage posted revenue of 5.455 billion yuan, down 12.1% year on year, and profit attributable to owners of 592 million yuan, down 26.43%. Both its packaged drinking water and beverage segments declined, with packaged water revenue falling 7.9% to 4.838 billion yuan and beverage revenue tumbling 35.4% to 617 million yuan.
The company's packaged water performance varied by format: small-sized bottled water (1 liter and below) fell 9.9% to 2.878 billion yuan, medium-to-large bottles (1-15 liters) dropped 5.4% to 1.73 billion yuan, and barreled water rose 0.9% to 230 million yuan. In 2025, packaged water revenue had already fallen 21.6% from a peak of 12.447 billion yuan.
Rival Nongfu Spring grew H1 2026 revenue 16% to 29.718 billion yuan, with packaged water up just 2.1% but beverage products growing double digits and accounting for 67.1% of total revenue. Master Kong's packaged water also declined 4.9% in H1, underscoring broader category pressure.
Why it matters
The results show packaged drinking water is no longer a default growth business. Experts in the source note that water only satisfies thirst, while unsweetened tea, sports drinks and juices also offer taste and function, making them direct substitutes. Fresh-made beverage chains such as Mixue and Luckin have also shifted the 'buy when thirsty' scene to 'buy whenever you want to drink.'
Nongfu Spring used high-margin tea and sports drinks to offset slowing water sales, but China Resources Beverage's beverage portfolio lacks a blockbuster product, leaving it with limited voice on shelves and online. A brand consultant cited in the source says its packaged water opened the channel but no high-margin products followed to capture profit, a structural weakness.
Key facts
H1 2026: China Resources Beverage revenue 5.455 billion yuan, down 12.1%; profit attributable to owners 592 million yuan, down 26.43%; net margin fell to 10.85% from 12.97%.
Packaged drinking water revenue fell 7.9% to 4.838 billion yuan in H1 2026; beverage revenue fell 35.4% to 617 million yuan.
Nongfu Spring H1 2026 revenue grew 16% to 29.718 billion yuan; packaged water grew 2.1%, slower than 2025's 17.3%.
China Resources Beverage's beverage portfolio currently includes three tea brands, two juice brands, one sports drink brand and one coffee brand.
The company launched only 3 new beverage SKUs in H1 2026, compared with 23 in 2025.
What to watch next
China Resources Beverage says it will focus in the second half on lifting beverage volume, and plans to deepen growth categories such as plant-based drinks and ready-to-drink tea to build a second growth curve. It is also expanding into instant retail and cooperating with bulk-snack retailer Wanchen Group to reach family scenes.
Experts suggest the company may need more than new products. They argue it should concentrate resources on a strong beverage brand and consider acquiring mature brands, with emphasis on tea drinks and electrolyte energy water, while shifting channel distribution from broad placement to segmented-scene placement.