Controversy, competition hit Nongfu

Staff reporter

Chinese bottled water giant Nongfu Spring (9633) reported a net profit of 12 billion yuan (HK$12.85 billion) for last year, only 0.4 percent more than a year ago, as its sales were hurt by controversy around the brand and keen competition.

Total revenue rose just 0.5 percent to 42.9 billion yuan, with contributions from water products - its core segment - diving 21 percent to 15.95 billion yuan.

Chairman Zhong Shanshan, the country's wealthiest entrepreneur, said Nongfu's brand went through "unprecedented assault and trial" last year and 2024 was an "extraordinary year" for the company.

In March 2024, Nongfu faced boycott calls over an old debate of Zhong's over water quality compared to other brands, especially after Zong Qinghou, the founder of beverage maker Wahaha, passed away in February.

Some angry users even alleged that Zhong's son holds a US passport.

Nongfu raised the final dividend by 1.3 percent to 76 fen per ordinary share.