Analysis of Controversies Surrounding Dongpeng Beverage's Financial Practices: Is There Harm to Minority Shareholders' Interests?

Based on the collected information, I will conduct a comprehensive analysis of this incident involving Dongpeng Beverage from multiple dimensions.

According to public information, Dongpeng Beverage exhibits the following financial characteristics [0][1]:

Indicator	End of 2023	End of 2024	Q3 2025
Short-term Borrowings	-	RMB 6.551 billion	RMB 6.973 billion
Trading Financial Assets	RMB 2.037 billion	RMB 4.897 billion	-
Monetary Funds	RMB 6.058 billion	RMB 5.653 billion	RMB 5.72 billion
Asset-Liability Ratio	57.01%	66.08%	63.24%

• Cumulative total dividends: RMB 5.3 billion
• 2024 dividend payout ratio: 69.1%
• Amount flowing to the founding family: over RMB 3.4 billion (calculated based on 65% shareholding) [1][2]

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• On one hand, the company has taken on large-scale borrowings (short-term borrowing interest rate: 1.00%-2.50%) [1]
• On the other hand, it has purchased bank wealth management products worth up to RMB 4.897 billion

1. Suspicion of interest transfer
   : There is an arbitrage space between borrowing interest rates and wealth management product yields, but major shareholders may obtain additional benefits through related-party transactions or related wealth management
2. Doubts about capital efficiency
   : The company still takes on large-scale borrowings despite abundant monetary funds, which pushes up financial costs and reduces capital utilization efficiency
3. Liquidity risk
   : The asset-liability ratio is as high as 66.08%, far exceeding the industry average, which may trigger a liquidity crisis once the market fluctuates [1]

Period	Dividend Amount	Dividend Payout Ratio	Major Beneficiary Shareholder
2021	RMB 1.2 billion	100.59%	Founding Family
2024	RMB 2.3 billion	69.1%	Founding Family

• The founding family holds over 65% of the shares, and has taken away RMB 3.4 billion in dividends over 4 years [1][2]
• Compared with a “steady, long-term” dividend policy, major shareholders are more eager to cash out through
  share reduction
• Early investor Junzheng Investment has fully exited, cashing out over RMB 4 billion; related shareholder Kunpeng Investment has cashed out RMB 1.908 billion [1][3]

Dongpeng Beverage submitted its Hong Kong IPO prospectus twice in 2025. However, the company has over RMB 10 billion in combined cash and wealth management products on its books, yet still seeks to raise funds “to replenish capital”. The prospectus states that the raised funds will be used for capacity upgrading, overseas expansion, etc., but these directions are vague. The market questions whether the real purpose is to provide a new channel for shareholder cash-out [1][2].

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Risk Dimension	Specific Performance	Impact on Minority Shareholders
Short-term Interests	High dividends provide cash returns in the short term	✅ Slight gains, but the proportion is far lower than that of major shareholders
Long-term Value	Major shareholders’ share reductions + company capital shortage + high liabilities	❌ Equity dilution, stock price pressure
Governance Risks	Family control + related-party transactions	❌ Weak discourse power for minority shareholders
Development Potential	Single product (Dongpeng Special Drink accounts for 84% of revenue)	❌ Limited growth space

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1. Inconsistent Interests Between Major Shareholders and Minority Shareholders
   :
   • Major shareholders achieve “locking in profits” through high dividends + share reductions
   • Minority shareholders bear risks of high liabilities and wealth management losses

2. Hidden Risks in Governance Structure
   :
   • The founding family holds over 65% of the shares, resulting in “dominance by a single majority shareholder”
   • Although independent directors have stated that related-party transactions will be standardized, the actual implementation is questionable [4]

3. Risks That Investors Should Pay Attention To
   :
   • If large-scale dividends continue after the Hong Kong listing, the company may be hollowed out
   • Once wealth management products incur losses or borrowing costs rise, performance will be impacted
   • Over-reliance on a single product category (Dongpeng Special Drink accounts for 84% of revenue), resulting in obvious growth bottlenecks [2]

: Investors need to be alert to the risk of interest transfer under the combination of “high growth, high liabilities, high dividends”, and prudently evaluate the company’s governance quality and long-term investment value.

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[0] Jinling API Financial Data

[1] 36Kr - “Dongpeng Beverage: Borrowing, Wealth Management, Share Reduction, Fundraising — Nothing Missed” (https://www.36kr.com/p/3638718482943366)

[2] EET China - “Dongpeng Special Drink’s Hong Kong IPO: RMB 10 Billion in Liabilities, Huge Wealth Management, Family’s Frenzy for Dividends” (https://www.eet-china.com/mp/a444190.html)

[3] 21st Century Business Herald - “Strong Performance Can’t Stop Shareholders’ Share Reductions: Can Dongpeng Beverage’s ‘Price Advantage’ Sustain?” (https://www.21jingji.com/article/20250226/herald/210c1aa5c23f0dbee4efb923f957299d.html)

[4] Dongpeng Beverage 2025 Semi-Annual Report (https://static.cninfo.com.cn/finalpage/2025-07-26/1224301365.PDF)