(Yicai) March 27 -- Chinese bottled water giant Nongfu Spring reported an over 42 percent leap in net profit last year, driven by improved beverage business.

Net profit totaled CNY12.1 billion (USD1.7 billion) in the 12 months ended Dec. 31, compared with CNY8.5 billion (USD1.2 billion) the previous year, the Hangzhou-based company announced yesterday. Revenue jumped 28 percent to CNY42.7 billion.

Revenue from the bottled water business rose 11 percent to CNY20.3 billion in the period. Revenue from the beverage business, including tea drinks and functional and fruit juice beverages, accounted for nearly 52 percent of the total, surpassing the bottled water business for the first time.

Due to people's increased emphasis on healthy lifestyles and the rise in travel demand, Nongfu Spring's three star products -- sugar-free tea drink Oriental Leaf, Not From Concentrate fruit juice, and sports beverages -- are experiencing rapid growth, not only in revenue but also in net profit, far exceeding that of water, according to dairy industry analyst Song Liang.

Nongfu Spring has recently been affected by public opinion and is facing challenges, the firm noted, adding that in the future, it will strengthen its brand building, flexibly adapt to market changes, stick to the production of healthy and natural drinks, continuously improve products and services, and better meet consumer demand.

Since the passing of Chinese beverage giant Wahaha Group's founder Zong Qinghou on Feb. 25, there has been negative market attention on Nongfu Spring, including unfavorable discussions about the early competition between the two brands, the design of Nongfu Spring's bottles, and the nationality of the son of Nongfu Spring's founder Zhou Shanshan.

Shares of Nongfu Spring [HKG: 9633] were trading down 0.7 percent at HKD41.40 (USD5.29) as of 1.15 p.m. in Hong Kong today. The stock has fallen around 8 percent since the negative rumors about the company started spreading online late last month.

On March 25, the Hurun Research Institute released its 2024 Hurun Global Rich List. Zhong held his crown to remain China's richest person for the fourth consecutive year, even though his fortune shrank 9 percent to CNY450 billion (USD62 billion) as of Jan. 15. He ranked 21st in the world.

Editor: Futura Costaglione