Mixue Bingcheng wants to break into the Hong Kong Stock Exchange, and the store exceeds 360,000, with a net profit of 2.5 billion in the first three quarters of last year!
On January 2, Mixue Bingcheng*** submitted an application for listing on the Hong Kong Stock Exchange.
The net proceeds from OPI will be used primarily to strengthen the breadth and depth of its end-to-end chain, build and promote its brand and intellectual property, and strengthen the digital and intelligent capabilities of all its business units, according to Mixue Bingcheng.
Therefore, Mixue Bingcheng has also released the latest operating data to the public.
Specifically, the company mainly provides consumers with tea beverage products with a unit price of around 6, and as of September 30, 2023, there are a total of 36 153 stores, covering 11 countries in China and abroad.
For the whole year of 2022 and the first nine months of 2023, Mixue Bingcheng achieved operating income of 13.6 billion yuan and 15.4 billion yuan, respectively, with an annual growth rate of 312% and 460%, net profit of 2 billion yuan and 2.5 billion yuan respectively, with an annual growth rate of 53% and 511%。
If you want to take the tea beverage peers as an example, the prospectus submitted by Tea Trail in August 2023 shows that its operating income in 2022 was 423.2 billion yuan, with a net profit of 96.4 billion yuan, with 6,361 stores at the time – in other words, Mixue Bingcheng now has three times the revenue of most of its peers who are going public.
The secret of Honey Ice City lies in standardization and scale effects.
The menu is always limited to around 35 serving units, and tea-based drinks are often combined with simple small toppings such as lemon and coconut.
Taking lemon, tea and green coffee beans as examples, in 2022 alone, Mixue Bingcheng purchased 50,000 tons, 9,000 tons and 5,000 tons of these three raw materials, respectively. According to a report by Scoch Consulting, for the same kind and quality of milk powder and lemon, the procurement cost of Mixue Bingcheng in 2022 will be about 10% and more than 20% lower than the industry average, respectively.
And franchising is the cornerstone of scale effect.
According to the company's prospectus, the company operates primarily through a franchise model, with the vast majority of its revenue coming from the sale of goods and equipment to franchise stores. As of September 30, 2023, more than 998% of the stores are franchised, and the rest are self-operated;Mixue Bingcheng has more than 16,000 franchisees.
It is also a brand with strong market penetration in the city center, and within 12 hours after the above deadline, it has covered more than 90% of the county-level administrative divisions in the country.
The franchise model is very mature, so it can be replicated quickly and generates significant revenue.
In its prospectus, the company said that the initial investment and franchise fees for stores were lower than the average charge level in China's ready-to-drink industry. In terms of revenue model, the company's main revenue does not rely on franchise fees and related service fees.
During the reporting period, only 2% of revenue was generated from franchise fees and related service fees. The company said the vast majority of its revenue comes from the sale of goods and equipment, which mainly consists of revenue from the provision of store materials and equipment to franchisees.
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After being listed on the Hong Kong Stock Exchange, Honeysuckle Bingcheng also expressed optimism about the market.
In the prospectus, the company noted that the rapid growth of the RTD market in China and Southeast Asia stems from the structural opportunity of its RTD market increasing its share of total drinking water consumption.
By 2022, the share of RTDs in total drinking water consumption and annual RTD consumption per capita in China and Southeast Asia will be significantly lower than in developed markets. By 2028, the average annual consumption of ready-to-drink beverages in China and Southeast Asia is expected to reach 52 and 36 cups, respectively, almost three times that of 2022, and the industry has huge room for growth.
In such a market opportunity, Mixue Bingcheng has won the crown. According to a report by Scoch Consulting, in the first nine months of 2023, the store network reached a total production of about 5.8 billion cups. According to the number of stores mentioned above and the production of cups, Mixue Bingcheng is the first in China.
1. The world's second ready-to-drink beverage company.