Gu Ming s IPO may be hard to rely on franchisees, and only 6 of the 9,001 stores are directly operat

Mondo Social Updated on 2024-02-01

Original title:Gu Ming's impact on the Hong Kong stock IPO is highly dependent on franchisees and has been fined for underpaying taxes.

**: Shenzhen Business Daily

Reporter Chen Yanqing

New Tea Drink Ancient Tea Holdings recently submitted a prospectus to the Hong Kong Stock Exchange, and the sponsors are Goldman Sachs and UBS. According to the prospectus, Gu Ming Holdings mainly comes from selling goods and equipment to franchisees, and the company achieved a net profit of more than 1 billion yuan in the first three quarters of last year. Last week, the China Securities Regulatory Commission issued a document requiring companies to supplement materials such as equity incentive trusts and information security.

According to the data, Gu Ming Holdings is a tea brand with fresh fruit tea and fresh milk tea as its main products, with a range of 10 yuan to 18 yuan, providing consumers with a variety of consistent, innovative and people-friendly high-quality products, covering 19 provinces and more than 190 cities across the country.

According to the prospectus, in the first three quarters of last year, the company achieved revenue of 557.1 billion yuan, a year-on-year increase of 339% and adjusted profit (non-IFRS measure) of 104.5 billion yuan. For the full year of 2022, the company achieved a revenue of 55$5.9 billion, with an adjusted profit of 78.8 billion yuan.

As of the end of last year, Gu Ming had a total of 9,001 stores, but the number of directly operated stores directly managed by the company was only 6, and franchised stores contributed about 999% GMV (Total Transaction Value).

Like Mixue Bingcheng, Gu Ming's revenue mainly comes from the sale of goods and equipment to franchisees. According to the prospectus, the company's revenue from the sale of goods and equipment to franchisees accounted for more than 80% of its total revenue.

In recent years, more than 80% of Gu Ming's revenue comes from the sale of goods and equipment, of which the sales of goods account for more than 75%, and the company's franchise management service revenue accounts for less than 20%, mainly based on continuous support service fees. Continuous support services include the company's continuous operation support services for the ** chain, store operation, technical support, and marketing and promotion provided to franchisees.

It is worth mentioning that with the densification of outlets, the GMV growth rate of Gu Ming's single store in mature areas such as Zhejiang Province has decreased significantly, which will undoubtedly affect the company's future revenue and profit growth. In 2023, the number of stores in Zhejiang will increase by 329 compared with 2021, but the growth rate of same-store GMV will only be 51%, down from 152%, up slightly from 33%。

It is worth noting that Gu Ming was once fined for underpaying taxes. In December 2021, the Inspection Bureau of the Taizhou Municipal Taxation Bureau found that Guming's parent company, Guming Technology, underpaid taxes and surcharges totaling about 23.6 million yuan from June 14, 2018 to January 31, 2020, and imposed a fine of 11.6 million yuan and a late fee of 6.5 million yuan.

The CSRC asked Gu Ming to explain the legal and compliant regulatory procedures involved in the establishment of offshore structures and round-trip investment, such as foreign exchange registration, overseas investment, foreign investment, and tax payment; the reasons for the capital reduction after multiple capital increases in the process of Guming Technology's red-chip restructuring; The reasons and compliance of the unpaid registered capital of some major domestic operating entities, and whether the company's business operations and solvency have a material adverse impact.

In addition, the CSRC requires the company to explain the time, type, operation and duration of the establishment of the equity incentive trust, the arrangement of the rights and obligations of each trust party and the beneficiaries of the trust, as well as whether there are outsiders in the employee stock ownership plan and whether there is any transfer of benefits. Whether the APPs, mini programs, ** and other products developed and operated by the company and its subsidiaries involve the provision of information content to third parties; The scale of user information collected and stored, the use of data collection, and the arrangements or measures for personal information protection and data security before and after listing.

Nowadays, the competition of new tea drinks in the third and fourth offline sinking markets tends to be fierce. At present, the sinking market stores of Gu Ming, Tea Baidao, Hey Tea, and Shanghai Auntie occupy almost half of these brand stores. Therefore, in order to win in the competition, obtaining sufficient funds through listing is an inevitable choice for new tea beverage companies.

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