Shanghai aunt submitted a prospectus, and the new tea drink track ushered in a new round of IPO tide.
This article was originally published by Red Meal Network (ID: Hongcan18), author: Jian Yuhao; Editor: Jing Xue.
Following Tea Baidao, Ancient Tea, and Honey Snow Bingcheng, another tea brand rushed to the Hong Kong Stock Exchange.
On February 14, the tea brand Shanghai Auntie submitted a prospectus to the Hong Kong Stock Exchange, and the joint sponsors were CITIC**, Haitong International, and Orient Securities International.
What are the noteworthy data in the prospectus of Shanghai Auntie? Tea brands have sprinted to the market, what signals have been sent?
The number of directly operated stores accounts for less than 1%.
The vast majority of the revenue is from the franchise business
According to the prospectus data, in the past three years, Shanghai Auntie's performance has been growing steadily, and throughout the year and in the first nine months of 2023, Shanghai Auntie's revenue was 164 billion yuan, 219.9 billion yuan, 253.5 billion yuan, the corresponding net profit was 08.3 billion yuan, 14.9 billion yuan, 3$2.4 billion. Among them, the net profit in the first nine months of 2023 increased by 188 year-on-year7%。
In addition, according to CIC, Shanghai Auntie is the fastest-growing freshly brewed tea shop brand among the top five ready-made tea brands in terms of the number of system-wide stores and the growth rate of GMV.
Specifically, from December 31, 2021 to December 31, 2022, the number of Shanghai Auntie stores increased by 40 from 3,7765% to 5,307 units and increased by 37 from 5,307 as at 31 December 20225% to 7,297 stores as of September 30, 2023.
Shanghai Auntie mentioned in the prospectus that the growth of performance and the number of stores is inseparable from the win-win cooperation between brands and franchisees. According to the prospectus data, in 2021 and 2022, the proportion of Shanghai Auntie's franchised stores to the total number of stores will be 983% vs. 988%, and the number of directly operated stores is only about 1%. As of September 30, 2023, 99 of the 7,297 stores owned by Shanghai Auntie are here3% are operated by franchisees, and the proportion of directly operated stores has been less than 1%.
Therefore, the vast majority of Shanghai Auntie's income comes from franchise business, mainly including sales of goods and franchise services.
According to the prospectus, in the first nine months of 2023, Shanghai Auntie's income from the sale of goods (selling goods to franchisees) was about 20200 million, accounting for 79 percent of the total revenue7%, in terms of franchise management service income, Shanghai Auntie in franchise and related services income is about 4200 million, accounting for 16 percent of total revenue4%。The total franchise revenue accounts for 96 percent of the total revenue1%。
The largest brand of medium-priced freshly made tea shops in the northern market
It is planned to break into more county-level cities
It is mentioned in the prospectus that Shanghai Auntie is already the largest medium-priced freshly made tea shop brand in northern China, and the third largest medium-priced freshly made tea shop brand in China (7-22 yuan).
In terms of urban coverage across the country, Shanghai Auntie is currently the most widely distributed brand in the middle of the milk tea. According to the prospectus of Shanghai Auntie, at the end of the reporting period, the number of cities entered by Shanghai Auntie, Gu Ming and Tea Baidao was respectively. Especially in the northern market, the number of Shanghai Auntie's stores has reached 3,752, while Gu Ming and Tea Baidao only have about one store each.
In fact, at present, several major tea brands that have submitted prospectuses have their own focus on market layout.
For example, Gu Ming has most stores in Zhejiang and Fujian. According to the big data of Red Meal, Gu Ming has more than 2,000 stores in Zhejiang Province and more than 1,000 stores in Fujian. Even Mixue Bingcheng, which has won the first place in the number of ready-made beverage stores in most provinces and cities in the country, in Zhejiang and Fujian, the number of stores is not as good as Gu Ming.
Chabaidao, on the other hand, has put more effort into first-tier cities and new first-tier cities. According to the prospectus released by the brand in August last year, the number of stores in first-tier cities and new first-tier cities accounted for 399%。In comparison, Aunt Shanghai and Gu Ming are only 302% and 213%。
However, several major tea brands also have similar strategies, that is, they are all eyeing the development of the sinking market. According to the data of Shanghai Auntie's prospectus, the proportion of stores in third-tier and below cities is %.
According to the prospectus information, the ready-made tea shop market in China's third-tier cities and below is the largest and fastest-growing segment from 2022 to 2027, with huge growth potential in the future. To this end, Shanghai Auntie has been increasing the layout of the brand in the sinking market since last year. In the nine months ended September 30, 2023, Shanghai Auntie 504% of new stores are in lower-tier cities.
In addition, Shanghai Auntie also launched a "light enjoyment" store last year, which is a store model designed for third-tier cities and below. Shanghai aunt also said that in the future, it plans to further upgrade the store model and enter more county-level cities.
In response to the strategy of tea brands to enter the sinking market, some industry veterans have previously commented to Red Meal Network that although the sinking market has great potential, its consumption habits and preferences are different from those in first- and second-tier cities. It is foreseeable that the competition for new tea drinks in the sinking market will become more and more fierce in the future.
Conclusion
Many opinions in the industry believe that in the "roll out of the sky" tea beverage category, whoever can take the lead in a successful IPO will be able to seize the opportunity! However, it is not easy for tea brands to go public, and it is still unknown whether the "second share" of new tea drinks will be born this year.
Moreover, a successful listing does not mean that you can sit back and relax, and how to make the brand develop for a long time after listing is the beginning of the test, which are all questions that tea brands need to think about seriously.