February**Dynamic Incentive Plan Summary:Start the "** war" to join(Welcome to pay attention to girlfriend finance).
Written by |Sister Honey
This is the 1457th original article of @girlfriend finance
Recently, ** reported that Sichuan Baicha Baidao Industrial Co., Ltd. *** hereinafter referred to as "Chabaidao") updated its franchise policy in 2024. Reduce the cost of opening stores for franchisees through policies such as material rebates and deposit reductions to further expand the scale.
In late December 2023, the listing of Chabaidao in Hong Kong was filed with the Securities Regulatory Commission. However, if it cannot be successfully listed in February this year, it will face the problem of invalidating the prospectus.
In late January this year, Mixue Bingcheng and Gu Ming, who are also seeking to be listed on the Hong Kong stock market, received "follow-up questions" from the Securities Regulatory Commission. They were asked to provide additional clarification, such as whether there was a situation in which user information was provided to third parties.
There is still suspense as to who will become the "second share" of the new tea drink.
Expand with one hand, and go public with the other hand to raise funds.
In mid-August 2023, Chabaidao submitted a prospectus to the Hong Kong Stock Exchange. According to the six-month validity period of the prospectus, the prospectus of Chabaidao in February this year is about to expire.
The Reuters IFR quoted sources as saying that Chabaidao plans to go public in the first quarter of this year and raise about $300 million.
Regardless of whether it can be listed as scheduled, Chabaidao is still accelerating its expansion.
According to Caijing*** Tea Baidao has launched a preferential policy for joining in 2024:
From February to May this year, the new franchise partner signed a new store with a reduction of 40,000 yuan, and the new two stores met a total of 180,000 yuan;
During the same period, the old franchise partner signed a new store with a reduction of 90,000 yuan;
As well as in terms of materials and rents, you can apply for material rebates, and reduce the store operation and management margin.
According to the prospectus, Tea Baidao has 7,117 stores in 31 provinces and cities across the country. From 2020 to 2022, the compound annual growth rate of retail sales of Chabaidao stores will be 1397%, and its store retail sales reached 13.3 billion yuan in 2022.
According to Frost & Sullivan, from 2020 to 2022, the compound annual growth rate of retail sales of tea Baidao stores was the fastest among the top 10 new tea companies in the country. In 2022, the market share of Chabaidao in the domestic new tea drink market will be about 66%, ranking third.
Ranked among the comparison companies.
The first and second should be Honey Snow Ice City and Gu Ming.
In terms of retail sales in 2022, the domestic new tea store market is still relatively fragmented, with the total market share of the top 5 players being about 316%。
But almost all of the top companies are desperately staking their ground.
At the end of 2022, it had 28,983 stores, and by the end of September 2023, the number of its stores soared to 36,153, with 7,170 new stores added in 9 months.
In 2022, the number of its stores will be 6,664, and by the end of 2023, the number of its stores will reach 9,001, which is expected to hit 10,000 stores.
According to the CIC report, as of the end of September 2023, the market share of Mixue Bingcheng is about 20%, and the market share of Gu Ming is about 83%, and the market share of tea Baidao is about 66%。
It is not difficult to understand why this year's tea Baidao did not hesitate to let franchisees expand.
Each has its own way to make money, tea Baidao is a "middleman", and Mixue Bingcheng and Gu Ming are the best businessmen.
From 2020 to 2022, the income of Tea Baidao will increase from 10800 million yuan increased to 423.2 billion yuan, with a compound annual growth rate of about 979%；Net profit from 2$3.8 billion increased to 96.5 billion yuan, with a three-year net profit of nearly 2 billion yuan, with a compound annual growth rate of about 1013%。
In the first quarter of 2023, its revenue was approximately $124.6 billion yuan, a year-on-year increase of 53%; Net profit 28.5 billion yuan, a year-on-year increase of 5068%。
From the perspective of income composition, Tea Baidao mainly relies on being a "middleman" to earn the difference.
According to the prospectus, more than 95% of Chabaidao's revenue comes from the sale of goods and equipment to franchise stores, including the sale of dairy products, tea, fruits and other materials and ingredients for making tea, as well as packaging materials and store equipment.
From 2020 to 2022 and in the first quarter of 2023, the gross profit margin of Chabaidao will be 344%—36.7%, which is not particularly high, but the net profit margin is considerable, at 214%—22.between 9%.
In comparison, the income structure of Mixue Bingcheng and Gu Ming is more similar. It also mainly comes from commodity sales, equipment sales, franchise and related services, which mainly rely on the sale of ingredients, equipment and packaging materials to franchisees.
But unlike Cha Baidao, Mixue Bingcheng and Gu Ming are engaged in their own ** chain, rather than being a "middleman". However, in terms of gross profit margin, the latter two did not perform better.
From 2021 to 2022 and in the first three quarters of 2023, Gu Ming's gross profit margin will be 28between 1% and 31%; The gross profit margin of Mixue Bingcheng is 283%—31.3%.
However, Chabaidao is not willing to be only a "middleman", and its prospectus says that the first of the planned fund-raising purposes is "will be used to improve the overall operational capacity and strengthen the ** chain".
IPO, the road to the dragon?
In June 2021, Nai Xue's tea was successfully listed in Hong Kong and won the "world's first stock of freshly made tea".
However, because of its losses, it did not perform well in **. In January this year, Nai Xue's tea also announced that after "Lishan", it would shut down a sub-brand "Taigai" again. It is expected that Taigai stores will be closed one after another in 2024.
However, going public means that more capital can be raised in a cheaper way, as well as enhance brand power, further standardize corporate management, and improve operational efficiency. Despite the obstacles, the new tea drinks are still insisting on going to market.
After seeking an A-share listing, Mixue Bingcheng submitted its report to the Hong Kong Stock Exchange on the same day as Gu Ming on January 2 this year.
However, in late January, Mixue Bingcheng and Gu Ming successively received the "Requirements for Supplementary Materials for the Filing of Overseas Issuance and Listing" from the China Securities Regulatory Commission, requiring supplementary explanations on whether the company has provided user information to third parties, arrangements or measures for personal information protection and data security before and after listing, and whether there is a ban on listing and financing.
In August last year, Chabaidao, which submitted the form, received a request for supplementary materials from the China Securities Regulatory Commission for the issuance and listing of the CSRC in September. Require them to supplement information on the protection of personal information, data security, etc.
The birth of the "second stream of new tea drinks" was not easy.
Despite market news, Chabaidao plans to go public in the first quarter of this year, judging from the current situation, there is still uncertainty about the expiration time of the prospectus.
Since the beginning of this year, in addition to the tea Baidao to reduce the cost of joining, ** reported that Hey Tea, Nai Xue's tea, etc. have also given preferential policies for joining. The fiercer battle for the market continues.
The data not indicated in this article are from the prospectus, hereby explain and thank! This article is for discussion and analysis only and does not constitute investment advice.
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