Written | Planet
Source | Bedouin Finance
Another new tea company is about to go public. On August 15, Sichuan Baicha Baidao Industrial Co., Ltd. (hereinafter referred to as "Tea Baidao") submitted a prospectus and planned to list on the main board of the Hong Kong Stock Exchange. If all goes well, Cha Baidao will become the second new tea company listed in Hong Kong after Nayuki's Tea (HK: 02150).
Bedo Finance understands that in addition to insight into customer needs for new product development and marketing activities, many new tea companies have also begun to accelerate the pace of capital operations. Chabaidao’s competitors in the same industry, Guming, Shanghai Auntie, Bawang Chaji and other brands have launched Recently, it was revealed that he is seeking to go to the United States or to go public in Hong Kong.
Michelle Ice City, which has become famous for its affordable price and distinctive IP image, pre-disclosed the prospectus as early as September 2022, preparing to be listed on the main board of the Shenzhen Stock Exchange, but did not submit the prospectus after the full registration system Book.
Recently, there is another news that Michelle Ice City will move to Hong Kong or US stocks and continue to sprint for listing. It is not difficult to see that the new tea drinking track may usher in an "IPO boom". Now that various companies are going public, what are the advantages of Chabaidao?
1. New-style tea drinks are in the lead, and 15-year-old shops are catching up
According to the prospectus, Chabaidao was established in 2008. It is a new tea drink brand focusing on exploring the combination of natural ingredients and Chinese tea drinks. Its product portfolio includes various classic tea drinks, seasonal tea drinks and regional tea drinks. At present, Chabaidaomen has a total of 7,117 stores across the country, covering all provinces and cities of all tiers.
In recent years, my country's new tea industry has developed rapidly. According to Frost & Sullivan, the market size of the domestic new tea shop industry will increase from 66.8 billion yuan in 2017 to 202.9 billion yuan in 2022, with a compound annual growth rate of approximately 24.9%, much higher than that of China's soft drink industry 4.1% overall growth rate.
With the upgrading of consumption and the rising demand for high-quality tea drinks, it is estimated that in the future, the market size of China's new tea drink industry will increase to 484.5 billion yuan in 2027 at a compound annual growth rate of 19.0%, accounting for about 69.5% of China's beverage industry in that year. % market share.
According to Frost & Sullivan, Chabaidao is the fastest growing among the top ten new tea beverage companies in China. From 2020 to 2022, its retail sales compound annual growth rate will reach 139.7%. Based on retail sales in 2022, Chabaidao ranks third in China's new tea shop market, with a market share of 6.6%.
In comparison, the number of stores of Company A and Company B is higher than that of Chabaidao, while that of Company C and Company D is lower than that of Chabaidao. In terms of scale, the retail sales of Company A will reach 20.2 billion yuan in 2022, while that of Chabaidao Baidao is expected to surpass the second-ranked company B (13.9 billion yuan).
2. The performance sings triumphantly, and the income scale is the same as that of Naixue
On the whole, the performance of Chabaidao can be described as making rapid progress.
In 2020, 2021 and 2022, the revenue of Chabaidao will be 1.080 billion yuan, 3.644 billion yuan and 4.232 billion yuan respectively, with a compound annual growth rate of 97.9%; the net profit will be 238 million yuan, 779 million yuan and 965 million yuan respectively Yuan, with a compound annual growth rate of 101.3%.
After entering 2023, Chabaidao's performance will continue to rise steadily, with a good growth momentum. In the first quarter of 2023, the company achieved revenue of 1.246 billion yuan, a year-on-year increase of 53.96%; net profit was 285 million yuan, a year-on-year increase of 50.68%.
Beido Finance found that the income of Chabaidao was less than half of that of Michelle Ice City in the same period. According to the previous prospectus, the operating income of Michelle Ice City in 2019, 2020 and 2021 will be 2.566 billion yuan, 4.680 billion yuan and 10.351 billion yuan respectively, and the net profits will be 442 million yuan, 631 million yuan and 1.912 billion yuan respectively.
In contrast, the income of Cha Baidao is comparable to that of Nayuki's tea. According to the financial report released by Naixue’s Tea, the company will achieve revenue of 4.292 billion yuan in 2022, a decrease of 0.1% from the 4.297 billion yuan in the same period in 2021. In addition, Naixue’s tea is still at a loss.
Although Chabaidao's franchise stores account for a relatively high proportion and have grown rapidly, from 2,240 in 2020 to 6,588 on March 31, 2023, the main source of its income is not the income from franchise fees, but the sale of dairy products to franchisees. Products, tea, fruit and other raw materials, as well as packaging materials, stores and other equipment.
In 2020, 2021, 2022 and the first quarter of 2023, Chabaidao’s revenue from sales of goods and equipment will be 1.021 billion yuan, 3.445 billion yuan, 4.020 billion yuan and 1.186 billion yuan, accounting for 94.5% and 1.186 billion yuan of total revenue respectively. 94.6%, 95.0% and 95.1%, stable at more than 90%.
3. Pay equal attention to marketing research and development to empower user stickiness growth
At the same time as the performance growth, the distribution and sales expenses of Chabaidao are also rising at the same time. Specifically, the company's sales expenses soared from 10.779 million yuan in 2020 to 60.684 million yuan in 2022; .
Chabaidao stated in the prospectus that the company will carry out a comprehensive brand upgrade in 2023 and launch a new brand IP "Chacha". Activities such as the joint name of the world reached the target customer group and improved the stickiness of existing users.
The high investment in sales expenses has brought Chabaidao brand penetration that cannot be underestimated. As of June 30, 2023, the company had more than 66 million members, and the number of active members in the second quarter of 2023 reached 16.7 million, and the member repurchase rate was 32.8%, which was higher than the industry average.
In addition, Chabaidao also pays great attention to product development and upgrading. Taking 2022 as an example, Chabaidao has developed a total of nearly 300 products, launched 43 new products, and completed the upgrade of 9 classic product formulas.
4. Received 1 billion financing, the founders are Wang Xiaokun and his wife
Just two months before the sprint listing, Chabaidao received a new round of financing. According to public information, this round of financing has a total fundraising scale of 1 billion yuan, led by Orchid Asia, followed by investors such as Loyal Valley, Grassroots Zhiben, and Tomato Capital. After this round of financing, Chabaidao’s post-investment valuation is close to 18 billion yuan.
Before the listing, Chabaidao's founder couple Wang Xiaokun and Liu Weihong (female) held 18.02% and 5.74% of the shares respectively; and indirectly held 67.68% of the shares through Hengsheng Herui. At the same time, Wang Xiaokun is the chairman and executive director of Chabaidao, and Liu Weihong is the chairman of the board of supervisors.
Dai Li holds 1.32% of the shares of Chabaidao, Wang Hongxue holds 0.64%, Gu Jilin holds 0.38%, and Chen Keyuan holds 0.23%. 3.78%, 2.22% and 1.33% interests.
Among them, Dai Li is the executive director and deputy general manager of Chabaidao, Wang Hongxue is the executive director and general manager, and Chen Keyuan is the executive director. Orchid Asia holds a 4.56% stake in Chabaidao through Tower Qualit, and its managing director, Chen Yuan, was nominated by Tower Qualit as a non-executive director of Chabaidao.
In addition, investors Zhengxingu Tanying, Suzhou Yuexiang, Xinjin Shengwang, Huang Tomato, and Zhongjin Tongfu are also shareholders of Chabaidao.