Original title: Is the “first stock” of new tea drinks coming? Naixue announced to go public in Hong Kong, created by a beauty born in the 1980s with a valuation of 12.9 billion! This track is welcoming multiple company IPOs
The “first share” of new tea drinks is about to be born?
On New Year’s Eve on February 11, Naixue’s Tea (hereinafter referred to as Naixue) formally submitted a listing application to the main board of the Hong Kong Stock Exchange and officially launched the Hong Kong stock listing process. The prospectus indicated that its co-sponsors were JPMorgan Chase, CMB International and Huatai International. If successfully listed, Nayuki will become the first domestic new tea drink.
According to the prospectus documents, in the first three quarters of 2020, Naixue’s operating income reached 2.11 billion yuan and a loss of 27.51 million yuan. According to its official website, as a new domestic tea brand, Naxue was founded in Shenzhen in 2015. In December 2017, Naxue began to go out of Guangdong and expand nationwide. According to the prospectus, as of September 2020, it has been in the country. 420 stores were opened in three cities.
Earlier, according to a brokerage research report, Nay Xue was valued at 12.9 billion after multiple rounds of investment.
There are over 420 stores with a valuation of 12.9 billion
On the night of New Year’s Eve, the capital market was not calm. After just completing the C round of financing of more than 100 million US dollars in early January, Nai Xue formally submitted a listing application to the main board of the Hong Kong Stock Exchange and officially launched the Hong Kong stock listing process.
According to Nayuki’s prospectus, as of early January this year, Nayuki has undergone 5 rounds of financing. From 2017 to 2018, Tiantu Investment has invested approximately RMB 400 million in Naixue’s first three rounds of financing. From April to June 2020, Shenzhen Venture Capital, Hongtu Venture Capital, CourtCardHK Limited, etc., invested about 232 million yuan, and launched a B-2 round of investment in it; in early January, in the C round of financing of Naxue, PAG Taimeng Investment Group He Yunfeng Fund and others invested 100 million US dollars on it. According to previous estimates by Essence Securities Research Report, Naxue’s valuation has approached US$2 billion, or approximately RMB 12.9 billion, after the multiple rounds of investment.
At present, Peng Xin and Zhao Lin are the controlling shareholders of Naxue. They jointly hold approximately 75.36% of the company’s voting rights through Lin Xin Holdings and employee equity incentive platform ForthWisdom Limited.
As one of the leading brands of new-style tea drinks in China, Naxue has experienced rapid expansion since its establishment 6 years ago. Since opening its first store in Shenzhen in November 2015, it has opened more than 400 branches nationwide. According to the prospectus, as of September 2020, Nai Xue’s stores have covered 61 cities in Mainland China and a total of 422 stores in Hong Kong, Japan and other regions.
Nai Xue said that it will expand the tea shop network and increase market penetration in the next three years. Specifically, the company plans to open about 300 and 350 Nayuki tea shops in 2021 and 2022, mainly in first-tier and new first-tier cities, of which about 70% will be planned as Nayuki PRO tea shops. The new tea shops launched by the company last year are mainly distributed in high-end shopping malls, office buildings and other core locations with high passenger flow.
Loss of 27.51 million in the first three quarters of last year
According to the prospectus, the average sales value of each order of Naxue in the first three quarters of 2020 is 43.3 yuan, which is the highest among China’s high-end fresh tea chain stores. The current average sales value of each order in the industry is 35 yuan. However, from the data disclosed by Nayuki, in recent years, the average daily sales of each tea shop has shown a downward trend.
In 2018 and 2019, the daily sales of each store of Nayuki were 30,700 yuan and 27,700 yuan, respectively. In the first three quarters of 2020, it dropped to 20,100 yuan; the average daily order volume of each tea shop also increased from 2018 There were 716 orders in the year and 642 orders in 2019, which dropped to 465 orders in the first three quarters of 2020.
In response, Nayuki said that average daily sales and same-store sales declined during the period, mainly because the company continued to open new tea shops throughout the network, which increased the number of visitors to existing tea shops. The order distribution is more balanced.
On the whole, Nayuki’s profitability has remained low in the past two years. Data show that in 2018 and 2019, Nayuki lost approximately 69.729 million yuan and 39.68 million yuan respectively. In the first three quarters of 2020, the net loss was 27.51 million yuan. In 2019 and the first three quarters of 2020, Naxue’s net profit margins were 1% and 0.2%, respectively.
Nai Xue said in the prospectus that although it has been at a loss during the previous record period, its profitability has improved. In addition, despite the impact of the new crown pneumonia epidemic in related businesses, the company still achieved non-IFRS adjusted net profit of 4.5 million yuan in the first three quarters of 2020.
Nai Xue said, “The increase in our overall profitability reflects the improvement in our operating efficiency at the group level, mainly because we continue to accelerate business expansion to achieve considerable economies of scale.”
Many new tea companies compete for the capital market
In fact, in addition to Nayuki, the news of the listing of Hey Tea and Michelle Ice City has also been reported.
According to the interface report, a Hong Kong investment bank person said that Hi Tea will submit a prospectus to the Hong Kong Stock Exchange in March.And beforeGuosen Securities(Hong Kong) sources also claimed that Hi Tea may IPO in March. According to a report released by Hey Tea in early February, as of the end of 2020, Hey Tea has opened 695 stores in 61 cities at home and abroad.
According to LatePost report on January 13th, the first round of financing for the new tea brand Michelle Ice City lasting more than three months has been completed before. Dragon Ball Capital and Hillhouse Capital jointly led the investment, each of which invested 1 billion yuan. After the financing is completed, Michelle Ice City is valued at more than RMB 20 billion. It is understood that Michelle Ice City plans to list on the A-share market, and the preparations for the listing have reached the final stage, and the countdown to the watch is already underway. The listing process is expected to be completed within this year.
According to the data in the prospectus of Nai Xue, as of the end of September last year, there were about 340,000 freshly made tea shops in my country, and the average price of freshly made tea was 13 yuan, of which about 3,200 were high-end freshly made tea. , The average selling price of its freshly made tea is not less than 20 yuan. Among the about 100 high-end freshly made tea chain brands, there are about 2,400 tea shops operating nationwide.
According to iiMedia Consulting’s data, China’s new-style tea market size in 2019 was 204.48 billion yuan. It is expected that in 2021, the new-style tea drink will return to the pre-epidemic level, with the market size approaching 280 billion yuan. IiMedia Consulting CEO and chief analyst Zhang Yi believes that once Hi Tea, Naixue and Michelle Ice City are listed, the new tea-drinking track will become more intense. As the new tea market in first- and second-tier cities is basically saturated, brands need to turn to the sinking market for new growth points.
Essence Securities believes in the research report that the current awareness of new-style tea consumption has been initially established. As the leading high-end tea drinks, Xicha and Naixue have high consumer recognition. At the same time, stores are mainly concentrated in first- and second-tier cities, and the sinking market space is still Broad, with sufficient potential for performance growth.
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