Since April, several new stocks have been advancing toward their listings. This Wednesday (April 23), Green Tea Group, a Chinese casual dining operator, and Auntea Jenny, a fresh beverage company, passed their listing hearings. According to prior market rumors, the two new stocks could collectively raise around US$450 million (approximately HK$3.49 billion).
Amid a wave of tea beverage companies seeking to go public, Auntea Jenny is making its second attempt to submit its prospectus. The company filed its application at the end of December last year, with a joint sponsorship team that includes CITIC Securities, Haitong International, and Dongfang Securities. By the end of 2023, Auntea Jenny had become the Chinese mid-range fresh tea beverage brand with the widest coverage, operating in over 300 cities.
In recent years, tea beverage stocks have been increasingly targeting lower-tier markets for opportunities, and Hu Shang Ayi is no exception. By the end of last year, 50.4% of its 9,176 stores were located in third-tier cities and below, while second-tier, new first-tier, and first-tier cities accounted for 21.4%, 20.7%, and 7.5%, respectively.
By the end of 2024, franchise stores will represent 99.7% of all Auntea Jenny's outlets, contributing significantly to its revenue streams, which include sales of ingredients, packaging, and equipment to franchisees, as well as franchise services, making up 96.5% of total income. However, a decline in income from franchise-related and self-operated stores has resulted in a 1.9% decrease in total revenue for 2024, down to RMB 3.285 billion. During this period, the profit attributable to the parent company fell by 15.2% to 329 million yuan.
In contrast, Green Tea Group, which has been rapidly expanding its restaurant network, has maintained growth in its financial performance. Last year, it reported revenue of RMB 3.838 billion, an increase of 6.9% year-on-year, with profits reaching 350 million yuan, up 18.5%. The company opened 120 new restaurants last year and plans to launch 150, 200, and 213 new locations in 2025, 2026, and 2027, respectively.
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