Core Viewpoint - The controversy surrounding "pre-made dishes" is expanding within the industry, particularly affecting the Green Tea restaurant chain, which has recently removed its "no pre-made dishes" signage from its storefronts, raising questions about its food sourcing practices [1][3][4]. Group 1: Company Practices - Green Tea restaurant has been found to have removed its "no pre-made dishes" signage, with staff unable to confirm when this occurred [1][3]. - The restaurant's external takeaway packaging previously indicated "no pre-made dishes," but this has now been obscured [3]. - Green Tea Group's prospectus reveals partnerships with 205 third-party food processing companies, allowing them to reduce upfront investment costs and improve operational efficiency by outsourcing much of the food preparation [4][6]. Group 2: Consumer Reactions - Consumer sentiment is divided regarding the use of pre-made dishes, with some feeling that the lack of disclosure infringes on their right to know [4]. - The restaurant promotes its signature dishes as "made to order," while simultaneously relying on a central kitchen to enhance service efficiency and reduce costs [4][6]. Group 3: Financial Performance - Green Tea Group reported a revenue of 2.29 billion RMB for the first half of the year, a 23.1% increase year-on-year, with a net profit of 233.9 million RMB, up 34% [7][8]. - The company attributes its revenue primarily to restaurant operations and takeout services, supported by a digital and standardized business model [8]. Group 4: Market Impact - Following the controversy, the stock price of Green Tea Group fell by 1.43%, reflecting broader market concerns about the pre-made dish sector, which saw declines in several related companies [9][10].

Group 1 - The controversy surrounding "Xibei pre-made dishes" is impacting the industry, with reports of restaurants like Green Tea removing signs claiming "no pre-made dishes" [2] - Green Tea Restaurant previously faced allegations of using pre-made dishes without proper labeling, particularly regarding a dish priced at 38 yuan [4] - The company submitted its listing application in July 2022, prompting inquiries from the regulatory body regarding food safety and the proportion of pre-made dishes [4] Group 2 - Green Tea Group reported a revenue of 2.29 billion yuan for the first half of the year, a year-on-year increase of 23.1%, with a net profit of 234 million yuan, up 34% [4] - The company has established a digital and standardized business model supported by a flexible supply chain and strict food safety controls [4] - In contrast to Green Tea, Haidilao has started labeling some menu items as "partially pre-processed" [5][6] Group 3 - As of September 18, the pre-made dish sector saw a decline of 0.56%, with stocks of companies like Jiahe Foods and Delisi dropping approximately 6% and over 3% respectively [7]

Core Insights - The controversy surrounding "Xibei pre-made dishes" is spreading within the industry, with some restaurants like Green Tea removing signs that claim "no pre-made dishes, freshly made" [1][3] - Green Tea Restaurant has faced scrutiny regarding the use of pre-made dishes, particularly after a report last year revealed that a dish priced at 38 yuan was made from pre-made ingredients without proper labeling [3] - The company has recently released its first half-year report since going public, showing a revenue of 2.29 billion yuan, a year-on-year increase of 23.1%, and a net profit of 251 million yuan, up 40.4% [3] Company Actions - Green Tea Restaurant has removed its "no pre-made dishes" signage from some locations, indicating a shift in its marketing strategy [1][3] - In contrast, Haidilao has begun labeling certain dishes as "partially pre-processed" on its menu, reflecting a more transparent approach to ingredient sourcing [4][5] Market Reaction - As of September 18, the pre-made dish sector has seen a decline of 0.56%, with specific stocks like Jiahe Foods dropping approximately 6% and Delisi falling over 3% [6]

Core Viewpoint - Haitong International forecasts Green Tea Group (06831) to achieve revenues of 4.91 billion, 6.23 billion, and 7.65 billion CNY for 2025-2027, representing year-on-year growth of 28.0%, 26.7%, and 22.9% respectively, with adjusted net profits of 500 million, 650 million, and 800 million CNY, reflecting year-on-year increases of 37.9%, 30.0%, and 24.3% respectively, assigning a target price of 12.1 HKD based on a 15x PE for 2025, leading to a reasonable market value of 8.2 billion HKD [1] Company Overview - Green Tea is a well-known casual Chinese dining brand founded in 2008 in Hangzhou, characterized by affordable pricing, fusion cuisine, and Chinese aesthetic spaces, holding a 0.7% market share in the casual Chinese restaurant market in mainland China, ranking fourth by revenue and third by the number of restaurants with a total of 465 outlets [2] Industry Insights - The chain restaurant penetration rate in China is continuously increasing, with a projected compound annual growth rate (CAGR) of 8.2% for chain dining from 2024 to 2029, significantly higher than the 6.8% for non-chain dining and the overall average of 7.1%. The casual Chinese dining segment is the fastest-growing niche, expected to reach a market size of 0.5 trillion CNY in 2024, accounting for 17% of the Chinese restaurant market, and projected to grow to 0.8 trillion CNY by 2029, increasing its market share to 19% with a CAGR of 9.1% [3] Competitive Advantages - **Brand Strength**: High brand recognition and effective organizational structure drive growth, with 203 new dishes launched in 2024 and 68.07 million customers served, alongside over 16.2 million members, indicating significant brand loyalty and influence [4] - **Supply Chain Efficiency**: The supply chain combines third-party food processing and direct procurement, enhancing food consistency, safety, efficiency, and supporting rapid expansion. Plans include building small to medium-sized central kitchens in densely populated areas and integrating upstream capacity through partnerships [4] - **Store Expansion Strategy**: The company focuses on a direct-operated model with small store formats, expanding from high-tier to lower-tier cities, with a total of 502 stores by the end of 1H25, an increase of 37 stores from the end of 2024, and plans to open 150, 200, and 213 new restaurants in 2025-2027 [4] Store Performance - Despite a decline in same-store sales growth, average daily sales, and customer spending due to the current economic environment, the company has optimized its store model, reducing the payback period for new stores from 18 months to 14.5 months. The focus on small restaurants and cost optimization in rent and labor is expected to yield an operating profit margin of approximately 17% at the store level in 2025 [5]

Group 1: Company Overview - Green Tea Group is a well-known casual Chinese dining brand founded in 2008 in Hangzhou, focusing on affordable pricing, fusion cuisine, and Chinese aesthetic space [2] - The company holds a market share of 0.7% in the casual Chinese restaurant market in mainland China, ranking fourth by revenue and third by the number of restaurants with a total of 465 locations [2] Group 2: Market Insights - The casual Chinese dining segment is the fastest-growing niche in the Chinese restaurant market, with a projected market size of 0.5 trillion yuan in 2024, expected to grow to 0.8 trillion yuan by 2029, representing a compound annual growth rate (CAGR) of 9.1% [3] - The overall chain restaurant penetration rate in China is increasing, with a forecasted CAGR of 8.2% for chain dining from 2024 to 2029, surpassing the 6.8% growth rate for non-chain restaurants [3] Group 3: Competitive Advantages - The company has a strong brand presence, with high brand loyalty and influence, supported by a structured management system and employee incentive mechanisms [4] - The supply chain is diversified and efficient, combining third-party food processing with direct procurement to enhance food safety and operational efficiency [4] - The company is expanding its footprint in lower-tier cities through a strategy focused on small-sized restaurants, with plans to open 150, 200, and 213 new restaurants in 2025, 2026, and 2027 respectively [4] Group 4: Operational Efficiency - Despite a decline in same-store sales growth and average transaction value, the company is optimizing its store model, reducing the payback period for new store investments from 18 months to 14.5 months [5] - The operating profit margin at the store level is projected to be around 17% in 2025, aided by cost optimization in key areas such as rent and labor [5]

Investment Rating - The report initiates coverage with an OUTPERFORM rating, targeting a price of HK$12.10 from the current price of HK$6.69 [1]. Core Insights - Green Tea Group is positioned as a leading player in the casual Chinese dining sector, leveraging affordable pricing and fusion cuisine to attract consumers [2][6]. - The casual Chinese dining market is expected to grow significantly, with a projected compound annual growth rate (CAGR) of 9.1% from 2024 to 2029, reaching a market size of RMB 0.8 trillion by 2029 [2][26]. - The company has a strong brand presence, with a focus on menu innovation and customer loyalty, evidenced by over 16.2 million members in its loyalty program [3][33]. Company Overview - Green Tea Group was founded in 2008 in Hangzhou and has established itself as a prominent brand in the casual Chinese dining market, holding a 0.7% market share by revenue in 2024 [2][6]. - The company operates 502 restaurants as of mid-2025, ranking third in terms of the number of outlets in the casual dining segment [3][42]. Financial Performance - Revenue is projected to grow from RMB 3.84 billion in 2024 to RMB 7.65 billion by 2027, reflecting a CAGR of 27% [1][4]. - Net profit is expected to increase from RMB 350 million in 2024 to RMB 804 million by 2027, with a CAGR of 30% [1][4]. - The company has demonstrated strong profitability, with a gross profit margin of 69.5% in 2025 and a return on equity (ROE) of 51.3% [1][4]. Market Dynamics - The Chinese restaurant market is increasingly shifting towards chain operations, with a projected CAGR of 8.2% for chain restaurants from 2024 to 2029, outpacing non-chain establishments [22]. - Casual Chinese dining is identified as the fastest-growing segment within the Chinese restaurant market, driven by consumer demand for high cost-effectiveness and quality dining experiences [26][23]. Competitive Advantages - Green Tea Group's competitive edge lies in its strong brand recognition, efficient supply chain management, and strategic expansion into lower-tier cities with smaller restaurant formats [3][39][42]. - The company has established partnerships with 205 third-party food processing companies to enhance operational efficiency and maintain food quality consistency across its outlets [39][40]. Expansion Strategy - The company plans to continue its expansion strategy by opening 150, 200, and 213 new restaurants in 2025, 2026, and 2027, respectively, focusing on smaller formats to reduce costs [3][42]. - As of mid-2025, Green Tea Group has successfully increased its restaurant count by 37 outlets compared to the end of 2024, demonstrating its commitment to growth [42].

Core Viewpoint - The well-known restaurant chain, Green Tea Restaurant, is facing public backlash due to an incident where an employee insulted a customer, leading to significant reputational damage and potential financial implications for the company [1][3][7]. Company Response - On September 8, the involved employee was terminated, and the store manager and regional manager issued a written apology to the customer for the inappropriate behavior [7]. - Legal experts indicated that the employee's actions could constitute a violation of consumer rights and the company may be held liable for damages caused by the employee's conduct during the service process [7]. Impact on Business - Following the incident, the Green Tea Restaurant's Dongguan Guomao store received a surge of negative reviews on third-party delivery platforms, affecting its overall rating [7]. - The company had recently reported strong financial performance, with a revenue of 2.29 billion RMB for the first half of the year, a 23.1% increase year-on-year, and a profit of 234 million RMB, up 34.1% [10][11]. - The growth in revenue was partly attributed to a significant increase in the takeout business, which saw a 74.2% rise, contributing to 22.9% of total revenue [12]. Market Performance - Green Tea Group went public on the Hong Kong Stock Exchange on May 16, but the stock has struggled since its IPO, with a current share price of 7.06 HKD and a market capitalization of approximately 47.55 billion HKD [10][13]. - The IPO price was set at 7.19 HKD per share, but the stock quickly fell below this level, indicating a lack of market confidence [10].

Group 1 - The event "Big Consumption Investment Summit and 2025 Zhitong Xingyao Autumn Joint Strategy Meeting" was held in Hangzhou, focusing on the theme "New Consumption Species: The Evolution of Hong Kong Stocks" [1] - In 2025, China's consumption market is witnessing a blend of tradition and innovation, with electric vehicle penetration exceeding 47%, smart home sales growing in double digits, and rural consumption growth outpacing urban by 0.8 percentage points [1] - The Hong Kong stock market is becoming a witness to consumer power, with a 100-fold subscription for consumer IPOs in the first half of the year and 71% of new stocks closing higher on their first day [1] Group 2 - The main venue will feature keynote speeches and roundtable discussions on trends, while the sub-venue will showcase opportunities from 30 top companies [2] - Keynote speakers include executives from Tencent, GF Securities, and various leading companies, sharing insights and practical experiences [4] - The sub-venue will host presentations from 30 leading companies, including China Duty Free Group, Maogeping, and others, focusing on their business opportunities [5]

Core Viewpoint - The Hong Kong IPO market is active, with 57 new listings and a total fundraising amount of 131.9 billion HKD as of August 25. However, many companies face challenges in meeting both domestic and Hong Kong regulatory requirements for listing [1]. Group 1: Hong Kong IPO Overview - As of August 25, 2023, there have been 57 new IPOs on the Hong Kong Stock Exchange, raising a total of 131.9 billion HKD [1]. - There are currently 211 companies that have submitted applications for listing in Hong Kong [1]. Group 2: Listing Challenges - Companies looking to list in Hong Kong must comply with both domestic laws and Hong Kong's regulatory framework, making the IPO preparation process complex and demanding [1]. Group 3: Resources for Companies - A compilation of Hong Kong listing rules and disclosure documents for domestic companies planning to list in Hong Kong has been organized to assist businesses in understanding the latest regulatory dynamics [1].

| | | 致：香港交易及結算所有限公司 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 公司名稱: 綠茶集團有限公司 呈交日期: 2025年9月2日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 06831 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 2,500,000,000 | USD | | 0.00002 | USD | | 50,000 | | 增加 / 減少 (-) | | | | | | | USD | | | | 本月底結存 | | | 2,500,000,000 | USD | | 0.00002 | USD | | 50,000 | 本月底法定/註冊股本總額： USD 50,000 FF301 第 ...