Core Viewpoint - The stock price of Baima Tea has experienced a dramatic decline after an initial surge, raising questions about the sustainability of the high-end Chinese tea business model and highlighting industry pain points [2][4]. Group 1: Stock Performance and Market Reaction - Baima Tea's stock price fell to HKD 30.14 per share, a decline of over 70% from its peak, resulting in a market value loss of nearly HKD 70 billion [2]. - The stock's initial surge was driven by limited liquidity and speculative trading, with only 5,298,700 H-shares available for trading post-IPO, of which approximately 4.4 million were locked up due to shareholder commitments [3]. - On its first trading day, Baima Tea's stock opened at HKD 86.5, a 73% increase from the IPO price of HKD 50, and briefly reached a market capitalization close to HKD 80 billion [3]. Group 2: Financial Performance and Challenges - Baima Tea's revenue growth has slowed, with a reported increase from RMB 1.818 billion in 2022 to RMB 2.143 billion in 2024, but the growth rate has decreased, with only a 1% increase in 2024 [9]. - In the first half of 2025, the company reported a revenue of RMB 1.063 billion, a decrease of 4.2% year-on-year, and a net profit of RMB 120 million, down 17.8% [9]. - High operating costs are eroding profits, with sales and marketing expenses reaching RMB 332 million in the first half of 2025, accounting for 31.2% of revenue [10]. Group 3: Business Model and Strategic Outlook - The franchise model has contributed significantly to Baima Tea's revenue, with franchise sales accounting for approximately 50% of total revenue from 2022 to 2025 [12]. - The company has 3,716 offline stores, with 93.7% being franchise stores, indicating a heavy reliance on franchisees for revenue generation [11]. - Baima Tea plans to use IPO proceeds to expand brand flagship stores in high-tier cities, deepen franchise coverage in lower-tier markets, upgrade supply chains, and promote international branding, particularly in Southeast Asia [15].

本报讯(记者梁傲男)1月27日，八马茶业宣布与飞书达成深度合作，共同构建"八马AI驱动卓越运营体 系"。此次合作标志着八马茶业全面启动"全链路数字化"升级，将竞争维度从门店规模、产品品质延伸 至以AI为核心的决策效率与管理智能化。 在中国茶产业规模已突破万亿元却长期呈现"小散乱"格局的背景下，八马茶业此举被视为行业龙头以科 技创新穿越周期、重塑产业竞争力的关键一步。 AI成茶业现代化关键变量 其次，是打造"一店一群"的敏捷网络，实现"总部-门店"高效协同。针对信息传递衰减、响应迟滞的管 理难题，八马茶业将依托飞书搭建"一店一群"的智能协同空间。总部指令、产品上新、营销策略等信 息，实现指令的零损耗、精准直达。同时，门店的销售日报、库存动态、客户反馈也能实时回传至总 部，形成高效透明的双向数据流，极大压缩管理半径，提升整体运营响应速度。 最终，是实现"零代码集成，打破数据孤岛"。八马茶业计划利用飞书的AI集成与分析能力，打通从智慧 茶园物联网、超级工厂，到供应链、线上线下（300959）会员系统等多套业务系统，彻底联通数据壁 垒。未来，管理层将通过实时、动态的全局数据看板，实现从茶叶采摘到终端销售的全链路可视化 ...

董事会(包括独立非执行董事)认为，茶购销框架协议的条款属公平合理，乃按一般或更优惠商业条款于 本集团日常及一般业务过程中进行，符合本公司及其股东的整体最佳利益。该协议项下拟进行的交易将 支持本集团无糖茶成分(如茶基底、浓缩茶粉或茶提取物)供应业务，有助于提升本集团于茶行业的市场 份额，并创造额外增长机遇。该合作为本集团主动扩张业务的举措，可带来增量业绩并强化本集团整体 营运韧性。此举有助于本集团业务长期稳健发展，并为本集团未来业务发展及战略规划提供明确方向。 八马茶业(06980)发布公告，于2026年1月27日(交易时段后)，本公司与茶源科技(本公司的关连附属公司) 订立茶购销框架协议，据此，本集团将于茶购销框架协议期限(将于2026年1月27日开始，持续至2028年 12月31日止)内不时向茶源科技供应茶叶。 ...

智通财经APP讯，八马茶业(06980)发布公告，于2026年1月27日(交易时段后)，本公司与茶源科技(本公 司的关连附属公司)订立茶购销框架协议，据此，本集团将于茶购销框架协议期限(将于2026年1月27日 开始，持续至2028年12月31日止)内不时向茶源科技供应茶叶。 董事会(包括独立非执行董事)认为，茶购销框架协议的条款属公平合理，乃按一般或更优惠商业条款于 本集团日常及一般业务过程中进行，符合本公司及其股东的整体最佳利益。该协议项下拟进行的交易将 支持本集团无糖茶成分(如茶基底、浓缩茶粉或茶提取物)供应业务，有助于提升本集团于茶行业的市场 份额，并创造额外增长机遇。该合作为本集团主动扩张业务的举措，可带来增量业绩并强化本集团整体 营运韧性。此举有助于本集团业务长期稳健发展，并为本集团未来业务发展及战略规划提供明确方向。 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 BAMA TEA CO., LTD. 八馬茶業股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：6980） 持續關連交易 茶購銷框架協議 茶購銷框架協議 董事會欣然宣佈，於2026年1月27日（交易時段後），本公司與茶源科技（本公司 的關連附屬公司）訂立茶購銷框架協議，據此，本集團將於茶購銷框架協議期限 （將於2026年1月27日開始，持續至2028年12月31日止）內不時向茶源科技供應 茶葉。 上市規則的涵義 茶源科技為本公司擁有70%股權的附屬公司，餘下30%股權由一葉觀山（一家於 2025年3月24日在中國成立的有限合夥企業）持有。一葉觀山由吳俊暉先生作為 普通合夥人管理，並由吳俊暉先生擁有83.3%合夥權益及由王文吉先生作為有限 合夥人擁有16.7%合夥權益。吳俊暉先生為控股股東之一王小萍女士的兒子。 王文吉先生為泉州八馬、八馬現代及天津鑫八馬的執行董事以及福建八馬的經 理， ...

Group 1 - Core viewpoint: Huaxi Securities initiates coverage on Baima Tea (06980) with a "Buy" rating, highlighting its leading position in the high-end tea industry due to a clear brand matrix and channel advantages [1][2] - Industry perspective: The Chinese tea industry is undergoing a structural upgrade characterized by "overall dispersion and high-end concentration," with significant growth potential in the high-end tea market driven by consumption upgrades [2] - Company quality: Despite facing short-term pressures from macroeconomic fluctuations and intensified competition, the company's core competitiveness remains intact, supported by a clear multi-brand product matrix and a deep integration of offline and online channels [3] Group 2 - Future outlook: The company's development path aligns well with industry trends, leveraging brand, channel, and craftsmanship barriers to increase market share, while the rise of young consumers and women aligns with its product high-end and youthful transformation [4] - Long-term growth drivers: The upcoming Hong Kong IPO is expected to focus on capacity upgrades, brand promotion, channel expansion, and digitalization, providing strong momentum for long-term growth [4]

Investment Rating - The report gives a "Buy" rating for the company [5][6]. Core Insights - The report provides a deep analysis of the operational status, financial performance, industry landscape, company development, and potential risks of Baima Tea Industry, based on its Hong Kong IPO prospectus [1]. Company Overview - Baima Tea Industry is positioned as a leading high-end tea enterprise in China, benefiting from the structural upgrade of the tea industry characterized by "overall dispersion and high-end concentration" [2]. - The company has a well-established marketing system and strong overall profitability, with a gross margin stable around 55% supported by its high-end product structure [3]. Future Outlook - The company’s development path aligns well with industry trends, focusing on brand, channel, and process barriers to continuously increase market share [4]. - The successful IPO will provide strong momentum for capacity upgrades, brand promotion, channel expansion, and digital transformation [4]. Financial Performance - Revenue projections for 2025-2027 are estimated at 2.20 billion, 2.45 billion, and 2.86 billion RMB, with year-on-year growth rates of +2.66%, +11.41%, and +16.53% respectively [5]. - Earnings per share (EPS) for the same period are forecasted to be 2.71, 3.07, and 3.85 RMB, with corresponding price-to-earnings (PE) ratios of 12.54, 11.08, and 8.82 [5]. Industry Analysis - The Chinese tea market is expected to grow from approximately 288.9 billion RMB in 2020 to about 325.8 billion RMB by 2024, with a compound annual growth rate (CAGR) of around 3.0% [46]. - The high-end tea market is projected to grow at a faster rate of 5.6% from 2024 to 2029, driven by consumer upgrades and brand recognition [47][48]. Competitive Position - Baima Tea holds a leading market share of 1.7% in the high-end tea segment, with a revenue of 1.758 billion RMB in 2024, reflecting an 18.2% increase from 2022 [61]. - The company has a robust channel presence with over 3,500 offline stores, the highest in the industry, and a significant number of franchise stores [61].

Core Insights - The tea chain industry in China has seen significant growth, with market size increasing from 49.13 billion yuan in 2015 to 91.54 billion yuan in 2022, reflecting a compound annual growth rate (CAGR) of 9.3% [1][11] - However, a projected decline of 2.66% is expected in 2024, with the market size estimated at 87.83 billion yuan, primarily due to rational consumer spending and competition from online channels and new tea beverage brands [1][11] - The industry is anticipated to evolve towards greater branding and specialization, with an emphasis on brand building, market segmentation, and enhanced consumer experiences through smart features [1][11] Industry Overview - The tea chain industry operates through a standardized and chain-based business model, providing tea products and related services across various retail formats [3][11] - It can be categorized by product type (green tea, black tea, etc.), sales channels (direct, franchise, e-commerce), and service forms (tea shops, tea experience stores) [3] Industry Development History - The industry began in the 1990s, gaining momentum in the 21st century as consumer demand diversified and e-commerce emerged as a significant opportunity [5][6] - The current landscape features a more concentrated market with established brands and a need for continuous innovation to address challenges like product homogenization and intense competition [6] Industry Value Chain - The upstream of the tea chain industry includes tea plantations and processing facilities, while the midstream consists of tea chain enterprises responsible for brand management and retail operations [6] - The downstream involves consumers who drive demand and feedback, influencing the entire value chain [6] Market Trends - The tea chain industry is expected to focus on experiential retail, transforming stores into cultural and social spaces that enhance customer engagement [15] - Digital tools will facilitate precise service and supply chain integration, improving operational efficiency and product traceability [15] - There will be a shift towards health-oriented products and innovative forms, catering to modern consumer preferences [16][17] Key Companies - Notable companies in the tea chain industry include Baima Tea, Lancang Ancient Tea, Tianfu, and others, each with unique market strategies and product offerings [2][12] - Baima Tea, for instance, has over 3,700 stores and has established a strong online presence, achieving significant sales growth [12][13]

Core Viewpoint - The stock price of Baima Tea has experienced a significant decline after an initial surge post-IPO, reflecting investor concerns about the company's business model and growth prospects [1][3][16]. Financial Performance - Baima Tea's revenue from 2022 to 2024 was 1.818 billion, 2.122 billion, and 2.143 billion yuan, with growth rates of 16.8% in 2023 and 1.0% in 2024 [5][19]. - In the first half of 2025, the company reported a revenue of 1.06 billion yuan, a year-on-year decline of 4.2%, and a net profit of 120 million yuan, down 17.8% [6][19]. Market Reaction - The stock price surged by 86.7% on its first trading day, reaching 93.35 HKD per share, but fell below the issue price to 29.12 HKD by January 9, 2026 [3][16]. - The decline in stock price indicates a lack of enthusiasm from the capital market towards traditional tea companies [21]. Business Model Challenges - Baima Tea's reliance on a franchise model has shown signs of fatigue, with net growth in franchise stores dropping from 265 in 2023 to just 5 in 2024 [12][26]. - The average selling price of Baima Tea's high-end brand "Xinjihao" has decreased from 901 yuan/kg in 2022 to 715 yuan/kg in the first half of 2025 [22][23]. Pricing and Inventory Issues - The company has faced pricing confusion due to its "buyout franchise" model, which transfers inventory pressure to franchisees, leading to potential price undercutting in unauthorized channels [14][29]. - The suggested retail price range for major products has been significantly reduced, indicating a shift in product strategy [23][24]. Strategic Outlook - To regain investor confidence, Baima Tea needs to stabilize its high-end narrative and reduce reliance on the franchise model, focusing on product strength, brand culture, and consumer experience [29].

Core Insights - The article highlights the significance of rural revitalization and county economic development as key national strategies during the transition between the 14th and 15th Five-Year Plans, emphasizing the role of leading enterprises in integrating with local economies for mutual growth [1] Group 1: Tax Contributions and Market Position - Eight Horse Tea has maintained its position as the top taxpayer in Anxi and Wuyishan for six consecutive years, reflecting its strong market performance and brand recognition [2] - According to a report by Frost & Sullivan, Eight Horse Tea ranks first in the Chinese oolong and black tea markets based on projected sales revenue for 2024, with its Tieguanyin sales leading the nation for over a decade [2] - The company's consistent tax contributions are a result of its commitment to quality, which has fostered long-term market trust and a sustainable business model [2] Group 2: Industry Ecosystem and Community Engagement - Eight Horse Tea's tax contributions are just a surface-level indication of its deeper connection with the production areas, where it has established a win-win ecosystem among the market, enterprise, and production regions [3] - Since 2019, Eight Horse has invested over 40 million yuan in high-profile tea competitions, providing platforms for tea farmers to showcase their skills and improve their income, thus enhancing the overall quality standards in the region [3] - The company’s investment in Wuyishan in 2020 not only created a stable supply chain but also facilitated the local tea industry’s transformation towards standardization and modernization [3] Group 3: Business Resilience and Strategic Framework - Eight Horse Tea demonstrates resilience through a triad of standardization, technological innovation, and brand development, which collectively support its business model [5] - The company has established a comprehensive standardization system that enhances product quality and consistency, transitioning from traditional craftsmanship to a controllable and replicable production process [6] - By leveraging technology, Eight Horse has developed a smart supply chain that enhances operational efficiency and adaptability to market fluctuations [6] Group 4: Internationalization and Cultural Branding - Eight Horse Tea's international strategy focuses on brand and cultural output, participating in significant diplomatic events and expanding its global presence through tea tasting events in 32 countries [7] - The company has received multiple accolades, including being ranked second globally and first in China in the World Tea Brand Evaluation List, indicating its strong international brand recognition [7] - The chairman of Eight Horse Tea emphasizes a dual strategy of deepening local roots while expanding internationally, aiming to transform Chinese tea from a raw material export to a cultural brand [7] Group 5: Long-term Value and Economic Impact - The achievements of Eight Horse Tea reflect a broader narrative of structural upgrades within traditional industries, showcasing the potential for innovation and value creation even in conventional sectors [9] - The company’s practices in supporting local economies and contributing to rural revitalization position it as a significant player in county-level economic development, offering sustainable growth potential for investors [9]