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]

Core Insights - Eight Horse Tea Industry has achieved the "Double First" tax performance, ranking first in tax contributions among Anxi tea companies for 13 consecutive years and first among Wuyishan tea companies for 6 consecutive years, setting a record in the tea industry [1][6] - The company's success is attributed to a systematic strategy that not only drives commercial success but also empowers the production area and builds a sustainable industrial ecosystem [1][6] Tax Contribution and Market Position - According to a report by Frost & Sullivan, Eight Horse Tea ranks first in the Chinese Oolong and black tea markets by sales revenue in 2024, with its Tieguanyin sales leading the nation for over ten years, rock tea sales for five years, and black tea sales for four years [6] - The company's market position translates into revenue and tax contributions, creating a virtuous cycle of "leading sales—performance growth—tax contribution" [6] Business Strategy and Financial Stability - The chairman of Eight Horse Tea stated that being the top taxpayer is not a goal pursued by the company but a natural result of adhering to a "quality first" strategy, reflecting the core business logic of the company [6] - The continuous six-year tax leadership demonstrates the company's operational stability and sustainable profitability, especially in a competitive and volatile market [6] Systematic Mechanisms and Industry Upgrades - Since 2019, Eight Horse Tea has hosted high-profile tea king competitions in Anxi and Wuyishan, investing over 40 million yuan to create a platform for tea farmers to showcase skills and increase income, establishing a market-oriented incentive mechanism [7] - The company invested in a factory in Wuyishan in 2020, achieving a record of "landing, seeing results, and winning tax championship in the same year," which has built a stable and efficient supply chain [7] Key Pillars of Development - Standardization: Transitioning from "experience-based tea making" to "scientific tea making," Eight Horse Tea has established a comprehensive standard system covering planting, processing, storage, and sales [8] - Technological Empowerment: The company promotes the construction of a "smart tea garden + smart factory + smart supply chain" ecosystem, utilizing IoT, big data, and AI for digital control throughout the process [8] - Brand Deepening: With over 3,700 stores nationwide, the new generation of stores is positioned as "urban reception halls," extending tea sales into cultural experiences and social spaces [8] International Strategy and Brand Recognition - Eight Horse Tea has a clear international strategy focusing on "brand + culture" output, participating in significant diplomatic events and global tasting events across 32 countries and 86 cities [8] - The company ranks second globally and first in China in the World Tea Brand Evaluation List, and has topped the "2025 China Tea Enterprise Brand Survey TOP50" [8] Future Strategic Path - The chairman proposed a strategy of "rooting down and growing up," aiming to empower more tea production areas through the "China Tea Industry Collaborative Body" and deepen international layouts [8]

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 截至月份: 2025年12月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 八馬茶業股份有限公司 呈交日期: 2026年1月5日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 06980 | 說明 | H股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 52,986,875 | RMB | | | 1 RMB | | 52,986,875 | | 增加 / 減少 (-) | | | 0 | | | | RMB | | 0 | | 本月底結存 | | | 52,986,875 | RMB | | | 1 RMB | | 52,986,875 | | 2. 股份分類 | 普通股 ...

Group 1 - The company, Emei Mountain A (000888.SZ), has stated that it is currently not collaborating with Baima Tea Industry, but it is working with other tea companies such as Zhongcha, Chuanhong, and Ximing Tea [1] - The company's tea industry aims to consolidate its core market in Sichuan and Chongqing while focusing on expanding into high-potential regions such as East China, South China, and North China [1] - The company plans to establish a comprehensive "online mall + live e-commerce + community marketing" multi-channel system, integrating platforms like Douyin and JD for cross-border zones [1]

Core Viewpoint - The stock price of Baima Tea has experienced extreme volatility, initially soaring by 86.7% on its first trading day, reaching a high of 115 HKD, before plummeting to a low of 32.06 HKD within two months, indicating a significant valuation correction in the market [1][4]. Group 1: Stock Performance and Market Dynamics - The initial surge in Baima Tea's stock price was largely due to the scarcity of freely tradable shares, with only about 890,000 shares available for trading post-IPO, leading to high volatility in the stock price [2][3]. - Following the company's application for "H-share full circulation," which would convert approximately 37.57% of its domestic shares into tradable H-shares, the stock price dropped over 50% from its peak [4][5]. - The total market capitalization of Baima Tea has decreased by 15 billion HKD, representing a 72% drop from its highest point, reflecting a significant loss of investor confidence [4][5]. Group 2: Business Fundamentals and Growth Concerns - Baima Tea's revenue growth has slowed significantly, with projections showing an increase from 18.18 billion RMB in 2022 to only 21.43 billion RMB in 2024, and a mere 1% growth expected in 2024 [7][8]. - The company's net profit for the first half of 2025 fell by 17.8% year-on-year, highlighting a concerning trend in profitability [7][8]. - The average selling price of Baima Tea's high-end brand "Xinjihao" has decreased from 901 RMB per kilogram in 2022 to 715 RMB in the first half of 2025, indicating weakening demand for premium products [7][8]. Group 3: Industry Challenges and Brand Positioning - The tea industry is characterized by its non-standardized nature, making it difficult for companies like Baima Tea to achieve stable and predictable growth [9][10]. - Baima Tea's high sales expense ratio, exceeding 30%, combined with a gross margin of around 55%, suggests that the company relies heavily on marketing to maintain its brand presence rather than on strong brand loyalty [13][14]. - The company's production model, which relies on custom procurement rather than direct production, undermines its ability to establish a strong brand premium, as most products are sourced externally [15][16].

Key Points - As of December 19, 38 stocks reached their 52-week highs, with Li Gao Health Life (02370), Ginkgo Education (01851), and Kangqiao Yuelife (02205) leading the high rate at 36.36%, 18.72%, and 8.70% respectively [1] - The top three stocks that achieved new highs are as follows: - Li Gao Health Life (02370) closed at 0.670, with a peak of 0.750, marking a 36.36% increase - Ginkgo Education (01851) closed at 2.430, with a peak of 2.600, marking an 18.72% increase - Kangqiao Yuelife (02205) closed at 1.200, with a peak of 1.250, marking an 8.70% increase [1] - Other notable stocks that reached new highs include Liangqing Holdings (1,000) at 7.14%, Jinxing International Holdings (02307) at 7.04%, and Wuxi Life (08148) at 6.21% [1] 52-Week Low Summary - The 52-week low rankings show that Haowen Holdings (08019) had the largest decline at -16.13%, closing at 0.130 [2] - Other significant declines include NIU Holdings (08619) at -11.86%, closing at 0.156, and Hashkey HLDGS (03887) at -9.59%, with a low of 5.090 [2] - Additional stocks with notable declines include Songdu Service (09608) at -9.09%, closing at 0.068, and Ruike Bio-B (02179) at -5.41%, closing at 5.070 [2]

Bama Tea Co., Ltd. 八馬茶業股份有限公司 (A joint stock company incorporated in the People's Republic of China with limited liability) （於中華人民共和國註冊成立的股份有限公司） （Stock Code 股份代號：6980） December 12, 2025 We encourage you to access Corporate Communications of the Company in electronic form on the Company's website. If you wish to receive printed copies of all future Corporate Communications, please complete and return the Request Form on the reverse side of this letter to the Company's share registrar in Hong Kong (the "Shar ...

（股份代號：6980） 登記股東之名稱及地址 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） 安排 1. 可供採取行動的公司通訊 4 本公司將以電子通訊方式（通過電子郵件）向股東個別地發送可供採取行動的公司通訊。如果本公司沒有獲 取股東的電子郵箱地址或其提供的電子郵箱地址無效 5，本公司將以印刷本形式向其發送可供採取行動的公 司通訊，連同一份索取股東有效電子郵箱地址的表格，以便將來以電子通訊方式發送可供採取行動的公司通 訊。 2. 公司通訊 本公司將在本公司網站（www.bamatea.com）及聯交所網站（www.hkexnews.hk）上發佈公司通訊。 本公司不會向股東發出公司通訊網站版本 6 的登載通知。本公司鼓勵股東主動留意網站上所有日後的公司通 訊的登載情況，並自行瀏覽公司通訊的網站版本。 2025 年 12 月 12 日 尊敬的股東 發佈公司通訊之安排 簡介 根據香港聯合交易所有限公司（「聯交所」）證券上市規則（「上市規則」）第 2.07A 條 1 以及八馬茶業股份有 限公司（「本公司」）的公司章程，本公司將以電子通訊方式向其股東 3 發佈本 ...

Group 1 - The stock price of Baima Tea Industry (06980.HK) has dropped over 10%, reaching a low of 43 HKD, which is below its IPO price of 50 HKD [1] - As of the report, Baima Tea Industry is down 10.32%, trading at 43.26 HKD, with a transaction volume of 11.618 million HKD [1]