Core Viewpoint - The beverage industry is witnessing intense competition in the new tea drink sector, with BaWang Tea Ji adopting a "joint venture overseas" model to accelerate its global expansion, raising discussions about the balance between market penetration and potential risks associated with cultural conflicts and diluted control [1] Group 1: Joint Venture Model - The joint venture model allows BaWang Tea Ji to integrate local resources effectively, partnering with local giants in Thailand for supply chain and store location support, which has proven successful in Malaysia [4] - After the joint venture in Thailand, the number of BaWang Tea Ji stores increased from 2 to 3, with a single store in Singapore achieving a monthly GMV of 1.8 million yuan, significantly surpassing domestic levels [4] - By relinquishing 51% of its equity, BaWang Tea Ji transfers capital pressure to local partners, reducing financial leverage and cultural adaptation costs through local team operations [4] Group 2: Strategic Synergy Effects - The joint venture model facilitates a "1+1+9+N" gradient expansion strategy in Southeast Asia, where BaWang Tea Ji first establishes wholly-owned subsidiaries to validate markets, then runs direct stores to optimize single-store models, and finally scales through joint ventures [7] - The overseas store GMV has increased by 85.3% year-on-year, becoming a new growth driver for the company's performance [7] Group 3: Hidden Risks - The dilution of control poses a risk, as BaWang Tea Ji holds only 49% in the Thai joint venture, requiring consensus with local shareholders for decision-making, which could lead to management coordination risks [7] - The high-end market positioning in Thailand, with prices ranging from 100 to 175 THB (approximately 20 to 35 yuan), is significantly higher than local brands, leading to high consumer education costs and potential pressure on profit margins [7] Group 4: Geopolitical and Compliance Risks - The delay of the first store in the U.S. to Q1 2025 highlights the challenges posed by geopolitical uncertainties on supply chains and compliance during global expansion [8] - Changes in joint venture policies in Thailand could impact the strategic pace in Southeast Asia [8] Group 5: Industry Perspective - Experts suggest that BaWang Tea Ji's "Oriental Tea Latte" positioning and automated equipment (8 seconds per cup) create a technological barrier, but continuous innovation is necessary to maintain global competitiveness [9] - Compared to competitors like Mixue Ice City, which has nearly 5,000 overseas stores validating its scaling advantages, BaWang Tea Ji must balance local resources with supply chain control in its joint ventures [9] Summary - BaWang Tea Ji's joint venture strategy is seen as a short-term resource integration advantage, leveraging local giants for rapid market entry, while long-term success hinges on managing control dilution and sustaining high-end positioning [9] - The company's ability to maintain strategic flexibility within the joint venture framework, deepen local operations, and innovate products will be crucial in navigating competitive pressures [9] - Additionally, Chinese companies expanding overseas must pay special attention to protecting trademarks, patents, and copyrights, particularly for popular products, to safeguard economic interests [9]

Group 1 - The Thai beverage market is undergoing significant changes with the investment of 142 million THB by Thai President Beverage Co., Ltd. and local logistics and real estate giants, acquiring a 51% stake in Chagee, a subsidiary of Bawang Chaji [2][3][5] - The transaction was completed through a combination of "old share transfer + new share subscription," increasing Bawang Chaji Thailand's registered capital from 5 million THB to 279.25 million THB, and expanding the total number of common shares from 50,000 to 2,792,500 [6][10] - The investment involves three leading Thai companies from food production, logistics, and real estate sectors, providing essential resources for the tea beverage brand's overseas expansion [10][12] Group 2 - Bawang Chaji has established a presence in the Thai market, with its first store opening in December 2023 at Central World Shopping Center, and plans for brand revitalization after temporarily closing all Thai stores in April 2025 [21][22] - The joint venture strategy of Bawang Chaji emphasizes deep integration with local resources, forming a tight-knit community of interests, which helps the brand adapt to local market demands and cultural characteristics [28][30] - With the entry of capital-rich Thai giants into the tea beverage market, Bawang Chaji is expected to receive comprehensive support for faster development in Thailand and further expansion in Southeast Asia [32][33]

Core Viewpoint - The company Bawang Chaji is accelerating its expansion into Southeast Asia through a joint venture model, specifically in Thailand, where it has secured a 51% stake in its local subsidiary with an investment of over 142 million Thai Baht (approximately 31.19 million RMB) from Thai President Foods and other local partners [1][3]. Group 1: Joint Venture Details - The transaction was completed through a combination of "old share transfer + new share subscription," with a total investment of 142.4 million Thai Baht, resulting in the registered capital of Bawang Chaji Thailand increasing from 5 million Thai Baht to 279.25 million Thai Baht [3][4]. - The new company has three shareholders: Thai President Foods Plc. (55% stake), Komsan Saelee (25% stake), and Chanond Ruangkritya (20% stake) [5][6]. Group 2: Strategic Rationale - Bawang Chaji chose the joint venture model to closely bind with local partners, creating a tight-knit community of interests that encourages full commitment from collaborators [6][8]. - The Southeast Asian market presents challenges due to its diversity in language, culture, and local conditions, making a local agent crucial for accessing key resources and reducing trial-and-error costs [6][10]. Group 3: Partner Contributions - Thai President Foods, the largest instant noodle manufacturer in Thailand, offers extensive supply chain and market operation experience, which will support Bawang Chaji's local production and market entry [8][10]. - Komsan Saelee, founder of Flash Express, brings a robust logistics network, having rapidly expanded the company to become Thailand's leading private courier service [8][10]. - Chanond Ruangkritya, founder of Ananda Development, provides access to prime commercial real estate locations, facilitating the establishment of Bawang Chaji's stores [9][10]. Group 4: Expansion Strategy - Bawang Chaji's joint venture in Thailand follows a similar strategy employed in Malaysia, where it established a partnership to open 300 stores within three years, indicating a replicable model for regional expansion [10][12]. - The company aims to open 1,000 to 1,500 new stores globally, supported by approximately 144.8 million USD raised from its recent U.S. IPO [12][11]. Group 5: Building a Global Engine - Bawang Chaji is constructing a comprehensive "outbound engine" by integrating capital, talent, and local resources to support its global expansion ambitions [11][12]. - The appointment of Eugene Lee, a former McDonald's executive, as Vice President for the Asia-Pacific region highlights the company's focus on balancing global brand consistency with local market strategies [12].