Core Viewpoint - Eight Horses Tea Industry has established itself as a leader in the high-end tea market in China, with significant revenue growth and a complex journey towards listing on the stock market [4][19][22]. Group 1: Company Overview - Eight Horses Tea Industry was founded in 1993 by Wang Wenli, who aimed to capitalize on the high prices of tea in urban markets compared to his hometown [2]. - The company has over 3,000 stores and reported a revenue of 1.647 billion yuan in the first three quarters of 2024 [4]. - The company has faced multiple challenges in its listing journey, including failed attempts on various stock exchanges before finally receiving a notice from the China Securities Regulatory Commission for a Hong Kong listing [4][22]. Group 2: Market Position - Eight Horses ranks first in the high-end tea market in China, as well as in the oolong and black tea segments [7]. - The company’s sales revenue from 2019 to 2023 shows consistent growth, increasing from 1.02 billion yuan in 2019 to 2.122 billion yuan in 2023, with net profit rising from 90.88 million yuan to 206 million yuan during the same period [13][24]. Group 3: Product Strategy - The company has successfully positioned itself in the high-end market, with flagship products like the "Pearl Series" Tieguanyin tea priced between 1,000 yuan to 10,000 yuan per kilogram [10][12]. - Eight Horses has adopted a brand strategy that emphasizes quality and heritage, leveraging its family background in tea production to enhance its market appeal [12][30]. Group 4: Challenges and Concerns - The traditional tea industry faces challenges in attracting capital due to its heavy asset requirements and long production cycles, which create uncertainties [24][26]. - Eight Horses is characterized by a high degree of family ownership, which raises concerns about governance and transparency in its operations [28][30]. - Despite its leading position, Eight Horses holds only a 1.7% market share in the high-end tea market, indicating room for growth and the need for innovation [42][45].