Core Viewpoint - Baima Tea, a leader in China's high-end tea market, successfully listed on the Hong Kong Stock Exchange, raising approximately HKD 4.5 billion through its IPO, with a strong oversubscription rate of 2680.04 times for the public offering and 13.58 times for the international offering [3][6]. Company Overview - Established in 1997, Baima Tea is recognized as the top brand in the high-end Chinese tea market, offering a comprehensive product range that includes various types of tea and related products [6]. - According to a report by Frost & Sullivan, Baima Tea ranks first in the Chinese tea market by the number of chain specialty stores and by sales revenue in the high-end tea segment as of the end of 2024 [6]. - The company has a total of 3,585 offline stores in China, including 244 direct-operated stores and 3,341 franchised stores, with a significant online presence across major e-commerce platforms [6]. Shareholding Structure - The controlling shareholders of Baima Tea are family members acting in concert, holding a combined 49.98% of the shares, with Wang Wenbin holding 22.69% and Wang Wenli holding 18.22% [5][6]. - Other notable shareholders include Tianjin Changfeng (6.14%) and various institutional and individual investors, with public shareholders collectively holding 10.59% [5]. IPO Details - The IPO involved a global offering of 9 million H shares, representing 10.59% of the total shares post-issue, with a maximum price set at HKD 50.00 per share [3]. - The IPO was managed by a team of underwriters including Huatai International, Agricultural Bank of China International, and others, with KPMG serving as the auditor [10]. Market Performance - Following the IPO, Baima Tea's shares closed at HKD 81.80, reflecting a 63.60% increase, resulting in a market capitalization of approximately HKD 69.53 billion [7].

Core Viewpoint - Baima Tea Industry has made significant progress in its listing process, having commenced a global offering on October 20, 2025, aiming to list on the Hong Kong Stock Exchange after multiple previous attempts in the A-share market [2] Group 1: Listing Details - Baima Tea plans to globally offer approximately 9 million H-shares, with 900,000 shares available for public offering in Hong Kong and 8.1 million shares for international offering [2] - The subscription period for the shares is from October 20 to October 23, 2025, with an expected listing date of October 28, 2025 [2] - The proposed price range for the shares is between HKD 45.0 and HKD 50.0, with an estimated net fundraising of HKD 368 million if priced at the median of HKD 47.5 [2] Group 2: Use of Proceeds - Approximately 35% of the net proceeds will be allocated to expanding and constructing new production bases [3] - About 20% will be used to enhance brand value and expand the product portfolio [3] - Around 15% is designated for funding the expansion of the company's direct retail store network, focusing on flagship stores [3] - 10% will be invested in improving the digital operations of the business [3] - Another 10% is earmarked for acquisitions or investments in participants within the Chinese tea industry [3] - The remaining 10% will be used for working capital and other general corporate purposes [3] Group 3: Company Performance - Baima Tea's revenue for the years 2022 to 2025 (first half) is reported as follows: RMB 1.818 billion, RMB 2.122 billion, RMB 2.143 billion, and RMB 1.063 billion respectively [5] - The total profit and comprehensive income for the same periods are RMB 166 million, RMB 206 million, RMB 224 million, and RMB 120 million respectively [5] - Baima Tea is recognized as a leading tea supplier in China, ranking first in high-end tea sales revenue and in the number of tea chain specialty stores as of 2024 [3]

Core Viewpoint - Eight Horses Tea Industry has successfully passed the listing hearing on the Hong Kong Stock Exchange, marking a significant step towards its IPO after a lengthy 12-year journey, amidst challenges faced by the tea industry in capital markets [2][5][11]. Company Overview - Eight Horses Tea Industry has attempted to go public multiple times since 2013, with three failed attempts to list on the A-share market between 2013 and 2022 due to various market conditions and internal adjustments [3][11]. - The company transitioned to the Hong Kong market in 2023, submitting its prospectus and successfully passing the hearing in October [5][11]. Market Context - The tea industry is considered a challenging sector for capital investment, with few successful IPOs among tea companies since 2012. The complexity of the supply chain and the non-standardized nature of tea products contribute to this difficulty [4][11]. - As of 2023, only a few tea companies, including Lincang Ancient Tea, have successfully listed, with significant stock price declines post-IPO [4]. Business Performance - Eight Horses Tea Industry has established itself as a leader in the Chinese tea market, ranking first in terms of sales revenue and store count as of 2023. The company has maintained its position as the top seller of Tieguanyin tea for over a decade [8][12]. - The company reported revenues of RMB 1.82 billion, RMB 2.12 billion, and RMB 2.14 billion for the years 2022, 2023, and 2024 respectively, with a noticeable slowdown in growth for 2024 [14][15]. Challenges and Concerns - Despite its market leadership, Eight Horses Tea faces performance concerns, with a decline in revenue and net profit reported in the first half of 2023, attributed to decreased sales in offline channels and rising administrative costs [16]. - The company has a family-controlled management structure, which raises governance concerns as it scales and seeks to meet higher regulatory standards post-IPO [16][17]. Industry Outlook - The overall Chinese tea market is projected to grow from approximately RMB 288.9 billion in 2020 to about RMB 407.9 billion by 2029, with a compound annual growth rate (CAGR) of around 4.6% [13]. - The high-end tea market is expected to grow at a faster rate, with a CAGR of approximately 5.6% from 2024 to 2029, indicating a potential opportunity for Eight Horses Tea to expand its market share [13].

Core Viewpoint - Baima Tea Industry has submitted an IPO application to the Hong Kong Stock Exchange, marking a new chapter in its 30-year brand development journey [1] Group 1: Company Overview - Baima Tea Industry is a national chain brand enterprise in the tea sector, focusing on the research, design, standard output, and retail of tea and related products [3] - The company owns well-known tea brands such as "Baima Tea," "Xinjihao," and "Wanshanhong," and holds a significant market position due to its strong brand heritage and extensive sales network [3] - According to a report by Frost & Sullivan, Baima Tea ranks first in the Chinese tea market by the number of chain specialty stores and also leads in the high-end tea market, as well as in the oolong and black tea segments [3] Group 2: Financial Performance - Baima Tea has shown steady growth in recent years, with revenues of 1.818 billion yuan in 2022, 2.122 billion yuan in 2023, and 1.647 billion yuan in the first three quarters of 2024 [4] - The net profits were 166 million yuan in 2022, 206 million yuan in 2023, and 208 million yuan in the first three quarters of 2024, indicating strong resilience and market adaptability despite a slowdown in revenue growth in 2024 [4] - The company operates a "direct + franchise" sales model, with over 3,500 chain specialty stores across mainland China, and a growing number of franchise stores, which reached 3,224 by the end of September 2024 [4] Group 3: IPO Journey - Baima Tea's IPO journey has faced challenges, having previously attempted listings on various platforms including the Shenzhen Stock Exchange and the New Third Board, but withdrew its applications [6] - The current IPO aims to raise funds for expanding production bases, enhancing brand value, broadening product offerings, and improving digital operations [6] - A successful listing on the Hong Kong Stock Exchange would provide Baima Tea with a broader capital platform, reinforcing its leading position in the industry and facilitating national expansion [8]