Core Viewpoint - Baima Tea Co., Ltd. has submitted an application for listing on the Hong Kong Stock Exchange, with Huatai International, Agricultural Bank of China International, and Tianfeng International as joint sponsors [1] Company Overview - Baima Tea is a leader in the high-end tea market in China, ranking first in sales volume in the high-end Chinese tea sector for 2024 and recognized as the most well-known tea brand in China [3] - The company operates a comprehensive product range covering six major tea categories, including Oolong, black, red, green, white, and yellow teas, as well as tea-related products [6] Market Position - As of 2024, Baima Tea holds the largest number of tea chain stores in China and ranks first in sales revenue in the high-end tea market, Oolong tea, and black tea markets [3][4] - The company's market share in the high-end tea market increased from approximately 1.1% in 2020 to about 1.7% in 2024 [4] Industry Growth - The overall Chinese tea market is projected to grow from approximately 288.9 billion RMB in 2020 to about 325.8 billion RMB in 2024, with a compound annual growth rate (CAGR) of around 3.0% [3] - The high-end tea market is expected to grow from approximately 89 billion RMB in 2020 to about 103.1 billion RMB in 2024, with a CAGR of approximately 3.7% [4] Sales Channels - The high-end tea market heavily relies on offline customer experiences, with offline sales expected to increase from approximately 83.8 billion RMB in 2020 to about 97.5 billion RMB in 2024, reflecting a CAGR of around 3.9% [9] - The offline high-end tea segment is projected to reach approximately 128.7 billion RMB by 2029, with a CAGR of about 5.7% from 2024 to 2029 [9] Production and Technology - Baima Tea has established two tea processing bases in China, with advanced automated production lines, including a seventh-generation intelligent production line in Wuyishan [9] - The company has a strong focus on brand value, product development, and supply chain management, contributing to its leading market position [5] IPO Fund Utilization - The funds raised from the IPO will be used for expanding production bases, enhancing brand value, expanding the product portfolio, and increasing the number of offline stores [10]

Core Viewpoint - Baima Tea Co., Ltd. has submitted a new prospectus for listing on the Hong Kong Stock Exchange after previous attempts to list on the Shenzhen Stock Exchange were unsuccessful [1][3]. Company Overview - Baima Tea was established in July 1997, originally as Shenzhen Xiyuan Tea Co., Ltd., with an initial registered capital of 500,000 RMB [3]. - The company has undergone several name changes and capital increases, becoming Shenzhen Baima Tea Chain Co., Ltd. in 2008 [4]. - As of the latest data, the controlling shareholders hold a combined voting power of 55.90%, with Wang Wenbin as the chairman [5]. Market Position - Baima Tea is recognized as a leader in China's high-end tea market, ranking first in terms of the number of tea chain stores and sales revenue as of December 31, 2024 [5]. - The overall Chinese tea market is projected 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 about 3.0% [6]. - The high-end tea market is expected to increase from around 89 billion RMB in 2020 to approximately 103.1 billion RMB by 2024, with a CAGR of about 3.7% [6]. Financial Performance - Baima Tea's revenue for 2022, 2023, and 2024 is reported at approximately 1.82 billion RMB, 2.12 billion RMB, and 2.14 billion RMB, respectively, with net profits of about 166 million RMB, 206 million RMB, and 224 million RMB [6][7]. - In the first half of 2025, the company reported revenue of approximately 1.06 billion RMB, a decrease of 4.2% compared to the same period in 2024 [8]. Store Expansion - The number of Baima Tea's offline stores has increased from 2,613 in January 2022 to 3,585 by June 2025, with franchise stores growing from 2,203 to 3,341 in the same period [8]. Production Facilities - Baima Tea operates two tea processing bases located in Anxi and Wuyishan, focusing on different types of tea production [9].

Company Overview - Baima Tea has submitted a listing application to the Hong Kong Stock Exchange, with Huatai International, Agricultural Bank of China International, and Tianfeng International as joint sponsors [1] - The company is a leader in the high-end tea market in China, projected to be the top seller in the high-end Chinese tea sector in 2024 [1] - As of June 30, 2025, Baima Tea has a total of 3,585 retail stores across the country [1] Market Insights - The overall Chinese tea market is expected to reach approximately 325.8 billion RMB in 2024, with a forecasted growth to 407.9 billion RMB by 2029, reflecting a compound annual growth rate (CAGR) of about 4.6% [1] - The high-end tea market in China is experiencing stronger growth, with an estimated market size of around 103.1 billion RMB in 2024, projected to increase to 135.3 billion RMB by 2029, indicating a CAGR of approximately 5.6% [1] Market Position - Baima Tea's market share in the high-end tea segment has increased from 1.1% in 2020 to 1.7% in 2024 [1]

Core Viewpoint - Baima Tea Industry Co., Ltd. has submitted an application to list on the Hong Kong Stock Exchange, with Huatai International, Agricultural Bank of China International, and Tianfeng International as joint sponsors [1][3]. Company Overview - Baima Tea is a leader in the high-end tea market in China, projected to be the top seller in the high-end Chinese tea sector in 2024 and recognized as the most well-known tea brand in China [3]. - The company ranks first among Chinese tea suppliers in terms of the number of tea chain specialty stores as of December 31, 2024, and leads in sales revenue in the high-end tea market, as well as in the Oolong and black tea markets [3]. Market Growth - The overall Chinese tea market is expected to grow from approximately RMB 288.9 billion in 2020 to about RMB 325.8 billion in 2024, with a compound annual growth rate (CAGR) of around 3.0%, and projected to reach approximately RMB 407.9 billion by 2029, with a CAGR of about 4.6% from 2024 to 2029 [4]. - The high-end tea market in China is growing faster than the overall tea market, with its size increasing from approximately RMB 89 billion in 2020 to about RMB 103.1 billion in 2024, reflecting a CAGR of approximately 3.7%, and expected to reach around RMB 135.3 billion by 2029, with a CAGR of about 5.6% from 2024 to 2029 [4]. Company Performance - The number of Baima Tea's offline stores (including direct-operated and franchised stores) is projected to increase from 2,613 as of January 1, 2022, to 3,585 by June 30, 2025, with franchised stores rising from 2,203 to 3,341 during the same period [6]. - Financial performance shows revenue for the fiscal years ending December 31 for 2022, 2023, and 2024, and for the six months ending June 30, 2025, as follows: approximately RMB 1.82 billion, RMB 2.12 billion, RMB 2.14 billion, and RMB 1.06 billion respectively [6][7]. - The net profit for the same periods is approximately RMB 166 million, RMB 206 million, RMB 224 million, and RMB 120 million respectively [7].

Core Viewpoint - Baima Tea Co., Ltd. has submitted its application to list on the Hong Kong Stock Exchange, with Huatai International, Agricultural Bank of China International, and Tianfeng International as joint sponsors [1] Company Overview - Baima Tea is a leader in China's high-end tea market, projected to be the top seller in the high-end Chinese tea sector in 2024 and recognized as the most well-known tea brand in China [3] - The company ranks first among Chinese tea suppliers in terms of the number of tea chain specialty stores as of December 31, 2024, and leads in sales revenue in the high-end tea market, as well as in the oolong and black tea segments [3] - Baima Tea has maintained the highest sales of Tieguanyin tea for over 10 years, Wuyi Rock tea for five years, and black tea for four years [3] - According to the 2024 China Customer Satisfaction Index report by Chnbrand, the "Baima" brand ranks first in brand awareness among Chinese chain tea brands [3] Market Analysis - The overall scale of the Chinese tea market is expected to grow from approximately RMB 288.9 billion in 2020 to about RMB 325.8 billion in 2024, with a compound annual growth rate (CAGR) of approximately 3.0%, and projected to reach around RMB 407.9 billion by 2029, with a CAGR of about 4.6% from 2024 to 2029 [4] - The high-end tea market in China is growing faster than the overall tea market, with its size increasing from approximately RMB 89 billion in 2020 to about RMB 103.1 billion in 2024, reflecting a CAGR of approximately 3.7%, and expected to reach around RMB 135.3 billion by 2029, with a CAGR of about 5.6% from 2024 to 2029 [4] - The market share of the top five companies in the high-end tea market has increased from approximately 5.5% in 2020 to about 5.6% in 2024, with Baima Tea's market share rising from approximately 1.1% to about 1.7% during the same period [4] Financial Performance - The number of Baima Tea's offline stores (including direct-operated and franchised stores) is projected to grow from 2,613 as of January 1, 2022, to 3,585 by June 30, 2025, with franchised stores increasing from 2,203 to 3,341 [6] - The company's revenue for the fiscal years ending December 31 for 2022, 2023, and 2024, as well as for the six months ending June 30, 2025, is reported as approximately RMB 1.82 billion, RMB 2.12 billion, RMB 2.14 billion, and RMB 1.06 billion respectively [6][7] - The net profit for the same periods is approximately RMB 166 million, RMB 206 million, RMB 224 million, and RMB 120 million respectively [7] - The average inventory turnover days for the years ending December 31, 2022, 2023, and 2024, as well as for the six months ending June 30, 2025, are reported as 166 days, 158 days, 166 days, and 168 days respectively [6]

Core Viewpoint - Baima Tea Industry Co., Ltd. is attempting to list on the Hong Kong Stock Exchange after several unsuccessful attempts in the A-share market, facing challenges in maintaining growth and profitability amid a high-cost marketing strategy [1][2]. Company Overview - Baima Tea has submitted its prospectus to the Hong Kong Stock Exchange on January 17, seeking a main board listing, with Huatai International, Agricultural Bank of China International, and Tianfeng International as joint sponsors [1]. - The company has a history of failed listings, including attempts in 2013, 2015, 2021, and 2022, with various regulatory hurdles and market conditions impacting its progress [1]. Business Model and Expansion - Baima Tea operates a franchise model, selling directly to consumers through franchise stores rather than through distributors, with 3,370 stores as of 2023, the highest among Chinese tea companies [3]. - The number of stores has been growing at an average rate of around 25% from 2019 to 2021, with a significant increase in franchise stores, which accounted for 92.2% of total stores by 2024 [3][5]. Financial Performance - From 2019 to 2023, total revenue grew from 1.023 billion yuan to 2.122 billion yuan, with a compound annual growth rate (CAGR) of approximately 20%, while net profit increased from 90.88 million yuan to 206 million yuan, with a CAGR of about 19.8% [5]. - In the first nine months of 2024, total revenue and net profit were 1.647 billion yuan and 208 million yuan, respectively, showing minimal growth compared to the same period in 2023 [5][6]. Consumer Behavior and Market Challenges - The average purchase frequency for Baima Tea's customers is low, with 80% of members buying only 1-2 times a year, limiting sales growth potential [6]. - The company's franchise model has shown diminishing returns, with average monthly sales per franchise store dropping to a historical low of 28,200 yuan in 2024 [6]. Product Strategy and Market Position - Baima Tea focuses on high-end tea products, with premium items priced significantly higher than average market rates, contributing to over 81% of total revenue from 2022 to 2024 [8][10]. - The company holds a 1.7% market share in the high-end tea market, which is projected to reach 140.4 billion yuan by 2028, growing at a CAGR of 6% [10]. Supply Chain and Quality Control - A significant portion of Baima Tea's products is sourced from third-party manufacturers, raising concerns about product quality and consistency [11]. - The company has faced consumer complaints regarding product quality, with a low response and resolution rate for complaints [11]. Investment and Valuation - Baima Tea has attracted external investors, with a valuation increase from 7.28 billion yuan in 2012 to approximately 2.299 billion yuan before the current listing attempt, indicating a modest growth of only 2 billion yuan over four years [15][16]. - The company’s valuation is significantly lower compared to competitors, with concerns about potential undervaluation in the current market environment [16].

Core Viewpoint - After three unsuccessful attempts to list on A-shares, the company has shifted its focus to the Hong Kong Stock Exchange, submitting its prospectus on January 17, 2023, marking a new phase in its listing process [3][4]. Industry Positioning - Established in 1997, the company primarily engages in the planting, processing, and sales of tea, covering various types including Oolong, black, and green tea [5]. - The company maintains a high-end Chinese tea brand positioning, leveraging traditional craftsmanship and modern techniques as its core competitive advantage [6]. - The company has faced challenges in defining its industry positioning, which has contributed to its previous listing failures [7]. Financial Performance - The company is a leader in the high-end tea market in China, with sales revenue ranking first in the high-end tea, Oolong tea, and black tea markets as of 2023 [4][16]. - Despite a growing revenue trend, the company's growth rate has begun to slow, with revenues of 18.18 billion, 21.22 billion, and 16.47 billion for the years 2022, 2023, and the first three quarters of 2024, respectively [16]. - The revenue structure shows that tea product sales accounted for 86.5%, 88.7%, and 88.1% of total revenue for the years 2022, 2023, and the first three quarters of 2024 [9][10]. Challenges and Risks - The company faces significant challenges in quality control due to its reliance on franchisees, which has led to negative publicity regarding product quality [17]. - The competitive landscape is intense, with traditional brands and emerging players capturing significant market share, posing a threat to the company's market penetration, especially in northern markets [18]. - The company has received multiple administrative penalties, raising concerns about compliance and potential obstacles to its listing [17][18].