Core Viewpoint - The era of foreign capital premium has ended, as evidenced by the significant acquisition of Starbucks China, marking a pivotal shift in the competitive landscape of the coffee market in China [2][4][17]. Group 1: Acquisition Details - The acquisition of Starbucks China by Boyu Capital for a valuation of $13 billion represents the largest merger in the consumer sector in nearly a decade, involving over 30 top investment institutions [5][6]. - The deal was structured with a $4 billion valuation for the joint venture, which includes assets such as stores and a roasting factory, while the brand value is tied to a royalty fee based on annual GMV [10][11]. - The final valuation corresponds to a price-to-earnings ratio of approximately 26 times, indicating that Starbucks China's valuation is comparable to that of Luckin Coffee [10]. Group 2: Strategic Implications - The primary concerns for both buyers and sellers revolve around the price and the strategy to turn around Starbucks China's performance [9]. - Boyu Capital plans to leverage its real estate resources to introduce high-quality properties for Starbucks, while other proposals include expanding the store count to 15,000, with a significant number in county-level cities [11]. - The competitive landscape has shifted, with Boyu Capital recognized as a professional and low-profile private equity firm, actively pursuing acquisitions in a challenging market [14][15]. Group 3: Market Dynamics - Starbucks China has faced increasing competition, particularly from Luckin Coffee, which has aggressively expanded its market presence and pricing strategy [20][41]. - The high-end positioning of Starbucks has become a liability, as it has failed to adapt to changing consumer preferences and the rise of affordable coffee options [38][39]. - The company's internal divisions regarding its high-end strategy have led to operational inefficiencies and a decline in profitability, with operating margins dropping from a peak of 28% to around 12-13% [55]. Group 4: Future Outlook - Following the acquisition, Starbucks aims to expand its store count significantly, with plans to reach 20,000 locations, particularly in smaller cities and emerging regions [71]. - The new leadership is expected to focus on cost reduction, pricing strategies, and a renewed expansion approach to regain market share [71][72]. - The transition to a new operational model post-acquisition will be critical for Starbucks to navigate the evolving competitive landscape in China [71].

Core Insights - Starbucks has announced a strategic partnership with Chinese alternative asset management firm Boyu Capital to establish a joint venture for its retail operations in China, marking the first time in 26 years that Starbucks has relinquished control of its Chinese business [2][6] - Boyu Capital will hold up to 60% of the joint venture, investing approximately $2.4 billion (about 173 billion RMB), while Starbucks retains 40% ownership and continues to own the brand and intellectual property [2][3] - The joint venture aims to expand Starbucks' store count in China from 8,000 to 20,000, with a current valuation of over $13 billion for Starbucks' retail business in China [3][5] Company Strategy - The partnership is seen as a strategic adjustment for Starbucks in response to increasing competition from local brands like Luckin Coffee and CoCo [6][10] - Starbucks' CEO Brian Niccol emphasized the need for a fundamental change in strategy to restore growth, particularly in the face of declining global comparable store sales [4][6] - The collaboration allows Starbucks to gain significant cash flow while still benefiting from future growth in the Chinese market through retained equity and ongoing licensing fees [6][10] Market Performance - Starbucks China reported a revenue of $831.6 million for Q4 of fiscal year 2025, a 6% year-over-year increase, marking four consecutive quarters of growth [5] - For the full fiscal year 2025, Starbucks China achieved a total revenue of $3.105 billion, reflecting a 5% increase, which is higher than the global average growth rate [5] - The joint venture comes at a time when Starbucks is experiencing a divergence in performance between its global and Chinese markets [4][5] Competitive Landscape - The deal attracted interest from over 20 capital firms and business giants, indicating a competitive environment for Starbucks' Chinese operations [7][8] - Boyu Capital's expertise in local market operations is expected to accelerate Starbucks' expansion, particularly in lower-tier cities [8][9] - The historical performance of Boyu Capital, with a net internal rate of return exceeding 25%, positions it as a strong partner for Starbucks in navigating the competitive landscape [9] Historical Context - This partnership is part of a broader trend where foreign brands in China seek local partnerships to enhance market penetration, similar to past collaborations like McDonald's with CITIC and Coca-Cola with COFCO [10] - The establishment of the joint venture signifies a new phase for Starbucks in China, referred to as the "2.0 era," aiming to unlock significant market potential [10]

⑥ 【星巴克以40亿美元出售中国业务60%股权】据外媒，星巴克公司同意以40亿美元将中国业务的控 股权出售给私募股权公司博裕资本，以改善其在中国市场的经营表现。星巴克盘前跌超0.5%。 ① 【三大期指齐跌】道指期货跌0.98%、标普500指数期货跌1.28%、纳指期货跌1.61%。 ② 【科技股普跌】科技股盘前多数走低，Palantir跌近8%，甲骨文、英特尔、AMD跌超2.5%，英伟 达、博通跌近2.5%。 ③ 【中概股普跌】中概股盘前多数下跌，小鹏汽车跌超4%，阿里巴巴、京东、蔚来跌超3%，蔚来、理 想跌约2%，拼多多跌超1.5%。 ④ 【特斯拉跌超2.5%】特斯拉盘前跌超2.5%。消息面上，规模1.9万亿美元的挪威主权财富基金拒绝了 特斯拉CEO埃隆·马斯克提出的1万亿美元薪酬方案，成为首个对该方案做出决定的主要投资者。 ⑤ 【超微电脑跌近3%】人工智能服务器制造商超微电脑盘前跌近3%。消息面上，该公司将于11月4日 （周二）盘后发布2026财年第一季度财报。市场对该公司在这一季度营收的普遍预期为58.3亿美元，较 去年同期下滑1.9%。 ⑦ 【丹尼斯涨近50%，获私有化收购】美国连锁餐厅丹尼斯盘前大涨 ...

Core Insights - Starbucks has entered a strategic partnership with alternative asset management firm Boyu Capital to establish a joint venture for its retail operations in China, marking a significant capital restructuring since its entry into the Chinese market 26 years ago [2][3] - The joint venture will allow Boyu to hold up to 60% equity, while Starbucks retains 40% and continues to own and license its brand and intellectual property [3] - The partnership aims to expand Starbucks' store count in China from approximately 8,000 to 20,000, reflecting a new strategic focus on deepening its market presence [3][6] Retail Business Control - The core of the transaction is the transfer of control over Starbucks' retail business in China to Boyu, which will manage the joint venture [3] - The estimated enterprise value of the retail business is around $4 billion, excluding cash and debt, with Starbucks' retail business in China valued at over $13 billion [3] - The joint venture will be headquartered in Shanghai and will manage Starbucks' existing stores while pursuing aggressive expansion [3][6] Market Competition - The Chinese coffee market is becoming increasingly competitive, with local brands like Luckin Coffee rapidly gaining market share through lower price points and faster expansion [4][7] - Starbucks aims to maintain its high-end brand positioning and avoid price wars that could dilute its brand value, emphasizing the importance of its "third space" experience [4][5] - The partnership with Boyu is seen as crucial for navigating the competitive landscape, particularly in lower-tier cities where local brands are expanding aggressively [6][8] Expansion Strategy - Starbucks has reported steady growth in its Chinese operations, with revenues reaching $3.105 billion in the fiscal year 2025, a 5% year-on-year increase [6] - The company opened 183 new stores in the fourth fiscal quarter and entered 47 new county-level markets, with a total of 415 new stores for the fiscal year [6] - The focus on lower-tier markets is expected to drive future growth, with a projected CAGR of 24.7% for coffee shops in third-tier cities and below from 2023 to 2028 [7][8] Operational Challenges - Starbucks faces challenges in balancing its high-end brand identity with the need to adapt to local market conditions, particularly in terms of operational costs in lower-tier cities [8] - Suggestions for overcoming these challenges include developing smaller, more cost-effective store formats and potentially launching independent brands to capture market share in lower-tier markets [8]

Core Insights - Starbucks has announced a joint venture with Chinese private equity firm Boyu Capital to operate its retail business in mainland China, marking the first time in 26 years that Starbucks has relinquished control of its Chinese operations [1][2] - Boyu Capital will hold up to 60% of the joint venture, while Starbucks retains 40% and continues to own and license its brand and intellectual property [1] - The enterprise value of the transaction is approximately $4 billion, excluding cash and debt, with Starbucks estimating the total value of its retail business in China to exceed $13 billion [2] Company Overview - The newly formed Starbucks China joint venture will be headquartered in Shanghai and will manage around 8,000 stores currently operated by Starbucks in mainland China [2] - Over 60% of Starbucks' stores are located in the U.S. and China, with China being its second-largest and fastest-growing market [3] - Starbucks CEO Brian Niccol emphasized that Boyu's local market expertise will significantly accelerate Starbucks' expansion in China, particularly in smaller cities and emerging regions [3] Investment Background - Boyu Capital, established in 2011, has become one of China's top local private equity firms, focusing on technology innovation, consumer retail, and healthcare [3] - Recent investments by Boyu include leading projects in the consumer and technology sectors, such as Mixue Ice Cream, Haitian Flavoring, and Perfect Diary [3] Financial Performance - For the fiscal year 2025, Starbucks reported revenue of $3.105 billion from the Chinese market, reflecting a 5% year-over-year growth [3] - By the end of fiscal year 2025, Starbucks had 8,011 stores in China, having entered 1,091 county-level markets, with 183 new stores opened in the fourth quarter alone [3]

星巴克预计其中国零售业务的总价值将超过130亿美元，总价值由三部分构成：向博裕投资出让合资企 业控股权益所得、星巴克在合资企业中保留的权益价值，以及未来十年或更长时间内持续支付给星巴克 的授权经营收益。 星巴克咖啡公司董事长兼首席执行官倪睿安（Brian Niccol）认为，博裕投资在本地市场的经验与专 长，将有力加速星巴克在中国市场、特别是中小城市及新兴区域的拓展。中经记者 黎竹 孙吉正 北京报 道 据悉，新成立的合资企业将继续以上海为总部，管理并运营目前遍布中国市场的8000家星巴克门店。秉 持共同的发展愿景，双方将致力于未来将星巴克在中国的门店规模逐步拓展至20000家。 【星巴克中国60%股权售出 新主曾拿下SKP部分股权】11月4日，星巴克咖啡公司宣布与中国领先的另 类资产管理公司博裕投资达成战略合作，双方将成立合资企业，共同运营星巴克在中国市场的零售业 务。 博裕投资曾投资过SHEIN，布局涉及消费零售、科技创新、医疗健康及新能源领域内的企业。4月30 日，北京市市场监督管理局公示信息显示，博裕五期美元基金有限责任公司通过其关联方拟收购北京 SKP部分股权，交易完成后，博裕基金将间接持有北京SKP ...

Exhibit 99.1 Starbucks and Boyu Announce Joint Venture for the Next Chapter of Growth in China Iconic global brand coupled with deep local knowledge and expertise will help grow Starbucks into new cities and regions across China while continuing to deliver a premium customer experience and lead in coffee Seattle, WA - November 3, 2025 - Starbucks Coffee Company (Nasdag: SBUX) today announced it has entered an agreement to form a joint venture with Boyu Capital, a leading alternative investment firm to opera ...

Group 1 - Four major mergers announced in the U.S. on Monday, totaling over $80 billion, led by Kimberly's agreement to acquire troubled Tylenol maker Kenvi for approximately $40 billion, positioning Kimberly as the second-largest health and wellness product seller globally, behind Procter & Gamble [1] - The number of U.S. transactions exceeding $1 billion has reached 57 this year, the highest level recorded since 1970, indicating a recovery in investment banking activities [1] - Starbucks finalized a long-stalled equity deal, selling the majority stake of its China business to private equity firm Boyu Capital for an enterprise value of $4 billion, aiming to restart growth in China [1] Group 2 - Signs of recovery in U.S. energy sector transactions, with SM Energy and Civitas Resources completing an all-stock deal valued at $12.8 billion, and BP selling its U.S. shale asset stake for $1.5 billion to improve its balance sheet [4] - Eni and Malaysia's national oil company reached a binding agreement to merge upstream assets in Indonesia and Malaysia, planning to invest over $15 billion in gas projects over the next five years [4] - Coeur Mining announced a $7 billion acquisition of Northern Dynasty Minerals, reflecting rising investor interest in the North American gold production sector [4] Group 3 - Goldman Sachs solidified its position as a leading M&A advisor, with total transaction volume exceeding $1 trillion this year, expected to reach a historical high [7] - The CEO of Goldman Sachs noted that the current global M&A market environment is favorable for business development in 2026 and 2027, particularly in the U.S. market, with significant integration opportunities emerging [7] - International capital interest in the Chinese market has significantly increased compared to 12 months ago, despite cautious investor sentiment [7]

同时，新成立的合资企业将继续以上海为总部，管理并运营目前遍布中国市场的8000家星巴克门店。秉 持共同的发展愿景，双方将致力于未来将星巴克在中国的门店规模逐步拓展至20000家。据了解，博裕 投资创立于2011年，是一家深耕中国市场、布局全球的另类资产管理公司。公司在香港、北京、上海和 新加坡设有办公室，投资组合超过200家企业。 北京商报讯（记者 张天元）11月4日，星巴克咖啡公司宣布与另类资产管理公司博裕投资达成战略合 作，双方将成立合资企业，共同运营星巴克在中国市场的零售业务。根据协议，博裕将持有合资企业至 多60%股权，星巴克保留40%股权，并将继续作为星巴克品牌与知识产权的所有者和授权方，向新成立 的合资企业进行授权。基于约40亿美元（不计现金与债务）的企业价值，博裕将获得其相应权益。 星巴克预计其中国零售业务的总价值将超过130亿美元，总价值由三部分构成：向博裕出让合资企业控 股权益所得、星巴克在合资企业中保留的权益价值，以及未来十年或更长时间内持续支付给星巴克的授 权经营收益。据介绍，双方将共同提升星巴克在中国市场的顾客体验，加速饮品及数字化创新，拓展新 的城市和区域市场，并通过更深入的本土化融 ...

Core Viewpoint - Starbucks is selling 60% of its shares to Boyu Capital for $4 billion to establish a joint venture aimed at revitalizing its struggling business in China, which has become its second-largest market after the U.S. [2] Group 1: Market Context - Starbucks entered the Chinese market in 1999 and has played a significant role in promoting coffee culture in a country where coffee was not widely popular at the time [2] - Currently, Starbucks operates approximately 7,800 stores in China, making it one of the most successful American consumer brands in the country, alongside Apple [2] Group 2: Challenges Faced - Recent economic slowdown in China has led consumers to prefer local coffee chains like Luckin Coffee, which offer lower prices, causing Starbucks to lose its position to third place in store count [2] - Starbucks has struggled to keep up with changing consumer preferences regarding coffee, which has contributed to difficulties in attracting customers [2] Group 3: Strategic Response - The joint venture will leverage Starbucks' brand licensing and Boyu's local expertise to refresh the brand image and accelerate store openings in smaller, untapped cities to compete against local brands [2]