Core Viewpoint - The journey of Baima Tea Industry towards an IPO has been fraught with challenges, leading the company to shift its focus from A-share to Hong Kong stock market for listing opportunities [2][4][5]. Group 1: Company Background and Listing Attempts - Baima Tea Industry began its IPO journey in 2013, completing nearly 150 million yuan in private equity financing and attempting to list on the Shenzhen Stock Exchange, but was unsuccessful [3]. - The company switched to the New Third Board in 2015, successfully listing as the "first stock of Tieguanyin," but withdrew in 2018 due to strategic adjustments [3]. - In 2021, Baima Tea submitted a prospectus to the Shenzhen Stock Exchange's Growth Enterprise Market but withdrew the application in May 2022 after multiple inquiries [3][4]. - In September 2023, Baima Tea submitted an application to withdraw its IPO application for the Shenzhen main board, marking another setback in its listing efforts [3]. Group 2: Market Context and Challenges - The Chinese tea market has seen significant growth, expanding from 214.8 billion yuan in 2016 to 304.9 billion yuan in 2021, yet no tea companies have successfully listed on the A-share market [5]. - The challenges faced by Baima Tea reflect broader issues within the Chinese tea industry, including a lack of standardization and market acceptance for traditional tea companies [8]. - The company has faced operational difficulties, with a reported revenue of 1.063 billion yuan in the first half of 2023, a year-on-year decline of 4.23% [9][10]. Group 3: Financial Performance and Market Position - Baima Tea is a leading player in the Chinese tea market, with 3,501 offline stores projected by January 2025 and ranking first in sales for high-end tea, Oolong tea, and black tea [9]. - The company reported revenues of 1.818 billion yuan, 2.122 billion yuan, and 2.143 billion yuan for 2022, 2023, and 2024 respectively, with net profits of 166 million yuan, 206 million yuan, and 224 million yuan [9]. - Despite its strong market position, Baima Tea's market share remains below 2%, which poses challenges for its capital story [15]. Group 4: Ownership and Governance - Baima Tea is a family-owned business, with the Wang family holding 62.80% of the shares, including key positions held by family members [11][12]. - The company has undergone 25 changes in equity structure, raising concerns about compliance and governance in the eyes of investors [14][15]. - The family connections and strategic partnerships have drawn attention, with some viewing it as a potential advantage in the competitive landscape [13].

Core Viewpoint - The China Chain Store & Franchise Association (CCFA) has released the "2024 Commercial Franchise TOP 300" list, with Baima Tea being the only traditional tea company to enter the top 100, ranking 57th overall, marking its third consecutive year as the leader in the tea industry segment [1][3]. Group 1: Company Achievements - Baima Tea has over 3,500 chain stores nationwide, establishing itself as the first brand in the Chinese tea chain market [1][3]. - The company has maintained its position as the top tea brand in customer satisfaction for two consecutive years, according to the China Customer Satisfaction Index (C-CSI) report [11]. - Baima Tea has achieved significant sales milestones, being the top seller in the categories of red tea, rock tea, and Tieguanyin for multiple years [9]. Group 2: Business Strategy - Since its establishment in 1997, Baima Tea has developed a comprehensive sales system that integrates both direct sales and franchising, as well as online and offline channels [5]. - The company has implemented a rigorous franchisee selection and training system, establishing 11 training bases across eight cities to enhance operational standards [7]. - Baima Tea has embraced digital tools and e-commerce trends, actively engaging in "live streaming + e-commerce" models to ensure sustainable business operations [5]. Group 3: Industry Position - The "2024 Commercial Franchise TOP 300" list includes 25 sub-sectors, providing benchmarks for Chinese brands and indicating a development direction that emphasizes the coexistence of scale and quality [3]. - Baima Tea's innovative "City Reception Hall" concept represents a significant upgrade in the tea space, reflecting the company's commitment to evolving consumer experiences [7]. - The company has established a standardized system across its operations, contributing to the formulation of industry standards in tea production and sales [13].

Core Viewpoint - The article discusses the challenges and potential of Baima Tea Industry's IPO in the context of the traditional tea market in China, highlighting its market leadership but also its historical failures in the A-share market. Industry Overview - The traditional tea beverage market in China has surpassed 350 billion yuan, yet no A-share listed companies exist in this sector [3] - In Hong Kong, only two companies, Tianfu and Lancang Ancient Tea, are listed, but they have struggled with low stock prices [3] Company Performance - Baima Tea Industry ranks first in the high-end tea market, Oolong tea market, and black tea market in China, with its flagship product, Tieguanyin, being the top seller for over ten years [1] - The company has faced three failed attempts to list on the A-share market [2] Challenges in the Industry - The tea industry in China is characterized by a "small, scattered, weak, and chaotic" structure, with over 90% of tea farms operated by smallholders [5] - The lack of mechanization in tea production leads to significant variability in quality and quantity, complicating the establishment of a stable quality control system [7] Governance Issues - Baima Tea's management is described as "family-run," with the controlling Wang family holding 62.8% of shares and deeply involved in core operations [10] - This governance structure raises concerns about related party transactions and financial irregularities, which have hindered the company's previous IPO attempts [10] Future Outlook - Despite the challenges, the ongoing efforts for Baima Tea's IPO represent a broader attempt to modernize the traditional tea industry in China, aiming for standardization, branding, and technological advancement [12]

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]