Core Viewpoint - The article discusses the challenges faced by Hu Shang A Yi, a tea beverage brand, following its IPO, highlighting issues such as stock price decline, unmet expansion goals, and consumer complaints, which affect investor confidence in the company's long-term value [3][9][22]. Company Overview - Hu Shang A Yi was established on November 8, 2013, with a registered capital of approximately 1.05 billion RMB [4]. - The company went public on May 8, 2025, at an issue price of 113.12 HKD, raising 273 million HKD (approximately 35 million USD) [5][6]. IPO and Market Performance - Despite a successful IPO, Hu Shang A Yi's stock price has fallen below its issue price, closing at 107.20 HKD as of October 20, 2025 [3][9]. - The stock initially peaked at 197.60 HKD on its first trading day but quickly declined, indicating a lack of market confidence [8][9]. Expansion Plans - The "Ten Thousand Store Plan" proposed by the founder, aiming for 10,000 stores, remains unfulfilled, with only 9,436 stores reported as of June 30, 2025, falling short by 564 stores [10][11]. - The company opened 905 new franchise stores in the first half of 2025 but closed 645, resulting in a net increase of only 260 stores [10][11]. Financial Performance - For the first half of 2025, Hu Shang A Yi reported revenue of 1.818 billion RMB, a year-on-year increase of 9.7%, and a net profit of 202 million RMB, up 20.9% [10]. - The gross margin remained stable at 31.4%, indicating consistent profitability despite market challenges [10]. Market Challenges - The tea beverage market is experiencing increased competition and price wars, leading to a decline in consumer demand [3][22]. - Hu Shang A Yi's average daily GMV per store has decreased from 4,109 RMB in 2022 to 3,753 RMB in 2024, reflecting declining sales performance [15][17]. Consumer Sentiment - There has been a rise in consumer complaints regarding service quality and product hygiene, with 4,567 complaints recorded as of October 16, 2025 [18][22]. - The company's reliance on franchisees has led to quality control issues, further impacting brand reputation [18][22]. Strategic Recommendations - To address its challenges, Hu Shang A Yi may need to focus on supply chain improvements, product innovation, and aligning its market positioning to better compete in the crowded mid-tier segment [23][22].

Core Viewpoint - The article discusses the recent IPO of "沪上阿姨" (Hushang Auntie) on the Hong Kong Stock Exchange, highlighting its rapid growth, challenges in the competitive new tea beverage market, and the potential risks associated with its business model and market conditions [4][6][21]. Group 1: Company Overview - "沪上阿姨" was founded by a couple, 单卫钧 and 周蓉蓉, and has a product pricing range of 7-22 RMB, focusing on various tea beverages [4][5]. - The company went public on May 8, with a closing price of 158.4 HKD, marking a significant increase and a market capitalization of approximately 16.6 billion HKD [4][6]. - After the IPO, the founders retained 78.78% of the company's shares, with their net worth exceeding 13 billion HKD [5]. Group 2: Financial Performance - The IPO raised 1.95 billion HKD, making "沪上阿姨" the fourth new tea beverage company to go public this year [6]. - The company's gross merchandise volume (GMV) reached 10.7 billion RMB in the previous year, with a year-on-year growth of about 10% and a slight increase in gross margin to 31.3% [15]. - However, the net profit for 2024 is projected to be 329 million RMB, a decrease of approximately 59 million RMB compared to the previous year, and the average GMV per store dropped from 1.6 million RMB in 2023 to 1.4 million RMB [16]. Group 3: Market Challenges - The new tea beverage market is becoming increasingly crowded, with "沪上阿姨" facing challenges in maintaining its growth trajectory [7][20]. - The company has a high reliance on franchise stores, with 99.7% of its over 9,000 stores being franchises, leading to concerns about the quality and profitability of these outlets [22][23]. - The franchise model has shown vulnerabilities, as evidenced by a closure rate of 7.7%, the highest among major brands, and issues related to food safety and hygiene [25][26]. Group 4: Strategic Initiatives - The company plans to use IPO proceeds for digital upgrades, supply chain enhancements, and store expansion to strengthen its brand competitiveness [14]. - "沪上阿姨" aims to penetrate lower-tier cities, where over half of its stores are located, and is focusing on rapid product innovation to capture market share [28][29]. - New product lines and sub-brands, such as "轻享版" and "茶瀑布," are being introduced to target different market segments and price points [32][34].