As the first Chinese “new-style tea” company to go public, it still need some time to way up
Chinese bubble tea chain Nayuki's Tea (2150:HK) released on August 31 its unaudited consolidated interim results for the first half of 2022. The tea maker recorded a store-level operating profit of CNY 195.6 million, representing a decrease of 49.2% compared to the same period in 2021.
It's revenue also decreased by 3.8% from CNY 2,125.9 billion for the six months ended June 30, 2021 to CNY 2,044.9 million for the same period in 2022, and the adjusted net profit turned from a profit of CNY 48.2 million to a loss of CNY 249.0 million for the same period in 2022.
The company attributed the drop to the continuous impact of the COVID-19 pandemic, especially in those high-tier cities where Nayuki teahouses are densely located.
The store-level operating profit margin of Nayuki teahouses was 10.4% in the first half of 2022, representing a decrease of 8.8 percentage points compared to the same period in 2021.
In terms of membership, as of June 30, 2022, the tea house had registered members of approximately 49.0 million, representing an increase in registered members of 5.7 million compared to December 31, 2021. The number of active members amounted to approximately 7.2 million, with a repurchase rate of approximately 33.6%, representing an increase of 3.3 percentage points compared to the same period last year.
Founded in 2015, this fashionable tea brand focuses on tea and soft European-style bread products, targeting the young generation of consumers aged 20 to 35. It is also worth mentioning that on July 2, 2019, Nayuki’s Tea was selected as Top ten Chinese Tea brands.
The shenzhen-headquartered company aims to modernize China’s long-lived tea-drinking culture and promote it to more customers by offering freshly-made tea drinks and baked products coupled with enjoyable customer experience. Moreover, in order to cater to customers' diversified demands, it has launched various retail products such as bottled fruit tea, sparkling water and snacks.
In China’s on-demand tea industry, Nayuki can be considered as one of the largest companies. However, competition is fierce amid the existence of domestic rivals such as LELECHA (Chinese: 乐乐茶), HeyTea (Chinese: 喜茶) and Modern Chinese Tea Shop (Chinese: 茶颜悦色).
As of press time, Nayuki's tea closed at HKD 6.05 apiece, with a market cap of HKD 10.38 billion.