Auntea Jenny Races Towards IPO

Auntea Jenny, the fourth-largest fresh tea beverage chain in China, submitted its listing application to the Hong Kong Stock Exchange on February 14. The prospectus unveiled the company's operations as a network of fresh tea beverage stores and its significant presence in lower-tier markets.

With a strategic focus on lower-tier cities, Auntea Jenny aims to tap into the largest and fastest-growing segment of the fresh tea beverage market in China, projected to thrive from 2022 to 2027. The company has accumulated rich experience in store operations, personnel management, and consumer preferences in China's lower-tier markets, enabling its franchisees to efficiently penetrate these regions.

As of September 30, 2023, Auntea Jenny's store count had increased to 7,297, covering over 300 cities in China. Notably, approximately 49% of its stores are located in lower-tier cities, positioning Auntea Jenny as a market leader in the mid-priced fresh tea beverage segment in these regions.

Regarding the operation performance, Auntea Jenny has achieved robust growth in Gross Merchandise Volume (GMV). Its GMV surged from CNY 4.16 billion in 2021 to CNY 6.068 billion in 2022, a 45.8% increase. In the first three quarters of 2023, GMV rose further to CNY 7.183 billion.

In terms of financial performance, Auntea Jenny reported revenue of CNY 2.199 billion in 2022, representing a year-on-year growth of 34.0%. Its net profit reached CNY 149 million, a substantial increase of 79.2%. For the first three quarters of 2023, revenue climbed to CNY 2.535 billion, a 54.1% YoY growth, while net profit soared to CNY 324 million, marking an impressive 188.7% YoY increase.

Notably, in February 2024, Auntea Jenny completed its Series C financing through capital injection. New investors subscribed to an additional registered capital of CNY 12 million at a total consideration of CNY 120 million. As a result, the company's registered capital increased to CNY 102 million.

Auntea Jenny becomes the fourth tea beverage company to file for an IPO on the HKEX. In mid-2023, several Chinese new style tea beverage brands, including Auntea Jenny, ChaPanda, GoodMe, CHAGEE, and XINSHIQI, were reported to be preparing for Hong Kong or US IPOs, indicating an imminent wave of listings in 2024.

These companies' decision to go public is driven by their need to advance to the next stage of development. The disclosed "thousands of store plans" in their previous financing and IPO prospectuses highlight the urgency to enter the secondary market to secure funding, gain influence, and continue expansion in the next phase.