ChaPanda passes HKEX hearing.
On March 24, Sichuan Baicha ChaPanda Industrial Co., Ltd. (hereinafter referred to as ChaPanda; Chinese: 茶百道) has recently passed the hearing at the Hong Kong Stock Exchange and disclosed the information set after the hearing on March 24, 2024. ChaPanda's successful hearing at the Hong Kong Stock Exchange signifies its position as the "second major player" in the Hong Kong stock market for new tea beverage companies, following in the footsteps of NAIXUE(Chinese:奈雪的茶). It also marks the first new tea beverage enterprise to successfully debut on the Hong Kong Stock Exchange in nearly three years.
In February of this year, ChaPanda updated its prospectus, revealing a revenue increase from CNY 36.44 billion in 2021 to CNY 42.32 billion in 2022, and a further increase to CNY 57.04 billion in 2023, marking a growth of 16.1% and 34.8% respectively. Its annual profit also saw a rise from CNY 7.79 billion in 2021 to CNY 9.65 billion in 2022 and CNY 11.5 billion in 2023, with a compounded annual growth rate of 21.6%, positioning it at the forefront of the current "new tea beverage company IPO wave".
According to a Frost & Sullivan report, based on 2023 retail sales, ChaPanda ranks third in China's freshly brewed tea beverage market, holding a market share of 6.8%. By the end of 2023, ChaPanda had 7,927 stores nationwide, with a total retail sales figure of approximately CNY 16.9 billion in 2023.
Moreover, from 2021 to 2023, ChaPanda's franchise store closure rate remained significantly lower than the industry average, owing to its sustained and stable growth. According to Frost & Sullivan data, the closure rates for ChaPanda's franchise stores were 0.2%, 1.1%, and 2.3% from 2021 to 2023. In comparison, other industry players such as GoodMe(Chinese:古茗) saw closure rates of 3.6%, 5.13%, and 2.94%, while Mixue and Auntea Jenny experienced closure rates of 2.89%, 5.66%, and 2.4%, 7.49% in 2021 and 2022 respectively. This success is attributed to ChaPanda's small store model and stable franchisee system.
Furthermore, due to the immense potential in overseas markets, the expansion of tea beverage businesses abroad has become a common choice for Chinese companies. ChaPanda has also joined this trend. In January 2024, ChaPanda opened its first overseas store in Seoul, South Korea, and plans to launch its third store in April. Potential overseas markets also include Thailand, Vietnam, and Malaysia.
Reflecting on ChaPanda's journey to listing, in June 2023, it secured its first public financing in over a decade, with some speculating that this might be its final round of financing before the IPO. On the evening of August 15 of the same year, the Hong Kong Stock Exchange website revealed ChaPanda's prospectus, outlining its plans for a mainboard listing. On December 21, the China Securities Regulatory Commission disclosed the filing notice for ChaPanda's overseas issuance and the full circulation of its unlisted shares domestically.
Apart from ChaPanda, three other new tea beverage enterprises, GoodMe(Chinese:古茗), Mixue(Chinese:蜜雪冰城), and Auntea Jenny(Chinese:沪上阿姨), have also submitted their prospectuses for HKEX listing and are awaiting their debut. With its successful hearing, ChaPanda will become the first of these four new tea beverage companies to make its debut.