The development of the new tea industry is in full swing, not only bringing fire to niche fruits such as yellow peel and oil oranges, but also allowing raw material suppliers to develop, and some have begun to sprint for IPOs.
Recently, the raw material juice supplier Tianye Innovation Co., Ltd. (hereinafter referred to as "Tianye Shares") submitted a draft declaration to the Beijing Stock Exchange, which plans to be listed on the Beijing Stock Exchange. This is another attempt by Tianye shares in the capital market, after the company was listed on the New Third Board.
In the past two years, the binding of field shares and new tea brands has gradually deepened. In 2021, the revenue brought by new tea drinking customers accounted for 61.82% of the total revenue of Tianye Shares. Nongfu Shanquan, which was previously the largest customer of Tianye Shares, has also surpassed the tea of Chabaidao and Naixue in 2021.
At the same time, the proportion of raw material juice sales revenue tends to be concentrated, which is also an unavoidable problem of Field Shares. Whether the field shares that sprinted to the main board with the VAM agreement can be successfully listed has attracted much attention.
Deeply bound to new tea brands
Founded in 2007, Tianye Co., Ltd. is mainly engaged in the research and development, production and sales of tropical fruit and vegetable raw material products, including raw fruit juice, quick-frozen fruits and vegetables, fresh fruits and so on. Prior to the submission of the prospectus, Tianye shares had been listed on the New Third Board in 2015, raising nearly 300 million yuan at that time.
In order to seek greater development, in 2016, Tianye Co., Ltd. started the construction of Hubei factory, and launched a series of juice drink products in 2017. On December 31, 2021, Tianye Co., Ltd. submitted the application materials for listing counseling to the Guangxi Regulatory Bureau of the China Securities Regulatory Commission (hereinafter referred to as the "Guangxi Securities Regulatory Bureau" for listing on the main board of the Shenzhen Stock Exchange, and the counseling institution is Guohai Securities Co., Ltd. On January 5, 2022, the Guangxi Securities Regulatory Bureau accepted and completed the counseling filing of Tianye shares, and the company entered the stage of listing counseling.
However, on March 11 this year, Tianye Co., Ltd. issued an announcement that according to its own strategic arrangements, it decided to adjust the listing plan, change from the proposed listing on the main board of the Shenzhen Stock Exchange to the proposed listing on the Beijing Stock Exchange, and submitted an application to change the counseling listing board to the Guangxi Securities Regulatory Bureau through Guohai Securities. On June 7, 2022, Tianye Co., Ltd. received the "Letter of Completion of Acceptance work on the counseling work of Guohai Securities Co., Ltd." issued by the Guangxi Securities Regulatory Bureau, and passed the counseling and acceptance of the Guangxi Securities Regulatory Bureau.
According to the prospectus, Tianye Co., Ltd. achieved revenue of 290 million yuan, 266 million yuan and 459 million yuan in 2019-2021, and net profit of 0.24 billion yuan, 0.21 billion yuan and 0.65 billion yuan in the same period.
With the rapid development of the new tea industry, the performance of Tianye Shares has improved significantly, and it has become a supplier of new tea brands such as Naixue's tea, tea Baidao, And Shanghai Auntie, as well as well-known enterprises such as Nongfu Spring and Coca-Cola.
From the perspective of customers, the largest customer of Tianye Shares in 2019 is Guangdong Nanfenghang Agricultural Investment Co., Ltd., whose operating income contributed was 66.436 million yuan, accounting for 22.88% of the total revenue. Among the top five customers that year, there were 3 "familiar faces" in the beverage field: Nongfu Spring, Coca-Cola, and CoCo Milk Tea. But in 2020, in addition to Nongfu Spring becoming the first largest customer, the other two brands have withdrawn from the top five customers, and Naixue's tea has become the second largest customer of Tianye Shares.
In 2021, The transaction volume of Naixue's tea, tea baidao and tianye shares surpassed that of Nongfu Shanquan and became the top two large customers. Among them, the transaction volume between Tianye shares and Naixue's tea reached 92.06 million yuan. Through its affiliate Shenzhen Pindao Catering Management Co., Ltd., Naixue's tea purchased frozen yellow peel juice, frozen longan juice, Pindao peach juice, frozen freshly squeezed mango puree, quick-frozen mango blocks and other products from Tianye Shares.
Cutting into the new tea market is an important step for Tianye Shares, allowing it to provide raw materials for new tea brands while also receiving investment. At the end of 2021, NaiXue's Tea invested 38.64 million yuan in Tianye Shares, obtaining 4.4% of its shares; At the same time, Aunt Shanghai also invested 3.22 million yuan. On June 24, a reporter from the Beijing News interviewed Nai Xue's tea on issues such as investing in field shares, and as of press time, he had not received a reply.
In addition, Tianye shares also conducted a directional issuance of shares during the reporting period, and there were VAM clauses or other similar agreement arrangements for the capital increase, and if Tianye shares failed to complete the qualified listing before December 31, 2024, the subscription target had the right to request Yao Jiuzhi, one of the actual controllers of Tianye shares, a party to the VAM clause, to repurchase all the remaining shares of Tianye shares held by him as a result of this directional offering.
Wu Xiaopeng, a senior investor, told the Beijing News that under the background of the slowdown in the growth rate of packaged juice drinks, the development of new tea drinks has driven the development of the fruit raw material industry. The rapid growth of Tianye shares and the pursuit of landing on the Beijing Stock Exchange are examples. The development dividend of the new tea industry is still there, but how to maintain innovation, reduce costs, accumulate corporate culture and long-term consumption habits has become a new challenge for the development of the industry.
On June 28, a reporter from the Beijing News sent an interview outline to Tianye Shares, and as of press time, it has not received a reply.
Strong dependence on new tea customers
The listing destination has shifted from the Shenzhen Stock Exchange to the Beijing Stock Exchange, and perhaps Tianye shares have their own considerations. However, from the perspective of its product and revenue composition, Tianye shares have the problem of over-relying on single categories and new tea customers.
According to the prospectus, the main products of Tianye Co., Ltd. are raw juice and quick-frozen fruits and vegetables, of which raw fruit juice is its largest source of income. From 2019 to 2021, the sales revenue and proportion of raw juice of Tianye shares continued to rise, accounting for 44.13% of raw juice in 2019 and 56.11% in 2020, and in 2021, this figure rose to 90.52%.
With the transaction volume with Nongfu Spring from the first place to the third place, the focus of Tianye Shares shifted from food and beverage to the new tea industry. According to the prospectus, Tianye shares' sales to new tea customers in 2019 were 12.193 million yuan, accounting for 4.2% of the total revenue. In 2021, this figure reached 284 million yuan, accounting for 61.82% of the total revenue. The proportion of sales revenue of food and beverage customers decreased from 57.66% in 2019 to 33.49% in 2021.
Tianye shares said in the prospectus that during the reporting period, the company's downstream demand for prepackaged juice drinks grew weakly, and the demand for fresh fruit tea and fruit tea in the new tea industry grew rapidly. In this regard, while consolidating the high-quality customers in the prepackaged beverage industry, the company develops new tea industry customers and optimizes the customer structure; Focus on raw juice products, increase the production capacity of large varieties, develop regional characteristic varieties of products, and optimize product structure.
However, new tea customers are not "talismans" for Tianye Shares, and the frequent food safety problems in recent years are a "hurdle" that cannot be ignored in the new tea industry. Tianye shares said in the prospectus that during the reporting period, the company has not been punished for food safety and product quality problems, but the risk of food safety and product quality cannot be completely isolated, and the company faces the risk of food safety incidents in its own, the same industry and downstream industries, which adversely affect the reputation of the industry and the company's performance.
In addition, Tianye shares are also facing challenges from the market. According to the prospectus of Tianye shares, there are a large number of raw material juice processing enterprises in the mainland, full competition, and a high degree of marketization. Its China Investment Zhonglu is the first A-share listed company in the domestic fruit and vegetable juice industry, and is the largest concentrated apple juice processing and production enterprise in China. Deli Co., Ltd. is the first domestic juice beverage category "A + H" double listed enterprises, the products are mainly concentrated apple juice. The main business of Haisheng Juice is fruit juice processing (industrial sector) and fruit planting (agricultural sector). These companies can bring strong competition to Tianye Shares.
Wu Xiaopeng believes that the fruit raw material industry is close to the upstream, and the new problems faced by new tea drinks have a certain lag in the upward transmission, and the total amount of the industry can still be expected. However, the downward development of the fruit raw material industry to face the changing terminal demand and cost pressure, the upward development to face the cooperation with the plantation and the problem of fruit supply, their own operation to face the buyer management and food safety control, foreign competition to face the fierce competition brought about by low production barriers, this series of problems show that the development stability of the fruit raw material industry has yet to be verified. At present, the Beijing Stock Exchange is only the link of the multi-level capital market, and it will take time for fruit raw material enterprises to obtain high recognition from the mainstream capital market.
New tea drinks promote the emergence of a "wave of listing"
At present, driven by the new tea industry, its related industries have formed a wave of "listing tide", and Tianye shares are only a microcosm of it.
In addition to The tea of Naixue, which has been listed, and the new tea drinking enterprises such as Tea Baidao and Guming, which are rumored to be preparing to be listed, Jiahe Food, Hengxin Life, and Baoli Food related to the new tea drink have all been listed or are in the queue.
In September 2019, Jiahe Food Industry Co., Ltd. ("Jiahe Food") sought an IPO. According to the prospectus of Jiahe Food disclosed by the CSRC, Jiahe Food planned to raise 564 million yuan at that time, mainly for the expansion of production capacity of plant fat powder and freeze-dried coffee, as well as investment in research and development. In April 2021, Jiahe Food officially rang the bell and went public.
Jiahe Food once said in the financial report that the company's plant fat powder has become a highly well-known raw material product in the fields of milk tea and coffee at home and abroad, and the downstream customers not only include well-known food industry enterprises such as Xiangpiaopiao, Unity, Wahaha, Unilever, but also many tea and catering brand customers such as CoCo Duke, 85 °C, Shanghai Auntie, Gu Ming, Yihetang, Michelle Ice City, Tea Baidao, Ruixing and so on.
In addition to raw material suppliers, packagers are also seeking to go public under the impetus of the new tea industry. On May 19, the Shenzhen Stock Exchange's Growth Enterprise Market (GEM) accepted the application materials of Hefei Hengxin Life Technology Co., Ltd. (hereinafter referred to as "Hengxin Life"), with an estimated financing amount of 828 million yuan. Hengxin Life develops, produces and sells paper and plastic dining utensils with raw materials such as base paper, PLA particles and traditional plastic particles.
According to the prospectus of Hengxin Life, it has become a paper and plastic catering utensils provider for Luckin Coffee, Staples, Amazon, Heytea, Starbucks, Yihetang, McDonald's, Dico, Michelle Ice City, Manner Coffee, Burger King, Coco Duke Tea, Gu Ming, DQ and many other well-known enterprises at home and abroad.
In addition, many listed companies have also established deep cooperative relations with the new tea industry. According to the information of the 2021 semi-annual performance briefing meeting of Panda Dairy, the "first share of condensed milk", its Hainan coconut products have established cooperation with guming and Mixue Ice City. According to Wang Jianjun, general manager of The Catering Division of Miaoke Lando, at present, Miaoke Lando has made a layout in the category of tea.
Shen Meng, chief strategist of Guangke Consulting, said that the new tea industry has indeed driven the development of many surrounding industries. The listing status of raw material suppliers depends on their growth and stability, and there is still a possibility of improving processes, reducing costs and increasing revenue space through research and development and innovation in the supply side. Consumer demand for beverages is generally a ceiling, so the competition within the beverage market will become more and more fierce.
Beijing News reporter Wang Ziyang
Editor Zhu Fenglan
Proofread by Zhao Lin
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