Recently, Sichuan Baicha Baidao Industrial Co., Ltd. (hereinafter referred to as "Chabaidao") submitted a listing application to the Hong Kong Stock Exchange.
More and more milk tea brands hit the IPO, in the future, who will fight out of the siege and become the "second stock of new tea drinks"?
It will also make money than Michelle Ice City The net profit margin of Chabaidao exceeds 20%From the financial data, Chabaidao is a milk tea brand that can do business more than Michelle Ice City.
According to the prospectus, from 2020 to 2022, the revenue of Chabaidao will be 1.080 billion yuan, 3.644 billion yuan and 4.232 billion yuan, respectively, with a compound annual growth rate of 97.9%; In the first quarter of this year, revenue increased 53% year-on-year to 1.246 billion yuan. The net profit of Chabaidao was 238 million yuan, 779 million yuan and 965 million yuan respectively, with a compound annual growth rate of 101.3%; As of the first quarter of this year, the net profit reached 285 million yuan, an increase of 50.7% year-on-year.
Source: Prospectus
Compared with the tea of Nai Xue, the "first stock of new tea drinking", the revenue of Chabaidao has been on par. Nai Xue's tea revenue in the past three years was 3.057 billion yuan, 4.797 billion yuan and 4.292 billion yuan, and the revenue of Chabaidao last year reached 4.232 billion yuan. In addition, Chabaido, whose net profit has steadily increased, has also outperformed Nai Xue's tea, which has continued to lose money.
Compared with the "money-making king" Michelle Ice City of new tea drinks, the revenue of Chabaidao can only reach half of that of Michelle Ice City. From 2020 to 2021, Michelle Ice City achieved operating income of 4.68 billion yuan and 10.351 billion yuan, and net profit of 631 million yuan and 1.912 billion yuan respectively.
However, from the perspective of net interest rate, Chabaidao can "kill" Michelle Ice City.
In 2020 and 2021, the net profit margin of Michelle Ice City was 13.5% and 18.5% respectively, and in the same period, the net profit margin of Chabaidao was 21.4% and 22.8%, in addition, in the first quarter of this year, the net profit margin of Chabaidao was 22.9%, stable at the level of more than 20%, far exceeding Michelle Ice City.
Source: Prospectus
Like Michelle Ice City, Chabaido relies on the franchise road. In the prospectus, Cha Bai Dao said, "The franchise model is the key to the rapid growth and success of our business. ”
From 2020 to 2022 and the first quarter of 2023, Chabaidao operated 2,240, 5,070, 6,352 and 6,588 Chabaidao franchised stores, accounting for more than 99.0% of the total number of Chabaidao stores. During the same period, the number of Chabaidao directly operated stores was 2, 7, 9, 9 and 6 respectively.
Source: Prospectus
From the perspective of the three major sources of revenue, Chabaidao mainly relies on the sale of goods and equipment to franchised stores, which accounted for about 95% of the revenue in previous years, and royalties, franchise fee income and other income accounted for only the remaining 5%.
Relying on its nearly 7,000 allied stores, Chabaidao has also won a "first" among many new tea brands.
In 2022, the retail sales of Chabaidao stores will be about 13.3 billion yuan, with a compound annual growth rate of 139.7% from 2020 to 2022. According to Frost & Sullivan, Chabaidao is the fastest growing among the top ten new tea beverage companies in China, with the highest compound annual growth rate of retail sales between 2020 and 2022. In terms of retail sales in 2022, Chabaidao ranked third in China's new tea shop market, with a market share of 6.6%.
In addition, according to Frost & Sullivan, from 2020 to 2022 and the first quarter of 2023, the closure rate of Chabaidao franchised stores was only 0.1%, 0.2%, 1.1% and 0.5%, far lower than the industry average.
The same is to take the franchise route How to achieve high net profit margin?Although the revenue is only half of Michelle Ice City, the net profit margin is not a star and a half higher, how does the high net profit rate of Chabaidao achieve?
From the information disclosed in the prospectus, it can be seen that the cost ratio of Chabaidao's main business is lower than that of Michelle Ice City.
The data disclosed in the prospectus of Michelle Ice City is only up to the first quarter of 2022, taking 2021 as an example, the main business of Michelle Ice City is food ingredients and packaging materials, accounting for 87.08% of the total revenue, and the cost ratio of this business is 67.55%. In 2021, the business of selling goods and equipment to franchised stores accounted for 94.6% of the revenue, with a cost ratio of 67.18%; Among them, the sale of goods to franchised stores refers to the sale of dairy products, tea leaves and fruits and other materials and ingredients for making tea, accounting for 83.6% of the revenue, and the cost ratio is 66.66%, which is 0.89 percentage points lower than Michelle Ice City.
In addition, entities in China are taxed at a statutory income tax rate of 25%. From 2020 to the first quarter of 2023, certain subsidiaries of Chabaidao enjoyed preferential income tax rates in accordance with relevant tax regulations. For example, a number of entities within Chabai Dao are engaged in "encouraged industries in the western region" and enjoy a preferential corporate income tax rate of 15%.
Source: Prospectus
It is worth noting that Chabaidao intends to "get closer" to Michelle Ice City.
The same is to join the route of making money, ninety percent of the sales cost of Chabaidao is given to upstream goods suppliers such as dairy products, juices, packaging materials, etc., in 2022 alone, Chabaidao will give about 980 million yuan to the top five suppliers.
According to the prospectus, from 2020 to 2022 and in the first quarter of this year, the cost of Chabaidao's goods (mainly including materials and ingredients for making tea drinks and packaging materials) was 549 million yuan, 2.032 billion yuan, 2.604 billion yuan and 777 million yuan, respectively, accounting for about 50.8%, 55.8%, 61.5% and 62.3% of the total revenue in the same period, that is, Chabaidao handed over more than half of its revenue to upstream goods suppliers.
Therefore, Chabaidao wants to open up its own upstream supply chain like Michelle Ice City. The first point in the prospectus that Chabaidao specified the purpose of the funds raised was that it "will improve the overall operation capacity and strengthen the supply chain".
In addition, Cha Bai Dao also has its own new plan, selling milk tea is not enough, but also selling coffee. In its prospectus, Chabaidao mentions "promoting self-operated coffee brands and laying a network of coffee shops across China". At the same time, Chabaidao plans to open stores overseas, and will give priority to expanding the Southeast Asian market in the future.
Just completed 970 million financing Why is Chabaido not bad money in a hurry to go on the market?Chabaidao is a mid-end new tea brand from Sichuan, with a mid-range product positioning and a unit price between 8-26 yuan. From the perspective of store distribution cities, Chabaidao has also maintained its "middle section" positioning.
As of the end of the first quarter of this year, 10.7% of Chabaidao's stores were located in first-tier cities, 28.7% were located in new first-tier cities, 21.1% were located in second-tier cities, 19.4% were located in third-tier cities, and 20.0% were located in fourth-tier cities and below.
Chabaidao also foreshadowed future plans in the prospectus: "It has been penetrating and will continue to penetrate into lower-tier cities with huge consumption growth potential." ”
Not only tea hundred ways, but also the sinking market attack, has become the tacit understanding of the current new tea drinking.
Not long ago, the first-line brand Nai Xue's tea began to join, and before that, Heytea had already released its franchise for more than half a year, and the two first-line brands of new tea drinks chose to put down their bodies and accelerate their sinking. But now, brands such as Michelle Ice City, Ancient Tea, Cha Bai Dao, Shuyiyao Xian Cao, and Hey Tea are gathered in one county after another, and the sinking battle of new tea brands is about to break out.
In addition, the "milk tea shop selling coffee" that Chabaidao wants is not new, and has even become a "piling phenomenon". Previously, Guming launched more than ten coffee products; Aunt Hushang launched the coffee sub-brand "Huka Fresh Fruit Coffee"; Michelle Ice City's "lucky coffee" has also been seen everywhere...
Not only that, in addition to Chabaidao and Michelle Ice City opened the road to IPO, new tea brands such as Shanghai Auntie, Gu Ming, and Bawang Chaji were exposed from time to time to prepare for listing.
Source: Prospectus
The track of Chabaido was crowded with peers one after another. In June this year, Chabaidao just announced the completion of a new round of financing of 970 million yuan, why is Chabaidao, which seems to be not bad money, eager to go public at this time?
From the perspective of the number of franchised stores, the speed of opening Chabaidao franchised stores is slowing down, with a year-on-year increase of 126.34% at the end of 2021, and by the end of 2022, the number of Chabaidao franchised stores increased by 25.29% year-on-year. In the context of "10,000 store scale" becoming a new battle for new tea brands, the "growth anxiety" of increasing and decreasing the number of stores, fast and slow growth, almost shrouded in the head of almost every brand.
Obviously, if new tea brands want to get ahead, they need to tell more new stories, and new stories need to be supported by funds. Coffee, supply chain, going overseas, Cha Baidao has a new story he wants to tell, and his eyes are on the Hong Kong stock market.
In the future, who will be the "second stock of new tea drinking" that will kill the siege? The answer will take time.
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