Lei Jianping on December 22
Pu'er Lancang Ancient Tea Co., Ltd. (hereinafter referred to as "Lancang Ancient Tea", stock code: "6911") was listed on the Hong Kong Stock Exchange today, becoming the "first Pu'er Tea Stock" in Hong Kong.
The issue price of Lancang Ancient Tea is HK$10.7, which is at the low end of the issuance range of HK$10.4 to HK$14.16. Lancang Ancient Tea offered 21 million shares for a total of HK$230 million, with a net proceeds of HK$160 million after deducting listing fees payable.
The cornerstone investors of Lancang Ancient Tea include Lancang Green Resources, Harvest Fund, and local state-owned equity investment platforms, with a total subscription of HK$116 million.
Lancang Ancient Tea opened at HK$10.7, the same as the issue price, but it quickly broke, and so far, the company's share price is down 6.73%, and the company's market capitalization is HK$838 million.
Today, the Hong Kong Stock Exchange is quite lively. In addition to Lancang Ancient Tea, there are also three listed companies: HighTide Pharmaceutical, Oceanwide International, and Jihai Resources, that is, the four companies sounded the gong for listing at the same time.
Revenue in the first half of the year was 232 million, and net profit fell 22%
During the Track Record Period, Lancang Ancient Tea largely relied on its core brand Lancang Ancient Tea to market Lancang Ancient Tea's tea products, operating two product lines under the brand, namely: (1) 1966 – Classic Product Line, which focuses on Pu'er tea products and targets Pu'er tea lovers and veteran tea lovers, and (2) Tea Mama – Lancang Ancient Tea's healthy and fashionable product line, with a product portfolio targeting a wider consumer group.
In July 2022, Lancang Ancient Tea launched a new product line, Rock Cold, aimed at new middle-class consumers.
As of the Latest Practicable Date, Lancang Ancient Tea had 557 offline stores, of which 23 were self-operated stores and 534 were dealer-operated stores. As of the first half of 2023, about 70% of distributors have joined Lancang Ancient Tea's sales network for more than three years.
As of the first half of 2023, 10.3% of Lancang Ancient Tea's revenue comes from sales through its own online stores.
According to the prospectus, Lancang Ancient Tea's revenue in 2020, 2021 and 2022 will be 405 million yuan, 559 million yuan and 463 million yuan respectively, gross profit will be 285 million yuan, 368 million yuan and 305 million yuan respectively, and the profit during the period will be 123 million yuan, 130 million yuan and 70.49 million yuan respectively.
Lancang Ancient Tea's revenue in the first half of 2023 was 232 million yuan, compared with 229 million yuan in the same period last year, and the profit for the period was 23.57 million yuan, down 22% from the profit of 30.36 million yuan in the same period last year.
Du Chunyi and Wang Juan have 47.96% of the voting rights
The executive directors of Lancang Ancient Tea are Ms. Du Chunyi, Ms. Wang Juan, Zhang Muheng, Ms. Shi Yijing, Fu Gang and Liu Jiajie, and the independent non-executive Directors are Ms. Cao Wei, Dr. Xie Xiaoyao and Tang Zhangliang, respectively.
Ms. Du Chunyi is the founder, executive director, chairman of the board of directors and a member of the controlling shareholder group of Lancang Ancient Tea. Ms. Wang Juan is the general manager and a member of the controlling shareholder group.
Prior to the IPO, Ms. Du Chunyi and Ms. Wang Juan were entitled to control 47.96% of the voting rights exercised at the Company's general meeting as a result of their concerted action arrangement.
This includes 18.07% directly beneficially owned by Ms. Du Chunyi, 2.66% and 6.12% beneficially owned by Shi Yue (Ms. Du Chunyi's husband) and Ms. Shi Ailing (Ms. Du Chunyi's daughter) respectively, 13.22% directly beneficially owned by Ms. Wang Juan, and 7.89% beneficially owned by Guangzhou Tiansu controlled by Ms. Wang Juan as its controlling shareholder.
After the listing, Du Chunyi directly holds 13.55% of the shares, Ms. Shi Yue and Ms. Shi Ailing (Ms. Du Chunyi's daughter) hold 2% and 4.59% respectively, Ms. Wang Juan directly beneficially owns 9.92%, and Ms. Wang Juan is the controlling shareholder of Guangzhou Tiansu beneficially owned 5.91%.
Harvest Fund holds 2.61% of the shares, Xingri Investment Co., Ltd. holds 1.11%, Wang Chunyu holds 2.23%, Lancang Green Resources Investment Co., Ltd. holds 4.35% of the shares, and China Seaview Group Co., Ltd. holds 2.61% of the shares.
The listing of the Eight Horse Tea Industry has repeatedly hit a wall
Prior to this, the IPO of the same Eight Horse Tea Industry was terminated again, and the Eight Horse Tea Industry originally planned to raise 1.008 billion yuan.
The last time Bama Tea Industry submitted a prospectus to raise 683 million, but its listing was terminated in May 2022. This means that the two IPOs of Bama Tea Industry have failed.
Many people may not know about the Eight Horse Tea Industry, but the in-laws of the actual controller of the Eight Horse Tea Industry are very powerful.
According to the prospectus, Wang Wenbin, the controlling shareholder and actual controller of Bama Tea Industry, and Wang Jiajia, the daughter of Chen Yajing, whose husband is Colliers, controls Colliers Group Holdings Co., Ltd. and its affiliates. In August 2020, Gao Li's father, Gao Shijun, was on the Hurun Wealth List with a net worth of 6.5 billion.
Wang Wenbin, Chen Yajing's other daughter Wang Jialin, her husband is Zhou Shiyuan, and Zhou Shiyuan's father Zhou Yongwei is the founder of Seven Wolves Men's Wear, with personal assets of 2.8 billion.
Wang Wenbin's son Wang Kunheng's father-in-law is Ding Shizhong, Ding Shizhong is the actual controller of the footwear and clothing brand Anta, and in the Hurun Report list in August 2020, Ding Shizhong's net worth reached 44.5 billion yuan.
Wang Wenbin and his wife's three in-laws have a combined net worth of more than 50 billion yuan. It can be said that the three children of Wang Wenbin and Chen Yajing are all married by wealthy families. Eight Horse Tea Industry, Anta, Seven Wolves, Xtep International, and Jiumu Group are also the top of Quanzhou's wealthy circle, and they are keen on marriage internally.
Bama Tea Industry is a national chain brand enterprise of all tea categories, mainly engaged in the research and development and design, standard output and brand retail business of tea and related products, and its products cover all categories of tea such as oolong tea, black tea, black tea, green tea, white tea, yellow tea, reprocessed tea, tea utensils, tea food and other related products.
According to the prospectus, the revenue of Bama Tea Industry in 2019, 2020 and 2021 will be 1.023 billion yuan, 1.266 billion yuan and 1.744 billion yuan respectively, and the net profit will be 90.876 million yuan, 116 million yuan and 162 million yuan respectively.
In 2019, 2020, and 2021, the dividends of Bama Tea Industry will be 15.2 million yuan, 26.6 million yuan, and 22.8 million yuan respectively.
In the first nine months of 2022, the revenue of Bama Tea Industry was 1.4 billion yuan, the net profit was 140 million yuan, and the net profit after deducting non-profits was 137 million yuan.
Wang Wenbin, Wang Wenli, Wang Wenchao, Chen Yajing, and Wu Xiaoning are the actual controllers of the company. Wang Wenbin, Wang Wenli, and Wang Wenchao are brothers, Chen Yajing is Wang Wenbin's spouse, and Wu Xiaoning is Wang Wenli's spouse.
Before the IPO, the five held a total of 62.8% of the company's shares. Among them, Wang Wenbin directly holds 25.38%, Wang Wenli directly holds 22.32%, Wang Wenchao directly holds 2.3%, Chen Yajing directly holds 7.56%, and Wu Xiaoning holds 5.24%.
Wang Wenchao is currently unmarried. Wang Wenchao's ex-wife is Jiang Nina, who now holds 2.81% of the shares.
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