Recently, Nai Xue's tea (02150. HK) announced its 2023 annual results. According to the report, Naixue's annual revenue of tea was nearly 5.2 billion yuan, a significant increase of 20.3% year-on-year, showing strong market competitiveness.
Tea in Nayuki (02150. In addition to the traditional "freshly made tea" business, which continued to maintain stable growth with revenue of 4.692 billion yuan, its innovative business also made significant progress. Among them, the revenue of "RTD bottled tea" business reached 267 million yuan, achieving growth for three consecutive years, showing consumers' favor for branded bottled tea products. At the same time, the tea retail business represented by "Naixue Tea House" has also made breakthroughs, with revenue exceeding 100 million yuan, doubling its growth and further broadening the market boundaries of Naixue's tea.
It is worth mentioning that Nai Xue's tea has also achieved remarkable results in terms of cost control and profitability. In 2023, the operating profit of Naixue's tea stores will reach about 829 million yuan, a year-on-year increase of 76.3%. By optimizing raw material procurement, human resource allocation, and rent management, Naixue's tea has successfully reduced operating costs and increased profitability.
From the perspective of store operating profit margin, Naixue's tea direct store operating profit margin reached 17.7%, an increase of 5.9 percentage points from 2022. Stores in first-tier and new first-tier cities led the country, with operating margins in Xi'an, Shenzhen and Wuhan all performing well. At the same time, "other cities", mainly in third- and fourth-tier cities, also showed strong consumption vitality, with store operating profit margin reaching 19.6%, providing strong support for Naixue's tea to further expand the market.
In terms of store expansion, Naixue's tea continues to encrypt the tea shop network in first-tier, new first-tier and key second-tier cities, and focuses on developing new markets in middle- and lower-tier cities through franchised stores. In February this year, Nai Xue's tea also issued a new franchise policy, reducing the investment cost of a single store to 580,000 yuan to reduce the financial pressure on franchisees. Up to now, the number of Nayuki's tea stores nationwide has reached about 1,800, and the number of members has exceeded 84 million. In addition, Nai Xue's tea is also actively expanding overseas markets, has opened its first store in Thailand, and plans to continue to increase overseas market expansion efforts in the future.
In the future, Naixue's tea said that it will continue to adhere to the innovation-driven development strategy and continuously launch new products and services that meet the needs of consumers. At the same time, the company will also strengthen brand building and marketing efforts to enhance brand influence and market competitiveness. With the continuous development of the domestic tea market and the continuous upgrading of consumer demand, Naixue's tea is expected to continue to maintain a steady growth trend in the future.