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On April 15, Tea Baidao issued a prospectus and plans to officially list on the Hong Kong Stock Exchange on April 23, which also means that Tea Baidao has become the "second share of new tea drinks" after Nai Xue's tea. In January this year, Tea Baidao, Mixue Bingcheng, Gu Ming, and Shanghai Auntie gathered together to submit their forms on the Hong Kong Stock Exchange, but only Tea Baidao was the fastest to be listed.
According to the prospectus submitted by Chabaidao, the advertising expenses (distribution and sales expenses) of Chabaidao in 2021 were 19.1 million yuan, 60.7 million yuan in 2022, and in 2023, the advertising expenses of Chabaidao increased by 115% to 131 million yuan.
Cha Baidao explained that in 2023, 50.7 million yuan of the greatly increased advertising expenses will be used to increase marketing and brand promotion efforts, 11.5 million yuan will be used to increase the salary of marketing personnel, and the remaining 8.1 million yuan will be used for the maintenance of customer group software and corresponding travel expenses.
At present, there are 2,052 direct employees of Chabaidao, including 169 brand and marketing personnel, accounting for 8.2%.
In terms of market share and revenue, in terms of retail sales, Chabaidao ranked third in the new tea market, behind Mixue Bingcheng and Gu Ming, surpassing Shanghai Auntie and Hey Tea. At the same time, the revenue of Chabaidao increased by 34.8% year-on-year from 4.232 billion yuan in 2022 to 5.704 billion yuan, and the profit for the year increased by 19.3% to 1.15 billion yuan from 965 million yuan in 2022.
*According to the latest data disclosed, Chabaidao already has 8,016 stores across the country
The IPO raised HK$2.586 billion (2.39 billion yuan) was the largest IPO in Hong Kong this year. According to the prospectus, 12% or HK$294.7 million (272 million yuan) of the proceeds will be used for brand building and promotional activities, of which 10.0% will be used for online and offline brand promotion and marketing activities, and 2% will be used for marketing activities in the process of store network expansion.
At the end of last year, the trial operation of Cha Bai Dao Coffee's sub-brand "Coffee Ash" was also mentioned in the prospectus, and Tea Baidao plans to use 5.0% or 122.8 million Hong Kong dollars (113 million yuan) to promote "coffee ash" and lay out a network of coffee shops across the country.
At present, the main strategy of Chabaidao in the future is to maintain the mid-range pricing range and increase the shaping of the brand image, especially the new logo in April last year, highlighting its brand IP - the image of the blue panda.
By the way: Do you know what the name of the panda is called?
Originally known as Ding Ding Mao, it has now been renamed Chacha.
The rest of the overseas store expansion and supply chain improvement are also the basic operations of the listing application of each new tea drink brand, we will not expand here, I believe readers can see a more detailed analysis from other channels.
Finally, we share a very interesting point in the tea Baidao prospectus.
Before the IPO, the remuneration of key executives of Chabaidao had declined. In 2023, Chairman Wang Xiaokun's total salary will be 3.332 million yuan, a salary reduction of 1.042 million yuan compared with 2022, while President Wang Hongxue's salary will be reduced from 1.614 million yuan in 2022 to 1.179 million yuan, and Vice President Dali will reduce his salary by 753,000 yuan, compared with 1.069 million yuan last year.
However, one of the risk factors in the prospectus reads that "we may be required to pay the unpaid social insurance and housing provident fund payments, and pay the late fees and fines imposed by the relevant government departments", which specifically states that Chabaidao did not pay the social insurance and housing provident fund in full for some employees in accordance with the relevant laws and regulations of the People's Republic of China, and at the same time hired a third-party human resources agency to pay social insurance and housing provident fund for a small number of employees.