Today, the new tea drink brand Tea Baidao (02555. HK) was officially listed on the Hong Kong Stock Exchange.
According to "FMCG", the first tea Baidao was born in Chengdu in 2008, and now stores have spread across 31 provinces and cities across the country, and the prospectus shows that as of the latest practicable date, there are 8,016 stores in China. In 2023, the total retail sales of Chabaidao stores will reach approximately RMB16.9 billion, and revenue and net profit have continued to grow in the past three years. In 2023, Chabaidao's annual revenue will be 5.704 billion yuan and its net profit will be 1.151 billion yuan.
As of December 31, 2021, 2022 and 2023 and the latest practicable date, there were 5,070, 6,352, 7,795 and 8,010 franchised stores in the Chabaidao store network, respectively, accounting for more than 99.0% of the total number of Chabaidao stores in operation as of the relevant dates. In 2023, the operating income of franchised stores will account for 99.2% of total revenue. At the same time, Chabaidao also plans to steadily promote the overseas plan, and in January 2024, the first overseas store of Chabaidao will land in Seoul, South Korea.
Although the current business model of tea Baidao relies on franchise to achieve certain success, this business model also implies risks. During this year's 315 period, some media pointed out that the two stores of Chabaidao in Wuhan and Changsha violated the company's regulations and changed the label of the taste period of raw materials without authorization. In addition, the prospectus pointed out that the vast majority of Chabaidao's revenue comes from the sale of goods and equipment to franchisees, as well as royalties and franchise fees collected from franchisees.
On the supply chain side, the brand invested 10 billion yuan to build the tea Baidao intelligent production and processing base and supply chain headquarters project, which will be put into operation in June 2023 and is expected to have an annual output value of 5-1 billion yuan. This year, Tea Baidao established a tea production company in Fuzhou. Its base mainly produces beverage-based tea to supply tea stores, and is expected to be completed and put into operation in April 2024, with an output value of more than 150 million yuan.
Tea Baidao adopted giant panda "Cha Cha"
On the brand side, in 2023, Tea Baidao will release a new brand positioning of "good tea as the base, making fresh". At the same time, the brand launched a new "Ding Ding Cat" image of "a panda drinking tea", and the English name was changed from "ChaBaiDao" to "ChaPanda". He also signed an agreement at the Chengdu Giant Panda Breeding Research Base to adopt an 11-month-old male giant panda for life in the form of donation and adoption, and named it "Chacha".