Chinese Tea Brand Mixue Reportedly Planning Hong Kong IPO

Affected by lately launched rules, Chinese tea-based drinks model Mixue has withdrawn a prospectus submitted to the Shenzhen Stock Exchange in September final yr, and now plans to debut in Hong Kong, native media outlet NEWECOIPO reported on January 9.

Chinese regulatory authorities are anticipated to impose restrictions on the IPOs of companies in industries corresponding to meals and beverage, liquor, pandemic prevention, self-discipline coaching, funerals and interment, non secular affairs, and extra.

The greatest affect of the change of itemizing location for Mixue is its valuation, which, in keeping with its prospectus, is as excessive as 64.8 billion yuan ($9.59 billion). Some buyers stated that contemplating that the longer term progress of Mixue is slowing down and its sustainability is doubtful, it can not help the valuation of greater than 60 billion yuan. In addition, the liquidity of Hong Kong shares has been repeatedly inadequate since final yr, and the valuation of Mixue will drop by not less than 30% to 50%.

According to the prospectus, the working earnings of Mixue has grown quickly from 4.68 billion yuan in 2020 to 10.351 billion yuan in 2021. By the top of March, 2022, there have been 22,276 shops in Mixue. According to statistics from Canyan Data, the variety of shops of Mixue ranked first within the home tea business.

In current years, the model affect and recognition of Mixue have step by step elevated, and its drinks have been repeatedly up to date, which has accelerated the event of the corporate’s enterprise. According to its prospectus, the rise within the variety of shops and the gross sales of a single retailer have change into the principle components for the expansion underpinning the corporate’s earnings.

Mixue has constructed an entire industrial chain of R&D, warehousing and logistics, operation and administration, in addition to three manufacturers, such because the tea chain model Mixue, espresso model “Lucky Cup” and ice cream model “Jilatu.”

SEE ALSO: Chinese Tea Chain Mixue Enters South Korea and Japan

Mixue adopts a median pricing of 6 to eight yuan to draw shoppers and supply a foundation for the sustained and fast enlargement of the corporate’s shops in low-tier cities. Mixue has established an ideal model advertising and marketing matrix, and created two main components which are simply remembered by shoppers – the theme tune of Mixue and the title of “Snow King.”

According to iiMedia Research, the market measurement of China’s freshly made tea has elevated from 29.1 billion yuan in 2016 to 279.6 billion yuan in 2021, with a compound annual progress fee of 57.23%. It is estimated that by 2025, the market measurement will additional broaden to 374.9 billion yuan. In addition, the freshly floor espresso and freshly made ice cream industries have broad improvement house.

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