Mixue and Goodme Simultaneously Submit Applications to Hong Kong Stock Exchange

On January 2, the first trading day of 2024, Guming Holdings Limited submitted its Kapbook to The Stock Exchange of Hong Kong. On the same day, MIXUE Group also sought a listing on the Hong Kong stock market.

According to the Kapbook, in 2023, the GMV of Goodme’s stores exceeded 19.2 billion yuan (approximatly ＄2.7 billion), with a total number of over 9,000 stores. As of the end of September 2023, in the mass-market segment for tea beverages priced between 10 and 20 yuan, Goodme held a market share of approximately 16.4%, ranking first. In the overall price range for freshly made tea beverages, Goodme held a market share of approximately 8.3%, ranking second.

And according to the Kapbook prospectus of MIXUE Group, the store network achieved approximately 30 billion yuan (approximatly ＄4.2 billion) and 37 billion yuan (approximatly ＄5.2 billion) in terminal retail sales for the first nine months of 2022 and 2023 respectively; revenue reached 13.6 billion yuan (approximatly ＄2 billion) and 15.4 billion yuan (approximatly ＄2.2 billion), with year-on-year growth rates of 31.2% and 46% respectively; net profit was 2 billion yuan (approximatly ＄0.3 billion) and 2.5 billion yuan (approximatly ＄0.35 billion), with year-on-year growth rates of 5.3% and 51.1% respectively.

In terms of the number of stores, as of the end of 2023, there are over 9,000 Goodme stores, covering approximately 200 cities in China at various levels. Among them, about 79% of the stores are located in second-tier and lower-tier cities. This proportion is the highest among the top five popular ready-to-drink tea brands.

As of September 30, 2023, Mixue has more than 36,000 global stores, covering China and 11 other countries overseas. It is the first domestic made-to-order beverage company to achieve a scale of 30,000 stores in the industry.

China Insights Consultancy research shows that from 2020 to 2025, the overall retail sales of the tea industry are expected to increase from 410.7 billion to 810.2 billion, with a compound growth rate of 14.6%. Meanwhile, the retail sales of freshly made tea beverages will increase from 113.5 billion to 340 billion, with a compound growth rate of 24.5%, significantly higher than the overall growth rate of the tea industry.

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In June 2021, Nayuki, known as the “number one tea beverage company,” was officially listed on The Stock Exchange of Hong Kong. Over the past two and a half years, Mixue had submitted an A-share prospectus in September 2022 with plans to be listed on the Shenzhen Stock Exchange. In August 2023, Chabaida submitted an application for listing to The Stock Exchange of Hong Kong. The successive submissions by Guming Holdings Limited and MIXUE Group may intensify competition in the new tea beverage industry, and going public has become one of the common considerations for new tea beverage brands.

Chinese food industry analyst Zhu Danpeng once said, “The core of future competition for tea beverage companies lies in the completeness of their supply chain. Products can be replicated, business models can be copied, prices can be imitated, and stores can be cloned. However, the supply chain cannot be replicated overnight. In the future, only leading companies will have the ability to fully layout their supply chains, and the completeness of the entire supply chain will determine a company’s sustainability. Currently, many tea beverage companies are focusing on both upstream development of their supply chains and expanding their store networks downstream. Therefore, after the brand effect, scale effect, and intensification effect of leading companies gradually become prominent, we will see a more pronounced Matthew Effect within this industry.”