What is the estimated value of Naixue's tea on the market? Nai Xue, which is listed in Hong Kong, has a net profit margin of only 0.2%!

In the evening of New Year's Eve, the new tea drink Nai Xue's tea quickly submitted its prospectus to the Hong Kong Stock Exchange.

Nai Xue announced its listing in Hong Kong with a valuation of 12.9 billion. According to the official prospectus submitted to the Hong Kong Stock Exchange, Naxue Tea is a high-end tea chain in China and a tea brand focusing on "fruit tea + soft European bag". However, Naxue Tea is not satisfied with being a profit-making enterprise, its goal is to become a world enterprise like Starbucks.

At present, Naixue's tea has completed five rounds of financing, as of the C round of financing at the beginning of this year, the tea valuation is close to 2 billion US dollars (about 13 billion yuan).

According to Capital State, the data show that as of the last practical date, Naixue's tea membership system has about 29.2 million registered members. In the nine months ended September 30, 2020, about 49.4% of Naxue's tea orders came from Naixue's tea members, and in some ways, Naixue's tea financial performance was strong.

In 2020, the tea members of Nai Xue went online, and in May of the same year, Nai Xue Tea also launched the online collation function in cooperation with Tencent. Most notably, on October 9 last year, Nai Xue Tea released a report, the report "2020 National Day Mid-Autumn Festival short holiday Nai Xue Tea big data report" shows: Naixue tea 8 days sold more than 3.4 million cups of tea, but also sold more than 1.6 million soft European bags, in the released data. It also shows that the number of tea members of Naxue has increased by nearly one million, and the cumulative number of tea members of Naxue has reached nearly 27 million at that time.

In addition, in stores, as of September 30, 2020, Naixue Tea had 420 + tea stores in 61 cities of Chinese mainland. In the early stages of the National Urban Development Plan, Naixue Tea invested tens of millions of dollars to build its own supply chain. it is reported that the first central factory with an area of more than 10000 square meters has been built, which is relatively rare among the industry.

In spite of this, the new tea drink Nai Xue, which has been active in the rapidly expanding market in recent years, has not made a lot of money.

A number of media reports said: in 2020, the net profit of Naixue's tea company was 4.484 million yuan in 2020, but the overall net profit margin was only 0.2%. In fact, Naixue's profit level is very thin.

The main reason for the weak profit level is that the operating cost at the store level of the company remains high. The main costs include raw material costs, staff costs, rent and related store operating expenses, as well as depreciation costs of fixed assets.

According to the IPO documents, in the first three quarters of 2020, Naixue's operating income reached 2.11 billion yuan and lost 27.51 million yuan, but in the third quarter of 2020, Naixue's tea same-store sales have returned to about 90.9% of the same period in 2019. For 2021, Naixue's tea said: it is expected to return to the positive growth of same-store sales.

Zhu Danpeng, a Chinese food industry analyst, said: the long-term loss of Naixue reflects the hidden dangers brought about by its rapid expansion.

"going public to make money" seems to have become the ultimate dream of many new tea companies. It is worth thinking about whether "listing" can really become one of the effective ways for brands to expand the market.

At present, Nai Xue's tea is growing, so can the soon-to-be-listed Nai Xue tea become a dark horse of the new tea brand?

* Pictures and some data sources: Internet