ChaPanda Aims to Be China's Second-Largest Listed Tea Company with Coffee Expansion
ChaPanda, a leading Chinese tea brand, is set to become the next major player to go public, aiming to be China's second-largest listed tea company. The company plans to use its IPO funds to launch a self-operated coffee brand and establish a network of coffee shops across China.
ChaPanda's revenue has surged significantly in recent years. In 2022, the company reported revenue of RMB 42.3 billion (USD 5.96 billion), a massive increase from RMB 10.8 billion (USD 1.52 billion) in 2020. This growth is largely attributed to the company's franchise model, which accounts for around 95% of its total revenue. ChaPanda's net profit in 2022 was RMB 9.65 billion (USD 1.36 billion), with a net profit margin of 22.8%.
ChaPanda's retail sales reached approximately RMB 13.3 billion (USD 1.87 billion) in 2022, growing at a compound annual growth rate (CAGR) of 139.7% from 2020 to 2022. Similarly, the company's net profit grew at a CAGR of 101.3% during the same period. As of August 8, 2023, ChaPanda has over 7,000 stores nationwide, demonstrating the success of its franchise model.
ChaPanda's IPO plans come amidst a wave of listings in the Chinese tea industry. Mixue Bingcheng previously attempted an IPO, and other brands like Goodme, Auntea Jenny, Chagee, Xinshiqi, and Tianlala are rumored to be considering their own listings. If ChaPanda's IPO is successful, its co-founders, Wang Xiaokun and Liu Weihong, could join the billion-dollar wealthy club.
ChaPanda's IPO is expected to raise significant funds, enabling the company to expand into the coffee market. With its impressive growth and strong financial performance, the company is well-positioned to become China's second-largest listed tea company. The success of ChaPanda's IPO could also pave the way for other Chinese tea brands to go public.
