HK Stock Market Move | GUMING (01364) fell another 9% on the second day of listing, already 17% lower than the offering price, with nearly ten thousand stores under the company's franchise system.

On the day after GUMING (01364) went public, its stock continued to decline, hitting a low of 8.22 Hong Kong dollars during the trading day, a decrease of over 17% from the IPO price of 9.94 Hong Kong dollars. As of the time of writing, it had fallen by 9.78%, trading at 8.39 Hong Kong dollars, with a turnover of 29.124 million Hong Kong dollars. Public information shows that GUMING mainly operates stores and operates the "GUMING" brand through a franchise model. GUMING is the largest popular freshly-made tea brand in China in the 10-20 yuan price range, and the second largest freshly-made tea brand in China in all price ranges. According to the company's prospectus, as of September 30, 2024, GUMING has a total of 9778 stores nationwide; in 2021, 2022, 2023, and the first three quarters of 2024, revenue from franchise stores accounted for 97.9%, 97.9%, 97.1%, and 97.2% of total company revenue, respectively. It is worth noting that on February 10th, Heytea sent an internal email to all employees, stating that the "numbers game" in the new tea drink industry has reached its end, and meaningless pricing, revenue, and scale competition is seriously eroding users' love for new tea drinks. Heytea refuses to engage in meaningless store scale competition and has temporarily stopped accepting applications for business partnerships.