New stock news | Auntie from Shanghai attends listing and hearing at Hong Kong Stock Exchange, with the number of stores expected to surpass 9,000 in 2024.

According to the disclosure by the Hong Kong Stock Exchange on April 23, Shanghai Auntie (Shanghai) Industrial Co., Ltd. is undergoing a listing hearing on the Hong Kong Stock Exchange. The joint sponsors are CITIC SEC (Hong Kong) Limited, HAITONG INT'L Capital Limited, and Eastern Financing (Hong Kong) Limited. According to data from Zhoushi Consultation, as of December 31, 2023, Shanghai Auntie is the fourth largest chain of freshly brewed tea beverage stores in China, with a large presence in lower-tier markets and rapid expansion driven by its franchise model. The prospectus shows that Shanghai Auntie's store network has seen significant growth in just three years: by the end of 2022, the company had 5,307 stores; by the end of 2023, the number of stores increased to 7,789, a 46.8% year-on-year growth; and by the end of 2024, it further increased to 9,176 stores, a 17.8% year-on-year growth. Among them, 99.7% of the stores are franchise stores. In terms of Gross Merchandise Volume (GMV), the company has also shown steady growth: GMV was 6.068 billion RMB in 2022, increased to 9.732 billion RMB in 2023, a 60.4% year-on-year growth; and further increased to 10.736 billion RMB in 2024, a 10.3% year-on-year growth. However, increased industry competition has brought challenges, with the average GMV per store decreasing from 1.6 million RMB in 2023 to 1.4 million RMB in 2024. Financial data shows that Shanghai Auntie's revenue in 2024 was 3.285 billion RMB, a slight decrease of 1.9% from 2023, mainly due to a decrease in equipment sales revenue. However, its core revenue from raw materials (such as ingredients, packaging, etc.) continued to grow, increasing from 2.515 billion RMB to 2.548 billion RMB, a 1.3% year-on-year growth, reflecting the demand support brought by store expansion. In terms of profitability, the company's net profit was 388 million RMB in 2023, a 159.5% increase from 2022, attributed to an increase in gross profit margin and cost optimization. However, net profit declined to 329 million RMB in 2024, mainly due to increased share-based payment expenses and other costs. Nevertheless, the adjusted net profit under non-International Financial Reporting Standards continued to grow from 154 million RMB in 2022 to 418 million RMB in 2024, indicating an improvement in profitability quality. According to the prospectus, Shanghai Auntie plans to use the funds raised from the IPO to enhance its digital capabilities, research and develop new products, upgrade equipment, strengthen supply chain capabilities, expand its store network, invest in marketing activities, and supplement operating funds, among others. The company stated that it will continue to deepen its presence in existing markets and plans to expand its business to more third-tier and below cities, further consolidating its leading position in the mid-priced freshly brewed tea beverage market.