On April 17, Bawang Chaji officially listed on the Nasdaq in the USA, becoming the "first stock of new tea drinks on the US market" and also the fifth new tea beverage company to enter the Capital Markets. The issue price was $28 per share, raising $0.411 billion. The funds raised from the listing will be used for Global supply chain construction, store expansion, and Technology research and development.
The prospectus shows that from 2022 to 2024, Bawang Chaji's revenue will increase from 0.492 billion yuan to 12.405 billion yuan, growing more than 25 times in three years, with a compound annual growth rate of 398%. Specifically, in 2024, the annual revenue will reach 12.405 billion yuan, an increase of 167% compared to 2023; the gross margin will be 41.2%, and the net margin will be 20.3%; net income will be 2.515 billion yuan, growing 213% compared to 2023.
It is believed that Bawang Chaji, as a leading brand in the new tea beverage industry, has significant future growth potential reflected in the following dimensions.
I. Deepening and Penetration of the Domestic Market
In terms of store count, from 2022 to 2024, the global number of stores for Bawang Chaji is projected to be 1,087, 3,511, and 6,440, increasing nearly sixfold over three years. By the end of 2024, Bawang Chaji will have 696 stores in first-tier cities, 3,110 in new first-tier and second-tier cities, while the number in third and fourth-tier cities is relatively low, indicating significant expansion potential in these areas and county markets.
Additionally, the density of tea drink stores in the lower-tier market is only one-third of that in first-tier cities, and consumers in the mid-price range (15-25 yuan)...