New Stock News | GuMing files with the Hong Kong Stock Exchange: As of 2023, the number of stores reached 9,001, with a GMV of 19.2 billion yuan.

Zhitong App learned that on January 2nd, the Hong Kong Stock Exchange disclosed that Gu Ming Holdings Limited (referred to as "Gu Ming") has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with Goldman Sachs and UBS Group AG as joint sponsors. The prospectus shows that Gu Ming is a leading and fast-growing Chinese ready-to-drink beverage company, committed to providing consumers with fresh, delicious, consistently produced, and affordable high-quality products. According to the Zhaoshi Consulting report, based on the gross merchandise volume (GMV) in 2023 and the number of stores as of December 31, 2023, "Gu Ming" is the largest mass-produced tea beverage brand in China and the second largest in all price ranges. In 2023, the company's GMV reached RMB 19.2 billion, an increase of 37.2% compared to 2022. As of December 31, 2023, the company's store network has a total of 9,001 stores, an increase of 35.0% compared to December 31, 2022. Based on the number of stores as of December 31, 2023, the company is one of the top five ready-to-drink beverage brands globally. As of December 31, 2023, 79% of the company's stores are located in second-tier and below cities. In addition, 38% of the stores are located in towns and villages far from city centers. According to the Zhaoshi Consulting report, these two proportions are the highest among the top five mass-produced tea beverage brands in China based on the number of stores. As of September 30, 2023, during the nine months period based on GMV, the company is the only one among the top ten ready-to-drink tea beverage brands in China that can frequently deliver short shelf-life fresh fruits and fresh milk to stores in lower-tier cities. During the historical period, the average delivery cost from the warehouse to the store accounted for only about 0.9% of the GMV, far below the industry average of 2%. In 2023, the company's franchisees achieved a single-store operating profit of RMB 376,000, with a single-store operating profit margin of 20.2%. During the same period, the estimated single-store operating profit margin in the Chinese mass-produced tea beverage market was about 10%-15%. The strong performance of the company's stores has motivated franchisees to open more stores. As of September 30, 2023, among franchisees who have opened "Gu Ming" stores for more than two years, the average number of stores operated by each franchisee is 3.1, and 75% of franchisees operate two or more franchise stores. In terms of finances, the revenue of Gu Ming was approximately RMB 4.384 billion, RMB 5.559 billion, RMB 4.162 billion, and RMB 5.571 billion in 2021, 2022, and the nine months ended September 30, 2022 and 2023, respectively. During the same period, the total comprehensive income achieved was RMB 23.992 million, approximately RMB 392 million, approximately RMB 291 million, and approximately RMB 1.002 billion. It is worth noting that in the prospectus, Gu Ming mentioned that the company's future growth depends on its ability to expand and operate its store network. The company may not be able to successfully enter new regional markets or expand its influence in existing markets. The company's business is highly dependent on consumers' taste, consumption trends, preferences, and awareness of freshly made tea drinks, and the company may not always accurately predict and timely adapt to market trends and consumer preferences. The company may not be able to maintain or increase the sales and profitability of its stores. The failure of the company's franchisees, suppliers, or other business partners to maintain food safety and quality may have a significant adverse impact on the company's brand, business, and financial performance.