The first coffee machine stock is here

Zebra Consumer Chen Biting

With the coffee market booming, how could there be no rise of coffee machine brands?

On January 29, Gemilai Holdings Limited, the company behind the domestic coffee machine brand Gemilai, submitted an IPO prospectus to list on the main board of the Hong Kong stock market.

Public information shows that Gemilai was founded by Yuan Bin in 2011, who also established the brand concept of "Let's have a cup together." However, Yuan Bin has now completely exited Gemilai, and the company is controlled and led by Xie Jianping.

The year after its founding, Gemilai launched its first home espresso machine equipped with a 58mm commercial extraction system. In 2013, it entered overseas markets, and in 2015, it introduced its first commercial espresso machine. In 2024, its self-built factory began production, making it one of the few coffee machine brands in the industry to cover the entire industrial chain from design, R&D, manufacturing, sales, to service.

Gemilai was very fortunate to catch the explosive growth period of China's freshly ground coffee market just a few years after its founding.

With the introduction and popularization of Starbucks and the strong push from Luckin Coffee and Cotti Coffee, China's coffee-drinking population grew rapidly after 2017, with per capita consumption rising sharply, leading to significant growth in the Chinese coffee market.

In 2018, the size of China's freshly ground coffee market was about RMB 39 billion, and it is expected to reach RMB 188 billion by 2025, with a compound annual growth rate (CAGR) of nearly 20%, surpassing other similar segments like freshly made tea beverages.

The expansion of freshly ground coffee brands and stores has stimulated demand for commercial coffee machines. The freshly ground coffee scene has expanded from cafes, offices, and restaurants to households, also driving demand for home coffee machines.

From 2019 to 2024, the size of China's coffee machine market grew from RMB 2 billion to RMB 5.3 billion, with a CAGR of 21.5%. Frost & Sullivan expects the market size to continue growing at a CAGR of 18.7%, reaching RMB 12.5 billion by 2029.

Riding this wave of market opportunities and shifting its focus to the domestic market, brand business, and e-commerce channels, Gemilai quickly grew into a small giant in the domestic coffee machine industry.

Initially, like most export-oriented companies, Gemilai relied on OEM business and targeted overseas markets. In recent years, it has shifted its focus to the domestic market and launched the Gemilai brand. Its product lines, including Owl, Cloud Elephant, and Beluga, have gradually built industry recognition.

At first, Gemilai relied on distributors and mainly sold through offline channels. In recent years, like other small appliance categories, it has rapidly scaled up through e-commerce channels.

Currently, Gemilai's coffee machines are distributed to over 60 countries and regions worldwide, with cumulative sales of 2 million units and over 400,000 customers served.

According to Frost & Sullivan data, in terms of revenue, Gemilai ranks as the second-largest coffee machine brand in China, behind only the Italian brand De'Longhi, and is the largest domestic coffee machine brand, with a market share of about 7.5% in 2024.

At the same time, in terms of revenue, Gemilai is the top brand in China's semi-automatic espresso machine segment, with a market share of about 16.0%, and also the top brand in the split-type semi-automatic espresso machine segment, with a market share of about 27.9%.

From 2023 to 2024, Gemilai's revenue was RMB 308 million and RMB 498 million, respectively, with net profits of RMB 19.93 million and RMB 39.96 million. In the first three quarters of 2025, the company's revenue was RMB 449 million, up 44.1% year-on-year, and net profit surged 365.2% year-on-year to RMB 53.97 million.

With significant growth in scale and profits, Gemilai's profitability has also steadily improved. From 2023, 2024, to the first nine months of 2025, its gross margins were 41.9%, 40.5%, and 44.1%, respectively, and net margins were 7.2%, 8.0%, and 12.0%, respectively.

However, relying solely on the growth logic of the coffee-drinking population and average consumption, it is difficult to predict the sustained growth of China's coffee market. After all, the penetration of coffee culture in China has not yet reached sufficient levels. Moreover, in China's beverage market, tea remains a strong substitute.

Recently, Luckin Coffee, Cotti Coffee, KFC, and McDonald's announced price hikes for coffee, a positive move to cope with rising coffee bean costs and enhance industry value, but it will indeed slow the growth trend of coffee consumption to some extent.

Additionally, the coffee machine industry has always been a niche dependent on the coffee market, with its current size only in the tens of billions, still not a core category in the broader small appliance market.

Therefore, as the top domestic coffee machine brand, Gemilai has also begun expanding into new scenarios early on, seeking stronger growth engines.

Around 2020, Gemilai launched a series of coffee grinders and expanded its product line to cover all aspects of the freshly ground coffee scene, including coffee beans, portafilters, tampers, handles, and coffee cups.

On the other hand, in the core coffee machine market, Gemilai is strengthening its focus on the home market as a key direction for the future.

From business data, home coffee machines have lower prices but higher sales volume, faster growth, and higher gross margins. They are more aligned with the trends of smart and automated appliances, offering greater potential for domestic substitution.

If middle-class and above households in China were to equip themselves with coffee machines like those in Europe and America, then, as the top domestic coffee machine brand, Gemilai would truly unlock its growth potential.