Latest news with #AunteaJenny
South China Morning Post
2 days ago
- Business
- South China Morning Post
China's fresh-drink stocks leave investors thirsty for returns amid heated competition
A recent thirst among investors for Chinese makers of fresh drinks – after a slew of share offerings including the blockbuster Hong Kong listing of Mixue Group – could mean that too much money is chasing the same growth story, according to S&P Global Ratings. 'China's demand for fresh-made drinks is growing fast as marketing, innovation and supply chains strengthen for this segment,' credit analyst Sandy Lim said in a report on Tuesday. The trend could 'ratchet up competitive spending and strains', pressure margins and even dim the growth prospects of similar categories, Lim said. The mainland market for fresh-made beverages – which includes juices, tea, milk, ice cream and coffee – could expand by close to 18 per cent a year between 2023 and 2028, the rating agency said, adding that the segment could reach 1 trillion yuan (US$139 billion) in sales by 2027. Investor interest in the booming but increasingly competitive sector has been reflected in four initial public offerings (IPOs) by fresh-drink companies this year: Good Me operator Guming , Mixue, Chagee , and Auntea Jenny . Since 2021, mainland Chinese fresh-drink brands have raised more than US$2.5 billion via IPOs or private-equity funding rounds, according to S&P. However, investor confidence quickly tumbled for beverage chains that lacked a clear edge in the fiercely competitive industry, where supply-chain capacity is of paramount importance. Shares in Auntea Jenny have lost 21.3 per cent from their May 8 debut. Naixue has plunged more than 92 per cent since its July 2021 listing, and US-listed Chagee is down over 5 per cent since April.
CNBC
09-05-2025
- Business
- CNBC
Bubble tea chain Auntea Jenny's IPO happened at the right time and place: GROW Investment Group
William Ma, CIO of GROW Investment Group says that Auntea Jenny and other recent bubble tea IPOs have come at a good time with Chinese investors willing to pay a "certainty premium" for domestic consumption plays amidst tariff uncertainty, and Auntea Jenny's strong presence in tier 3 cities differentiates it from its peers.
The Star
08-05-2025
- Business
- The Star
Bubble tea billionaire ranks swell after latest IPO
Auntea Jenny husband-and-wife founders, Shan Weijun and Zhou Rongrong. — Bloomberg HONG KONG: China's bubble tea market is overflowing with rivals and fierce price clashes – yet it's set to produce another billionaire couple. Yesterday, Auntea Jenny (Shanghai) Industrial was scheduled to start trading in Hong Kong, raising HK$273mil with a listing price of HK$113.12, the top of the range. That valuation gives husband-and-wife founders, Shan Weijun and Zhou Rongrong, a combined net worth of US$1.1bil, according to the Bloomberg Billionaires Index, which is valuing their wealth for the first time. Their fortune is solely derived from their stake in Auntea Jenny. The couple join a wave of Chinese founders who have made fortunes as fresh bubble tea chains exploded in popularity. That includes Junjie Zhang, the billionaire founder of Chagee Holdings, who listed his tea shop chain on the Nasdaq exchange in April, and the two brothers behind Mixue Group, a brand known for US$1 bubble tea, coffee and ice cream, who amassed about US$8bil combined after the company's debut in Hong Kong earlier this year. Yet, after almost a decade of rapid expansion, the competition in China's tea-shop market has become increasingly brutal, with numerous venues spreading out on floors of city malls and street corners. Several bubble tea listings have slumped soon after going public, as investors grow wary of pouring money into a saturated market. Shan and Zhou, both 48, worked as senior sales managers at healthcare products retailer Amway (China) before starting their first Auntea Jenny milk-tea shop in November 2013 in Shanghai, according to the prospectus. Auntea Jenny specialises in milk tea with grain toppings and fresh fruit tea. A typical drink sells for around US$2. The chain's stores are primarily located on the street with a small portion in shopping malls and train stations. There were more than 9,100 stores over 300 cities in China at the end of last year, according to the prospectus. Nearly all are franchisee-run. Like competitors Guming Holdings and Mixue Group, Auntea Jenny targets fast-growing and economically less developed markets, so-called 'lower-tier cities', with approximately 50.4% of stores located in those cities in China. But that strategy is challenging – Auntea Jenny recorded slower sales last year, which it said was in part due to increased competition. Factors including a lack of advantage in lower-tier cities, reliance on third-party suppliers with weak cost control will possibly make Auntea Jenny's valuation lower than its peers, Xinyao Wang, a China healthcare analyst wrote in a report published on SmartKarma. Venturing into markets outside China has become an inevitable choice for many brands as growth slows. — Bloomberg
Bloomberg
08-05-2025
- Business
- Bloomberg
Bubble Tea Couple's Wealth Hits $1.7 Billion on Hong Kong IPO
China's bubble tea market is overflowing with rivals and fierce price clashes — yet it's just produced another billionaire couple. On Thursday, Auntea Jenny (Shanghai) Industrial Co. started trading in Hong Kong, raising HK$273 million ($35 million) with a listing price of HK$113.12, the top of the range. The stock climbed 53% to HK$172.80 at 12 p.m. in Hong Kong.
RTHK
08-05-2025
- Business
- RTHK
Hong Kong stocks open down slightly
Hong Kong stocks open down slightly The Hang Seng index opened lower on Thursday, after the US central bank paused its rate cuts again. File photo: RTHK Hong Kong's Hang Seng Index fell 102 points or 0.45 percent to open at 22,589 points on Thursday. Shares of mainland tea brand, Auntea Jenny, opened at $190.6 per share on first trading day - 68 per cent higher than the offer price at $113.12. On the mainland, stocks opened lower, with the benchmark Shanghai Composite Index down 0.34 percent to open at 3,331 points. The Shenzhen Component Index opened 0.23 percent lower at 10,081. (Xinhua)
