Today, some media reported that Xicha is carrying out large-scale layoffs involving 30% of employees, and some departments even cut all employees. The news was once posted on the microblog hot search. As the hottest track in recent years, the new tea has attracted a lot of capital investment, and the star company is highly concerned by consumers.
When the reporter of the Securities Times asked Xicha for internal verification, the relevant person in charge of Xicha said that the rumors were false information. There was no so-called major layoffs in the company. A small number of personnel adjustments before the year were normal personnel adjustments and Optimization Based on year-end assessment. At the same time, the year-end bonus of employees has been normally distributed to employees before the Spring Festival according to their performance
new tea companies face new challenges?
In response to today’s rumored layoffs of Xi tea, the reporter of the securities times learned from Xi tea insiders that employees do leave after the year, but this is a routine action every year. The reporter saw in many happy tea stores that there are still a large number of customers queuing to buy.
Public information shows that in 2012, Xi tea originated in an alley called Jiangbian Li in Jiangmen City, Guangdong Province, and opened a new tea era with a cup of original cheese tea.
Enterprise check app shows that Xicha is a franchise chain organization with white-collar workers and young forces as the mainstream consumer groups and leisure and drinks as the main products. Its affiliated company, Shenzhen Meixi Catering Management Co., Ltd., was established in 2016 with Nie Yunchen as the legal representative and a registered capital of 10 million yuan, It is 100% controlled by Xicha (Shenzhen) Enterprise Management Co., Ltd. At present, Xicha has raised five rounds of financing. The investors include meituan Longzhu, Tencent investment and Sequoia Capital. The company controls 34 enterprises in Guangdong, Shandong, Zhejiang, Hubei and Shanghai.
According to the research data of Huajin securities, up to now, the number of happy tea stores has reached 886. As the head company of new tea drinks, Xi tea’s profitability and investment ability have always been the wind vane in the industry. Compared with the rapid progress in previous years, the growth of Xi tea stores is mainly concentrated in the first and second tier cities, but the growth rate has also slowed down. According to the data of Jiuqian consulting, taking the data of October 2021 as an example, the average revenue and sales floor efficiency of Xicha stores decreased by 19% and 18% month on month compared with July; Compared with the same period last year, it fell by 35% and 32%.
Meanwhile, in 2021, Xi tea increased its foreign investment. Since the second half of last year, Xi tea has also increased its investment pace and successively invested in six brands, including coffee brand seesaw, peach flavor tea and peach, pre blending brand Wat, fruit juice brand yecuishan, etc. Some analysts believe that the move of liking tea is to continuously consolidate its leading position in the industry and broaden its categories. In order to attract more consumer groups, it can meet the potential needs of young people under the same purchase scenario. You can drink coffee without tea, drink without coffee, and drink juice without drinking.
Some insiders believe that the development of new tea has entered a mature period, and the head enterprise has taken the step of optimization and integration according to its own strategy and industry development trend. From being an investor to a stronger one, from being an investor to being a strong one.
Not only layoffs, but also many other challenges for new tea brands in the past year. For example, Lele tea announced the closure of many stores in South China, and tea Yan Yuese also closed one after another; Food safety is an unavoidable topic. Many brands have been exposed to food problems, environmental hygiene problems, etc; Due to rising costs and epidemic factors, milk tea closed down and ran away. The founder and the team need to pay more for the new tea to survive and maintain the brand power in the bustling sound for a long time
is there any drama on the IPO of new tea?
Xi tea’s layoffs have also been speculated by the industry that it may be “slimming” to prepare for listing. In addition to the listing of Naixue’s tea, since last year, many popular tea drinks, such as miyue ice city, Gu Ming, aunt Hushang and Wuyin liangpin, have received a new round of financing, behind which are head institutions such as Sequoia China, meituan Longzhu and Gaoling capital. Among them, honey snow ice city directly won a huge pre IPO Financing of up to 2 billion yuan.
According to the Research Report on China’s new tea industry in 2021 released by airy consulting, the scale of China’s new tea market in 2020 was 184.03 billion yuan, which was reduced compared with the previous year due to the impact of covid-19 epidemic. However, from the current situation of life recovery in China, consumers’ enthusiasm for new tea has not decreased but increased. It is expected that the scale of China’s new tea market will reach 279.59 billion yuan in 2021, It will exceed 300 billion yuan in 2022.
In the face of such a huge market, entrants rushed one after another. According to the statistics of red meal brand research institute, as of November 25, 2021, there were 32 financing cases in the new tea industry in 2021, with a total disclosed amount of more than 14 billion yuan. The number of financing events and the disclosed financing amount have been higher than that in 2020, reaching the peak in nearly 10 years. The competition for new tea is becoming more and more intense.
The news that various tea brands are going to impact the IPO continues. In fact, Xi tea was the first to be listed in Hong Kong, but every rumor was denied. On the contrary, honey Snow Ice City, which focuses on the sinking market, moves faster on the road to the capital market, targeting a shares. In 2021, according to the disclosure of Henan Provincial securities regulatory bureau, mixue Ice City Co., Ltd. plans to make an initial public offering and listing in the A-share market, and is receiving guidance from Gf Securities Co.Ltd(000776) ; It is also reported that Lele tea will be listed in Hong Kong as soon as 2022 and plans to raise US $300 million to US $500 million through IPO; It is also reported that chabaidao is also considering a US $500 million Hong Kong IPO. The company has asked the bank for suggestions on the Hong Kong IPO, or an IPO as early as 2022.
Although the listed Naixue tea has the aura of “the first share of new tea”, the performance of the secondary market is not satisfactory. It was broken on the first day of listing, and Naixue’s tea recently released the latest performance forecast, saying that the revenue is expected to reach 4.28 billion yuan to 4.32 billion yuan in 2021, and the adjusted loss is 135 million yuan to 165 million yuan.
Some investment bankers said that according to the market valuation of Naixue’s tea, enterprises that may follow the new tea IPO still need to look at the core profitability. Although the Hong Kong market is more interested in new economy companies, it depends more on the profitability and future sustainability of enterprises, The overestimation in the primary market is also a factor leading to the mediocre performance of the secondary market. Listing is a choice, but whether it is the best choice and when to list should be decided by each enterprise according to its own situation.
