China has more billionaire milk tea

Wang Yun’an (38 years old) Founding Guming Holdings – Owning Good Me Milk Tea Brand – in Hangzhou in 2010. He became a billionaire on February 12 after this chain of stores listed in Hong Kong (Trung Quoc). Forbes It is estimated that Wang’s assets are 1.2 billion USD, mainly thanks to the shares in Guming.

Guming has raised 1.8 billion dollars in Hong Kong (233 million USD) from the IPO. They sold 182.4 million shares for 9.94 HKD a unit. This is the highest level in the expected offering price range of the company.

Like rivals, Guming uses a brand franchise policy to expand business. They sell raw materials and charge training with franchise stores. Currently, Guming has nearly 10,000 facilities across China, with Good Me Milk Tea brand.

After graduating from Zhejiang University of Science and Technology with an engineer degree, Wang opened the first milk tea shop in his home town in Zhejiang. Each drink costs 10-20 yuan (1.4-2.8 USD). Local media said that at first, his store was so humid to the extent that only about 100 yuan was sold all day (14 USD), or 5-10 cups of milk tea.

However, according to the studies quoted in Guming’s report, thanks to the existence in the extremely harsh competitive environment, Good Me became the second largest milk tea chain in China in terms of sales and stores, the number of stores, the number of stores, By the end of 2023.

According to the Bach Fox, in the first 9 months of 2024, Guming’s revenue reached 6.4 billion yuan, up 15.6% over the same period last year. The company’s profit reached 1.1 billion yuan, up 11.8%. Currently, Good Me has a 9.1% market share in China, by the end of 2023, only after Mixue (20%).

Over the past few years, China has produced many dollars of milk tea, thanks to the demand for this drink. In 2018, this market scale was 9.6 billion USD, up to 71 billion USD in three years later.

Wang listed the company in the context of investors increasingly pouring money into this industry, due to too high competition. However, Guming and rivals still seek to raise capital to expand their business. Recently, Mixue Group has also reopened the IPO plan. The founders of Mixue – Zhang Hongchao and Zhang Hongfu currently own assets of about US $ 1.5 billion.

Despite the fierce competition, Wang and the guarantee banks for Guming’s IPO believes that this series will continue to attract investors thanks to its unique strategy. While other chains seek to go to big cities like Shanghai or Beijing, Guming focuses on small cities and towns – where milk tea is not sold and has superior business development speed. Currently, Zhejiang is still the place where they have the best market share, accounting for more than 20% of the stores.

“We still prioritize small cities, towns, rural areas. We do not rush to big cities because there are many milk tea shops there,” George Meng – Guming Financial Manager for know above Bloomberg.

Reply Southern Metropolis Daily In December 2023, Wang said “was too familiar with the battle when every year the market had a new brand.”