Bubble Tea Chain Chabaidao to List on Hong Kong Stock Exchange on 23rd
Founding Brothers of 'Mishebingcheng' Each Have Net Assets in the 2 Trillion Won Range
In China, bubble tea has gained immense popularity among the MZ generation (Millennials + Generation Z), leading bubble tea company owners to join the ranks of billionaires one after another.
On the 22nd (local time), Bloomberg reported that the bubble tea craze among young consumers in China has resulted in the emergence of at least six billionaires in recent years.
Bubble tea stock photo. Photo by Asia Economy DB
Sichuan Baicha Baidao Industrial, the operator of China's bubble tea chain 'Chabaidao,' is scheduled to be listed on the Hong Kong stock market on the 23rd. If it succeeds in raising more than $300 million (approximately 414.1 billion KRW), the founding couple Wang Xiaokun and Liu Weihong, who hold 73% of the company's shares, are estimated to acquire a net worth of $2.7 billion (approximately 3.7 trillion KRW). This is the second time a bubble tea company has been listed on the Hong Kong stock exchange, following 'Naixue' in June 2021.
Chabaidao is the third-largest bubble tea chain in China, currently operating more than 8,000 stores nationwide. In January, it opened its first overseas store in Seoul.
Starting in 2008 from a small 20㎡ store near a middle school in Chengdu, Chabaidao succeeded with a low-margin, high-volume strategy. While other companies sold 0.5ℓ bubble tea for an average of $5, Chabaidao drastically lowered the price to about $2 and offered free delivery even for customers purchasing just one cup. Thanks to this strategy, Chabaidao's sales last year increased by 56% compared to 2021, reaching 5.7 billion yuan (approximately 1.85 trillion KRW).
Another bubble tea billionaire is the brother duo Zhang Hongchao and Zhang Hongfu, founders of the Chinese beverage franchise 'Mishibingcheng.' Their net worth currently stands at $1.5 billion (approximately 2.07 trillion KRW) each. Mishibingcheng has the second-largest number of stores worldwide after Starbucks, with 32,000 stores in China and over 4,000 stores in 11 neighboring countries. According to Bloomberg's billionaire index, since investors began investing in Mishibingcheng in 2020, the company's valuation has reached 23.3 billion yuan (approximately 4.44 trillion KRW).
Additionally, 'Auntea Jenny,' the fourth-largest player in the Chinese market, has also applied for an initial public offering (IPO) on the Hong Kong stock exchange. Bloomberg explained that this reflects the high popularity of bubble tea in China. However, Bloomberg pointed out concerns about sustainable growth, citing the recent economic slowdown in China, weakening consumption, and intensified competition in the bubble tea market, which has pushed some small and medium-sized companies to the brink of exit.
Bubble tea was first sold in Taiwan in the late 1980s. It became popular in Hong Kong and mainland China in the 1990s, leading to the emergence of chain stores. Today, thousands of brands compete worldwide. The basic recipe involves milk tea with tapioca pearls made from cassava, but the biggest factor in its popularity is that consumers can create their own recipes by customizing ingredients, sweetness levels, and ice amounts according to their preferences.
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