BRIEF: Green Tea Group secures CSRC approval for Hong Kong IPO

Restaurant operator Green Tea Group Ltd. received an approval notice from the China Securities Regulatory Commission (CSRC) last Friday for its plan to list in Hong Kong — a necessary step for Chinese companies seeking to list overseas. The company plans to issue up to 213 million ordinary shares in the listing.

Green Tea Group has submitted five listing applications to the Hong Kong Stock Exchange since 2021, and passed its listing hearing in 2022. But the application lapsed after the company failed to proceed with the public offering. The company made its most recent application on Dec. 20 last year.

In the first three quarters of 2024, Green Tea Group recorded revenue of 2.92 billion yuan ($402 million), up 7% year-on-year, while its adjusted net profit rose 11% to 292 million yuan. During the same period, Green Tea restaurants hosted an average of around 480 customers per store per day, down 11.9% year-on-year, while per capita spending fell by 7% to 57.7 yuan. The company operated 461 restaurants at the end of last September, a net increase of 101 compared to the end of 2023.

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