BRIEF: Guming grows, Chabaidao shrinks in China tea tempest

Guming Holdings Ltd. (1364.HK) reported on Friday its revenue rose 14.5% last year, while smaller rival Sichuan Baicha Baidao Industrial Co. Ltd. (2555.HK) said its revenue fell by a similar amount in China’s ultra-competitive market bubble tea market.

Guming reported annual revenue of 8.79 billion yuan ($1.21 billion) last year, up from 7.68 billion yuan in 2023, according to its first annual report since its Hong Kong IPO in February. The company’s gross margin fell 0.7 percentage points year-on-year to 30.6% in 2024, while its profit rose 36.9% to 1.48 billion yuan. Guming added 913 stores to its network last year, bringing its total to 9,914 by the end of 2024 from 9,001 a year earlier.

Meanwhile, Baicha Baidao, which also uses the name Chabaidao, reported on Friday its revenue last year fell 14% to 4.92 billion yuan from 5.7 billion yuan in 2023. Its gross margin fell be 3.2 percentage points to 31.2%, while its annual profit plunged nearly 60% year-on-year to 472 million yuan. The company added 594 stores to its network during the year, bringing its total to 8,395 by the end of 2024.

Guming shares were down 6.2% in afternoon trade on Monday at HK$16.28, but are still up 64% from their IPO price of HK$9.94. Chabaidao’s shares were down 0.45% in afternoon trade at HK$8.93, and are down about 50% from their IPO price of HK$17.50 in April last year.

By Doug Young

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