Mixue Sips Success at the Bottom of China’s Premium Tea Market

The fast-growing chain whose bubble and milk teas typically sell for less than $1.50 has filed for a Shenzhen IPO that could value it at nearly $10 billion Key Takeaways: Low-end premium tea chain Mixue has applied for a Shenzhen IPO to raise 6.5 billion yuan for new product development and expansion The company uses a franchise model that helps it control costs, giving it a higher margins than its rivals By Trevor Mo Frugality is the new cool these days for Chinese consumers who are tightening their belts as…

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FAST NEWS: Luckin Coffee Denies Hong Kong Listing Plan

The latest: Chinese coffee chain Luckin Coffee Inc. (LKNCY.US) said in a statement Monday that it is not seeking a Hong Kong listing at this time, refuting a media report that it was considering such a plan. It added it remains committed to U.S. capital markets where its stock is currently traded over-the-counter (OTC). Looking up: The company said it will continue to monitor capital market developments and evaluate all avenues to deliver value to its stakeholders, implying it has not completely ruled out a potential future listing in Hong Kong.…

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FAST NEWS: Luckin Coffee Emerges From Bankruptcy

The latest: Starbucks challenger Luckin Coffee (LKNCY.US), which roiled markets in 2020 when it admitted to massive accounting fraud, announced on Monday it has officially emerged from a bankruptcy reorganization. Looking Up: Luckin Chairman and CEO Guo Jinyi said he is “confident that Luckin Coffee is well positioned for long term growth and creation of stakeholder value” following the official end of its restructuring. Take Note: With the bankruptcy reorganization now complete, many believe that Luckin may try to upgrade its shares from their current over-the-counter (OTC) trading status to…

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Nayuki Brews Comeback With Slimmed-Down Shops, Automation

Premium tea chain sank into the red in second half of last year, but is hoping to turn things around with its new chain of smaller-format stores Key takeaways: Nayuki reported a $22.9 million adjusted loss last year, reversing a profitable 2020, hit by stiff competition and pandemic-related disruptions The company announced price cuts in mid-March in a brewing price war sparked by larger archrival Heytea By Fai Pui The weather is warming up, which means cravings for icy drinks are just around the corner. But the coming high season…

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Luckin Coffee Nears Major Milestone with Imminent Emergence from Bankruptcy

China’s scandal-tainted Starbucks challenger says liquidators handling its U.S. bankruptcy have filed a motion to formally close the case Key Takeaways: Luckin Coffee said the liquidators handling its U.S. bankruptcy have formally filed to close the case after a recent settlement with holders of $460 million of its convertible notes Development could pave the way for company to relist on the Nasdaq, though the U.S. securities regulator could face pressure to veto such a move By Doug Young   This is one liquid that China’s largest coffee purveyor won’t miss. That’s…

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Restrictions Take Fourth-Quarter Bite Out of Rebounding Year for Yum China

Operator of KFC and Pizza Hut restaurants in China posted small revenue growth in fourth quarter as it continued to briskly open new stores despite Covid disruptions Key Takeaways: Yum China reported its revenue rose 1% in the fourth quarter, and managed to remain profitable despite tough Covid restrictions that led to weak consumption China’s biggest restaurant operator opened a record 1,806 stores during the year, bringing its total to 11,788, as it marches towards a goal of 20,000 stores By Doug Young “Staying the course” is fast emerging as…

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HeyTea Heats Up Premium Tea Market with Contrarian Price Cuts

Company lowers prices on some drinks, including a ‘Pure Green Tea’ drink costing less than 10 yuan Key takeaways: Leading new-style premium tea maker HeyTea has launched a recent round of price cuts, even as many rivals struggle with rising costs, stiff competition and Covid disruptions Chinese high-end tea makers raised $2.2 billion from investors last year, with nearly half going to HeyTea, whose latest valuation stood at nearly $10 billion By Jose Qian New-style tea drink makers have bubbled up all over China these last few years, thriving on…

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After Major Rebrew, Is Luckin Seeking to Re-list in New York?

Scandal-tainted Starbucks Chinese challenger dismisses media report about a re-listing plan, despite recent actions that suggest such a potential move Key takeaways: Scandal-tainted Luckin Coffee is discussing capital raising options, including a potential re-listing on the Nasdaq later this year, according a Financial Times report The company still faces hurdles in the form of competition from established giant Starbucks and newer up-and-comers like Manner Coffee By Jony Ho After getting burned once, will investors be willing to take another sip of a scandal-tainted Luckin Coffee Inc. that says it’s now…

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Avoiding Greenwashing

By Helen Lam As companies develop their Environmental, Social and Governance (ESG) strategies, investors and stakeholders are becoming increasingly watchful for instances of ‘greenwashing’. Organizations’ claims of being progressive in their ESG performance are being more closely examined and – whatever the original intention – may come to be viewed as words over substance. Therefore, companies that want to communicate their ESG efforts effectively and legitimately should seek to be transparent at every step and be ready to back up their claims with data. What is greenwashing and how do you…

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