Original title: Tuyere Observation | Michelle Ice City has another new action!New tea drink that will make money, know how to “spend money”
“You love me, I love you, Michelle Ice City is sweet…”
Relying on this brainwashing cycle divine comedy, Michelle Ice City successfully broke the circle and made his debut, becoming the “most beautiful boy” on the tea-drinking circuit.
The magic of the Divine Comedy has not yet dissipated, and Michelle Ice City has announced plans to list on the A-share market and establish a venture capital company. Recently, Michelle Ice City has invested in its first project-Huicha, a tea brand in Guangdong.
Innovation and excellence are investing, and it is becoming the common choice of many new consumer companies. From Michelle Ice City to Hey Tea, Vitality Forest, and Tea Yanyue, their foreign investments have been announced one after another.
All signs are showing that new tea drinks that will make money seem to know how to “spend money” better.
Quietly cast an angel wheel
Michelle Ice City makes this bubble tea
One month after the establishment of the Snow King Investment Company, Michelle Ice City’s first investment was announced.
According to Tianyan Check, Xuewang Investment Co., Ltd. has increased its foreign investment and became a shareholder of Guangdong Huicha Catering Management Co., Ltd. The registered capital of the latter company increased from RMB 5 million to RMB 6,172,800, an increase of 23.46%. Shareholder information shows that Guangdong Huicha Catering Management Co., Ltd. is now jointly held by Chen Zhihai, Xuewang Investment Co., Ltd., and Dongguan Huiguo Business Center (Limited Partnership).
Who is Huicha? According to Tianyancha, Huicha is a tea brand focusing on bubble milk tea. It was established in 2015 and is headquartered in Dongguan. The stores are mainly located in Guangdong and Hainan. In July 2021, Guangdong Huicha Catering Management Co., Ltd. was established.
In 2015, Huicha founder Chen Zhihai founded the brand in Dongguan. During that time, the reputation of pearl milk tea was falling to the bottom. The reason was that the powder balls used to make pearls on the Internet contained gelatin, which was very unhealthy. After half a year of inspection, Chen Zhihai selected a food company in Guangzhou to jointly develop a pearl powder circle made from natural cassava powder and caramel flavor. With the original “Golden Jiao Pearl Milk Tea”, he stood firm. Up the heel.
The following year, while traveling in Hainan, Chen Zhihai discovered that although the local tea industry has become popular, there is still a gap in the development level of milk tea shops. So, after experiencing complicated store search, decoration, and opening in different places, Huicha officially moved from Guangdong to Hainan.
According to media reports in July this year, Huicha expects to have 100 stores in Hainan in 2021. This is not in the same order of magnitude as Michelle Ice City, which has a scale of “10,000 stores”.
With an average price of 8 yuan for a cup of milk tea, allowing young people to easily realize the “freedom of milk tea”, Michelle Ice City is doing well in the sinking market. In October this year, the number of Michelle Ice City stores exceeded 20,000.
However, Michelle Ice City is more densely distributed in the northern market, with nearly 2,000 stores in Henan province, and 1,000 stores in Shandong and Hebei provinces. But looking at the southern market where there are many milk tea brands, Michelle Ice City is not strong, with only more than 100 stores in Guangzhou and Shenzhen.
Michelle Ice City’s first investment was invested in Huicha. Perhaps what really fancy is Huicha’s business model and the latter’s team operation experience accumulated in the highly competitive southern market. In addition, for Michelle Ice City, Huicha, whose scale is still relatively weak, is also a more cost-effective choice for foreign investment.
Set up 6 subsidiaries in one year
Michelle Ice City’s investment map gradually emerges
Michelle Ice City, established 24 years ago, rarely accepted external investment until this year.
At the beginning of 2021, Michelle Ice City completed the first round of financing, led by Meituan Dragon Ball and Hillhouse, and CPE Yuanfeng and other institutions followed. It is reported that the amount of this round of financing exceeded 2 billion yuan, of which Meituan Dragon Ball and Hillhouse invested 1 billion in a single investment. After the completion of this round of financing, the valuation of Michelle Ice City reached 20 billion yuan.
Also since then, news about the listing of Michelle Ice City has been heard from time to time. In August of this year, there was a report that Michelle Ice City will be listed in Hong Kong in 2022, which was immediately denied by the company. Unexpectedly, a month later, Michelle’s A-share listing would come true.
The investment in Huicha is only a microcosm of the investment territory of Michelle Ice City. Since the beginning of this year, Michelle Ice City is constantly extending its investment tentacles.
In January of this year, Michelle Ice City established Hainan Fresh Yida Supply Chain Co., Ltd., located in Anding County, Hainan Province, with a registered capital of 50 million yuan; in June, Michelle Ice City established Snow King International Trading Co., Ltd., located in Chengdu Qingbaijiang District, with a registered capital of 50.5 million yuan. The business scope of the two companies includes technology and goods import and export, food business, etc.
Since then, Michelle Ice City has established Dajia International Enterprise Management Co., Ltd. in Haikou City, Hainan Province. Michelle Ice City holds 100% shares and has a registered capital of RMB 100 million. The company’s business scope includes catering services, hotel management, and food Internet. Sales etc.
In August and September of this year, Michelle Ice City pressed the “fast forward button”-the establishment of its subsidiary Chongqing Snow King Agriculture Co., Ltd., the establishment of Snow King Investment Company, and the announcement of recruitment on the second day of the IPO. Information from overseas market investment consultants announced their ambitions to enter the global market.
The Tianyan Check App shows that since this year, Michelle Ice City has established a total of 6 new subsidiaries, located in Hainan, Chengdu, Chongqing and other places. They are Chongqing Xuewang Agriculture Co., Ltd., Dajia International Enterprise Management Co., Ltd., and Xuewang International Trading Co., Ltd. Co., Ltd., Henan Xuewang Technology Co., Ltd., Hainan Xianyida Supply Chain Co., Ltd., and Xuewang Investment Co., Ltd.
Insiders said that these investment projects not only help Michelle Ice City to expand the Southeast Asian market, but also radiate to cover the relatively blank southern market of Michelle Ice City.
In 2019, Michelle Ice City achieved revenue of 6.5 billion yuan and net profit of 800 million yuan. Compared with the first Naxue’s tea of new-style tea drinks, in 2019, the revenue was 3.057 billion, and the loss was 39.68 million. The revenue was half of Michelle Ice City, but the profit was negative. Netizens can’t help sighing that Michelle Ice City, which has the wealth code, not only makes money, but also seems to know how to “spend money.”
New consumer companies are investing
Hi tea, vitality forest, tea Yan Yue color are here
Michelle Ice City is not the only tea brand investing in investment.
Prior to this, the two major players on the tea-drinking track, Xicha and Chayanyuese, respectively made their first foreign investments. On July 21, Heytea led the investment in the A+ round of more than 100 million yuan in financing of specialty coffee brand Seesaw, and the old shareholder Hony Pakfook followed in the investment. According to Tiger Sniff, until the signing of the contract, Wu Xiaomei, the founder of Seesaw Coffee, did not even have time to meet with the founder of Hey Tea, Nie Yunchen, and settled the investment by voice calls alone.
At the end of July, Cha Yan Yue Se also became a shareholder of Changsha’s local fresh fruit tea brand Guo Ya Ye. Cha Yanyuese said that part of the reason for this investment is that the two sides have been “seeing each other’s growth” and many concepts and behaviors are very suitable.
The popular vitality forest is already a frequent visitor to the VC circle. The Tianyancha APP shows that on December 30, 2020, the original Beijing Jinheng Catering Management Co., Ltd. has undergone an industrial and commercial change, the company name was changed to Shangui (Beijing) Catering Management Co., Ltd., the original shareholder Zhan Liangliang withdrew, and the new shareholders He Ling and Yuanqi Forest (Beijing) Food Technology Group Co., Ltd. After less than a month, Yuanqi Forest completed a new round of financing for Guanyun Baijiu, amounting to hundreds of millions of yuan.
What is less known is that Shangui Catering and Guanyun Baijiu are all invested projects of Challenger Capital, and the founder of Challenger Capital is Yuanqi Forest founder Tang Binsen, holding 78.75% of the shares. Established in 2014, this VC institution currently manages 3 RMB funds with a capital scale of 2 billion yuan. It has a deep involvement in consumption, entertainment and games, corporate services and other fields. It has invested in panda crafts, ramen, and vitality. 181 well-known projects including forests.
In this regard, a partner of a PE organization that focuses on consumer investment said, “It is normal. Now large consumer companies have their own industrial investments, which are in line with the laws of economic development.”
At present, tea brands with sufficient funds and “not bad money” are seeking a richer business model through capital means. As the so-called creation and excellence are investment, in any case, new consumer companies represented by Michelle Ice City, Bubble Mart, and Vitality Forest have become an emerging force that cannot be ignored in the venture capital circle.
Fengkou Finance and Economics is comprehensively organized. Sources of materials: investment community, entrepreneurial state, interface news, Securities Times, 36Kr, Economic Observer, etc.
(The opinions in this article are for reference only and do not constitute investment advice. Investment is risky, so be cautious when entering the market!)