China’s Nayuki Soars After Turning Profitable on First-Half Sales Surge at Tea Shop Chain
Dou Shicong
DATE:  Aug 26 2021
/ SOURCE:  Yicai
China’s Nayuki Soars After Turning Profitable on First-Half Sales Surge at Tea Shop Chain China’s Nayuki Soars After Turning Profitable on First-Half Sales Surge at Tea Shop Chain

(Yicai Global) Aug. 26 -- Shares of Chinese fruit tea chain Nayuki Holdings jumped after the firm showed it had become profitable in the first half in its first earnings report since going public amid good store performance.

Nayuki's stock price [HKG: 2150] climbed as much as 10.5 percent to HKD11.36 (USD1.50) intraday. But the shares are more than 40 percent lower than its initial public offering price. Nayuki went public last June.

The tea chain made a net profit of CNY48.2 million (USD7.4 million) in the first half of the year based on non-international financial reporting standards, the Shenzhen-based firm said in its earnings report published yesterday. In comparison, its net loss had been CNY76 million a year ago.

But when using IFRS, the company's net loss was CNY4.3 billion (USD662.9 million) in the six months due to changes in the fair value of preferred shares. A year before this, the company's non-IFRS net loss had been CNY63.5 million.

Sales were increasing. From January to June, revenue surged 80 percent to CNY2.1 billion (USD324.2 million).

The company will continue targeting big cities in China. Nayuki will focus on opening stores in first and second-tier cities in the future, as well as keep investing in technology, supply chain, and marketing, the firm added.

Stores were making more money. The vendor's store-level operating profit margin reached 19.2 percent in the first six months of the year, an increase of 7 percentage points from the 12 months of 2020. The firm launched a new type of outlets called Nayuki Pro late last year to cut labor and overhead costs.

As of June 30, Nayuki operated almost 580 stores in 74 cities across China while almost a fifth of them were opened in the first half. More than half of the over 90 outlets are in first and second-tier cities, and most of them are Pro stores, according to the report.

Editor: Emmi Laine, Xiao Yi

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Keywords:   Nayuki Holdings,Tea Chain