Good Me Milk Tea Holdings Ltd. (1364.HK) is thriving in China’s competitive bubble tea market, reporting a 14.5% revenue increase in 2024, reaching 8.79 billion yuan ($1.21 billion).
The brand also expanded aggressively, adding 913 new stores, bringing its total to 9,914 locations. Despite a slight dip in gross margin, its profit surged 36.9% to 1.48 billion yuan.
In contrast, rival Chabaidao (Baicha Baidao) struggled, seeing a 14% revenue decline to 4.92 billion yuan and a 60% drop in profit to 472 million yuan.
Although it added 594 new stores, bringing its network to 8,395, its financial performance lagged behind.
Stock market reactions reflect this contrast: Guming shares remain up 64% from their IPO price despite recent dips, while Chabaidao’s stock has fallen nearly 50% since its IPO.
The battle for dominance in China’s booming milk tea market is heating up, with Guming pulling ahead as the stronger contender.
Related topics:
