According to market news, Ruixing coffee is considering listing in Hong Kong. Ruixing coffee's official response said: at present, it does not seek to be listed in Hong Kong Ruixing CEO Guo Jinyi said in public: "everything else has changed except the name of Ruixing has not changed." Previously, in March, Ruixing coffee released the fourth quarter and full year financial reports of 2021. The net income and the number of stores increased significantly, and the profit of self operated stores also became positive for the first time.
It is worth mentioning that in April this year, Ruixing coffee announced that the company had completed the financial debt restructuring and completed the procedures in Chapter 15 of the bankruptcy law; Positioning for long-term sustainable growth and profitability; The company is no longer subject to bankruptcy or bankruptcy proceedings in any jurisdiction.
From setting the record of the fastest listing of domestic enterprises, to experiencing a sharp decline in the financial fraud scandal, to quickly completing the debt restructuring and temporary liquidation, and handing over the bright business report card again, this once hanging coffee brand has shown its super viability to the capital market.
At that time, according to industry analysis, Ruixing was even expected to re-enter NASDAQ and become a classic business case of "salted fish turning over" under heavy pressure.
The total net income was 7.965 billion yuan, a year-on-year increase of 97.5%; 1221 new stores were opened, with a year-on-year increase of 25.4%; The average monthly trading customers were 13 million, with a year-on-year increase of 55.2%; The profit of self operated stores became regular for the first time.
On March 24, Ruixing coffee released its financial reports for the fourth quarter of 2021 and 2021, and various operating data increased significantly, which seems to mark the rebirth of the coffee brand that once hung on the front line in the capital market.
Among them, the business performance in the fourth quarter was particularly bright. According to the data, the total net income of Ruixing coffee in the fourth quarter was 2.433 billion yuan, a year-on-year increase of 80.7%; The average number of monthly trading users increased by 67.1% year-on-year to 16.2 million, a new high.
At the same time of scale expansion, the profitability of this coffee brand has also improved significantly. According to the financial report data, the profit margin of Ruixing coffee store reached 20.2% in 2021, while in the same period of 2020, this data was a loss of 435 million yuan, with a loss rate of 12.5%. From the current business performance, Ruixing coffee has overcome the most difficult hurdle.
The narrowing of Ruixing coffee's performance loss is closely related to its re combing of its business model. Based on the previous rapid expansion, Ruixing coffee has accumulated scale advantages and user advantages. After delisting, the social attributes of stores are enhanced through fine operation and transformation, and the low threshold franchise mode and product innovation also play an important role.
At the beginning of 2021, Ruixing started the "Ruixing Rui buy" 0 yuan franchise. As long as the applicant passes the franchise application and completes the review, it can be authorized to start business without paying any deposit. By expanding the franchise model, this coffee brand facing bankruptcy liquidation continues to seize the domestic coffee market, especially in sinking cities.
In the past year, Ruixing coffee has opened 1221 new stores. By the end of 2021, the number of stores has reached 6024, surpassing Starbucks, the "big brother" in the industry, and taking the top position of domestic chain coffee brands. Among them, there are 1627 affiliated stores, nearly double the number a year ago, accounting for nearly 30%, and their contribution to revenue has also increased significantly. According to the financial report data, the revenue of affiliated stores in 2021 was 1.306 billion yuan, with a year-on-year increase of 312.5%.
At the same time, a series of marketing operations have also made many coffee lovers who were not optimistic about Ruixing interested in this brand. Gu ailing, the spokesperson signed in September last year, became the "top stream of Winter Olympics". During the Winter Olympics, the brand was driven to rush into microblog hot search for many times; Then, with a large number of hoarding famous "Huakui" single product coffee beans, it entered the boutique coffee market and won the favor of more senior coffee consumers.
Previously, Ruixing coffee announced the successful conclusion of the temporary liquidation. After the ruling of the U.S. bankruptcy court, the relevant U.S. bankruptcy protection procedures will also be completed. In the view of insiders, the end of the liquidation state shows that Ruixing's governance structure has fully returned to normal, the debt risk has been eliminated, and then it can support operation and expansion with stronger financial strength.
With the completion of KPMG's liquidation, the obstacles to the company's reorganization have been basically cleared. According to the regulations of applying for promotion from the powder list market to NASDAQ, Ruixing coffee has basically met the requirements of board transfer. At present, Ruixing coffee has about US $20 million of shares traded over the counter every day, and the overall valuation has exceeded US $3 billion.
In the view of investors, Ruixing's return to the NASDAQ main board has no problem in theory, and the possibility of re listing depends on whether it can win the trust of investors.
According to the new regulations of Chinese regulators, for companies that have not yet been listed, there are many matters and departments that need to be reported for approval, and it is obviously more difficult to go to the United States for listing. However, for companies that have been listed, there is no problem of safety information approval and approval.
Ruixing's re listing belongs to the transfer from the powder single market. If the documents reported by the company are recognized by the CSRC and believe that the protection for investors has been in place, it can be transferred to NASDAQ in accordance with the regulations.
However, during the two years when Ruixing was busy fighting the "turnaround war", foreign well-known coffee brands such as tims, Peets and blue bottle accelerated their entry into the Chinese market, and local boutique coffee brands manner, seesaw and M stand also quickly completed multiple rounds of financing and expanded rapidly. According to the data, the overall financing amount of the coffee industry exceeded 17 billion yuan in 2021. The coffee track has become a hot capital pet, and Ruixing will also face fierce competition within the industry after "turning over" again.
As for when Ruixing coffee will be profitable, Zhu danpeng, an analyst of China's food industry, believes that the brand as a whole has entered a virtuous development cycle. "Although it has been criticized for financial fraud, its current operation performance is very good. It is just around the corner to return to the capital market, and the company's cash flow will gradually improve to achieve healthy and orderly development."
Editor | arti