Nayuki’s 2021 Results: Delivery and Mini-Program Pickup Drove Most Store Sales

This is an English adaptation of a FoodBud historical article originally published on March 29, 2022.

On March 29, Nayuki Tea released its 2021 annual results. Full-year revenue reached RMB 4.297 billion, up 40.5% year on year. Store operating profit was RMB 590 million, adjusted net loss was RMB 145 million, and full-year net loss was RMB 4.5 billion.

Nayuki listed in 2021 at HKD 19.80 per share. By the time of the article, its share price had fallen to HKD 4.88, with a market capitalization of HKD 8.37 billion, equivalent to about RMB 6.8 billion.

Revenue Mix

Of 2021 revenue, RMB 4.067 billion came from the Nayuki Tea brand, RMB 140 million from the Tai Gai brand, and RMB 87.83 million from other revenue, including headquarters-driven gift and retail businesses.

By product category:

• Freshly made tea drinks: RMB 3.187 billion, 74.2% of revenue
• Bakery products: RMB 940 million, 21.9%
• Other products, including gifts and retail items such as sparkling water, tea gift boxes, and snacks: RMB 170 million, 3.9%

The headquarters-level “other products” business generated RMB 87.83 million, meaning store-level sales of other products were RMB 81.745 million.

Order Channels

Nayuki Tea’s average order value in 2021 was RMB 41.6.

Store revenue by order channel was:

• In-store cashier: RMB 1.147 billion, 28.2%
• Mini-program self-pickup: RMB 1.423 billion, 35.0%
• Delivery orders: RMB 1.498 billion, 36.8%

Within Nayuki Tea store revenue, 30.6% came from third-party delivery platforms, while about 6.2% of delivery orders came through its own platform.

Membership

As of December 31, 2021, Nayuki Tea had about 43.3 million registered members and 7 million active members. Active members had a repeat purchase rate of about 35.3%. The company defined active members as members who made at least one purchase in Q4 2021.

Store Network

In 2021, Nayuki Tea added 326 net new stores, expanding the group’s total store base to 817 locations. This included:

• 446 standard Nayuki Tea stores
• 272 first-category PRO stores
• 99 second-category PRO stores

At the end of 2021, store counts and average daily sales per store in selected cities were:

• Shenzhen: 110 stores; RMB 24,100 average daily sales per store
• Shanghai: 49 stores; RMB 17,500
• Guangzhou: 37 stores; RMB 20,900
• Wuhan: 39 stores; RMB 19,800
• Xi’an: 29 stores; RMB 18,700
• Beijing: 31 stores; RMB 21,100

Among these six cities, Shenzhen had the highest store operating profit margin at 21.7%, while Beijing had the lowest at 7.5%.

Same-store average daily sales per store in 2021 were RMB 25,900 in Shenzhen, RMB 18,800 in Shanghai, RMB 23,600 in Guangzhou, RMB 23,300 in Wuhan, RMB 20,800 in Xi’an, and RMB 23,000 in Beijing.

By format, same-store average daily sales per store were:

• Standard Nayuki Tea stores: RMB 20,300
• First-category PRO stores: RMB 14,200
• Second-category PRO stores: RMB 11,000

Cost Structure

For 2021, Nayuki Tea Group reported:

• Raw material costs: RMB 1.4 billion, 32.6% of total revenue
• Staff costs: RMB 1.42 billion, 33.2%
• Depreciation of right-of-use assets: RMB 420 million, 9.8%
• Other rent and related expenses: RMB 210 million, 5.0%
• Delivery service fees: RMB 259 million, about 6.0%
• Utilities: 2.1%
• Logistics and warehousing fees: 2.1%

2022 Plan

For 2022, Nayuki Tea expected to open 350 new stores. The company said it would strictly control labor costs and, under a continued optimization principle, would not increase per-store staffing levels.

Note: IPO, share-price, valuation, and forward-looking store-opening figures are historical figures from the 2022 source article.