Nayuki Added 87 Net New Stores in H1, Passing 900 Stores as Shanghai Performance Was Hit Hard

This is an English adaptation of a FoodBud historical article originally published on September 1, 2022.

On August 31, Nayuki Holdings released its first-half results for 2022. Revenue was RMB 2.0 billion, down 3.8% year on year. Adjusted net loss was RMB 48.2 million, while loss for the period was RMB 260 million.

Operating profit from Nayuki tea-drink stores was RMB 200 million, down 49.2% year on year. Store operating margin was 10.4%, down 8.8 percentage points from the same period in 2021.

Store And Order Metrics

In the first half, Nayuki tea-drink stores recorded:

• Average sales per order: RMB 36.7
• Average daily orders per store: 346.2
• Net new stores opened: 87
• Total store count at period end: 904

Sales Mix

By product category, freshly made tea drinks remained the core business, while non-tea categories expanded their share:

• Freshly made tea drinks: 72% of first-half revenue
• Bakery products: 18.6%
• Other products, including retail bottled fruit tea, sparkling water and tea gift boxes: 9.4%, up from 3.3% in the prior year

By sales channel, delivery and mini-program ordering continued to represent a large share of revenue:

• In-store cashier orders: 19.9%
• Mini-program orders for store pickup: 35.5%
• Delivery orders: 44.6%
• Third-party delivery platforms: 36.1%
• Nayuki-operated delivery channels: 8.5%

Membership

As of the end of June, Nayuki had 49 million registered members. Active members, defined as members who made at least one purchase in the second quarter, reached 7.2 million. Average monthly active members were 3.09 million.

Shanghai And Major-City Pressure

The company was heavily affected by the pandemic in the first half of 2022. Nayuki’s store operating margin in Shanghai was negative, and same-store operating margin in Shanghai was -22.1%.

Across six major cities, Beijing, Shanghai, Guangzhou, Shenzhen, Wuhan and Xi’an, same-store average daily sales per store all fell below RMB 20,000 compared with the prior year.

Cost Structure And Balance Sheet Items

In the first half, raw material costs accounted for 34.5% of revenue. Labor costs fell to 18.9% of revenue. Nayuki had 8,257 full-time employees, including 1,627 headquarters staff.

As of the end of June, cash and bank balances totaled approximately RMB 3.7 billion.

By the same date, Nayuki had acquired self-owned offices, leased properties and related projects at a cost of RMB 330 million. Leasehold improvements and other equipment with a carrying net value of RMB 30.11 million were sold in the first half, resulting in a loss of RMB 13.54 million on the disposal.

Nayuki Life Opens

On the same day the results were announced, Nayuki Life, an updated version of Nayuki Dream Factory, officially opened. The format resembles a multi-brand collection store.

A total of 16 brands were brought together under “Nayuki Life.” In addition to Nayuki’s own brand, the lineup included bookstore brand Fang Suo, Aoka Coffee, tabletop greenery and floral brand Zhiya, and trend-focused light-meal brands such as monster.