Phytolacca is similar to milk in terms of use and function. Compared with milk, phytolacca has the advantages of being cost-effective, easy to store and transport, and can be flavored. For low-end and mid-range milk tea stores in the $10-15 price range and below, it is difficult to ensure competitive efficiency by using fresh milk, and phytomass can solve the cost pain point.
Phytomass is located in the middle of the food and beverage industry chain, with Golden Harvest Foods as one of the major players, and domestic competitors are mainly local unlisted companies. Overseas competitors mainly protect the integrity of the company's internal food production chain and supply chain, and do not directly compete with domestic phytomass enterprises.
In the coming period of time, the company will still have a good growth of ready-made tea drinks. As the preferred supplier of downstream customers, the company's market share will decline in the short term due to the constraints of production capacity, and the company's IPO fundraising will mainly be used for the expansion of production capacity, which, coupled with the gradual return to normal prices of raw materials, is expected to safeguard the future of bawling.
At the same time, the company is also looking for new performance growth points, at present, the coffee OEM has a greater probability of success, the construction of its own brand remains to be seen.
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The main business of Good Harvest Foods is the production and sale of phytomass, and other business involves coffee and other solid beverages, etc. As of 2021Q3, the company's phytomass business accounted for 77.1% of the revenue, coffee business accounted for 3.4% of the sales revenue, other solid beverages and other products accounted for 13.5% of the revenue, and the other business accounted for 6.1%.
Benefited from the company's business continued to promote and optimize the structure and the continued development of downstream ready-to-drink tea beverage application scenarios, the company's revenue grew from 1.32 billion yuan in 2016 to 1.87 billion yuan in 2020. 2020 due to the impact of the new crown outbreak, the company's net profit declined 20.5% to 220 million yuan, but the size of juju revenue increased by 2.1% to 1.87 billion yuan; as of 2021Q3, the company's revenue accounted for 3.4%. As of 2021Q3, the company's revenue and net profit increased by 38.9% and -22.2% respectively, the revenue scale continued to expand, due to the rising prices of raw materials led to a decline in profitability,
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Phytolacca is a kind of powdered food ingredients, raw materials based on glucose syrup, edible vegetable oils, and Vulpine. Phytolacca can improve the internal organization of food, enhance the smoothness, mellowness and fullness of the taste of food and beverages, inhibit the bitterness and astringency of coffee and tea, and play the role of flavor and aroma, which is widely used in the production and processing of milk tea, coffee, and bakery. Phytolacca is similar to milk in terms of use and function. Compared with milk, phytolacca has low cost, easy to store and transport, and can be flavored with new points.
The wide application of phylloxera originated from the habit of coffee drinking in Europe and the United States, 1980S-1990S, phylloxera entered the Chinese market, and after the import and consumption stage, the independent production stage and the research and development and innovation stage, the current domestic market is gradually dominated by imports into the domestic market, and a certain scale of export has been formed. According to Statista data, in 2017, the global and Chinese phytomass market size was USD 5,350 million and USD 883 million respectively, and is expected to reach USD 6,373 million and USD 114.4 billion respectively in 2022 China, with a CAGR of 3.56% and 5.31% respectively. According to China Food News, China's consumption of phytomass products reached 576,500 tons in 2018 and is expected to reach 768,200 tons in 2023, with a CAGR of 5.91% .
Currently, both solid milk tea and liquid milk tea are in slow growth, and ready-made tea Chin:has become a faster-developing category in the milk tea circuit and will gradually replace traditional packaged milk tea along with the trend of consumption upgrading.
China's 2.15-2020 ready-made tea drinks market size from 42.2 billion yuan to 113.6 billion yuan, close to the 120 billion yuan market size of the tea, CAGR of SU21.9%; is expected to reach 340 billion yuan market size of ready-made tea drinks in 2025, the next five-year CAGR is expected to reach 24.5%, beyond the tea, tea bags and tea powder to become the first major category of the tea drinks industry in China. The first big category of tea beverage industry.
For the 10-15 yuan price range and the following low-end milk tea store, the use of fresh milk is difficult to ensure a competitive gross margin, and phytolacca can solve the cost pain point. To 10 yuan / cup of 500ml milk tea as an example to do the cost of splitting: if the use of phytolacca, corresponding to the gross profit margin of 82.6%; if the use of fresh milk, another need to add light cream flavoring, corresponding to the gross profit margin of 35.3%. A little bit, Coco can be a franchise gross ^ rate of 75%, 80%, respectively, the use of fresh milk to make low-end milk tea difficult to compete with mainstream milk tea store, phylloxera is still the rigid demand for low-end milk tea store.
In 2020, the retail sales of high, medium and low-end ready-made tea and beverage stores will be 12.9IZ yuan, 32.4 billion yuan and 21.2 billion yuan respectively, and it is expected that the retail sales of high, medium and low-end ready-made tea and beverage stores will reach 52.2 billion yuan, 106.0 billion yuan and 52.8 billion yuan in 2025, with the CAGR of the next five years being 32.2%, 26.7% and 20% respectively.
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Phytomass is located in the middle of the food and beverage industry chain, with Golden Harvest Foods as one of the major players, and domestic competitors are mainly local unlisted companies. Overseas competitors are mainly the phytomass processing plants invested and built by listed foreign food giants in China, while foreign investors set up phytomass production lines mainly to ensure the integrity of the company's internal food production chain and supply chain, and do not compete directly with domestic phytomass enterprises.
The company's competitive position is solid, domestic sales and export sales synergistic development, industry concentration to enhance the space is still broad. At present, the company's market share of 15%, by capacity constraints in the past two years did not improve, on the contrary, decline. The main investment of the company's listed financing is used for capacity expansion, in order to increase market share.
In 2016-2020Q3, the company's top five customers include domestic food industry customers (Peopeo, Unity), domestic ready-made tea drink chain brands (Honey Snow Ice City, Guming, etc.), Southeast Asian coffee companies (TORABIKA), and trading companies, etc. In recent years, ready-made tea drink chain brands are becoming more and more popular. In recent years, ready-made tea drink chain brands are gradually replacing the food industry and Southeast Asian enterprises to become the company's top five customers, 2020Q3 the company's top five customers were Honey Snow Ice City, Guming, Coc. Coc. Duco, Land Z Private Limited (Southeast Asian trading company), Shanghai Auntie, which is a ready-made tea drink chain brand of Jiahe are the first supplier.
In addition, the company also cooperates with well-known chain restaurant customers such as Xi Cha, Nexue's Tea, Seesaw, Haidilao, etc., and as of 2020H1 the number of stores 100. The number of customers in the chain category has exceeded 9.
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Comprehensively, the company benefited from the rapid growth of ready-made tea drinks in recent years, and it is expected that in the next few years, the low-end tea drinks will still maintain the growth rate of not措, at the same time, the company, as an industry leader, is still the preferred downstream manufacturers, and it has a mileage to further increase the market share after the bottleneck of the production capacity has been solved; it also benefits from the recovery of the raw material prices in the short term as well, and it owns a certain amount of elastica?
At the same time, the company is also actively looking for other growth points, the company began to lay out the coffee industry since 2015, there are complete instant coffee production lines covering roasting, grinding, extraction, concentration, spray drying, covering the whole process of the instant coffee production chain, including roasted coffee beans, 硏grinded coffee powder, cold brew coffee liquid, coffee concentrate instant coffee, and the production of three-in-one coffee beverages combined with the production line of solid beverages, which can provide the best solution for the coffee industry, and can provide the best service for the coffee industry, as well as the most suitable products for the coffee industry. It can provide customers with one-stop product services.
In 2019, the company set up a subsidiary of Golden Cat Coffee to independently operate the coffee business, focusing on building its own brand "Golden Cat Coffee", and shifting its product structure from instant coffee powder to cold brewed coffee and freeze-dried coffee硏硏究ufacturing, in order to enhance the brand's character; at the same time, it also carries out OEM business for the downstream catering and industrial customers.
From the beginning of the company's history, the company has been able to develop a new brand of coffee.
From the perspective of the company's position in the traditional business and customer contacts, the OEM business still has great hope to occupy part of the market and become the next f growth point after the milk tea market matures, while the private label is difficult and needs to be continuously observed.