Auntea Jenny, a Chinese bubble tea chain, will begin trading on the Hong Kong Stock Exchange on May 8, 2025.

The company aims to raise HK$273 million (US$35 million) with a listing price of HK$113.12 (US$14.50) per share.

This valuation places its founders, Shan Weijun and Zhou Rongrong, at US$1.1 billion according to the Bloomberg Billionaires Index.

Founded in 2013 in Shanghai, Auntea Jenny operates over 9,100 franchise-run stores across 300 cities in China.

The chain specializes in milk tea with grain toppings and fresh fruit tea, priced around US$2.

It primarily targets lower-tier cities, where half of its stores are located

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Supply chain mastery has become the real competitive moat in China’s bubble tea wars

The success of bubble tea giants in China increasingly depends on supply chain excellence rather than just brand or product innovation.

Mixue Group, China’s largest fresh-drinks chain with over 46,000 stores globally, generates 97.6% of its revenue from selling raw materials and equipment to franchisees, positioning it as a supply chain powerhouse rather than just a beverage retailer 1.

This model has enabled Mixue to purchase 115,000 tonnes of lemons in 2023 (becoming China’s largest buyer) at approximately 20% lower costs than competitors, directly contributing to their ability to maintain ultra-low pricing 2.

The company’s logistics infrastructure, with five production facilities covering 0.79 million square meters and 27 warehouses, can reach 90% of China’s counties within 12 hours, creating an operational efficiency that’s difficult for newcomers to replicate 2, 1.

Auntea Jenny may face challenges without similar supply chain advantages, as analyst Xinyao Wang noted their “reliance on third-party suppliers with weak cost control” could lead to lower valuations compared to competitors who’ve vertically integrated their operations.

2️⃣ International expansion becomes the escape valve for a saturated domestic market

China’s bubble tea companies are increasingly looking overseas as the domestic market reaches saturation with approximately 480,000 shops competing fiercely for market share 3.