---
title: "Today, Xiangpiaopiao, After Three IPO Attempts in Six Years, Finally Lists!"
description: "Xiangpiaopiao milk tea, which sells hundreds of millions of cups a year and could circle the earth several times, finally listed on the A-share market (stock code: 603711) after three IPO attempts, with an issue price of 14.18 yuan. The company issued 40.01 million new shares, planning to raise 748 million yuan for two projects: liquid milk tea construction and automatic production line for cup milk tea. Compared with its first IPO attempt six years ago, the milk tea industry is now a red ocean, squeezed by internet-famous milk tea shops like Heytea and Yidiandian..."
author: "New Distribution"
publisher: "New Distribution"
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published: "2017-11-30"
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# Today, Xiangpiaopiao, After Three IPO Attempts in Six Years, Finally Lists!

> Xiangpiaopiao milk tea, which sells hundreds of millions of cups a year and could circle the earth several times, finally listed on the A-share market (stock code: 603711) after three IPO attempts, with an issue price of 14.18 yuan. The company issued 40.01 million new shares, planning to raise 748 million yuan for two projects: liquid milk tea construction and automatic production line for cup milk tea. Compared with its first IPO attempt six years ago, the milk tea industry is now a red ocean, squeezed by internet-famous milk tea shops like Heytea and Yidiandian...

Xiangpiaopiao milk tea, which sells hundreds of millions of cups a year and could circle the earth several times, finally listed on the A-share market (stock code: 603711) after three IPO attempts, with an issue price of 14.18 yuan.
This issuance consists of 40.01 million new shares. According to the prospectus, the company plans to raise 748 million yuan for two projects: liquid milk tea construction and automatic production line for cup milk tea.
Compared with its first IPO attempt six years ago, the milk tea industry is now a red ocean. Squeezed by internet-famous milk tea shops like Heytea and Yidiandian and various liquid milk tea brands, can "the first milk tea stock" Xiangpiaopiao be recognized by the capital market?
**Three IPO Attempts in Six Years, Founder's Family Dominates**
"The pioneer of cup milk tea, leading sales for six consecutive years, selling over 300 million cups a year, cups connected could circle the earth once." In 2009, Xiangpiaopiao first launched this advertising slogan that remains memorable to this day. In the following three years, Xiangpiaopiao's milk tea sales exploded, exceeding one billion cups in 2011.
Sales that could circle the earth three times gave Xiangpiaopiao enough confidence to enter the A-share market. In February 2011, the company made its first IPO attempt. However, it got off to a bad start. Due to disagreements with the sponsor, the company changed underwriters and listing venue. After two years of turmoil, in November 2013, Xiangpiaopiao finally entered the environmental review for listing.
Just as it was about to enter the capital market, unexpectedly, one month after the environmental review passed, the CSRC suddenly announced a suspension of IPOs. Although it quickly resumed, Xiangpiaopiao's application materials were shelved. In 2015, due to stock market turbulence, IPOs were suspended again, and Xiangpiaopiao's listing plan was blocked once more.
In April this year, Xiangpiaopiao made its third IPO attempt, disclosing its latest prospectus, planning to issue no less than 40.01 million shares, raising 748 million yuan, of which 261 million yuan for the annual production of 103,600 tons of liquid milk tea construction project, and 488 million yuan for the annual production of 145,400 tons of cup milk tea construction project.
On the day the prospectus was disclosed, Xiangpiaopiao received feedback from the CSRC, raising questions about the company's standardization and information disclosure. A month later, Xiangpiaopiao's IPO was postponed for voting. However, this suspension did not last long. On June 6, the CSRC announced that Xiangpiaopiao passed the review. After six years of stumbling, Xiangpiaopiao finally successfully landed on the A-share market, becoming the "first milk tea stock."
With Xiangpiaopiao's successful listing, founder Jiang Jianqi's family is undoubtedly the biggest winner.
According to the prospectus, before the issuance, Jiang Jianqi and his wife Lu Jiahua held 80.46% of Xiangpiaopiao's equity, daughter Jiang Xiaoying held 5%, and Jiang Jianqi's brother Jiang Jianbin held 10%. After the issuance, the Jiang family's total shareholding remains as high as 86%.
It is worth noting that among the shareholders disclosed in the prospectus, except for Ningbo Zhitongdaohe holding 9.71%, all others are natural person shareholders, and this only institutional shareholder is mainly funded by the Jiang Jianqi family. Xiangpiaopiao can be said to be a veritable family business.
It has been reported by media that before Xiangpiaopiao's listing, venture capital firms including IDG Capital and Da Chen Ventures were interested in the company's potential in the milk tea field and intended to invest, but were all rejected by Jiang Jianqi. He publicly stated: "Venture capital institutions mainly aim for listing, only caring about profits and not the future of the brand."
**Single Product, Heavy Advertising**
In the cup milk tea market, Xiangpiaopiao has always been dominant. Heavy advertising investment and a single product have supported the company's performance, but the sustainability of this business model has been criticized.
The prospectus shows that Xiangpiaopiao's main business is the research, development, production, and sales of milk tea. The main products are two categories: coconut fruit series and delicious series, totaling twelve flavors of cup milk tea products. In addition, there are other products, including longan red date milk tea, Mongolian milk tea, and original juice milk tea.
The company's financial situation is considerable. From 2014 to 2016, cash flows from operating activities were 193 million yuan, 112 million yuan, and 366 million yuan respectively, and asset-liability ratios were 41.72%, 40.52%, and 49.31% respectively.
In terms of performance, from 2014 to 2016, the company's operating revenue was 2.092 billion yuan, 1.952 billion yuan, and 2.390 billion yuan respectively, and net profit was 185 million yuan, 203 million yuan, and 266 million yuan respectively. During the reporting period, cup milk tea revenue accounted for over 95% of total revenue, with coconut fruit series and delicious series contributing over 70% of revenue, also supporting Xiangpiaopiao's first-place market share in cup milk tea. From 2014 to 2016, the company's market share in cup milk tea exceeded 55%, approaching 60% in 2016.
Compared with comparable listed companies Uni-President and Master Kong, Xiangpiaopiao's profitability is relatively stable, with gross margin maintained above 40%. However, compared with Yangyuan Drinks, Chengde Lulu, and VV Food & Beverage, which are also beverage-focused, Xiangpiaopiao's advantage is not obvious.
It is worth noting that Xiangpiaopiao's main competitors are not companies that only make cup milk tea beverages. In contrast, Xiangpiaopiao's products appear particularly single. The company also mentioned in the risk warnings of the prospectus: "Operating performance is heavily dependent on the production and sales of cup milk tea products. Although it plans to enter the liquid milk tea market through the investment projects with raised funds, it still needs to invest more time and resources."
Despite the single product category, Xiangpiaopiao has always spared no effort in publicity. The prospectus shows that from 2014 to 2016, the company's advertising expenses were approximately 333 million yuan, 253 million yuan, and 359 million yuan respectively, accounting for 28.81% of the total operating costs over the three years, while net profit was only 70% of advertising investment. That is to say, for every yuan invested in advertising, only 0.7 yuan of profit is brought.
In response, Xiangpiaopiao explained that the company belongs to the fast-moving consumer goods industry, and a good brand image is crucial for FMCG sales. During the reporting period, the company continuously increased brand promotion efforts, expanding brand awareness and influence through advertising, providing strong sales promotion support for distributors, resulting in a relatively large amount of advertising expenses.
In contrast to the heavy advertising spending, Xiangpiaopiao has been "saving" on research and development expenses. From 2014 to 2016, the company's R&D expenditures were 14.7714 million yuan, 5.5853 million yuan, and 6.3938 million yuan respectively, accounting for 0.71%, 0.29%, and 0.27% of operating revenue, with the proportion continuously declining.
It is worth mentioning that when the prospectus mentions unfavorable factors affecting industry development, it states: "Many enterprises with less capital, small scale, and low production levels join the beverage industry competition. Small and medium-sized enterprises generally do not pay attention to R&D investment and lack innovation awareness."
Source: Food Capital (ID: foodcapital)
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