China Tea (Wuzhou) Co. Ltd.
A subsidiary company of China Tea Co. Ltd.
As a pioneer in China’s tea industry, it has been approved by the Ministry of Commerce and recognized as one of the first batch of “China Time-honored Brands”.
On February 28th, China Tea Co., Ltd. updated its IPO application review status, indicating that its application had been accepted. China Tea is a brand consumer goods company that operates a full range of integrated products. Its main business is the research, production, and sale of various types of tea and related products. The company has created the popular “Zhongcha” core brand, as well as sub-brands such as “Haidi”, “Houwang”, “Hudie”, “Bainian Mucang”, and “Longguan”. Its main products include oolong tea, pu-erh tea, flower tea, black tea, Liubao tea, white tea, Anhua black tea, green tea, and related products.
According to statistics from the International Tea Committee, global tea production continued to grow in 2020, driven by increased tea production in China and Kenya. In 2020, world tea production reached 6.269 million tons, an increase of 1.9% compared to 2019, with a slightly slower growth rate. Between 2011 and 2020, world tea production increased by 1.68 million tons, an increase of 36.6% compared to 2011, with an average annual compound growth rate of 3.5%.
According to data from the National Bureau of Statistics, since 2010, China’s tea production has increased year by year in tandem with planting area, with annual growth rates ranging from 1.61% to 11.09%. In terms of key time points, in 2011, national tea production began to exceed 1.5 million tons, in 2014 it exceeded 2 million tons, in 2018 it exceeded 2.5 million tons, and in 2021 national tea production exceeded 3 million tons, with a specific scale of 3.164 million tons, an increase of 7.92% compared to the same period in 2020. The Chinese tea market is worth CNY 304.9 billion in 2021 and is expected to reach CNY 408.0 billion in 2026, with a CAGR of 6% between 2021-2026. According to the International Tea Committee statistics, China’s tea production and sales volume are both ranked first in the world.
The company’s top five customers (by merger basis) from January to June 2022 were Shanghai Chaozhi Food Trading Co., Ltd., Mitsui & Co., Beijing Chuangyi Tang Trading Co., Ltd., Jin Xudan, Shantou City Chen Tengfa Tea Industry Co., Ltd., and its affiliates.
The top five suppliers (by merger basis) for the company from January to June 2022 were Fuzhou Bailitong International Trade Co., Ltd., Menghai Tingyuge Tea Industry Professional Cooperative, Guangxi Yungi Tea Industry Co., Ltd., Lincang Zhongxinyuan Tea Co., Ltd., Zhouning County Huaxing Tea Co., Ltd., and their affiliates.
“The company is divided into different business lines based on the types of tea. Its main competitors in each business line are as follows: 1) In the black tea business line, the main competitors for Pu’er tea include Yunnan Daye Tea Industry Group Co., Ltd. and others; for Anhua black tea, it includes Hunan Provincial Tea Industry Group Co., Ltd. and others; for Liubao tea, it includes Wuzhou Tea Factory in Guangxi and others. 2) In the oolong tea business line, the main competitors include Tianfu (Cayman) Holdings Limited and Bama Tea Co., Ltd. 3) In the white tea business line, the main competitors include Fujian Pinpinxiang Tea Industry Co., Ltd. and Fujian Tianhu Tea Co., Ltd. 4) In the black tea business line, the main competitors include Anhui Qimen Hongcha Development Co., Ltd. and Yunnan Dianhong Group Co., Ltd. 5) In the flower tea business line, the main competitors include Beijing Zhangyiyuan Tea Co., Ltd. and Beijing Wuyutai Tea Co., Ltd. 6) In the green tea business line, the main competitors include Sichuan Emeishan Zhuyeqing Tea Industry Co., Ltd., Xie Yuda Tea Co., Ltd., and Zhejiang Tea Group Co., Ltd.
The chairman of the company is Mr. Chen Lang, born in October 1965, a Chinese national with no permanent residency abroad, holding a master’s degree in business administration from the University of San Francisco. He has served in various positions including General Manager of the Enterprise Development Department of China Resources (Holdings) Co., Ltd., Vice Chairman and CEO of China Resources LiZhi Co., Ltd., Vice Chairman and General Manager of China Resources Vanguard Co., Ltd., Director and General Manager of China Resources (Holdings) Co., Ltd., and member of the Party Committee. Since April 2019, he has served as Vice President and member of the Party Group of COFCO Corporation, during which he also served as non-executive director and chairman of the board of directors of China Foods Limited, director and chairman of the board of directors of COFCO Coca-Cola Beverage Co., Ltd., and chairman of the board of directors of COFCO Joycome Investment Co., Ltd. He currently also serves as chairman of the board of directors of Joy City (000031) Holding Group Co., Ltd. and Joy City Property Limited. He is currently the chairman of the company.
The company’s sponsor representatives are Liu Bo and Zhang Zhongwei.”