Outer packaging costs accounted for 9.2% of revenue. A cup of milk tea packaging costs increased by 50% in two years

  How much does Nayuki's packaging cost?

  Naxue's Tea (02150.HK, hereinafter referred to as "Naixue"), known as the "highest customer unit price", was listed on the Hong Kong Stock Exchange at the end of last month with an issue price of HK$19.8 per share, but it broke on the day of the issuance.

  Today, Nayuki has been listed for several days, and its stock price performance is still not as good as expected.

As of the close of the market on July 9, 2021, Naxue’s stock price was HK$16.72 per share, with a total market value of HK$28.677 billion.

  On the day of listing, the Red Star Capital Bureau made a cost calculation for Naxue.

According to the data disclosed in the company's prospectus, from 2018 to 2020, the ratio of Naxue's material cost to total revenue rose from 35.3% to 37.9%.

Calculated at the current unit price of 43 yuan per customer, the cost of a cup of Nai Xue on materials is as high as 16.3 yuan.

  It is generally recognized that milk tea is a high-margin industry.

But Nayuki's investment in raw materials seems to be unrelenting.

  However, the Red Star Capital Bureau found that from 2018 to 2020, Naxue’s raw material input did not rise, but packaging materials.

  Interestingly, according to Naixue's prospectus, its largest packaging supplier is Dongguan Zundao Environmental Packaging Industry Co., Ltd. (hereinafter referred to as "Zundao Environmental Protection").

According to the Tianyancha APP, Naixue’s founders Peng Xin and Zhao Lin indirectly hold 50% of the equity in Zundao Environmental Protection.

  How much does the packaging of a cup of milk tea cost?

  Chengdu Commercial Daily-Red Star News reporter Yu Yao, intern reporter Liu Mi

  The cost of raw materials has not risen, but packaging materials have risen

  Naxue’s material cost mainly consists of two parts: the cost of raw materials, such as tea, fruits, dairy products and other raw materials; and the cost of packaging materials and consumables, such as tea cups and paper bags.

  According to the prospectus, Naxue’s raw material costs accounted for 28.7% of total revenue in 2020. Compared with 29.2% in 2018, this value has not increased, but has decreased.

  Looking at Nayuki's packaging cost, the proportion of this cost in total revenue has risen from 6.1% in 2018 to 9.2% in 2020.

  In other words, the increase in the cost of Naxue's materials is mainly due to the increase in the cost of packaging materials, not because of the investment in more and more expensive raw materials.

  What is the level of Nayuki's packaging cost?

  For example, if the average customer unit price of tea is 27 yuan, the packaging cost of a cup of milk tea in 2018 is about 1.65 yuan; by 2020, the packaging cost of a cup of milk tea will rise to 2.48 yuan.

  In just two years, the packaging cost of a cup of milk tea has risen by 50.3%, which is somewhat unbelievable.

  Regarding the high packaging cost of Nayuki, after the announcement of the prospectus, some media asked Nayuki's related executives on this issue. The executive responded: "This is normal in this industry. For example, in the gross profit cost of Starbucks, The biggest thing is not its coffee, but its cup."

  According to the Starbucks financial report, the current gross profit margin of Starbucks is around 67%, which is much higher than that of Naixue. However, considering the higher standardization of coffee production and lower supply chain costs, and Starbucks financial report does not disclose more details of packaging costs, it is very It is difficult to compare the impact of the two packaging costs on gross profit based on Starbucks' financial data.

  But through Naxue's prospectus, Red Star Capital Bureau found more details and questions about packaging costs.

  Packaging cost mist

  As a representative of high-end tea, Nayuki is rushing to the "high-end" no matter whether it is raw materials or packaging.

From the consumer's experience point of view, users have indeed got the double satisfaction of drinking and using.

  However, whether it is the rising packaging costs, the complicated relationship between the supplier and the company, and the general price of the packaging learned by the Red Star Capital Bureau on site visits to the supplier, it may be that Naxue’s packaging cost has been overshadowed. Mist.

  Not a simple packaging supplier

  In 2018, Zundao Environmental Protection became Naxue’s largest packaging supplier. At the end of the same year, the company had a major equity change. Shenzhen Xinlin Culture Communication Co., Ltd. held 50% of Zundao Environmental Protection’s equity; and Naxue’s founder, Peng Xin and Zhao Lin each hold 50% of the equity of Shenzhen Xinlin Culture Communication Co., Ltd.

  According to the prospectus of Naxue, from 2018 to 2020, the largest supplier of Naxue will be Zundao Environmental Protection, which mainly provides packaging material services for Naxue.

  The prospectus shows that from 2018 to 2020, the cost of Naxue's environmental protection procurement of packaging materials in Zundao was 37.612 million, 94.611 million and 94.447 million, and the purchase amount accounted for about 8% of the total purchase.

  According to the Tianyancha APP, Zundao Environmental Protection was established in October 2017, and the company has 50 to 99 employees.

It is worth noting that in 2018, Zundao Environmental became Naxue’s largest packaging supplier. At the end of the same year, the company had a major equity change. Shenzhen Xinlin Culture Communication Co., Ltd. held 50% of Zundao Environmental; and Peng Xin and Zhao Lin each hold 50% of the equity of Shenzhen Xinlin Culture Communication Co., Ltd.

  Regarding the production capacity of Zundao environmental protection, people are puzzled.

  An approval document from the Dongguan Environmental Protection Bureau shows that Zundao Environmental Protection is about to relocate, renovate and expand. The date of signing of the document is July 19, 2019.

The information shows that the production capacity of Zundao Environmental Protection after the expansion of the factory is: an annual output of 1.2 million paper bags, 2.5 million cup sleeves, 1 million milk tea cups, 2.5 million bread boxes, 1.5 million double cup holders, and 100,000 six-cup boxes. A.

  According to the company's production capacity disclosed in this document, assuming that Zundao Environmental Protection realizes full production immediately after the expansion, it can produce a total of about 8.8 million products each year.

  On July 8, Red Star Capital Bureau visited the Chengdu International Hotel Supplies and Catering Expo which was exhibited by Zundao Environmental Protection.

According to the single product packaging pricing given by Zundao Environmental Protection, even if it is estimated according to a higher price range, the actual value of 8.8 million products will not exceed 6 million yuan.

  However, from 2019 to 2020, Naxue paid Zundao Environmental Protection over 90 million yuan in packaging costs for two consecutive years.

If calculated according to this amount, the number of products Naxue ordered is far more than 8.8 million.

  If the delivery amount of Naxue is compared with the actual production capacity of Zundao Environmental Protection, the single price of packaging products provided by Zundao Environmental Protection is as high as 10 yuan/piece, and the total packaging cost of a complete cup of milk tea is as high as tens of yuan, which is simply impossible.

  In other words, Nayuki's large order cannot be digested by the production capacity of Zundao Environmental Protection.

  The Red Star Capital Bureau inquired about Tianyan and found that there is also a Shenzhen Jinggongxin Technology Co., Ltd. (hereinafter referred to as "Shenzhen Jinggongxin") under the name of Luo Liangshan, a shareholder of Zundao Environmental Protection, which was established in November 2014. The company mainly deals in textiles, R&D, design and sales of packaging products.

  The mystery of production capacity may be hidden behind Shenzhen Jinggongxin.

  It is more likely that Shenzhen Jinggongxin will also provide packaging materials for Naxue, but Naxue did not disclose more information.

At the same time, Nayuki's packaging supply may have problems with "third-party" entry. Whether this will cause changes in Nayuki's packaging costs afterwards is worthy of further consideration.

  As far as the largest supplier of Naxue Packaging from 2018 to 2020 is Zundao Environmental Protection, can Zundao Environmental Protection's production capacity meet the needs of Naxue?

Is Shenzhen Jinggongxin doing Naxue’s order digestion work?

Naixue’s founders, Peng Xin and Zhao Lin, indirectly hold 50% of Zundao Environmental Protection’s 50% equity. What are the considerations and other related issues. The Red Star Capital Bureau contacted Naixue, but at the time of writing, no response was received.

  How much is the milk tea packaging worth?

  The single price of PP frosted cup is about 0.7 yuan, the PLA straw is about 0.15 yuan, the PP cup lid is about 0.15 yuan, the cup cover is about 0.1 yuan, the cup holder is about 0.5 yuan, the high-quality environmentally friendly paper bag is about 1 yuan, and a cup of milk tea If all high-quality packaging products are used, the total price will be around 2.6 yuan.

(This price is the minimum standard price of 50,000 orders)

  From July 8th to 10th, Chengdu held the Chengdu International Hotel Supplies and Catering Expo.

  A reporter from the Red Star Capital Bureau visited a number of suppliers in the catering industry, including Zundao Environmental Protection and another "Fengyi Industrial" company that claimed to also provide packaging materials for Naxue.

  The reporter expressed to the sales staff of the two companies that they wanted to buy the outer packaging materials for milk tea. The sales staff of the two companies both stated that the prices of the products will vary depending on the materials.

When the Red Star Capital Bureau inquired about the price level of Nayuki's outer packaging, the sales staff all stated that Nayuki's outer packaging materials were of higher quality.

  Generally speaking, a complete cup of milk tea packaging includes milk tea cups, lids, straws, cup sleeves, cup holders, paper bags and other parts.

  The sales staff introduced several high-quality packaging individual prices to the Red Star Capital Bureau reporter in turn: the single price of PP frosted cup is about 0.7 yuan, the PLA straw is about 0.15 yuan, the PP cup lid is about 0.15 yuan, and the cup sleeve is about 0.1 yuan. The total price is around RMB 2.6, the cup holder is around RMB 0.5, and the high-quality environmentally friendly paper bag is around RMB 1. If a cup of milk tea is made of better packaging products, the total price is around RMB 2.6.

  The sales staff also said that this price is the minimum standard price of 50,000 orders. The greater the purchase volume, the lower the total unit price.

  It is worth mentioning that this price is a complete comprehensive price for a single cup of milk tea accessories. Generally, milk tea shops will also have a large number of dine-in users. These users generally do not need paper bags, cup holders and other products; at the same time, the individual products of milk tea shops use The specific packaging is also different. For example, Naxue’s "Domineering Jade Oil Loquat" does not require packaging materials such as straws, cup lids, cup holders, cup holders, etc., which also reduces the packaging cost of a single product to a certain extent. .