Nayuki Tea (02150.HK) narrows 2025 loss by 73.8%, net reduction of 152 stores, share price plummets to penny stock levels

ZC Asia has learnt that on 26 March, Nayuki Tea (02150.HK) released its 2025 annual results, showing full-year revenue of 4.33 billion yuan, a year-on-year decline of 12%, whilst the adjusted net loss narrowed to 240 million yuan, representing a 73.8% year-on-year reduction in losses. Against a backdrop where peers such as Mixue, Guming and Chabaodao have generally achieved double-digit growth in both revenue and profits, Nayuki Tea continues to struggle to find its footing. On the day the financial report was released, the company’s share price fell by 4.26% to close at HK$0.900, representing a decline of approximately 95% from its market capitalisation on its first day of listing.

Revenue contraction and narrowing losses go hand in hand

The financial report shows that Nayuki Tea’s revenue for 2025 stood at 4.33 billion yuan, down 12% from 4.92 billion yuan in 2024 and a 16.13% decrease from the over 5.3 billion yuan recorded in 2023. One of the primary reasons for the revenue decline was the proactive optimisation of the store network – by the end of 2025, the total number of Nayuki Tea outlets stood at 1,646, a net reduction of 152 from the 1,798 recorded at the end of 2024, with company-owned stores falling from 1,453 to 1,288.

This marks the first net reduction in Nayuki’s store count in recent years. At the end of 2023, the total number of Nayuki stores stood at 1,655; by the end of 2024, this had increased to 1,798, representing a net increase of 143 stores for the year, although there were already signs of a net reduction of 121 company-owned stores. In 2025, the company further closed a number of underperforming outlets.

Following the reduction in store numbers, the operational quality of the remaining stores improved. The average daily sales per company-owned store rose from 7,300 yuan in 2024 to 7,700 yuan, representing a 6.3% increase in same-store sales; the average daily order volume per store increased from 270.5 orders to 313 orders, a rise of 15.7%. Financial reports indicate that the majority of the closed outlets were inefficient stores characterised by high rents, poor locations or long-term losses. Although the closures led to a short-term decline in revenue, they resulted in the one-off elimination of a significant amount of fixed costs.

Costs were optimised simultaneously. In 2025, Nayuki’s core raw material costs stood at 1.47 billion yuan, accounting for 34% of revenue and representing a year-on-year decrease of 18.7%; staff costs amounted to 1.222 billion yuan, down 14.8% year-on-year. Regarding key cost-reduction initiatives, depreciation of right-of-use assets was 274 million yuan, down 33.7% year-on-year; other rent and related expenses totalled 247 million yuan, down 10.1% year-on-year; depreciation and amortisation of other assets stood at 269 million yuan, down 20.0% year-on-year. Furthermore, advertising and promotional expenses amounted to 198 million yuan, a year-on-year decrease of 19.5%; utility costs fell by 20.9%; and logistics and warehousing expenses dropped by 22.9%. The only category to see an increase was delivery service fees, which reached 462 million yuan, up 3.6% year-on-year, primarily due to a higher proportion of takeaway orders and increased platform promotions.

The effectiveness of cost-cutting measures was directly reflected in the profit figures. On an adjusted basis, Nayuki’s net loss fell sharply from 918.7 million yuan in 2024 to 240.5 million yuan in 2025, a reduction of 73.8%; operating cash flow grew by 35.7% to 273.6 million yuan; and the adjusted net loss margin narrowed from -18.7% to -5.6%.

Slow progress in franchise operations; bottled beverage business faces headwinds

On the product front, Nayuki launched 70 freshly made beverages and 54 baked goods in 2025, shifting its focus from pursuing a high number of SKUs to creating high-value-for-money bestsellers. Regarding channel transformation, the company continued to expand its franchise operations, with the number of franchise outlets increasing from 345 to 358 in 2025 – a net increase of just 13 stores, a pace significantly lagging behind industry peers. Nayuki has moved away from its ‘high-end direct-operated’ positioning, seeking to penetrate lower-tier markets by leveraging franchisees’ capital and local resources.

Compared with its peers, the gap in store scale continues to widen. By the end of 2025, Mixue had expanded to 55,356 stores in mainland China, Guming to 13,554, and Chabaodao to 8,621, whilst Nayuki had only 1,646. In terms of business models and penetration of lower-tier markets, approximately 58% of Mixue’s outlets are located in third-tier cities and below; 82% of Guming’s outlets are in second-tier cities and below, with 44% situated in towns and rural areas; and 46.1% of Chabaodao’s outlets are in third-tier cities and below. Although Nayuki opened its franchise programme in 2023, it had only 358 franchise outlets by the end of 2025.

The gap in supply chain capabilities is equally evident. Moxue Ice City operates five major production bases, with 100% of its core ingredients produced in-house, resulting in raw material costs 23% lower than the industry average. Guming has established the largest cold-chain warehousing network among domestic tea beverage brands, with 98% of its outlets benefiting from ‘twice-weekly’ cold-chain deliveries.

Furthermore, revenue from Nayuki’s bottled beverage business fell from 293 million yuan in 2024 to 178 million yuan in 2025, a decline of 39%. In a bottled beverage market dominated by brands such as Nongfu Spring and Genki Forest, Nayuki lacks control over distribution channels and brand recognition; the contraction of this business line is likely to continue.

Seeking a Breakthrough in the Health-Conscious Segment

From 2018 to 2025, Nayuki accumulated losses exceeding 2 billion yuan over eight years, with only a brief profit of 13.22 million yuan in 2023. Faced with these challenges, the company is attempting to find a breakthrough in the health-conscious segment. On 13 March 2026, Nayuki’s first “Fibre·Studio” store opened in Shenzhen’s Coast City, featuring a range of low-GI, high-fibre products. With “more fibre, slower glycaemic response” as its core selling point, the store offers light meals such as half-sugar baked goods. This initiative continues the product innovation trajectory established in 2025 and aligns with market demand for low-calorie diets.

Currently, only one broker has assigned Nayuki a “Hold” rating, whilst no broker has issued a “Buy” recommendation. On its first day of trading in June 2021, Nayuki’s market capitalisation briefly exceeded HK$30 billion; however, by the close of trading on 26 March 2026, its total market capitalisation had shrunk to HK$1.535 billion, representing a decline of approximately 95% from its debut. By comparison, Mixue Ice Cream currently maintains a market capitalisation in the HK$100 billion range, whilst Guming’s market capitalisation stands at approximately HK$63.2 billion.

Disclaimer: The content of this article is for reference only and does not constitute any investment advice. Should any information herein be inaccurate, incomplete or potentially misleading, please refer to the company’s official announcements. Market investments carry risks; investors should exercise caution.

Disclaimer: The content herein is for reference only and does not constitute any form of investment advice. Should any information contained herein prove inaccurate, incomplete, or potentially misleading, please refer to the company's official announcements. Market risks exist; investment requires caution.