Beverage Brand Nayuki Added 37 Teahouses in Q1

Nayuki Holdings Limited, a new-style beverage brand, announced the latest financial report of its operations in the first quarter of this year on Thursday. As of March 31, the company now operates a total of 854 teahouses across the country and saw its share price close at HK $4.89 on Thursday, up 8.43%.

During the quarter, the group recorded a net addition of 37 teahouses and closed 3 teahouses, while also converted 3 regular teahouses into PRO teahouses.

In the first quarter this year, Nayuki opened another 43 Type-I and Type-II PRO teahouses, and closed 6 regular teahouses. In addition, the company’s announcement mentioned that, due to the impact of the epidemic, on any given day approximately 5-15% of the company’s teahouses were temporarily unable to operate, and up to approximately 25% of teahouses on a given day were able to provide pickup/take-away services only.

According to the company’s 2021 financial report released at the end of March, Nayuki’s operating income increased by 41% to 4.3 billion yuan ($674 million) while its adjusted net losses reached 145 million yuan.

Thursday’s announcement also indicated that the company is doing its best to reduce costs while enhancing its operational resilience so that any future disruptions in the economic environment will not be as serious as the current situation. The company has been trying out an automatic shift scheduling system which is began deploying in stores in March 2022, and is expected to be rolled out in the first half of the year. Automatic tea makers will also be launched in the third quarter as scheduled, which are expected to significantly reduce the pressure on employee training for stores.

In addition, Nayuki launched several drinks in its Lite series, each with a unit price of less than 20 yuan. The lineup is mean to broaden the company’s price band and to attract more consumers. None of Nayuki’s drinks are priced higher than 29 yuan now with most ranging between 14 to 25 yuan.

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