Home » Tims China Nasdaq listing: $1.4 billion Tencent Sequoia is a shareholder – yqqlm

Tims China Nasdaq listing: $1.4 billion Tencent Sequoia is a shareholder – yqqlm

by admin
Tims China Nasdaq listing: $1.4 billion Tencent Sequoia is a shareholder – yqqlm

Original title: Tims China Nasdaq listing: $1.4 billion Tencent Sequoia is a shareholder

The merger between Tims China and the special purpose acquisition company Silver Crest Acquisition Corp. was completed on September 28, Eastern Time, and traded on the Nasdaq under the ticker symbol “THCH” on September 29.

Tims China is listed at a valuation of US$1.4 billion this time. On the first day of listing, the company’s stock price closed at $7.29, down 8.76%. As the first share of China’s coffee SPAC, Tims China said that it will use the financing amount to continue to expand its business and deeply cultivate the domestic coffee market.

Tims China CEO Lu Yongchen pointed out: “Tims Coffee has always insisted on providing unique value to customers: combining fresh, high-quality localized food and beverages to provide guests with a heart-warming experience at an appropriate price. The company will further develop its core competition. Advantages, fully grasp the golden period of industry development.”

Tim Horton is a national coffee brand in Canada. The store’s main line is “coffee + dessert + light food”.

Tims China is a joint venture established by Tim Hortons parent company RBI (Restaurant Brands International) and Cartesian Capital Group (Cartesian Capital Group) in 2018. In February 2019, it opened its first coffee shop in China, accurately positioning each cup for sale. The price is 15-30 yuan in the coffee market, and it quickly established itself by undertaking the professionalism of the Tim Hortons brand.

According to the financial report, Tims China’s revenue in 2019, 2020, and 2021 were 57.257 million yuan, 212 million yuan, and 643 million yuan (about 100 million US dollars); net losses were 87.83 million yuan, 143 million yuan, and 383 million yuan respectively. (approximately $60.28 million).

As of December 31, 2021, Tims China held cash and cash equivalents of 390 million yuan (approximately US$61.53 million).

As of December 31, 2021, Tims China had 390 stores in 21 cities in mainland China. Among them, the number of self-operated stores increased from 31 on December 31, 2019 to 373 on December 31, 2021. The same-store sales growth rate of self-operated stores will increase from 7.4% in 2020 to 15.7% in 2021.

At the level of the company’s self-operated stores, the cost of ingredients and the proportion of rent have been optimized. The proportion of food costs will drop from 44.9% in 2019 to 33.7% in 2021; the proportion of rent will drop from 39.0% to 24%.

See also  Can the PICO 4, which starts at 2499 yuan, carry the goal of "popularization" of Byte VR?_Zhou Hongwei_Product_Market

According to the plan, Tims China will open more than 2,750 profitable stores by 2026. Lu Yongchen said that Tims China will open an average of about 500-600 new stores every year, mainly direct-operated stores, and will also adjust the proportion of franchise stores according to the follow-up situation.

Luckin Coffee, which is listed on the powder list, currently has more than 7,000 stores. Relatively speaking, the number of Tims stores in China is still relatively small, but the market value of Luckin Coffee is higher.

At the Tims China headquarters level, the proportion of management expenses and market expenses has also been greatly optimized. The proportion of management expenses dropped from 89.2% in 2019 to 27.2% in 21; market expenses dropped from 14.0% to 7.8%.

The adjusted EBITDA of Tims China’s self-operated stores from 2020 to 2021 will be 13.52 million and 27.467 million in 2021.

“Coffee + Warm Food” Highlights Differentiation

As a global coffee brand, Tims China mainly adopts localization strategies and community-based operations to enter the Chinese market, which has laid a solid foundation for its development.

TIMS Gold/Red Maple store has a full set of kitchen equipment, which can prepare warm food and baked products for customers in the store. This not only ensures the quality of food, but also provides the basis for innovating more food categories in the future. At present, the coffee + breakfast combination of Tims China is deeply loved by users.

Tims China said that it will launch more warm food categories in the future, covering all times of the day. It is reported that there are currently more than 40 SKUs of Tims food, which is the highest among coffee brands. In the future, Tims China will continue to increase the proportion of warm food and maximize the use of existing equipment and space.

In addition to the core fresh coffee, Tims China’s products, such as raw coconut cold brew, popped lemon cold brew, and lychee cold brew, are more suitable for Chinese consumers.

It is understood that Tims has developed more than 30 new products every year in the past. More than 70 new products are expected to be launched in 2022, with 8-10 experimental products behind each new product.

See also  Big Consumption Industry Weekly: Moutai's new e-commerce platform may be launched to speed up the construction of digital marketing_Oriental Fortune Network

At the same time, Tims fully integrated local elements into the store design. For example, the first store in Wuhan used the Yellow Crane Tower as a design element. In terms of operation management, it insists on Chinese team operation, independent decision-making and high management efficiency.

In order to cater to the diversified hobbies of the current coffee consumer groups, Tims, by cooperating with different brands, accurately locates and attracts user groups with special hobbies, enhances membership stickiness, and unlocks the password for user growth.

For example, Tims China has cooperated with Tencent E-Sports to open three e-sports themed stores in Shanghai and Shenzhen, which provide a better “coffee + e-sports” immersive experience for the Gen Z crowd.

In order to meet the needs of consumers in different scenarios, Tims China mainly deploys three different store types, namely flagship store (Jinfeng store), standard store (Hongfeng store) and Tims Go (Jiefeng store), making full use of mobile terminals. Order to simplify the customer experience, use takeaway to increase reach and efficiency, and create the ultimate convenience for customers. At the same time, the company also opened Tims Go store-in-shop with partners such as Metro, Sinopec Yijie opened Tims Express store, and opened Tims into supermarkets and gas stations to cover more coffee scenes.

Delivery and self-pickup orders accounted for 73%

Digital operation is the key to helping Tims China improve efficiency. As the company’s core strategy, Tims China fully embraces digitalization in all aspects such as front, middle and back ends. Accumulate consumption data at the front end to help its product innovation and precise marketing. Use digital intelligent management at the back end to improve operational efficiency.

According to reports, Tims China’s business intelligence system covers all aspects of business operations, from site selection strategy at the beginning of store opening, store construction, to team training, inventory management and food safety management, customer ordering and meal feedback, through the data center Collect various data in operations, empower operations, and improve efficiency.

Taking the opening of a store as an example, the business districts are finely classified based on multiple dimensional data such as population distribution, passenger flow, competitive product information, and takeaway coverage, and multiple departments such as development, network planning, and operations estimate the turnover of new stores. Collaboration between departments to improve site hit rate.

See also  Low offensive efficiency, high turnover, high finals repeat?The two teams are still looking for status_season_first round_Liaoning men's basketball team

Meanwhile, Tims China has established and continues to expand its digital ecosystem in China, from vertical service platforms such as Ele.me, Tmall and Meituan Dianping, to social media platforms such as Weibo, Xiaohongshu and Douyin, effectively increasing the Tims China’s brand awareness, expanding user community, and rapidly growing online revenue.

According to the prospectus, the company’s digital orders, including delivery and self-pickup orders, will account for about 73% of the company’s owned and operated store revenue in 2021, an increase of 8.8 percentage points from about 64.2% in 2020.

Valuation cut by nearly $300 million in the first six months of listing

Tims China has received long-term support from many blue-chip shareholders, such as Descartes Capital, brand owner RBI, Tencent Investment, Sequoia China, Bell Ding Capital, etc. are among its institutional shareholders.

Among them, Tencent not only invested twice, but also cooperated and supported many times at the business operation level.

In March 2022, Tims China announced an additional financing of $194.5 million. Investors include Descartes Group, Restaurant Brands International and Silver Crest Management. This additional financing was made through PIPE (listed private equity investment).

Tims China also signed a letter of intent for a $100 million share subscription commitment with a global financial services company. Under the financing mechanism, TIMS China has the right to sell up to $100 million of common stock to the institution within 36 months.

Tims China and Silver Crest also amended the terms of the merger, including adjusting the pre-merger valuation of Tims China from $1.688 billion to $1.4 billion; cancelling 50% of Sponsor shares and warrants, adding an option not to redeem at the time of merger completion Shareholding percentage of Silver Crest shareholders.

The following is the PPT of Tim Hortons China Roadshow (refined processing by Leidi.com):

———————————————

Lei Di was founded by senior media person Lei Jianping. If you reprint, please indicate the source.Return to Sohu, see more

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy