The new-style tea beverage company, Auntea Jenny, faced a "Black Monday" on August 10th, with its stock price plummeting 23.4% in a single day, wiping out nearly HK$2.9 billion in market value. The catalyst for this sharp decline is believed to be a company announcement from the previous evening titled "Notice Regarding Voluntary Extension of Lock-Up Period by Shareholders."

The announcement stated that from the end of the first lock-up period (August 7, 2026) to November 7, 2026, six shareholders would be allowed to sell a combined maximum of 3.68 million shares, representing approximately 3.5% of the company's total share capital.

In terms of financial performance, Auntea Jenny reported a 42.4% year-on-year increase in revenue for the first half of this year, reaching RMB 2.589 billion, while net profit attributable to shareholders rose 58.32% to RMB 321 million. As of the end of the first half, the company's store count had surpassed 13,000. However, this rapid expansion has brought challenges, including a high store closure rate and rapidly increasing sales and marketing expenses.

As of the close of trading on August 13th, Auntea Jenny shares were priced at HK$86.05, having halved from their IPO high, giving the company a market capitalization of HK$9.053 billion.

Goodwill Turns to Shock: Stock Price Plunges 23.4% in a Single Day

Tianyancha data shows that Auntea Jenny was listed on the Main Board of the Hong Kong Stock Exchange on May 8, 2025. According to regulations, all pre-IPO shareholders, including the controlling shareholder, were subject to a lock-up period expiring on May 7, 2026. On April 19th, the company announced that it had received notices from all pre-IPO shareholders, including the controlling shareholder, voluntarily extending their lock-up periods by either three or six months following the original expiry date.

Among the over ten shareholders who agreed to a three-month extension were entities like Suzhou Yizhong Venture Capital Partnership, Suzhou Xiangzhong Venture Capital Partnership, and others. The six specific shareholders mentioned in the latest announcement hold 7.95 million, 1.14 million, 290,000, 2.85 million, 1 million, and 500,000 shares respectively.

On August 9th, Auntea Jenny issued another announcement stating that these six shareholders had provided voluntary commitments. From August 7, 2026, to November 7, 2026, they would cap their share sales at 1.99 million, 290,000, 70,000, 940,000, 250,000, and 150,000 shares respectively. This means the total shares they could sell during this period would not exceed 3.68 million, or about 3.5% of the company's total issued shares. The shareholders stated that their commitment was based on their high recognition of the company's comprehensive operational strength, mature operational system, and core management team, as well as their continued optimism for the long-term development potential of the consumer sector. Furthermore, Auntea Jenny stated that five other shareholders, including Shanghai Puhai Enterprise Management Co., Ltd., would not sell any shares before November 7, 2026.

The company framed the extended lock-up as a sign of the shareholders' confidence in its future prospects and long-term value. However, the capital market reaction was starkly negative. On August 10th, shares of Auntea Jenny fell 23.4% to close at HK$89.85, marking the largest single-day drop since its listing and erasing nearly HK$2.9 billion in market value. By August 13th, the stock had fallen further to HK$86.05, more than halved from its historical high.

Rising Revenue and Profit Mask High Store Closure Rate

Despite its recent market struggles, Auntea Jenny's operational performance appears solid. In 2025, the company achieved revenue of RMB 4.466 billion and net profit of RMB 501 million, representing year-on-year growth of 35.96% and 52.41%, respectively. This growth momentum continued into the first half of 2026, with revenue rising 42.4% to RMB 2.589 billion and net profit attributable to shareholders increasing 58.32% to RMB 321 million. The company's gross margin remained stable at 31.6% during this period. The board attributes this growth to the consistent implementation of a multi-brand strategy, expanding store networks through differentiated brand positioning, a consumer-centric approach to enriching product offerings and consumption scenarios, and improved operational efficiency from scale effects.

In terms of store count, Auntea Jenny had a total of 13,155 stores by the end of the first half of 2026, a 14.9% increase from the end of 2025. Lower-tier cities were a key focus for expansion, with 7,022 stores located in third-tier and below cities, a 16.47% increase, accounting for over half of the total store network. However, this rapid expansion is accompanied by a store closure rate significantly higher than some peers. In 2025, the company closed 1,383 franchise stores, representing a closure rate of 12.1%, far exceeding the 4.2% rate of Mixue Bingcheng and the 4.8% of Guming. In the first half of this year, the closure rate eased slightly, with 556 stores closing, a 13.8% decrease year-on-year.

Like many new tea beverage companies, Auntea Jenny is heavily reliant on its franchise model. As of the end of the first half, the company operated only 35 directly managed stores, compared to 13,120 franchise stores, which accounted for 99.73% of its total. Its core business model involves selling goods and providing services to these franchisees, with sales to franchisees generating RMB 2.083 billion in revenue during the first half, representing over 80% of its total revenue. Despite its vast store network, Auntea Jenny operates with a relatively asset-light model. Its debt-to-asset ratio stood at 34.21% at the end of the first half, down 1.22 percentage points from the end of last year, and its total non-current assets were only RMB 601 million, accounting for just 18.35% of total assets.

As the company expands its brand footprint, it continues to invest heavily in sales and marketing, as well as R&D. In the first half of this year, sales and marketing expenses surged 56.06% year-on-year to RMB 293 million, outpacing the 42.4% revenue growth rate. R&D expenses also increased by 35.48% to RMB 34 million. Auntea Jenny has been particularly proactive in its marketing efforts, leveraging digital marketing, celebrity endorsements, and IP collaborations to boost brand awareness. According to a report by Shenzhen Commercial Daily, in the first half of 2026, the company used digital marketing, hired brand ambassadors, and engaged in IP crossovers to enhance its brand image. Notably, it appointed Ju Jingyi and Tian Xiwei as global brand ambassadors and launched cross-marketing campaigns with Egg Party, Zhang Liang Spicy Hot Pot, and Goose Goose Duck.

A 75-Post-80s Couple's Entrepreneurial Journey Builds a Tea Giant

The story of Auntea Jenny begins with a couple born in the mid-to-late 1970s, Shan Weijun (born 1977) and Zhou Rongrong (born 1978). Despite the brand's name alluding to Shanghai, neither founder is originally from the city; Shan is from Jiangsu province, and Zhou is from Yantai, Shandong. Before founding the company, Shan, a technical secondary school graduate, worked as a senior sales manager at Amway (China). Zhou, a college graduate, worked as a regional sales manager at Avon (China) before moving to Amway in 2007, where she also rose to senior sales manager.

In 2011, the couple sold their property and car in Shandong and moved to Shanghai. A chance encounter sparked Zhou's interest when she saw a long queue outside a small, unnamed tea shop in a Shanghai alley. The shop's secret was blending tea with a local Shanghai staple, purple sticky rice, appealing to local tastes. Inspired, Zhou and Shan decided to create a "Shanghai-style" tea and quit their jobs to start the venture. In July 2013, the first Auntea Jenny store opened on People's Square in Shanghai, with its signature purple sticky rice milk tea. On its first day, the store sold over 1,000 cups, achieving a monthly turnover exceeding RMB 300,000.

This early success fueled rapid expansion. The couple opened several more stores in Shanghai before expanding into the Shandong market, starting with a store in Zhou's hometown of Yantai. They then gradually moved into markets in Northeast China, Hebei, and Tianjin. By 2015, Auntea Jenny had over 200 stores nationwide with annual sales exceeding RMB 200 million. By 2019, the store count surpassed 1,000, and annual sales broke through RMB 1.3 billion. The company also completed several funding rounds, attracting investment from well-known institutions like GAV Capital, Zhe Yi Investment, and Jinding Capital. GAV Capital, which participated in multiple rounds, investing nearly RMB 200 million, became the company's earliest and largest institutional investor. When Auntea Jenny listed on the Hong Kong Stock Exchange in 2025, GAV Capital's stake was valued at HK$1.4505 billion (approximately RMB 1.351 billion) based on the first-day closing price, yielding an investment return of over RMB 1.1 billion. GAV Capital was founded by former Alibaba CEO David Wei in 2011 and manages assets exceeding RMB 17 billion, focusing on new consumption, cross-border e-commerce, outbound brands, tech-driven enterprise services, and cutting-edge technology. Among the six shareholders mentioned earlier, Suzhou Yizhong, Suzhou Xiangzhong, and Nanjing Xiangzhong are all affiliated with GAV Capital. Based on the closing price of HK$86.05 on August 13th, GAV Capital could cash out over HK$200 million if it sells its maximum allowable shares. Radar Finance will continue to monitor the subsequent development of Auntea Jenny.