The company will use the new capital to expand production.
Photo from CFP
By MA Yue
Tianye Innovation Corporation submitted a draft application to the Beijing Stock Exchange on June 15, and plans to be listed with Guohai Securities as the sponsor.
Established in 2007, Tianye Innovation mainly engages in researching, producing, and selling tropical fruit and vegetable products. Its primary production includes raw juice, and frozen and fresh fruit. The company has four factories in domestic tropical fruit and vegetable producing areas.
Tianye Innovation is not an ordinary juice manufacturer. It has become the leading raw material juice supplier for well-known tea-drink brands, including Nayuki, Chabaidao, A Little Tea, and Auntea Jenny. It is also a leading supplier of food and beverage companies such as Nongfu Spring, Coca-Cola and Wahaha.
In 2021, the company’s revenue reached 459 million yuan (US$68.56 million), up 72.6 percent, while the gross profit margin was 29.16 percent.
The net profit attributable to the parent company was 65.17 million yuan, up 210 percent. The sales revenue of raw fruit juice reached 415 million yuan, accounting for 90.52 percent of total revenue.
The homogenous trend of tea drinks in the domestic market has intensified, so utilizing niche fruits such as tangerines and mulberry has become an effective way to stand out and win over consumers.
Tianye Innovation is taking advantage of this trend to explore distinctive regional fruits, developing niche products and providing raw juice to increasingly popular tea-drink brands. Revenue from its new tea customers increased to 61.82 percent in 2021, up from 4.2 percent in 2019.
The company plans to expand production capacity using the 475 million yuan raised in the listing. After the project is kick-started, the company will increase its production capacity to 8,000 tons of coconut products, 12,000 tons of flavored syrup, and 23,400 tons of fruit and vegetable products.