Xi Tea was exposed to layoffs of 30%, Nai Xue expected to lose more than 100 million, the winter of new tea is coming?
Recently, there is news that Xi Tea is implementing layoffs.Opinions vary among employees as to the reasons for this round of layoffs.A common view is that The performance of Xi Tea has been poor in the past year, although it makes money, but the net profit is negative growth, “may be under the pressure of financial statements, prepare for listing, streamline human resources, can make the financial results better”, “now everyone is lying down, fighting for layoffs”, several Xi Tea employees said bluntly.Xi Tea refuted rumors on ti media App, saying that relevant rumors are false information, the company does not exist the so-called big layoffs, a small number of personnel adjustment before the year-end assessment based on normal personnel adjustment and optimization.At the same time, the year-end bonus has been distributed to employees according to their performance before the Spring Festival.On February 9, Sina Finance reported that The company was laying off 30% of its employees. After confirming with several Employees of The company, the main information included: The company had already started to lay off employees before the year, and there would be another part after the year, involving 30% of its employees in general.The information security department was completely cut, and the store development department was cut by 50%.Employees who are laid off will receive normal N+1 compensation, or they will have the option to transfer internally to other departments, such as a technical position to a business position.Annual live screen, pay rises, year-end bonus message shop full screen.At the annual meeting, founder Nie Yunchen publicly commented on the drawbacks of youshang, which was regarded as “lack of pattern” by employees.Once this fermented, hot search on Weibo, triggered a hot discussion among netizens.In response, The relevant departments of Xicha told ti Media App that they had not heard of layoffs.However, netizens called the response “ambiguous” and hoped Xi Cha could give a more detailed statement.According to public information, Xicha originated in an alley named Jiangbian Li in Jiangmen, Guangdong Province in 2012, and started the era of new tea drinking with a cup of original cheese tea.Xi tea is a white-collar workers, young force for the mainstream consumer groups, and give priority to dozen of products to leisure, drinks the franchise chain, its associated companies of shenzhen beauty cc catering management co., LTD. Was established in 2016, the legal representative person NieYunChen, registered capital of 10 million yuan, business scope include: hot and cold drinks, snacks, desserts, cakes to produce;The retail of books, newspapers and periodicals is 100% controlled by Xicha (Shenzhen) Enterprise Management Co., LTD.As of November 2020, Cicha has more than 660 stores in more than 55 cities in Mainland China, Hong Kong and Singapore.In addition, Xicha has already raised 5 rounds of financing, with investors including Meituan Longzhu, Tencent Investment, Sequoia Fund, etc. The company controls 34 enterprises in Guangdong, Shandong, Zhejiang, Hubei, Shanghai and other provinces.At the end of 2021, news of sudden layoffs spread within the company, and some departments had been quietly eliminated, according to Sina Finance.In the vein, the relevant discussion has been started, and the internal circle of colleagues has confirmed the matter.For now, Xizha’s employees are mostly in a wait-and-see mode.The large-scale layoff made Xicha’s problems such as excessive overtime work, delay of year-end bonus and infighting in the company burst out, making employees extremely passive.”Many people expect to be laid off, or at least get N+1 compensation, and older workers have nothing to look forward to,” said a senior employee of Xi Cha.”It’s all about getting cut. There aren’t enough places.I’m putting it on display every day in case people don’t know I want to be laid off.”An anonymous reply from a Xicha employee on Maimai.com also confirms the employee’s “lying down” mentality.Another Xizha employee revealed that he questioned the company’s reputation when he heard that the 3-month year-end bonus promised upon entry had been cancelled.Shen Mingzhe (pseudonym), who has left the company, is an old employee of Xi Tea. He dare not disclose his actual length of service publicly for fear of being charged by the supervisor.”The layoffs are partly the result of political battles,” he said.Few of xi Cha’s senior management team waited for more than two years. They usually left in more than a year, and some were fired in half a year.Cliques among senior executives are evident.The former senior management was Tencent, and the internal team was replaced by people from Tencent.Before that, it was vipSHOP.If an employee is a clique, he or she will get a good performance review.Such internal management makes many employees uncomfortable, so the turnover of employees in Xi Cha is very large, and few of them have worked for more than two years.In addition, shen said, the annual meeting was the last straw that crushed the hopes of many employees.”No meals, no raffles, no benefits…””, he used three “no” to express his disappointment in Xi Cha (it was later verified that some red envelopes were drawn).At the beginning of the year, The company cut prices to “hunt” rivals. Insiders close to The company’s senior management analyzed that the layoffs may be in preparation for the company’s pre-ipo earnings data.Despite a reported valuation of 60 billion yuan after five rounds of financing, almost six times that of Nai Xue’s tea, Xi Cha’s sales growth this year has not been encouraging.Shen mingzhe also believes that The layoffs are to reduce labor costs, to make up for the decline in profits after the expansion of the book.The company is making money this year, but its net profit is negative.Streamlining human resources can make financial statements look better.At the beginning of this year, amid the rising price of new tea drinks, Hei Tea chose to cut prices in the opposite direction, which attracted the attention of the market.Since January 7, in xiaohongshu and other social platforms, consumers have found that the price of Xi Tea products has been lowered. It is understood that Xi Tea was sold at the time of the price of pure tea drinks 3-5 yuan, 5 fruits 2-3 yuan, cheese down 1 yuan.For example, one of the star products, Zhi Zhi Mang, has been reduced from 32 yuan to 29 yuan, while pure green Yan has been reduced from 13 yuan to 9 yuan.The price cut is also seen as a signal that Hecha is trying to expand customer orders through price cuts, which will make financial data more “beautiful”.In response to the price cut, Xi Tea responded to the media that the price of some Xi tea drinks ranged from 1 to 7 yuan, in order to make it more convenient and low-cost for users to drink Xi Tea.Heicha said it had adjusted the prices of some of its products on the premise that the formula, materials and quality of its products were not changed, thanks to its brand potential, scale advantage and accumulation in the supply chain.In addition, Xi Tea said that the price band of its mainstream products has been maintained between 19 and 29 yuan for a long time, which is not the so-called high price of tea. This price adjustment is a normal action of Xi Tea in its mainstream price band.He said he was not a high-priced tea, which immediately drew ridicule from netizens. After all, He was the first new tea to sell for more than 30 yuan.Take The “meaty grape”, xi Tea’s sales champion in 2020, for example. Data from Zhongtai Securities Research Institute shows that the price of a cold 650ml/ hot 500ml “meaty grape” is 29 yuan, and the cost of raw materials is about 8-10 yuan.However, some media quoted analysts at that time, said that “Xi Tea this round of price reduction, more by pulling up the store turnover to reduce the rental and sales ratio and manpower ratio.Such price cuts are a phased strategic move to further squeeze the profit margins of mid – and low-end competitors.”On the same day that Xi Tea announced the price cut, Nai Snow tea released the operation situation in the fourth quarter of 2021.As of December 31, 2021, Nai Xue tea operated a total of 817 Nai Xue tea tea stores, the fourth quarter net increase of 149, 7 closed, 23 standard stores converted to PRO stores, the number of new stores is slightly lower than the previous expectations.Nai Xue’s tea said, “It is mainly due to the repeated epidemic at the end of the year that has affected the construction schedule.”On February 8, Nai Xue tea issued a profit warning. It is estimated that by December 31, 2021, the group will have achieved revenue of about 4.28 billion yuan to 4.32 billion yuan, a pre-increase of more than 40% year-on-year, and adjusted net loss (non-IFRS measurement) of about 135 million yuan to 165 million yuan.In January 2022, nai Xue’s same-store revenue maintained a recovery trend, which the company attributed to “the easing of the COVID-19 epidemic in mainland China”. Nai Xue’s tea shop in Xi ‘an has fully resumed business, the statement said.In addition, Nai Xue tea believes that the new products are generally welcomed by consumers also has a positive impact on the group’s business performance.Nai Xue’s tea was officially listed on the Hong Kong Stock Exchange on June 30 last year, becoming the “first stock of new tea”.From 2018 to 2020, Nai Xue’s tea revenue was 1.087 billion yuan, 2.502 billion yuan and 3.057 billion yuan, respectively, and its adjusted net profit was -56.6 million yuan, -11.7 million yuan and 16.64 million yuan, according to the prospectus.The once promising new tea market has been decimated by the epidemic.Data show that in 2021, only 18.8% of milk tea shops in China will survive one year, and nearly 80% of new brand tea shops will close down.As the “first stock of new tea”, nai Xue’s tea share price was 7.10 Hong Kong dollars per share by the end of February 8, down more than 60% from the offer price.The new tea market is experiencing a gradual slowdown. According to the 2021 New Tea Drink Research Report released by The China Chain Store Association, the growth rate in 2020 is 26.1%, and the growth rate in 2021-2022 will decline to about 19%.(Zhang Hongjin, editor of Ti Media App, compiled from Sina Finance, 21st Century Business Herald, AI Finance, the Paper, etc.)