HONG KONG – The ever-growing demand for bubble tea in China has propelled another entrepreneur into the billionaire ranks. Guming Holdings’ recent Hong Kong initial public offering (IPO) raised US$233 million (S$315 million), pushing the stake of its founder, Wang Yun’an, to an estimated US$1.2 billion, according to the Bloomberg Billionaires Index. The company’s shares initially surged 4.6% to HK$10.40 on February 12 before paring gains.
Wang joins a growing list of Chinese bubble tea tycoons who have built fortunes in an industry that was valued at US$9.6 billion in 2018 and is projected to skyrocket to US$71 billion within three years. However, the competitive nature of the market—where price wars are common—has made some investors cautious.
Recent history illustrates the volatility of the sector. Chabaidao tea’s parent company, Sichuan Baicha Baidao Industrial, went public in Hong Kong in April 2024. At the time, its founders, Wang Xiaokun and Liu Weihong, had a combined net worth of US$2.7 billion, but their wealth declined as the stock lost nearly half its value. Despite such risks, bubble tea entrepreneurs continue seeking funding to expand their brands. Mixue Group, the industry leader, is reviving IPO plans, with its founding brothers, Zhang Hongchao and Zhang Hongfu, each estimated to be worth around US$1.5 billion as of April.
Wang Yun’an, however, has taken a different approach to his business strategy. Instead of competing in major cities like Beijing and Shanghai, Guming’s “Good me” brand has focused on smaller towns and regional markets, where access to bubble tea is more limited and growth potential is higher.
Wang’s journey began nearly 15 years ago in his hometown of Daxi, a small city of fewer than 200,000 residents in Zhejiang province. From that modest start, Guming has expanded deep into China’s interior, now boasting nearly 10,000 stores nationwide.
The company’s strategy has paid off, with research from its IPO prospectus ranking it as the second-largest freshly made bubble tea brand in China by the end of 2023, trailing only Mixue. Guming held a 9.1% market share among the top five brands, while Mixue dominated with 20%.
Bubble tea, which originated in Taiwan as a sugary indulgence, has evolved significantly in China. Today, brands compete by offering healthier alternatives, such as tea lattes and fruit-infused iced teas, catering to shifting consumer preferences.
With a booming market and an aggressive expansion plan, Wang Yun’an is banking on Guming’s unique positioning to sustain its growth—one cup of tea at a time.