 "Yun’an Wang is the founder of Guming Holdings Ltd. Image courtesy: X")
China’s passion for bubble tea has turned one man into a billionaire overnight.
Yun’an Wang became a billionaire after his tea chain was listed on the Hong Kong stock exchange on Wednesday.
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From a small shop in his hometown of Daxi to a massive network of nearly 10,000 outlets, his journey to success feels like a classic rags-to-riches tale.
His venture recently reached a major milestone with a successful IPO in Hong Kong, pushing his net worth to $1.2 billion.
Wang is now part of the growing group of Chinese bubble tea tycoons who have emerged in recent years as demand for the drink continues to soar.
But who is Yun’an Wang, and how did he achieve billionaire status? Here’s a look at his journey and his company.
Who is Yun’an Wang?
1. Yun’an Wang, 38, is the founder of Guming Holdings Ltd, a bubble tea chain that has expanded to nearly 10,000 stores across China since its launch in 2010.
2. He graduated with a degree in engineering from Zhejiang Sci-Tech University before opening the first Guming store in his hometown of Daxi, Zhejiang Province, which is a small town of fewer than 200,000 people by Chinese standards.
3. Guming’s tea is priced between 10 and 20 yuan per cup (around Rs 119 to Rs 238), with Zhejiang remaining a key market, accounting for over one-fifth of the company’s total outlets, according to its prospectus.
Impact Shorts
More Shorts4. Wang has positioned Guming, which operates under the “Good Me” brand, as an attractive investment by focusing on smaller cities and townships rather than major hubs like Beijing and Shanghai. These areas offer greater growth potential as bubble tea remains less widely available, Bloomberg reported.
5. In the early days, business for his firm was slow. There were times when the shop made just 100 yuan (Rs 1189) a day, even with some sales coming from his co-founder.
6. Over the years, his tea chain has gained popularity, expanding further in China and growing to nearly 10,000 outlets.
7. Despite large competition, Wang’s brand became the second-largest freshly made bubble tea company in terms of both total sales and store count by the end of 2023, according to research cited in the company’s IPO prospectus.
8. Wang, whose parents ran a small retail business near the Myanmar border, earned a degree in materials science and engineering from Zhejiang Sci-Tech University in 2010, which was the same year he launched his first “Good Me” store. By September, the company had established a presence in 17 provinces across China.
9. He transformed a simple blend of aromatic teas, fresh fruit, and chewy tapioca into a thriving business. His approach is clear: combine local appeal with national reach to ensure Guming’s steady growth beyond short-lived market trends.
10. “The industry is always full of crazy promotions,” Wang said in an interview with Southern Metropolis Daily in December 2023. “We are already used to a price war. Every year, a new bubble tea brand emerges.”
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The rise of Guming and boba in China
Guming raised HK$1.8 billion ($233 million) by selling 182.4 million shares at HK$9.94 each, reaching the upper limit of its projected price range, Forbes reported.
Wang is taking the company public at a time when investors are increasingly cautious about pouring money into a fiercely competitive market where price wars are common.
With the backing of major underwriters, including Goldman Sachs Group Inc. and UBS Group AG, Wang is betting on Guming’s unique business model to attract investors.
By the end of 2023, Good Me held a 9.1% market share among China’s top five bubble tea brands, trailing only Mixue, which led with 20%, according to research.
In the first nine months of 2024, which is the most recent financial data available, Guming’s revenue increased by 15.6% year-on-year to 6.4 billion yuan. Its profit rose 11.8% to 1.1 billion yuan compared to the same period the previous year, its prospectus revealed, according to Forbes.
Originally from Taiwan, bubble tea began as a sweet, high-calorie treat before evolving into a more diverse offering on the Chinese mainland. Today, chains compete to provide healthier options, such as tea lattes and fresh fruit-infused iced teas.
Bubble tea’s popularity has surged beyond Asia, reaching Western markets thanks to cultural exchange, tourism, immigration, and social media.
The drink’s sparkling colours and varied presentations have made it a favourite online, especially among younger generations. Its versatility, as both a refreshing beverage and a dessert-like indulgence, is driving its widespread appeal.
With inputs from agencies