MOCHA

One of the largest leisure food retailer and multi-brand operation and management company in China Business overview • As one of the largest multi-brand management companies in China's leisure food retail sector, the “company”, headquartered in Shanghai, manages, operates and franchises close to 10 F&B brands, nearly 1,000 stores in 150+ cities across 25 major provinces and regions in Greater China and Southeast Asia • The factories strategically located in Shanghai and Hong Kong ensure the quality control and enables the rapid store expansions within respective regions • The Company adopts a diversified approach in product sales through its direct stores, franchise stores, online/take-out and other channels • Well-established franchise model and extensive franchisee network nationwide to accelerate the expansion of both existing and new brands Basic key Store information: • Northern China: 197stores • Eastern China: 538stores • Southwest China: 85stores • Hong Kong & SEA: 40stores • Southern China: 204stores Basic financial data & information • Total revenue is expected to increase 7% and reach RMB360m in2018 vs. 2017 • Net profit margin expected to reach 10% • EBITDA expected to grow 10% in 2018 vs. 2017; 2015-2018's EBITDA CAGR is 15%; EBITDA margin maintained at ~17% • Strong cash flows with ample cash on balance; shareholders enjoy healthy dividends on annual basis Investment highlights • Explosive Growth and Attractive Markets: The size of China‘s snack food market will exceed RMB620bn by 2020 with growth of 20% per annum for the dessert segment • Market Leaders with High Customer Loyalty: Its core brands are all ranked as No.1 in their respective market segments with the highest level of brand awareness • Sophisticated Central Factory to Support Markets: The central factories in China and Hong Kong cover a total floor space of >10,000m2 • The central factories in China and Hong Kong cover a total floor space of >10,000m2 • Key equipment technologies are imported from Japan and Italy: The central factories in China and Hong Kong cover a total floor space of >10,000m2; Key equipment technologies are imported from Japan and Italy • Extensive Franchisee Network: The vast nationwide franchisee network ensures the success of both existing brands and new F&B concepts • Highly Replicable Model for Rapid Expansion: Key characteristics such as assets light, low Capex, flexible location, and short payback periods, all ensure the swift roll out of new stores and launch of new concepts • Quick Response to Market: The Company is able to react quickly to the marketing trend and create new products and concepts that are popular among consumers • Strong Growth Prospects: Increase online and delivery sales; Launch of new brands and products; Development of new franchisees and leverage its huge network of existing franchisees to promote new brands and products

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