BAMA TEA (06980) released its first annual report since listing on March 27th. The report disclosed 2025 revenue of RMB 21.96 billion, a year-on-year increase of 2.5%. Revenue growth in the second half of the year accelerated to 9.65%, with net profit surging 30.92% compared to the same period last year. Core product categories, including Oolong tea and black tea, grew by over 7%. Full-year 2025 GMV for online instant retail soared by 90%. By the end of 2025, the national chain store count reached 3,773, with a net addition of 269 stores for the year. The brand and its products have gained widespread market recognition, consistently ranking first in multiple industry metrics: top spot in the 2025 Top 50 Chinese Tea Enterprise Brand Value list, first among Chinese companies on the World Tea Enterprise Brand ranking (second globally), and maintaining the highest customer satisfaction rating for tea chain stores for three consecutive years.
This performance stems from a 33-year commitment to a "slow and steady" philosophy by Chairman Wang Wenli. In an interview, he characterized this approach as "muscle-building growth"—avoiding fleeting trends, eschewing hype, and not chasing scale for its own sake, instead driving healthy growth through brand strength and product quality.
A strategic shift occurred in the first half of 2025, when BAMA TEA experienced a decline in both revenue and profit. For a company preparing for a Hong Kong listing, these figures were underwhelming. However, a strong rebound followed in the second half, with the aforementioned 9.65% revenue growth and 30.92% net profit increase. This V-shaped recovery resulted from proactive adjustments made around the time of the listing. Prior to going public, Wang Wenli implemented two key measures: halting low-price promotion models and rigorously cracking down on pricing irregularities among franchisees, a move that initially cost the company tens of millions.
Wang Wenli recalled the reaction: "People thought the chairman had lost his mind. But we were aiming for muscle-building growth, not tumor-like growth." The annual report validates this decision. The core of this structural change was a shift in growth drivers—from "traffic-driven growth" reliant on promotions to "quality-driven growth" powered by brand and product strength. Wang summarized the former as "tumor-like growth"—impressive numbers that erode the brand—and the latter as the sustainable "muscle-building growth."
Another structural change highlighted in the report is the growth of core categories like Oolong and black tea, which increased by over 7%, becoming a primary growth driver. This aligns with BAMA TEA's recent strategy of focusing on core categories and building its own super factories. The company is deepening its vertical integration. Currently, BAMA TEA achieves 100% self-production for its Tieguanyin and rock tea varieties, with plans for more super factories to cover Pu'er and white tea.
Three years ago, after even making an initial payment of over RMB 80 million, Wang Wenli decided against building a headquarters tower on land offered by the Shenzhen government, redirecting the investment into super factories instead. This seemingly counterintuitive decision is characteristic of his career. In 1993, he left his job in Shenzhen to establish a tea factory in his hometown, remaining focused there for over a decade despite Shenzhen's rapid economic boom and suggestions to invest in real estate.
Wang Wenli stated, "I've always believed that true achievement requires focus." This focus has yielded results: BAMA TEA leads in sales volume for black tea, rock tea, and Tieguanyin; it has been the top taxpayer among tea enterprises in its core production regions for years; and it maintains the largest offline store network among Chinese tea chains.
The annual report indicates that after the proactive adjustments in the first half of 2025, the company's operational quality has entered a new upward trajectory. Wang Wenli predicts that the future of China's tea market will be defined by growth and consolidation. Market research forecasts the Chinese loose-leaf tea market to reach RMB 356.4 billion by 2026. In 2024, the combined market share of the top five premium tea companies was only 5.6%, with leader BAMA TEA holding approximately 1.7%.
"As a leading brand, BAMA TEA is poised to capture greater benefits during industry adjustments," Wang said. However, he is not rushing expansion. "There are many opportunities, but we must not move too fast and lose control. We have always been steady and solid. As long as we are on the right path, moving a bit slower might be better."
This "slowness" is evident in the five-year development cycle for its "Saigon Pearl" product line, the gradual achievement of 100% self-production for core categories, and the optimization of stores into premium urban venues focused on enhancing single-store efficiency.
From starting his venture at age 23, Wang Wenli has spent 33 years building BAMA TEA into the market share leader in premium tea. His business philosophy is straightforward: identify the trend, maintain focus, and uphold quality. "The size of an enterprise matters less than its timing and endurance," he remarked. "As long as you are on the right path, moving a bit slower might be better." This steadfastness may well be the key to BAMA TEA's ability to navigate market cycles.
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