How Two Chinese Brothers Became Billionaires From $1 Bubble Teas

here's your Forbes daily briefing for Wednesday January 10th today on Forbes how two Chinese Brothers became billionaires from $1 bubble teas when he was just 21 years old Jang hongcha borrowed money from his grandmother to open a small stall selling shaved ice treats in the central Chinese city of Jung Joo that first store didn't make it but 2 years later he tried again with a second shaved ice stall this time named Mishu Bing Chang meaning sweet snow Palace over time the business took off as he shifted to selling ice cream and later bubble tea lemonade and coffee drinks at dirt cheap prices now Mishu Bing Chang which has roughly 36,000 stores and is China's biggest bubble tea maker is on the verge of going public and Jang now 47 years old and his younger brother hang Fu who is 39 years old are billionaires according to forbes' estimates Mishu filed for an initial public offering in Hong Kong last week revealing the ownership details of the company each brother currently holds a 42.8% stake in the business in the first 9 months of 2023 mish's Revenue jumped 46% to $2.2 billion and its net profits jumped 48% to 338 million Forbes conservatively estimates that Mishu is worth 2.9 billion that puts the jong's net worth at an estimated $1.2 billion a piece the privately held bubble te maker last raised money in January 2021 during the funding bubble pulling in $329 million at a $3.3 billion valuation from investors including billionaire leay jong's hillh housee capital and Dragon Ball Capital The Venture arm of billionaire wang shing's mean Mishu filed for a $915 million IPO in Shenzhen back in 2022 but it never materialized Mishu which has 32,000 nearly all franchise stores in China and another 4,000 in 11 other mostly Asian countries didn't respond to a request for comment on the company's valuation or the brother's net worths according to the perspectus its stores sold about 5.8 billion drinks worldwide during the first 9 months of 2023 making it the second biggest Global seller of freshly made drinks by CBS sold according to China insights industry consultancy the number one seller is Starbucks the company stands out in the crowded bubble tea market for its bargain prices earning the nickname pin Doo Duo of bubble tea after billionaire Colin Hong's popular Chinese discount e-commerce platform pindu Duo's Us shopping site teu launched in 2022 mish's products which also include freshly made lemonade soft serve ice cream fruit tea and coffee cost between 3 cents roughly the price of a can of Coke in China and $1 that compares with the average price of $3.80 that nauki another popular Chinese bubble tea chain listed in Hong Kong charges for its drinks Mishu has said it is able to keep its prices low because of its end-to-end supply chain covering everything from procurement and ingredient production to Logistics research and development and quality control nearly all of its revenue and profits meanwhile come from sales of supplies such as kitchen appliances and food ingredients to franchisees the jangs are the latest to make their Fortune from bubble tea Which is popular among Millennials and gen Z in Asia and the US other bubble tea billionaires include Wang Xiao Kung the founder and chairman of CHA Panda Pang shin and jao Linn the husband and wife team behind mish's rival nayuki became billionaires after the company's Hong Kong IPO in 2021 but the pair has since dropped out of the billionaire ranks following an 80% Plunge in the share price triggered by food safety issues for full coverage check out Zenia Le piece on forbes.com this is Kieran Meadows from Forbes thanks for tuning [Music] in

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Keywords: Forbes, Forbes Media, Forbes Magazine, Forbes Digital, Business, Finance, Entrepreneurship, Technology, Investing, Personal Finance, bubble tea, forbes daily briefing, kieran meadows forbes daily briefing, Zhang Hongchao, Zhengzhou, Mixue Bingcheng, Colin Huang, China, Hongfu Hongchao, popular bubble tea franchises, family business china, Mixue’s CEO, Mixue's Founder, The Zhangs, Coldsnap Shaved Ice

Id: EmILpI3NYvk

Length: 4min 17sec (257 seconds)

Published: Wed Jan 10 2024