The bubble tea craze in China has turned many entrepreneurs into billionaires. The latest addition to the growing list is Yun’an Wang, founder and chairman of Guming Holdings Ltd. The Chinese milk tea company’s initial public offering (IPO) in Hong Kong helped the 38-year-old millennial cross the billion-dollar mark, cementing his place in China’s beverage industry.
A $233 million Hong Kong IPO on Wednesday rocketed Wang’s net worth to $1.1 billion, according to the Bloomberg Billionaires Index, even as Guming’s shares finished 6.4% below the listing price at HK$9.30.
Who is Wang?
Before becoming a business mogul, Yun’an Wang was an engineer. He graduated from Zhejiang Sci-Tech University in Hangzhou, where he earned a degree in engineering. After his studies, Wang took a leap into the world of business, opening his first bubble tea shop in 2010.
Wang’s entrepreneurial journey
According to Bloomberg, Wang’s entrepreneurial journey began in Daxi, a small town near Shanghai with a population of fewer than 200,000. The early days were far from glamorous, but his persistence paid off. Over the next decade, Guming Holdings expanded aggressively across China, opening nearly 10,000 stores in multiple provinces.
Guming sells its tea under the “Good Me” brand, which has become a household name among bubble tea lovers. As of 2023, the brand held a 9.1% market share among China’s top five bubble tea brands, according to Bloomberg. Guming’s IPO prospectus revealed that Good Me is now the second-largest fresh bubble tea maker in China by total sales and store count, trailing only one competitor.
A Soaring Market—and a Growing Club of Billionaires
Wang isn’t alone in his bubble tea triumph. China’s demand for the drinks — typically a blend of tea, fruit, tapioca pearls, or milk — has been on an upward tear in recent years, transforming multiple entrepreneurs into billionaires. By 2018, the bubble tea market in China was already valued at $9.6 billion, with projections to surge to $71 billion in just three years. Major players like Chabaidao and Mixue Group have all jockeyed for expansion, each building vast chains of stores across the nation.
But this boom comes with heightened scrutiny from investors. Fears of price wars and relentless promotion in the increasingly competitive industry loom over these public debuts. The stark example of Chabaidao’s IPO last April, whose stock price nearly halved, suggests the bubble tea bubble can deflate as fast as it inflates.
The Boba craze
Though bubble tea emerged from Taiwan as a sweet treat, the drink has drastically evolved on the Chinese mainland. Companies race to offer healthier versions, replacing sugary powders with real fruit, fresh juices, and even low-calorie milk options. Such variety caters to a broad customer base, from those seeking indulgent, creamy concoctions to health-conscious sippers looking for lightly sweetened fruit tea blends.