(Yicai) Aug. 22 -- Ningji Lemontea, a hand-punch lemon tea brand backed by TikTok owner ByteDance, declined to comment on speculation that it intends to buy Pacific Coffee, a coffee chain owned by China Resources Group.

Ningji will make public any progress if available, the Shanghai-based firm told Yicai yesterday.

Reports on social media earlier the same day said Ningji, operated by Sanfa Catering Management, intends to acquire Pacific Coffee for between CNY300 million and CNY500 million (USD41.7 million and USD69.5 million).

In June 2010, conglomerate China Resources paid HKD326.6 million (USD41.7 million) for an 80 percent stake in Hong Kong-based Pacific Coffee, which was set up in 1992, and brought it to the Chinese mainland market.

Pacific Coffee had 458 stores in 2015, surpassing the UK's Costa Coffee to become the largest coffee chain in the mainland behind Starbucks. But that number has since fallen to 309, with 265 open and the rest mothballed, according to data from catering sector researcher Canyan Data.

Founded in February 2021, Ningji has more than 1,000 stores in the mainland, with almost half in Changsha, where it was established. This year, the firm is focusing on southern China, aiming to expand it outlet count to 2,000 and 5,000 next year, according to an executive.

ByteDance is a key backer after it took part in Ningji’s series A fundraiser in July 2021. The internet giant invested again in January last year, with Shunwei Capital and Tencent Investment also participating that time.

Editors: Xu Wei, Martin Kadiev