With rapid expansion of its store network and supply chain advantages, Mixue Ice City has delivered impressive half-year results, with both revenue and net profit growth exceeding expectations, demonstrating the strong vitality of its "high-quality and affordable" business model. The global number of stores has surpassed 53,000, marking a 22.7% increase compared to the same period last year; revenue from product and equipment sales reached RMB 14.495 billion, a year-on-year growth of 39.6%.
$MIXUE GROUP (02097.HK)$ The mid-term performance announcement released on August 27 shows that in the first half of 2025, revenue reached RMB 14.875 billion, a year-on-year increase of 39.3%; net profit was RMB 2.718 billion, a significant year-on-year growth of 44.1%.
The growth in performance is primarily attributed to the continuous expansion of the store network. As of June 30, 2025, Mixue Ice City has built a global network of over 53,000 stores, an increase of 22.7% from 43,218 stores in the same period last year. Among these, the number of stores in Mainland China reached 48,281, while there are 4,733 stores overseas.
In terms of profitability, the overall gross margin of the company remains stable. The gross margin for product and equipment sales slightly decreased from 30.5% in the same period last year to 30.3%, mainly affected by rising raw material costs; however, the gross margin for franchising and related services increased from 81.7% to 82.7%, indicating that economies of scale continue to strengthen.
The company's cash position is strong. As of June 30, 2025, cash and cash equivalents, along with time deposits, totaled RMB 17.612 billion, an increase of 58.5% compared to the end of 2024, primarily driven by net cash inflows from operating activities and proceeds from the Hong Kong listing.
Key Financial Performance
Revenue of RMB 14.875 billion, a year-on-year increase of 39.3%; net profit of RMB 2.718 billion, a year-on-year increase of 44.1%.
Sales and distribution expenses increased by 40.2%, while administrative expenses surged by 56.6%, resulting in an overall rise in the expense ratio.
Cash reserves grew significantly by 58.5% to CNY 17.612 billion, primarily from IPO fundraising and operating cash flow.
Progress in core business
The total number of global stores exceeded 53,000, representing a year-on-year increase of 22.7%.
Franchise stores accounted for 99.97%, with the number of franchisees increasing from 19,300 to 23,400.
Smart dispensing machines have been installed in over 5,600 stores, promoting operational standardization and efficiency improvements.
There are approximately 4,700 overseas stores, with store optimization adjustments implemented in Indonesia and Vietnam, leading to a decrease in numbers.
Store expansion drives high revenue growth.
The core driver of Mixue Ice City's performance growth comes from the rapid expansion of its store network. In the first half of 2025, the company opened 7,721 new stores and closed 1,187, resulting in a net increase of 6,534 stores. The number of franchised stores rose from 43,197 in the same period last year to 52,996, reflecting an increase of 22.7%.
In terms of business segments, revenue from the sale of goods and equipment amounted to RMB 14.495 billion, a year-on-year increase of 39.6%, accounting for 97.4% of total revenue; revenue from franchising and related services reached RMB 380 million, a year-on-year increase of 29.8%, making up 2.6%. The company indicated that revenue growth is primarily attributed to the increase in sales of goods and equipment driven by the expansion of the store network.
From a geographic perspective, stores in mainland China hold an absolute dominant position. As of June 30, 2025, there were 48,281 stores in the mainland, covering 31 provinces, autonomous regions, and municipalities, with over 300 prefecture-level cities. Among these, stores in third-tier and lower cities accounted for 57.6%, reflecting the company's strategy of deepening its penetration into lower-tier markets.
In the overseas market, the company has opened approximately 4,700 stores outside of mainland China, covering 12 countries. During the reporting period, the company implemented optimization measures for existing stores in the Indonesian and Vietnamese markets, leading to a decrease in the number of stores in these two markets, but successfully expanded into new markets such as Kazakhstan.
Supply chain advantages consolidate competitive moats.
As one of the first companies in China's ready-to-drink beverage industry to establish a central factory, Mixue Ice City has built an end-to-end supply chain system that achieves 100% self-production of core beverage ingredients. This advantage plays an important role in cost control and product standardization.
The company currently has five major production bases located in Henan, Hainan, Guangxi, Chongqing, and Anhui, providing a full range of beverage ingredient solutions including sugar, milk, tea, coffee, fruit, grain, and materials. In terms of logistics, as of June 30, 2025, the company has established a warehousing system composed of 29 warehouses in China, with a distribution network covering 33 provincial-level administrative regions and over 300 prefecture-level cities.
In the first half of 2025, the company's sales cost was RMB 10.168 billion, a year-on-year increase of 39.8%, matching the growth rate of revenue. The overall gross profit was RMB 4.706 billion, a year-on-year increase of 38.3%.
The results of brand IP development are significant.
"Snow King" IP has become an important brand asset for Mixue Ice City. The report indicates that as of June 30, 2025, the hashtag "#蜜雪冰城" has accumulated over 54.2 billion views on the Douyin platform.
In the first half of 2025, the company opened a flagship store near Zhengzhou East Station in Henan, creating a comprehensive consumption space by integrating distinctive beverages with the "Snow King" IP cultural and creative scene. In May, the "Snow King Arrives" series was launched in English, French, and Portuguese versions for global distribution.
In terms of product innovation, the Mixue Ice City brand continues to launch new products such as hawthorn series, taro series ice creams, and Longjing tea series beverages; the "Lucky Coffee" brand has innovatively introduced over ten new products in the fruit coffee series, priced at 6-8 RMB.
编辑/rice
