New Stock News | Mixue Ice City is expected to officially land on the Hong Kong Stock Exchange on March 3, with Patience Capital appearing as a cornerstone investor

According to Zhitong Finance APP, on February 21, Mixue Ice City Co., Ltd. disclosed its global offering announcement, stating that the company will conduct its IPO from February 21 to February 26, with trading starting on March 3 on the Hong Kong Stock Exchange under the stock code 2097.

For this IPO, Mixue Ice City plans to issue approximately 17,059,900 H shares, of which 1,706,000 H shares will be publicly offered in Hong Kong and 15,353,900 H shares will be offered internationally, with an offer price of HKD 202.50 per share and a trading unit of 100 shares.

Patience Capital heavily invested, Star Capital increases investment to validate investment value

It is reported that in this IPO issuance, Mixue Ice City has introduced five cornerstone investors, collectively subscribing for USD 200 million (approximately HKD 1.558 billion), with a luxurious investment team.

Among the cornerstone investors of Mixue Ice City, M&G Investments is particularly noteworthy, having invested a total of USD 60 million. According to information, M&G Investments is part of the British investment giant M&G plc, which was formed by the merger of Prudential's UK and European savings and insurance businesses and its wholly-owned international investment management company M&G. The company has approximately 4.6 million clients in the UK, Europe, America, and Asia, and as of June 30, 2024, it managed assets totaling GBP 346.1 billion.

It is worth mentioning that M&G plc announced the launch of a China equity fund in September last year, just before the A-share market surged, timing the investment opportunity well. Industry analysts noted that as a leading investment institution, M&G is known for its cautious, steady, and long-term return-seeking value investment style, with relatively long investment periods, making its presence in the domestic capital market quite rare. Regarding M&G's heavy investment in Mixue Ice City, industry insiders stated that this not only reflects M&G's recognition of Mixue Ice City's long-term development value but also demonstrates continued optimism about the Chinese consumer market.

In addition to M&G Investments, Sequoia Capital, which has long been focused on consumer investments, also appeared among the cornerstone investors. This institution has previously invested in several ready-to-drink beverage companies, and its subscription of USD 60 million further validates its confidence in the development of China's ready-to-drink beverage sector. Additionally, Persistence Growth Limited, a subsidiary of Boyu Capital, invested USD 40 million to subscribe for 1,538,500 shares. Boyu Capital's investment preferences include early market layouts and continuous attention to high-growth industries, with investment cases including well-known companies such as Alibaba, Meituan, Didi, Kuaishou, and NetEase Cloud Music. Industry experts stated that Boyu Capital's presence among Mixue Ice City's cornerstone investors affirms the company's sustained growth and intrinsic value.

Furthermore, the increased investments from Hillhouse Capital and Longzhu Capital further affirm the development prospects of Mixue Ice City. It is reported that both institutions had already become investors in Mixue Ice City through Pre-IPO financing, witnessing and accompanying the company's developmentDeepening the Supply Chain to Create Ultimate Cost Performance and Strengthening the Foundation for Scalable Long-term Development

Founded in 1997, Mixue Ice City has a different developmental background compared to other mainstream ready-to-drink beverage companies in China. The company started from a small shop called "Cold Wave Shaved Ice" in Zhengzhou and was one of the first in China's ready-to-drink beverage industry to establish a central factory, build its own logistics system, and create a freshly ground coffee brand (Lucky Coffee) across categories.

As early as 2012, Mixue Ice City established a central factory, extending its business into the upstream production and manufacturing sector. After more than ten years of continuous efforts, Mixue Ice City has built five major production bases covering a total area of approximately 790,000 square meters, encompassing all categories of ingredients including sugar, milk, tea, coffee, fruit, grain, and materials.

It is reported that Mixue Ice City is one of the few brands in China's ready-to-drink beverage industry that achieves 100% procurement of beverage ingredients, packaging materials, and equipment from the brand owner for its franchisees. Over 60% of the beverage ingredients provided to franchisees are self-produced, the highest in China's ready-to-drink beverage industry (according to a report by ZhiShi Consulting), with core beverage ingredients being 100% self-produced.

In addition to the central factory, Mixue Ice City also began to layout its procurement and logistics sectors early on to continuously improve its supply chain system. In 2013, the company further extended its procurement network to upstream agricultural products, and in 2014, it began to build its own logistics system. It has now created the largest complete end-to-end supply chain system in China's ready-to-drink beverage industry, with a procurement network covering six continents and 38 countries. The logistics network also covers 31 provinces, autonomous regions, and municipalities in mainland China, over 300 prefecture-level cities, 1,700 counties, and 4,900 townships. As of September 30, 2024, Mixue Ice City has achieved 12-hour reach in over 90% of county-level administrative divisions in mainland China.

The comprehensive supply chain system not only ensures high quality and stable supply of beverage ingredients but also effectively optimizes the cost structure and enhances the company's operational efficiency, becoming the cornerstone of Mixue Ice City's insistence on "high quality and affordable" product claims. This system also provides necessary support for Mixue Ice City to further achieve business scale expansion.

As of December 31, 2024, Mixue Ice City has a total of 46,479 stores in China and overseas. Based on the 45,302 stores as of September 30, 2024, Mixue Ice City has become the world's number one ready-to-drink beverage company. In 2021, 2022, 2023, and 2024, Mixue Ice City achieved terminal retail sales of 22.8 billion yuan, 30.7 billion yuan, 47.8 billion yuan, and 58.3 billion yuan, respectively, with cup output reaching 3.6 billion cups, 4.7 billion cups, 7.4 billion cups, and 9 billion cups during the same period. The cup output and terminal retail sales for 2024 increased by 21.9% and 21.7% year-on-year, respectively.

On the basis of a massive scale, Mixue Ice City has also achieved strong growth and excellent profitability. In the first nine months of 2022, 2023, and 2024, the company achieved revenues of 13.6 billion yuan, 20.3 billion yuan, and 18.7 billion yuan, respectively, with year-on-year growth of 31.2%, 49.6%, and 21.2%. During the same period, net profits were 2 billion yuan, 3.2 billion yuan, and 3.5 billion yuan, with year-on-year growth of 5.3%, 58.3%, and 42.3%