MIXUE Ice City reported a 22.3% year-on-year revenue growth and a significant 39.8% year-on-year increase in net profit for 2024. With its "high quality and affordable" model, the company's profitability has improved, with gross profit increasing by 34.4% to RMB 8.06 billion. On March 26, MIXUE Ice City announced its first annual data since listing on the Hong Kong Stock Exchange on March 3: Revenue: Fiscal year 2024 revenue reached RMB 24.829 billion, a year-on-year increase of 22.3%; Net Profit: Fiscal year 2024 net profit was RMB 4.454 billion, a year-on-year increase of 39.8%; Gross Profit: Increased by 34.4% to RMB 8.06 billion; Gross Margin: Significantly improved to 32.5% (29.5% in 2023), mainly benefiting from the increase in gross margin of product sales (from 28.8% to 31.6%); Basic Earnings per Share: Increased by 41.4% year-on-year to RMB 12.32. Continuous Optimization of Franchise Model, Strong IP Supports Brand Value The business growth of MIXUE Ice City largely relies on its successful franchise model. In 2024, the company added 4,192 new franchisees, bringing the total to 20,976. Notably, despite the company opening 10,555 new stores in 2024, the closure rate remained relatively low at around 3.5%. The company's success in the franchise model is attributed to its cooperation concept of "shared interests" with franchisees. The financial report particularly emphasizes that franchise fees and related service fees account for only 2.5% of the company's total revenue, which contrasts sharply with many competitors. The company helps franchisees enhance profitability and operational efficiency by providing competitive one-stop supply chain solutions and highly digitalized operational support. At the same time, the continuous development of the "Snow King" IP injects strong cultural value into the brand. In 2024, the company continued to launch "Snow King" related IP content, including the animation "The Fantastic Sand State of Snow King," making it the "only super IP in China's ready-to-drink beverage industry." By the end of 2024, the "#MIXUE Ice City" topic had accumulated over 43.5 billion views on Douyin, showcasing its strong social media influence. Continuous Enhancement of Supply Chain Autonomy, Strategic Investment Deepens Vertical Integration One of MIXUE Ice City's core competitive advantages is its large-scale, highly digitalized end-to-end supply chain system. In 2024, the company achieved 100% self-production of core beverage ingredients, providing a solid foundation for maintaining product quality and price competitiveness The company obtained a food production license for liquid milk products in 2024 and established a strategic partnership with Junlebao to jointly build the "Snow King Ranch." This initiative will further ensure the company has priority access to high-quality fresh milk, which is expected to enhance product quality and optimize cost structure. In terms of logistics and distribution, the company has established a warehousing system with 27 warehouses in mainland China, and its distribution network covers 31 provinces, autonomous regions, and municipalities, reaching over 300 prefecture-level cities. In overseas markets, the company has established localized warehousing systems in four countries, providing strong support for its globalization strategy. Healthy and Robust Financial Condition As of the end of 2024, MIXUE's total cash and cash equivalents, time deposits, restricted cash, and financial assets measured at fair value with changes recognized in profit or loss reached CNY 11.11 billion, an increase of 63.8% from CNY 6.784 billion at the end of 2023. The company has fully repaid its bank loans, with no interest-bearing bank or other borrowings, and the leverage ratio has decreased from 27.4% in 2023 to 23.9%. According to the financial report, the company's capital commitments as of the end of 2024 amounted to CNY 399 million, mainly for the construction of production bases. Although this is a decrease from CNY 580 million at the end of 2023, it is consistent with the company's progress and completion pace in building production bases. Future Outlook: Deepening Domestic Market and Expanding Overseas Business in Parallel Looking ahead, MIXUE has formulated a clear strategic plan: on one hand, continue to consolidate its leading position in China's freshly made beverage industry, and on the other hand, accelerate the expansion of overseas markets. For the domestic market, the company plans to further explore new markets and deepen existing ones, particularly accelerating the national layout of the "Lucky Coffee" brand. For overseas markets, the company will continue to focus on the Southeast Asian market and plans to explore other markets in due course, creating a more global brand. The in-depth development of the "Snow King" IP will also be a key focus of future work. The company plans to expand the cultural influence of "Snow King" by launching more diverse high-quality content, including animated series, movies, and specialty products, making it a global cultural symbol that transcends the beverage industry. Risk Warning and Disclaimer The market carries risks, and investment should be approached with caution. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investment based on this is at one's own risk