Global store expansion to 53,000! MIXUE GROUP's first half-year growth of 39.3% year-on-year, net profit growth of 44.1% year-on-year

MIXUE Ice City Co., Ltd. released its interim performance announcement on August 27, showing that in the first half of 2025, it achieved revenue of 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 mainly attributed to the continuous expansion of its 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% compared to 43,218 stores in the same period last year. Among them, the number of stores in mainland China reached 48,281, while overseas stores numbered 4,733.

In terms of profitability, the overall gross profit margin of the company remained stable. The gross profit margin for the sale of goods and equipment slightly decreased from 30.5% in the same period last year to 30.3%, mainly affected by rising raw material costs; however, the gross profit margin for franchise and related services increased from 81.7% to 82.7%, indicating a continuous enhancement of economies of scale.

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, mainly from net cash inflows from operating activities and funds raised 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%, administrative expenses surged by 56.6%, and the overall expense ratio rose
• Cash reserves increased significantly by 58.5% to RMB 17.612 billion, mainly from IPO fundraising and operating cash flow

Core Business Progress

• Global store count exceeds 53,000, a 22.7% increase compared to the same period last year
• Franchise stores account for 99.97%, with the number of franchisees increasing from 19,300 to 23,400
• Smart dispensing machines have covered over 5,600 stores, promoting operational standardization and efficiency improvements
• Overseas stores number approximately 4,700, with store optimization adjustments implemented in Indonesia and Vietnam, resulting in 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 franchise stores increased from 43,197 in the same period last year to 52,996, an increase of 22.7%.

By business segment, revenue from the sale of goods and equipment was RMB 14.495 billion, a year-on-year increase of 39.6%, accounting for 97.4% of total revenue; revenue from franchise and related services was RMB 380 million, a year-on-year increase of 29.8%, accounting for 2.6%. **The company stated that the revenue growth is mainly attributed to the increase in sales of goods and equipment driven by the expansion of the store network **

From a regional distribution perspective, stores in mainland China dominate absolutely. As of June 30, 2025, there are 48,281 stores in mainland China, covering 31 provinces, autonomous regions, and municipalities, exceeding 300 prefecture-level cities. Among them, stores in third-tier cities and below account for 57.6%, reflecting the company's strategy of deepening its presence in lower-tier markets.

In terms of overseas markets, the company has opened approximately 4,700 stores outside mainland China, covering 12 countries. During the reporting period, the company implemented optimization measures for existing stores in the Indonesian and Vietnamese markets, resulting in a decrease in the number of stores in these two markets, but successfully expanded into new markets such as Kazakhstan.

Supply Chain Advantages Strengthen Competitive Moat

As the first company in China's ready-to-drink beverage industry to establish a central factory, MIXUE BINGCHENG has built an end-to-end supply chain system, achieving 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 in Henan, Hainan, Guangxi, Chongqing, and Anhui, providing a full range of beverage ingredient solutions including sugar, milk, tea, coffee, fruit, and grains. In terms of logistics, as of June 30, 2025, the company has established a warehousing system consisting 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%, with the growth rate roughly matching that of revenue. The overall gross profit was RMB 4.706 billion, a year-on-year increase of 38.3%.

Significant Achievements in Brand IP Development

The "Snow King" IP has become an important brand asset for MIXUE BINGCHENG. The report shows that as of June 30, 2025, the "#MIXUE BINGCHENG" topic 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 specialty beverages with the "Snow King" IP cultural scene. In May, it launched English, French, and Portuguese versions of "Snow King Arrives," aimed at global distribution.

In terms of product innovation, the MIXUE BINGCHENG brand continues to introduce new products such as hawthorn series, taro series ice creams, and Longjing tea series beverages; the "Lucky Coffee" brand has innovatively launched more than ten new fruit coffee products, priced at RMB 6-8