17 Dec 2025
Mixue has delivered a stellar performance in 1H25, underscoring the resilience of its high-volume, low-margin business model against a backdrop of softening consumer sentiment. The company reported total revenue of Rmb14.87bn, up 39.3% YoY. This growth was primarily driven by the expansion of its global store network and increased sales of ingredients and equipment to franchisees. GP increased 38.3% to Rmb4,706m, with GPM for goods and equipment sales slightly decreased to 30.3% due to higher RM costs, while franchise services margin improved to 82.7%. Other income and gains nearly doubled to Rmb159m, mainly from higher interest income and government subsidies. Net profit surged by 44.1% YoY to Rmb2.7bn. Notably, the NP growth rate outpaced revenue growth, indicating significant operating leverage. As the store count grows, the marginal cost of supporting each new franchise unit decreases, boosting overall profitability. As of end-1H25, the company held a massive cash position of Rmb17.6bn (including term deposits), a 58.5% increase from end-FY24. This strong liquidity position empowers Mixue to continue its aggressive expansion without relying on external debt, a critical advantage in a high-interest-rate environment.