Key facts
- Mixue's first-half profit fell 14.7% to 2.32 billion yuan as cost of sales rose 4.1% and revenue rose 2.3%.
- Franchisees opened 5,455 stores in the first half, down from 7,721 a year earlier, while 1,289 closed.
- Mixue's store network grew to 63,987 from 53,014, but stores outside mainland China fell to 4,378 from 4,733.
- Mixue paid a special dividend of 2.65 yuan a share on November 6, estimated at about 1.006 billion yuan.
- Mixue had cash, deposits and wealth management products of 21.64 billion yuan at the end of June and no bank borrowings.
Mixue Group, the Chinese bubble tea company that built the world's largest food and drink chain, is showing cracks in its growth story, Nikkei reported on November 10. The company's shares have fallen 56% in 2026 and remain well below their IPO price. In early October, Mixue closed its first Hong Kong store in Mong Kok after about three years of operation, a closure that drew widespread attention.
The pullback extends beyond Hong Kong. Mixue's store count outside mainland China fell to 4,378 from 4,733 as the company trimmed outlets in Indonesia and Vietnam while entering Mexico, Kyrgyzstan and Brazil. Overall, the network still grew to 63,987 stores from 53,014, but franchisees opened 5,455 stores in the first half, down from 7,721 a year earlier, while 1,289 closed, up from 1,187.
Financially, Mixue's first-half revenue rose 2.3% to 15.22 billion yuan, but cost of sales rose 4.1%, which the company tied to spending on better ingredients, and gross margin slipped to 30.4% from 31.6%. Selling and distribution expenses climbed 22.9% and administrative costs 39.4%, mainly on marketing and staff. Profit fell 14.7% to 2.32 billion yuan, and earnings per share fell 16.3% to 6.05 yuan.
Mixue paid a special dividend of 2.65 yuan a share on November 6, a payout the company estimated at about 1.006 billion yuan. Shareholders approved the dividend at an extraordinary general meeting on September 30, with a record date of October 12, according to its filings with the Hong Kong stock exchange. Holders on the Hong Kong register were paid 3.08304 Hong Kong dollars a share. The company had cash, deposits and wealth management products of 21.64 billion yuan at the end of June, up 8.3% from December, and no bank borrowings, it said.