Pedestrians passing MIXUE Ice Cream & Tea Shop in Yantai, China, April 1, 2025 (Photo by Costfoto/NurPhoto, Getty Images)
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Shares in Chinese ice cream and drinks chain Mixe Group fell more than 7% in Hong Kong on Friday, with losses widening for a second straight session after the company announced a decline in first-half profit.
On Thursday, Mixue announced that its net profit for the six months to June fell 14.7% from a year earlier to 2.32 billion yuan ($345.2 million), and the stock closed 8.37% lower. Sales increased by 2.3% to 15.22 billion yuan.
The company also proposed a special dividend of 2.65 yuan per share, subject to shareholder approval.
Mixue’s profitability was pressured by increased costs and expenses. The company said cost of goods sold increased faster than revenue, primarily due to investments aimed at improving product quality, while selling and distribution expenses increased 22.9% due to higher marketing and personnel expenses. Administrative expenses also increased by 39.4%, primarily due to higher personnel costs.
Mixue Group is currently opening more stores around the world. mcdonalds That’s more than four times that of Dunkin’s, and its store network totaled about 63,987 stores as of the end of June. The company is known for its affordable drinks and ice creams, including its signature King Corn Vanilla Ice Cream.
Most of its stores are in mainland China, but the company had 4,378 stores overseas as of the end of June, and is expanding into new markets such as Central Asia and the Americas.
Looking ahead, the company said it plans to deepen its presence in Southeast Asia and expand further into Central Asia and the Americas, while building a more localized supply chain to support its international expansion.
The company is looking beyond beverages, with plans to transform its Snow King mascot into a global cultural brand through an animated series, comics, movies, featured products and even a theme park.
