Mixue Bingcheng's net profit in 2025 increased by 33% year-over-year, with revenue rising by 35.2%, and global stores expanding to nearly 60,000 | Financial Report Insights

Mixue Bingcheng continues to strengthen its cost leadership advantage in the increasingly competitive fresh beverage market through large-scale store expansion and an efficient supply chain system. By 2025, it will deliver record-high revenue and profits.

Mixue Bingcheng announced its 2025 annual results on Tuesday, with revenue up 35.2% year-over-year to RMB 33.56 billion, slightly above analysts’ average forecast of RMB 32.94 billion; net profit increased 33.1% to RMB 5.93 billion, surpassing market consensus expectations of a 31% increase. Basic earnings per share were RMB 15.65.

During the reporting period, the company’s global store count grew from 46,479 at the end of 2024 to 59,823, with over 13,700 new stores in mainland China and the number of franchisees rising to 27,450. Meanwhile, the company completed a strategic acquisition of the fresh draft beer brand “Xianpi Fulu Jia,” and the “Mixue Bingcheng” brand has entered markets in Kazakhstan and the United States, accelerating its globalization.

Mixue Bingcheng announced leadership changes, Zhang Hongfu was appointed Co-Chairman and will continue to serve as Executive Director, having stepped down as CEO. At the same time, Zhang Yuan was appointed CEO and will no longer serve as Executive Vice President or CFO. The board stated that these adjustments are part of a strategic upgrade aligned with the new stage of “multi-brand, globalization, digital intelligence” development, aiming to optimize corporate governance, improve management efficiency, and strengthen leadership succession. Zhang Hongfu will continue to participate in major group decisions and play a key leadership role in strategy, culture, public welfare, and innovation. After the earnings release, Hong Kong-listed Mixue Group’s shares rose over 8% in the afternoon, closing at HKD 349.00.

Revenue and profit hit new highs, but gross margin faces pressure; analysts cautiously view the outlook for 2026

In 2025, Mixue Bingcheng’s revenue mainly came from sales to franchisees of products and equipment, which increased 35.3% year-over-year to RMB 32.77 billion, primarily driven by store network expansion and increased franchisee procurement. Revenue from franchise and related services grew 28.0% to RMB 790 million, accounting for about 2.4% of total revenue, indicating the company’s business model remains stable, relying more on supply chain operations than franchise fees.

Despite net profit growth exceeding expectations, structural pressure on gross margin cannot be ignored. Gross margin on product and equipment sales declined from 31.2% in 2024 to 29.9% in 2025, attributed to changes in revenue structure and rising costs of key raw materials; the cost of sales grew 37.8%, faster than revenue growth of 35.2%, reflecting cost pressures associated with scale expansion.

UBS analyst Christine Peng and others in their January report pointed out that rising raw material costs, increased share of delivery orders, and intensified competition are key short-term negative catalysts for Mixue Bingcheng, and they expect gross margin to further narrow in 2026 based on 2025 levels. The company also acknowledged in its annual report that third-party online platform subsidies have inflated consumer expectations for value-for-money, raising the bar for product competitiveness across brands.

Looking ahead to 2026, Mixue Bingcheng aims to consolidate its leading position in China’s fresh beverage market, steadily expand its domestic store network, continue deepening its presence in Southeast Asia, and explore emerging markets as appropriate. The company will also focus on strengthening supply chain infrastructure, advancing smart store operations, and further expanding the global influence of the “Xue Wang” brand IP.

Mainland China store expansion continues to penetrate lower-tier markets

As of December 31, 2025, Mixue Bingcheng’s mainland China store count increased to 55,356, covering 31 provinces, over 300 prefecture-level cities, and all tier cities. In terms of city tiers, stores in third-tier and below cities account for about 58%, unchanged from the previous year, maintaining deep market penetration.

In 2025, the company opened 14,496 new franchise stores, closed 2,527, net adding approximately 12,000 stores for the year. Combined with 1,354 stores acquired through the “Xianpi Fulu Jia” acquisition, total franchise stores reached 59,785.

To improve operational quality, the company continued to promote smart beverage dispensers, which by the end of 2025 covered over 13,000 “Mixue Bingcheng” stores, aiming to standardize product quality, reduce food safety risks, and enhance customer experience. The company stated that in 2026, it will continue to expand its domestic store network steadily while focusing on improving store management quality across brands.

Overseas stores slightly contracted, new markets accelerate expansion

As of the end of 2025, the company’s overseas stores outside mainland China numbered 4,467, down from 4,895 at the end of 2024, mainly due to operational adjustments and optimizations in Indonesia and Vietnam. The company said these measures aim to support sustainable, long-term operations in these markets.

Meanwhile, the company is accelerating its expansion into emerging markets. During the period, “Mixue Bingcheng” entered markets in Kazakhstan and the United States; the coffee brand “Lucky Coffee” opened its first stores in Malaysia and Thailand. By the end of 2025, the overseas footprint covered 13 countries, with local warehousing and distribution networks established in 8 of them.

The company plans to continue deepening its Southeast Asian presence in 2026 and will adjust its market expansion strategies dynamically based on local business environments, store performance, population size, and consumer preferences, exploring other markets as appropriate.

Acquisition expands product categories; “Xianpi Fulu Jia” integrated into the group

In October 2025, Mixue Bingcheng announced the strategic acquisition of the fresh draft beer brand “Xianpi Fulu Jia,” completing the purchase on December 1, 2025. The product range extended from fresh fruit drinks, tea, ice cream, and coffee to draft beer. “Xianpi Fulu Jia” offers draft beer priced around RMB 6–10 per 500ml, with 1,354 franchise stores and 20 directly operated stores at the time of acquisition.

By the end of 2025, the company operated 38 directly owned stores, up from 17 at the end of 2024, mainly due to this acquisition.

The company stated that in 2026, it will focus on increasing the production capacity of “Xianpi Fulu Jia” and leverage its strong supply chain and operational capabilities to optimize store operations and steadily expand nationwide.

Zhang Hongfu steps down as CEO, becomes Co-Chairman; Zhang Yuan takes over as CEO

Mixue Bingcheng announced leadership changes, with Zhang Hongfu appointed Co-Chairman and remaining as Executive Director, having stepped down as CEO. Zhang Yuan was appointed CEO and will no longer serve as Executive Vice President or CFO.

It was also reported that Cui Haijing resigned as Supervisor and Chair of the Supervisory Committee, and has been appointed CFO, responsible for group finance. Additionally, Zhu Jiapin was elected as Employee Supervisor by the staff representative congress.

The board stated that these changes are part of a strategic upgrade aligned with the new stage of “multi-brand, globalization, digital intelligence” development, aiming to optimize governance, improve management efficiency, and strengthen leadership succession. Zhang Hongfu will continue to participate in major group decisions and play a key leadership role in strategy, culture, public welfare, and innovation.

Risk Warning and Disclaimer

Market risks exist; investments should be cautious. This article does not constitute personal investment advice and does not consider individual users’ specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions herein are suitable for their circumstances. Investment involves risks, and responsibility rests with the individual.