Mixue Bingcheng's net profit in 2025 surged by 33% year-on-year, revenue grew by 35.2%, and global stores expanded to nearly 60,000 | Earnings Report

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With large-scale expansion of its store network and an efficient supply chain system, Mixue Bingcheng has continued to strengthen its cost-leadership advantage in the increasingly competitive freshly made beverages track, and delivered annual results in 2025 with both revenue and profit reaching historical highs.

On Tuesday, Mixue Bingcheng announced its results for the year ended December 31, 2025. Revenue in 2025 increased by 35.2% year-on-year to 33.56 billion yuan, slightly above the analysts’ average estimate of 32.94 billion yuan; net profit increased by 33.1% to 5.93 billion yuan, surpassing consensus expectations for a 31% increase. Basic earnings per share were 15.65 yuan.

During the reporting period, the company’s total number of global stores expanded from 46,479 at the end of 2024 to 59,823, of which more than 13,700 were newly added in mainland China, and the number of franchisees also increased to 27,450. Meanwhile, the company completed the strategic acquisition of the freshly tapped beer brand “Fresh Beer Fulu Home”, and the “Mixue Bingcheng” brand successively entered the Kazakhstan and US markets, accelerating its global layout.

Mixue Bingcheng announced a senior management reshuffle. Zhang Hongfu was appointed Co-chairman and will continue to serve as Executive Director, having stepped down as CEO. Meanwhile, Zhang Yuan was appointed CEO, and will no longer serve as Executive Vice President and CFO. The board stated that the adjustment is a forward-looking strategic upgrade based on a new stage of development focusing on “multi-brand, globalization, and digital intelligence,” aiming to optimize the corporate governance structure, improve management efficiency, and strengthen the leadership talent pipeline. Zhang Hongfu will continue to participate in major group decisions, playing a key leadership role in strategy, culture, public welfare, and innovation. After the report, Mixue Group's Hong Kong-listed shares rose more than 8% in the afternoon, to HKD 349.00.

Record Highs in Revenue and Profit; Gross Margin Under Pressure; Analysts Cautious on 2026 Outlook

Mixue Bingcheng’s revenue in 2025 mainly came from sales of goods and equipment to franchisees, which increased by 35.3% year-on-year to 32.77 billion yuan, with the increase mainly benefiting from the expanded franchisee purchasing scale due to store network growth. Franchise and related service revenue increased by 28.0% to 790 million yuan, accounting for about 2.4% of total revenue, indicating the company’s business model still relies mainly on its supply chain rather than franchise fees.

Although net profit growth exceeded expectations, structural pressure on gross margin cannot be ignored. The gross margin on goods and equipment sales declined from 31.2% in 2024 to 29.9% in 2025, which the company attributed to changes in revenue structure and rising procurement costs for some core raw materials; the growth rate of sales costs (37.8%) also exceeded that of revenue (35.2%), indicating that network expansion brought some cost pressure.

In a report in January, UBS analysts led by Christine Peng pointed out that rising raw material costs, an increase in the proportion of delivery orders, and intensifying competition are key negative catalysts restricting Mixue Bingcheng’s short-term performance, and predicted that the 2026 gross margin will further decline from the 2025 level. The company also admitted in its annual report that subsidies from third-party online platforms have raised consumer expectations for quality and value, setting a higher bar for the product strength of all brands.

Looking ahead to 2026, Mixue Bingcheng stated it would consolidate its leading position in China's freshly made beverage market, steadily promote the expansion of its domestic store network, continue to cultivate the Southeast Asian market, timely explore emerging markets, further strengthen the supply chain, promote intelligent store operations, and further expand the global influence of the “Snow King” brand IP.

Significant Expansion of Mainland China Stores, Continued Penetration into Lower-tier Markets

As of December 31, 2025, Mixue Bingcheng had 55,356 stores in mainland China, covering 31 provinces, over 300 prefecture-level cities, and all city tiers. By city level, stores in tier 3 and below accounted for about 58%, unchanged from the previous year, showing solid penetration into lower-tier markets.

In 2025, the company opened 14,496 new franchise stores, closed 2,527, for a net increase of roughly 12,000, plus the 1,354 brought by acquiring “Fresh Beer Fulu Home”, with total franchise stores reaching 59,785.

To improve operational quality, the company continued to promote intelligent liquid dispensing machines, which as of the end of 2025 had been deployed in more than 13,000 “Mixue Bingcheng” stores, aiming to enhance product standardization, reduce food safety risks, and optimize consumer experience. The company stated it will continue expanding its domestic store network in 2026, with a focus on improving the operational quality of all brand stores.

Slight Contraction in Overseas Stores, Accelerated Expansion into New Markets

In overseas markets, as of the end of 2025, the company had 4,467 stores outside mainland China, down from 4,895 at end-2024, mainly due to operational adjustments and optimization of existing stores in Indonesia and Vietnam, resulting in a decrease in numbers. The company said these initiatives were intended to enable healthier, more sustainable operations in these markets in the long term.

Meanwhile, the company hastened its deployment in emerging markets. During the reporting period, the “Mixue Bingcheng” brand entered Kazakhstan and the US; the coffee brand “Lucky Cup” also opened its first stores in Malaysia and Thailand. As of the end of 2025, the company’s overseas business covered 13 countries, and it had set up localized warehousing and distribution networks in eight countries abroad.

The company stated that in 2026, it will continue cultivating the Southeast Asian market, dynamically adjust its market expansion strategies according to the business environment, store performance, population size, and consumer preferences in each country, and enter other markets when appropriate.

M&A Expands Product Categories, “Fresh Beer Fulu Home” Incorporated into Group

In October 2025, Mixue Bingcheng announced the strategic acquisition of the freshly tapped beer brand “Fresh Beer Fulu Home,” and completed the deal on December 1, 2025, extending its product range from freshly made fruit and tea beverages, ice cream, and coffee into freshly tapped beer. “Fresh Beer Fulu Home” specializes in freshly tapped beer priced at about 6 to 10 yuan per 500ml, with 1,354 franchise stores and 20 self-operated stores at the time of acquisition.

As of end-2025, the company had 38 self-operated stores in total, up from 17 at end-2024, with the growth mainly coming from the acquisition.

The company stated that in 2026, it will focus on strengthening “Fresh Beer Fulu Home’s” production capacity, and leverage the group’s strong supply chain system and operational capabilities to optimize the brand’s store management and steadily advance its nationwide rollout.

Zhang Hongfu Steps Down as Mixue Bingcheng CEO, Becomes Co-chairman; Zhang Yuan Appointed CEO

Mixue Bingcheng announced adjustments in senior management: Zhang Hongfu was appointed Co-chairman and will continue as Executive Director, having stepped down as CEO. Meanwhile, Zhang Yuan was appointed CEO, and will no longer serve as Executive Vice President and CFO.

Information shows that Cui Haijing resigned as Supervisor and Chairman of the Supervisory Board, and has been appointed Financial Controller, responsible for group finance. Following election by the staff representative congress, Zhu Jiaping has been appointed as Employee Representative Supervisor.

The board stated that the adjustment is a forward-looking strategic upgrade based on the new stage of “multi-brand, globalization, and digital intelligence” development, aiming to optimize governance, improve management efficiency, and strengthen leadership. Zhang Hongfu will continue to participate in major group decisions and play a core leadership role in strategy, culture, public welfare, innovation, and other key areas.

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