MIXUE Group (2097) H1 2024 earnings summary

Executive summary

• Leading freshly-made drinks company with over 45,000 stores in China and 11 overseas countries as of September 30, 2024, operating under Mixue (tea/ice cream) and Lucky Cup (coffee) brands.

• Largest freshly-made drinks company globally by number of stores; in 2023, sold 7.4 billion cups, with 7.1 billion cups sold in the nine months ended September 30, 2024.

• Franchise model drives network expansion; over 99% of stores are franchised, with a focus on mass-market, value-for-money products.

• Robust end-to-end supply chain, with over 60% of ingredients self-produced and a global procurement network spanning 38 countries.

• Mixue accounted for over 95% of revenue and gross profit during the track record period; Lucky Cup remains a minor contributor.

Financial highlights

• Revenue: RMB13.6bn in 2022, RMB20.3bn in 2023, and RMB18.7bn for the nine months ended September 30, 2024, representing YoY growth of 31.2%, 49.6%, and 21.2%, respectively.

• Net profit: RMB2.0bn in 2022, RMB3.2bn in 2023, and RMB3.5bn for the nine months ended September 30, 2024, growing by 5.3%, 58.3%, and 42.3% YoY.

• Gross profit margin: 31.3% (2021), 28.3% (2022), 29.5% (2023), 32.4% (nine months ended September 30, 2024).

• Net cash flows from operating activities: RMB1.7bn (2021), RMB2.4bn (2022), RMB3.8bn (2023), RMB5.1bn (nine months ended September 30, 2024).

• Estimated consolidated profit attributable to owners for 2024: not less than RMB4.4bn.

Outlook and guidance

• Market capitalization upon listing: HK$76,355 million; unaudited pro forma adjusted consolidated net tangible assets per share: HK$49.04.

• Net proceeds from the Global Offering (HK$3,291 million) to be used for supply chain expansion (66%), brand/IP building (12%), digitalization (12%), and working capital/general purposes (10%).

• Plans to further expand store network in China and Southeast Asia, strengthen supply chain, and enhance digitalization and brand IP.

• Potential spin-off of overseas businesses within three years after listing, subject to regulatory approval.

• No material adverse change in financial, operational, or trading position since September 30, 2024.