MIXUE Group (2097) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2025, rose 39.3% year-over-year to RMB14,874.8 million, with net profit up 44.1% to RMB2,718.2 million and basic earnings per share at RMB7.23.

• Store network expanded to over 53,000 globally, including 48,281 in mainland China and 4,733 overseas as of June 30, 2025.

• Franchise model remains the primary growth driver, with franchisees accounting for nearly all stores and only 2.6% of revenue from franchise and related services.

• Focused on supply chain enhancement, brand IP building, and digitalization to drive operational efficiency and consumer engagement.

• Over 57.6% of domestic stores are in third-tier and below cities, supporting deep market penetration.

Financial highlights

• Gross profit increased 38.3% to RMB4,706.4 million; gross margin for goods and equipment sales slightly decreased to 30.3% due to higher raw material costs, while franchise services margin improved to 82.7%.

• Other income and gains nearly doubled to RMB158.6 million, mainly from higher interest income and government subsidies.

• Selling and distribution expenses rose 40.2% to RMB913.7 million, remaining at 6.1% of revenue; administrative expenses increased 56.6% to RMB437.7 million.

• Cash and equivalents, time deposits, and financial assets totaled RMB17,611.8 million, up 58.5% from December 31, 2024; net current assets rose to RMB12,690.6 million.

• Finance costs dropped 52.3% to RMB2.1 million due to repayment of bank borrowings.

Outlook and guidance

• Plans to further expand the store network in China, Southeast Asia, and new international markets, leveraging robust supply chain and digitalization.

• Intends to enhance R&D, logistics, and brand IP, with significant investments planned by 2028.

• Continued focus on operational efficiency and sustainability.

• No interim dividend recommended or declared for the period.