About a week after Goodme became the third “new-style” Chinese tea chain to go public, the news about the fourth is already here. Over a year after it first applied for an IPO in Hong Kong and 6 months after the first application lapsed, it seems that Mixue Bingcheng (蜜雪冰城, sometimes known as Mixue Ice Cream & Tea) is closer than ever to a public listing.
On the first day of 2025, almost exactly a year after its last IPO attempt, Mixue submitted its application for public listing again to the Hong Kong Stock Exchange (HKEX) and plans to launch its IPO in early March this year. It was later reported that its application had passed the listing hearing stage at HKEX, and the leading tea chain is planning to assess investor interest in the IPO on 24 February before proceeding further.
The latest data after the hearing shows that up to 31 December, Mixue has 46,479 branches in China and 11 countries abroad. This means that Mixue opened 1,177 new branches in a quarter since its last disclosure on 30 September. Mixue sold around 9 billion drinks in 2024 and had a GMV (gross merchandise value) of 58.3 billion RMB (8 billion USD). The annual net profit surpassed 3 billion RMB (411.88 million USD). Mixue’s main earnings came from selling ingredients and equipment to franchisees.
However, the question is whether the “supply chain-centric” strategy can continue to impress investors. With low franchising fees and low prices, the chain thrives on expansion. Its rate of expansion has dropped from 50% in 2021 to 25% in the first 3 quarters of 2024. With eyes on “going overseas” (出海) to provide further opportunities for growth, it is up to investors to decide if Mixue’s strategy is sustainable in the long term.
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