Mixue’s Hong Kong Listing Show How to Successfully Narrate Dual Stories (AI Translation)
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文｜财新周刊 王小青 发自香港，冯奕铭、孙嫣然 发自北京
By Caixin Weekly's Wang Xiaoqing in Hong Kong, Feng Yiming, Sun Yanran in Beijing
2025年3月3日，全球4.5万家蜜雪冰城加盟店，将新茶饮顶流IP“雪王”送上了香港交易所的上市敲钟仪式。当天，公司市值突破千亿港元。
On March 3, 2025, 45,000 MyTea franchised stores worldwide brought the top tea beverage IP, "Snow King," to the gong-striking ceremony for listing on the Hong Kong Stock Exchange. On that day, the company’s market value surpassed HKD 100 billion.
这一天，打新中签蜜雪集团（02097.HK，业内称“雪王”，下称“蜜雪”）的港股投资者，按首日挂牌收市价290港元/股计算，一手（100股）账面可赚8750港元。截至3月7日发稿时，股价最高升至389港元/股。
On this day, investors in Hong Kong stocks of Mixue Group (02097.HK, known in the industry as "Xue Wang," hereinafter referred to as "Mixue"), based on the first trading day's closing price of 290 Hong Kong dollars per share, could gain 8,750 Hong Kong dollars for one lot (100 shares). As of the time of writing on March 7, the stock price had risen as high as 389 Hong Kong dollars per share.
据上市保荐人之一瑞银统计，蜜雪成为自2021年以来亚太地区餐饮服务类最大型的IPO，也是2018年以来亚太地区餐饮服务类IPO中市值最高的公司。
According to UBS, one of the IPO sponsors, Mixue has become the largest IPO in the Asia-Pacific region's food and beverage sector since 2021, and also the company with the highest market value in food and beverage IPOs in the region since 2018.
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- Mixue's IPO on March 3, 2025, resulted in a market value exceeding HKD 100 billion, with stock prices peaking at HKD 389 per share by March 7. Investors saw an 8,750 HKD gain per lot on the first trading day.
- Mixue has become Asia-Pacific's largest F&B IPO since 2021, excelling in affordable pricing and overseas expansion. Their revenue soared from 10.351 billion yuan in 2021 to 20.303 billion yuan in 2023.
- Mixue's IPO oversubscription surpassed 5,257 times, raising HK$1.82 trillion. Despite massive oversubscription, caution prevails as investment risks, competition, and market saturation linger.
On March 3, 2025, Mixue Group, operating under the brand name "Xue Wang," listed its tea beverage IP "Snow King" on the Hong Kong Stock Exchange, marking a valuation exceeding HKD 100 billion. The debut stock price rose significantly, marking the largest IPO in the Asia-Pacific food and beverage sector since 2021. Mixue's performance contrasts with competitors like Nayuki and Chabaidao, whose stock prices fell on their initial trading days. Investors are optimistic about Mixue due to its dominance in affordable beverage segments and successful overseas expansion [para. 1].
From 2021 to 2023, Mixue's revenue grew from 10.351 billion yuan to 20.303 billion yuan, with net profits increasing accordingly. The "Mixue Bingcheng" brand forms the bulk of the company's business, accounting for over 95% of revenue and boasting a gross profit margin that increased to 32.9% in 2024. Mixue's strategy emphasizes franchisee support through a robust supply chain, enabling quick expansion [para. 3].
Investors were eager for Mixue's IPO, with an unprecedented oversubscription rate of 5,257 times, attracting HK$1.82 trillion in subscription funds. Mixue's success has fueled interest in related stocks, drawing parallels to high-profile IPOs like Kuaishou Technology. Hong Kong's new IPO settlement platform, FINI, eased pre-set fund requirements, amplifying investor interest through margin financing [para. 10].
The public offering saw Mixue become one of the most oversubscribed IPOs, highlighting both market enthusiasm and caution about the sustainability of such success. The FINI platform's introduction may impact the traditional indicators of IPO prosperity, necessitating new market strategies [para. 10].
Mixue's business model is centered around a highly efficient supply chain, allowing the company to support franchisees with essential materials and equipment at a lower cost, thus facilitating rapid store growth. This positions Mixue advantageously against competitors like Gu Ming, whose profit declined, reflecting industry-wide challenges [para. 3][para. 7].
The IPO not only marked Mixue's financial success but also indicated a strategic push for more Chinese tea beverage brands to list overseas. The global market expansion aligns with broader trends in the tea beverage industry, emphasizing the importance of international presence for competitive advantage [para. 11].
Mixue's overseas journey began in 2018, with significant presence now in countries like Indonesia and Vietnam. Despite a slowdown, the company remains focused on stabilizing its supply chain and maintaining growth, bolstered by its franchise model's international adaptability. Indonesian markets have seen slower recent growth, prompting a reconsideration of strategies including market-based pricing [para. 13].
While market saturation and competition in China have led many brands to adjust strategies, Mixue's consistent performance in the budget segment underscores the evolving demands and opportunities within the tea beverage industry. The current state of the industry suggests a trend towards vertical integration in supply chains to maintain cost advantages [para. 14].
Despite challenges in maintaining overseas supply chains, Mixue's franchisees are exhibiting cautious optimism, with future plans hinging on stable revenue streams and manageable operating costs [para. 13].
Chinese tea brands like Mixue are leveraging their refined domestic market skills for international competition, contending with local brands in North America and beyond. Strategic localization, product innovation, and capital management remain key to their success [para. 15].
- Mixue Ice Cream
蜜雪冰城 - Mixue Ice Cream, a leading budget beverage brand, went public on the Hong Kong Stock Exchange on March 3, 2025. The company's stock rose 43% on its debut, breaking a trend of new tea chains underperforming. Mixue's success is attributed to low pricing, strong supply chain management, and significant overseas expansion, with over 4,800 stores in 11 countries. It provides materials to franchisees, with most revenue from these supplies, not franchise fees.
- UBS
瑞银 - UBS is mentioned as one of the listing sponsors for Mixue's IPO. UBS's Asia-Pacific Investment Banking Vice Chairman Zhu Zhengqin stated that investors favor Mixue due to its market dominance and strong supply chain in the low-priced beverage sector, as well as its successful international expansion.
- Nayuki
奈雪的茶 - Nayuki (02150.HK) listed on June 30, 2021, but its stock dropped 13.5% on the first day. In 2024, its performance turned from profit to a loss of 4.35 billion yuan in the first half. Nayuki's expected to record losses in 2024 and 2025, with a forecast P/E ratio of 86 times in 2026. Amid the intense competition in the tea beverage market, it struggles with sustained financial challenges.
- ChaBaiDao
茶百道 - ChaBaiDao, a tea brand, listed in April 2024 and faced a challenging start with a 26.9% drop on its first trading day. The first half of 2024 saw a 60% decline in profits, with earnings of 237 million yuan. Internationally, it opened its first overseas store in Korea in early 2024, totaling about 20 overseas locations. Domestically, it has reduced to the mass market tea segment to remain competitive.
- Guming
古茗 - Guming, listed on February 12, 2025, saw its stock price drop 6.4% on its debut. In the first nine months of 2024, Guming reported a net profit of 10.99 billion yuan, up 11% year-over-year. The company operates three factories to process raw materials, with about 13% of the materials supplied to franchisees produced in-house. Guming's future plans include building a new factory in Zhejiang Zhuji.
- HeyTea
喜茶 - HeyTea, positioned in the high-end tea market, has stated its intention to avoid a price war and has paused new partner applications. Despite market challenges, they have expanded internationally, operating over 80 stores across eight countries including the US, UK, and Japan. They aim to leverage their innovative product strategy, like fresh fruit teas, to create a competitive edge over traditional "powdered milk teas" in overseas markets.
- Futu Securities
富途证券 - Futu Securities played a significant role in the IPO of Mixue Bingcheng by providing substantial margin financing for investors. They offered up to 108x leverage for all clients, and 200x for VIP clients, without interest, facilitating a 1.07 trillion HKD financing for Mixue's IPO, highlighting Futu's strong presence in the Hong Kong stock market's financing activities.
- Shanghai Aunt
沪上阿姨 - Shanghai Aunt submitted a listing application to the Hong Kong Stock Exchange in February 2024 and received a listing filing notice from the China Securities Regulatory Commission on January 10, 2025.
- Chagee
霸王茶姬 - Chagee Holdings Limited, the parent company of Bawang Chaji, received a notification from the China Securities Regulatory Commission on March 6, 2025, for overseas listing. The company plans to issue no more than 64.73 million ordinary shares and aims to list on the Nasdaq or NYSE.
- Cha Yan Yue Se
茶颜悦色 - Cha Yan Yue Se is reportedly in the process of preparing for a potential listing on either the US or Hong Kong stock markets. This move is part of a broader trend among new tea beverage companies seeking to accelerate overseas expansion by leveraging international capital markets.
- Xinshiqi Tea
新时沏奶茶 - The article mentions that Xinshiqi Tea (新时沏奶茶) is planning for a potential IPO either in the U.S. or Hong Kong market, alongside other tea brands like Chayanyuese. However, specific details about the company's operations, financials, or global expansion are not provided in the article.
- Gong Cha
贡茶 - Gong Cha, originating from Taiwan, is mentioned as one of the tea brands that entered the U.S. around 2010. It plays a role in the American market, which traditionally features Taiwan-style bubble tea. The article suggests brands like Gong Cha remain in a "powdered tea" phase, whereas emerging brands aim to innovate with fresh fruit teas in North America.
- Happy Lemon
快乐柠檬 - The article mentions that Happy Lemon is one of the bubble tea brands originating from Taiwan, which entered the US market along with Gong Cha and Coco. These brands introduced bubble tea to the US and became part of the North American tea beverage market, which traditionally dominated coffee consumption.
- Before 2021：
- Mixue became the largest IPO in the Asia-Pacific region's food and beverage sector, and the company with the highest market value in food and beverage IPOs.
- June 30, 2021：
- Nayuki Holdings closed 13.5% lower on its first trading day.
- 2021：
- Mixue reported annual revenue of 10.351 billion yuan and net profit attributable to shareholders of 1.91 billion yuan.
- 2022：
- Mixue reported revenue of 13.576 billion yuan and net profit of 1.997 billion yuan.
- 2023：
- Mixue reported revenue of 20.303 billion yuan and net profit of 3.137 billion yuan.
- Before February 2024：
- Chabaidao's profit for the first half of 2024 declined by 60% to 237 million yuan.
- Before March 2025：
- Mixue's valuation is considered reasonably priced compared to industry peers.
- February 12, 2025：
- Guming went public and ended its debut day down 6.4%.
- Before March 3, 2025：
- Investors were optimistic about 'Xue Wang' due to its dominance in affordable pricing and overseas expansion.
- March 3, 2025：
- Mixue ('Snow King') listed on the Hong Kong Stock Exchange, and its market value surpassed HKD 100 billion. The stock price surged 43% on its debut.
- By March 6, 2025：
- Chagee Holdings Limited received CSRC disclosure notice for overseas listing plans.
- As of March 7, 2025：
- Mixue's stock price rose as high as 389 Hong Kong dollars per share.
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