Shares of Chinese ice cream and beverages chain Mixue Group extended their slide on Friday, falling more than 7% in Hong Kong as investors continued to digest a first-half profit decline driven by rising costs and expenses.
The stock’s drop marks a second straight session of losses, following an 8.37% decline on Thursday, when the company released its interim results, according to CNBC.
Profit falls despite revenue growth
For the six months ended June, Mixue reported net profit of 2.32 billion yuan ($345.2 million), down 14.7% year on year. Revenue rose 2.3% to 15.22 billion yuan, but the company’s profitability came under pressure as costs climbed faster than sales.
The company attributed the profit hit to several factors. Cost of sales grew faster than revenue, mainly due to investments aimed at improving product quality. Selling and distribution expenses jumped 22.9%, driven by higher marketing and staff costs, while administrative expenses rose 39.4%, largely reflecting increased staff costs.
“The cost pressures are clearly weighing on margins, and the market is reacting to that,” the company said in its earnings release, according to CNBC.
Special dividend proposed
Mixue also proposed a special dividend of 2.65 yuan per share, subject to shareholder approval. The payout comes as the company looks to reassure investors amid the earnings decline.
Store network outpaces rivals
Despite the profit squeeze, Mixue continues to expand its physical footprint. As of the end of June, the company’s store network totaled nearly 63,987 locations globally — more stores than McDonald’s and more than four times the count of Dunkin’. The chain is known for its affordable drinks and ice cream, including its signature King Cone vanilla ice cream.
While the vast majority of its outlets are in mainland China, Mixue had 4,378 stores overseas as of end-June and has been pushing into new markets, including central Asia and the Americas.
Overseas push and beyond drinks
Looking ahead, the company said it plans to deepen its presence in Southeast Asia and expand further into central Asia and the Americas, while building a more localized supply chain to support its international growth.
Mixue is also looking beyond beverages. The company has outlined plans to turn its Snow King mascot into a global cultural brand through animated series, comics, movies, featured merchandise, and even theme parks, according to CNBC.
Source: www.cnbc.com — https://www.cnbc.com/2026/08/28/mixue-shares-extend-slide-after-profit-drop-as-drinks-chain-sees-costs-rise.html
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