Last month, MIXUE Ice Cream & Tea received the notification letter for overseas listing from the China Securities Regulatory Commission, and the Hong Kong Stock Exchange subsequently opened its doors to this ready-to-drink tea giant. On February 14, MIXUE Ice Cream & Tea successfully passed the Hong Kong Stock Exchange hearing and is expected to soon list on the main board, becoming the fourth publicly listed tea company after Nayuki (02150.HK), Cha Bai Dao (02555.HK), and Gu Ming (01364.HK). It is noteworthy that the three listed companies experienced a drop in share prices on their first day of trading, reflecting a lack of confidence in the industry. As a significant player in the sector, whether MIXUE Ice Cream & Tea can break the "listing and falling" curse has drawn attention.

Established in 1997, MIXUE Ice Cream & Tea specializes in ready-to-drink fruit beverages, tea, ice cream, and coffee, targeting mass consumers. The company has focused on lower-tier markets, with an average product price of around 6 RMB, earning it the title of "price killer" in the industry. With low franchise fees and strong brand influence, MIXUE Ice Cream & Tea has shown robust growth. As of September 30, 2024, the franchise network had exceeded 45,000 stores, covering China and 11 overseas countries. In the first three quarters of 2024, the number of cups sold reached 7.1 billion, leading the industry. Through continuous expansion, MIXUE Ice Cream & Tea has become the world's largest ready-to-drink beverage company. However, as the market becomes saturated and competition intensifies, MIXUE Ice Cream & Tea is facing an increasing number of store closures. Data shows that in the first three quarters of 2024, 584 franchise stores requested closure, while 714 closed independently, totaling nearly 1,300 closures—close to the total for 2023. Nevertheless, the number of newly opened franchise stores still exceeded 9,000.

The company's primary revenue comes from selling ingredients and packaging materials to franchisees, with over 90% of its income relying on this segment. However, conflicts between MIXUE Ice Cream & Tea and its franchisees have gradually emerged. The company pursues sales growth, while franchisees are under pressure regarding profitability. In December of last year, MIXUE Ice Cream & Tea implemented a price increase of 1 RMB in some cities to relieve cost pressures and reconcile conflicts of interest with franchisees.

Overall, MIXUE Ice Cream & Tea occupies a significant position in the ready-to-drink tea industry due to its low-price strategy and extensive franchise network. However, it faces challenges such as strained relationships with franchisees and an increase in store closures. Whether the upcoming Hong Kong listing will allow MIXUE Ice Cream & Tea to break the "listing and falling" curse remains to be seen. In the future, balancing franchisee interests while maintaining its low-price advantage and exploring new growth points will be key to its continued development.

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（Source: uSMART HK）