We are a leading freshly-made drinks company. We are committed to providing value-for-money products to consumers, including freshly-made fruit drinks, tea drinks, ice cream and coffee, typically priced around one U.S. dollar (approximately RMB6) per item. We have two major brands – freshly-made tea drinks brand Mixue and freshly-made coffee brand Lucky Cup. Through a franchise model, we have cultivated a network of over 45,000 stores spanning China and 11 overseas countries as of September 30, 2024. During the Track Record Period, we generated revenue mainly from selling store supplies (including ingredients and packaging materials) and equipment to franchisees under our franchise model. In 2023 and the nine months ended September 30, 2024, approximately 7.4 billion and 7.1 billion cups of drinks were sold through our store network, respectively. We are the largest freshly-made drinks company both in China and worldwide in terms of number of stores as of September 30, 2024, according to CIC. In terms of number of cups sold in 2023, we are China’s largest, and the world’s second largest freshly-made drinks company. In terms of GMV in 2023, we are also China’s largest, and the world’s fourth largest freshly-made drinks company, and we held a market share of approximately 11.3% and 2.2% in China and globally, respectively.
In 1997, Mr. Zhang Hongchao, our founder and chairman of the Board, set out to open a small store named Coldsnap Shaved Ice “寒流刨冰” in Zhengzhou, China. With a homemade shaved ice machine, Mr. Zhang Hongchao embarked on the entrepreneurial journey in the realm of freshly-made drinks. In 1999, the Chinese brand name “蜜雪冰城” (Mi Xue Bing Cheng) was officially introduced – a name that signifies sweetness and refreshing coolness.
Through over 20 years of dedication, we have progressively grown Mixue to become a household brand. To humanize our brand and elevate it to new heights, we introduced Snow King “雪王”, Mixue’s iconic IP and lifelong brand ambassador in 2018, with a vibrant matrix of audio and video content. Today, Snow King stands out as a cultural symbol that extends beyond the realm of drinks. See “Business — Our Brands and Products” for details.
We have built a comprehensive end-to-end supply chain at the largest scale in China’s freshly-made drinks industry, encompassing essential aspects covering procurement, production, logistics, R&D and quality control. Utilizing our strong supply chain, we endeavor to maximize “value for money” for our products, as demonstrated by their competitive pricing range. We also maintain product quality across our entire supply chain. See “Business — Our Supply Chain” for details. With this expansive and highly efficient supply chain, we have also expanded our business presence across geographies and product categories.
Our founders and management team have always adhered to the long-term perspective, carrying a strong sense of social responsibility and implementing sustainable development strategies. With Mr. Zhang Hongchao as chairman and Mr. Zhang Hongfu as vice chairman of our dedicated ESG Committee, we are committed to being a socially and environmentally responsible company, creating job opportunities, empowering farmers, promoting green development and advocating for social welfare. As of the Latest Practicable Date, approximately 35% of our franchisees, and 69% of store employees were female. In 2023, our efforts in green packaging upgrades led to a substantial reduction in the consumption of PE plastics by over 12,700 tons. We have also entered into a long-term industry-academia-research partnership with Jiangnan University and provided support to Westlake University in advancing R&D on biodegradable plastics.
In 2021, 2022, 2023 and the nine months ended September 30, 2024, GMV generated through our store network amounted to approximately RMB22.8 billion, RMB30.7 billion, RMB47.8 billion and RMB44.9 billion, respectively. We achieved strong financial performance throughout the Track Record Period, with robust growth, high profitability and ample cash flows on top of a large scale. In 2022, 2023 and the nine months ended September 30, 2024, we recorded revenue of RMB13.6 billion, RMB20.3 billion and RMB18.7 billion, respectively, representing year-over-year growth of 31.2%, 49.6% and 21.2%. Our net profit amounted to RMB2.0 billion, RMB3.2 billion and RMB3.5 billion in 2022, 2023 and the nine months ended September 30, 2024, respectively, growing by 5.3%, 58.3% and 42.3% year-over-year. We have consistently generated net cash flows from operating activities, which totaled RMB1.7 billion, RMB2.4 billion, RMB3.8 billion and RMB5.1 billion in 2021, 2022, 2023 and the nine months ended September 30, 2024, respectively. We are also facing increasingly intense competition within China’s freshly-made drinks industry. With the growing number of freshly-made drinks brands and shops in China, our strategy to expand our store network may lead to competition both among our existing stores and against our competitors. It is possible that our competitors might have already taken up the desired locations for our new stores and our measures to minimize the risk of cannibalization within our network and competition against competitors might have limitations. For details, see “— Competition” and “Industry Overview”.
Source: MIXUE Group (02097) Prospectus (IPO Date : 2025/02/21) |