Mixue reports 33% jump in profit amid bruising China price war

Published Tue, Mar 24, 2026 · 01:47 PM

MIXUE Group reported more than 30 per cent jump in revenue and profit, in line with analysts estimates, a sign the Chinese beverage chain known for its one-dollar lemonade and milk teas has managed to stick through the bruising consumer price war in 2025.

Revenue grew by 35 per cent to 33.6 billion yuan (S$6.2 billion) in 2025, slightly higher than the average analyst estimate of 32.94 billion yuan. Net profit grew 33 per cent, compared with a consensus of 31 per cent.

China’s largest bubble-tea chain, which went public in Hong Kong last March, has seen shares plunge about 50 per cent since last June as the price war raging between Chinese food delivery platforms, restaurants and tea chains makes investors worry about profitability. Mixue started aggressive online promotional campaigns in 2025 to lure consumers by offering milk teas for as little as two yuan per drink.

UBS in January downgraded Mixue to neutral from buy and cut its price target, citing near-term negative catalysts including higher raw material costs, a higher delivery mix and intensifying competition. The company’s 2026 gross profit margin is expected to compress from last year’s level, analysts, including Christine Peng, wrote.

The sector’s price war has shown signs of cooling down in recent months, as major restaurant and beverage chains raise prices on food delivery platforms. China’s top antitrust body also launched an investigation into competition practices in the online food delivery sector in January, responding to concerns that giants such as Alibaba Group, Meituan and JD.com were pouring billions into subsidies to gain market share.

Mixue has been the world’s largest food & beverage chain by store count, with a total of 55,356 stores in China and about 4,500 overseas countries as at end-2025. It’s eyeing a more ambitious global expansion, opening stores in Los Angeles and New York City in the US.

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Players in the Chinese dining sector, from low-priced coffee chains to premium restaurants, have reported weak financial results in the past year. Luckin Coffee, the country’s biggest coffee chain, posted weaker-than-expected net revenue last quarter and its operating margin dropped as delivery expenses almost doubled.

Dine-in restaurants such as hot pot chain Haidilao International and Sichuan sauerkraut fish specialist Tai Er reported same-store sales declines ranging from the single digits to 20 per cent in the first half of 2025. Premium Shanghainese dining chain operator Shanghai XNG abruptly shut all its outlets in the Chinese financial hub earlier this year as price competition and a broader consumer pullback took their toll. BLOOMBERG