Business & Finance
Mixue Group shares decline following first-half profit drop and rising expenses
The Chinese beverage chain reported a 14.7% decrease in net profit despite revenue growth and plans for international expansion.
The short version
- Mixue Group shares fell more than 7% in Hong Kong following an 8.37% drop after the company reported a 14.7% decline in first-half profit.
- Higher marketing and staff costs contributed to a 22.9% rise in selling and distribution expenses and a 39.4% jump in administrative expenses.
- Despite margin pressure, revenue rose 2.3% and the company proposed a special dividend of 2.65 yuan per share, pending shareholder approval.
- Mixue is pursuing overseas expansion into central Asia and the Americas while localizing its supply chain.
Key facts
- Mixue Group reported a first-half profit of 2.32 billion yuan ($345.2 million), down 14.7% year-on-year for the six months ending in June.[CNBC]
- First-half revenue increased 2.3% year-on-year to 15.22 billion yuan.[CNBC]
- Selling and distribution expenses grew by 22.9%, while administrative expenses increased by 39.4%, primarily due to higher marketing and staff costs.[CNBC]
- The company's shares dropped over 7% on Friday, following an 8.37% decrease on Thursday in Hong Kong trading.[CNBC]
- Mixue proposed a special dividend of 2.65 yuan per share, subject to shareholder approval.[CNBC]
- Mixue operated 63,987 stores globally as of the end of June, including 4,378 locations outside mainland China.[CNBC]
What remains uncertain
- The proposed special dividend of 2.65 yuan per share remains pending approval by shareholders.[CNBC]