MIXUE's Strategic Choice: A Faster Push for Lucky Cup, a Slower Pace for Overseas Growth.

Mixue Group’s 2025 Mid-Year Report: Strong Growth and Strategic Shifts

Yesterday, Mixue Group released its financial results for the first half of 2025. The company showed impressive growth in its key numbers.

Key Highlights:

• Revenue: 14.87 billion RMB, an increase of 39.3% from last year.
• Net Profit: 2.72 billion RMB, an increase of 44.1% from last year.
• Global Stores: Total store count reached 53,014 worldwide. This includes 9,796 new stores opened in the first half of 2025 alone.
• Domestic Growth: Growth in mainland China was very strong, especially in smaller, lower-tier cities. These smaller cities accounted for nearly 60% of all new stores.

Even though the cost of raw materials like coffee beans and lemons increased, Mixue’s overall gross margin was stable at 31.6%. The company’s CFO, Zhang Yuan, explained that this was due to lower sugar and milk ingredient prices and a more efficient supply chain. He added that Mixue aims to keep its long-term gross margin at around 30%.

While the core business in China is growing steadily, investors are watching two key areas: the coffee brand Lucky Cup and the company's overseas expansion. Here’s the latest on both.

1. The Rapid Rise of Lucky Cup

Lucky Cup was one of Mixue Group's busiest brands this year.

• Explosive Growth: Lucky Cup's store count grew from around 4,000 at the end of 2024 to over 7,000 by July 2025. The company's goal is to reach 10,000 stores this year. If they succeed, it would be a 150% increase in a single year.
• Entering Big Cities: The brand now focuses on opening stores in major city areas like the Yangtze River Delta and Pearl River Delta. A source close to the company confirmed that its smaller, take-out-focused stores in big cities are profitable, with a payback period of less than one year.

Lucky Cup's Secret Weapon: The Mixue Supply Chain

Behind Lucky Cup is the enormous power of Mixue's 53,000-store network. At a press conference, Lucky Cup's CEO, Pan Guofei, explained that the Group buys coffee beans in huge quantities for both brands.

This gives Lucky Cup a huge cost advantage. It buys its high-quality coffee beans for around 69.5 RMB per kg, while other brands in the industry pay between 90 and 120 RMB per kg.

This allows Lucky Cup to sell coffee cheaply while still making a good profit. For example, its popular 5.9 RMB Americano has a gross margin of over 50%.

A smart strategy: Lucky Cup now focuses on a "fruit coffee" series. This product line uses the same frozen fruit pulps from Mixue’s supply chain, playing to the company's biggest strength.

2. A Smarter Global Strategy, Not a Slower One

The report also showed that Mixue’s overseas store growth has slowed down. In the first half of 2025, the number of overseas stores slightly decreased.

Company executives explained this was a planned decision. They are focusing on improving the quality of existing stores in Indonesia and Vietnam, their two largest overseas markets.

"When we first entered these countries, our operating system wasn't perfect," said Cain Caimiao, Mixue’s Chief Supply Officer. "Now, we are focusing on running stores better."

The strategy is working. After relocating and upgrading stores in these markets, the average daily sales have increased by over 50%.

While it refines its operations in Southeast Asia, Mixue is still expanding globally:

• New Markets: Mixue opened its first store in Kazakhstan this year and plans to open its first in Brazil soon.
• Lucky Cup Goes Global: Lucky Cup opened its first international store in Malaysia.
• New Supply Hub: A new Hainan, China factory has started operation. It will supply products directly to the Southeast Asian market.

Although store numbers fluctuated, Mixue remains the most successful Chinese tea brand_ on the global stage. Its focus is now on building a strong, sustainable international business for the long term.