Chinese ready-to-drink beverage company Mixue is seeking to conduct an IPO in Hong Kong to expand its production, according to Chinese media outlet Cailian. This is the second time that the beverage company, headquartered in central China’s Henan Province, has planned to list in Hong Kong.
Why it matters: Mixue’s second attempt to list on the Hong Kong stock exchange reflects its ongoing efforts to expand its production capacity and strengthen its presence in the competitive global beverage market. A successful IPO could provide the necessary capital to accelerate its growth and enhance its brand recognition.
Details: Mixue Group primarily sells freshly made fruit drinks, tea beverages, and ice cream in China and abroad. It owns the ready-made tea beverage brand Mixue Bingcheng and the freshly ground coffee brand Lucky Coffee. Priced between RMB 2-8 ($0.27-$1.10), its core products are significantly cheaper than those of other leading freshly made tea beverage brands, making the company a popular choice among budget-conscious consumers and strengthening its competitive edge in a crowded market.
- Mixue has consistently followed a cost-effective strategy, rapidly growing into a leading brand in the new tea beverage industry in China. Its stores are spread across cities of all sizes, including small towns and counties.
- According to Mixue’s prospectus, as of September 30, 2024, the company operated more than 45,000 stores across China and 11 other countries. It also disclosed beverage sales figures: in 2023 and the first nine months of 2024, its store network recorded sales of approximately 7.4 billion and 7.1 billion cups of beverages, respectively.
- In September 2018, Mixue Bingcheng opened its first overseas store in Hanoi, Vietnam. Since then, the company’s expansion has extended from Vietnam to other Southeast Asian countries including Singapore and Indonesia, and later to markets such as South Korea, Japan, and Australia. To date, the brand’s total number of overseas stores exceeds 1,000.
- Compared to the prospectus submitted in January 2024, Mixue has seen noticeable growth in the number of stores, beverage sales volume, and terminal retail sales.
Context: The Chinese beverage industry experienced a surge in attempts to enter the capital market at the beginning of last year. On January 2, 2024, Mixue and rival GoodMe submitted their prospectuses on the same day. However, neither company went public as planned. In September 2022, Mixue announced plans to list on the main board of the Shenzhen Stock Exchange, with a goal of raising RMB 6.496 billion ($0.89 billion). However, since then, there have been no further updates on the status of the offering. In January 2024, the company revealed its prospectus for a potential Hong Kong listing, but, like its previous attempt, no significant progress was announced until this week, when news of its renewed attempt for a Hong Kong IPO broke.
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