Mixue Bingcheng Posts 2.7 Billion Yuan H1 Profit, Showcasing China’s Low‑Cost Franchise Surge
Mixue Bingcheng, the Chinese tea‑and‑ice‑cream chain that has become a staple on the streets of small cities and county towns, announced that it pulled in a net profit of 2.7 billion yuan in the first half of the year. The figures, posted on the company’s Weibo account, show revenue climbing to 14.87 billion yuan — a 39.3 percent jump from the previous year — and net earnings swelling by 44.1 percent to 2.718 billion yuan.
2 September 2025
Those numbers are extraordinary in a market where most rivals compete on the basis of premium branding and higher price tags. Mixue’s success shines a spotlight on a business model that leans heavily on volume, affordability and a sprawling franchise network rather than on high‑margin direct sales.
The story began in 1997 when brothers Zhang Hongchao and Zhang Hongfu, now celebrated as the richest businessmen in Henan province, launched the brand with a simple promise: low‑cost, high‑quality beverages for the “everyman.” Their strategy has never been about lofty café atmospheres or luxury ingredients. Instead, it hinges on a relentless focus on the “strivers” — the franchisees, shop managers and suppliers who together push a flood of inexpensive drinks into the far‑reaching corners of China’s consumer landscape.
Central to that push is the “Snow King” (Xuewang) character, a whimsical, animated mascot that has come to personify the chain’s youthful, budget‑friendly image. Though entirely virtual, Snow King has been a magnet for social media buzz, turning a simple logo into a cultural touchstone that makes the brand instantly recognisable in a crowded market.
The profit numbers are not merely an accounting triumph; they are evidence that Mixue’s low‑price, high‑volume formula works on a massive scale. By supplying franchisees with ingredients, equipment and brand support, the company sidesteps the costs associated with running each outlet directly. This franchise‑‑first approach lets tiny, independently owned shops pop up in towns that larger, more upscale competitors might overlook. By the end of the first half of 2025, Mixue had opened close to 10,000 new stores, most of them in third‑ and fourth‑tier cities, creating thousands of jobs for shop staff, managers and supply‑chain workers.
The impact of Mixue’s performance ripples through three broad spheres.
In the tea‑drink industry, the surge has intensified the “involution” that analysts describe as fierce, often unsustainable competition. Rivals are scrambling to copy the low‑price, franchise‑driven playbook or to differentiate themselves by moving upmarket, leading to a bifurcation where some brands chase boutique, premium positioning while others double‑down on the high‑volume, low‑margin lane that Mixue has mastered. The lesson is clear: scale and supply‑chain efficiency now matter more than inventive flavors alone, prompting fresh investment in logistics, bulk‑procurement and data‑driven store expansion.
On the societal front, Mixue’s growth underscores the untapped purchasing power of China’s mass market. As economic growth slows and disposable incomes plateau, consumers in smaller cities are increasingly price‑sensitive, favouring value over novelty. The chain’s affordable drinks meet that demand while also offering a stepping‑stone for grassroots entrepreneurship — the low barrier to entry for franchise owners has sparked a wave of small‑business creation, albeit one that carries its own risks of over‑saturation and uneven quality control.
The political dimension dovetails neatly with Beijing’s “dual‑circulation” strategy, which prioritises internal consumption and the expansion of domestic demand. Mixue feeds that agenda by turning local spending into a self‑reinforcing engine: more outlets create jobs, more jobs sustain incomes, and the resulting purchasing activity fuels the broader economy. In a policy environment that still emphasises the “six stabilities” and “six guarantees” — steady growth, employment, and social stability among them — the company’s steady hire‑rate and its focus on home‑grown supply chains align with official objectives. The visibility of Mixue’s model may also prompt tighter scrutiny of franchise governance, food‑safety standards and tax compliance, potentially ushering in a new wave of regulation as the state seeks to balance rapid expansion with consumer protection.
Overall, Mixue Bingcheng’s half‑year net profit of 2.7 billion yuan is more than a corporate win. It is a barometer of shifting consumer preferences, a case study in how a low‑cost, franchise‑centric model can dominate a sprawling market, and a illustration of how private enterprise can reinforce — and be shaped by — the broader economic and policy currents in contemporary China.
