Mixue Shares Drop Over 7% After 14.7% Profit Fall to 2.32 Billion Yuan
Updated
Updated · CNBC · Aug 28
Mixue Shares Drop Over 7% After 14.7% Profit Fall to 2.32 Billion Yuan
3 articles · Updated · CNBC · Aug 28
Summary
More than 7% of Mixue Group’s market value was wiped out in Hong Kong on Friday, extending a second day of losses after the chain reported weaker first-half earnings.
Profit fell 14.7% year on year to 2.32 billion yuan even as revenue rose 2.3% to 15.22 billion yuan, with cost of sales outpacing growth and selling, distribution and administrative expenses climbing sharply.
Selling and distribution expenses jumped 22.9% on higher marketing and staff costs, while administrative expenses rose 39.4%; the company also proposed a special dividend of 2.65 yuan a share.
Mixue had nearly 63,987 stores worldwide by end-June, including 4,378 overseas, and said it will deepen expansion in Southeast Asia, central Asia and the Americas while localizing supply chains.