China's freshly-made drinks chain Mixue (2097) saw its shares once dive over 12 percent on Thursday after posting a nearly 15 percent decline in interim net profit, partly dragged down by higher costs.
The company's net profit dropped 14.7 percent year-on-year to 2.3 billion yuan (HK$2.68 billion) for the first six months of 2026, while it declared a special dividend of 2.62 yuan per share.
Revenue inched up 2.3 percent to 15.52 billion yuan, primarily driven by higher income from sales of goods and equipment, followed by increased revenue generated from franchise and related services.
Revenue from sales of goods and equipment was up 2.1 percent to 15.8 billion yuan, while that of franchise and related services climbed 10 percent to 418.2 million yuan.
Its cost of sales rose 4.1 percent to 10.59 billion yuan. The company said the increase in cost slightly outpaced revenue growth, mostly due to its strategic investments to further enhance product quality in line with the focus on real ingredients, fresh taste, and simple recipes.
Selling and distribution expenses also jumped by 22.9 percent to 1.12 billion yuan, driven by the increase in marketing expenses and staff costs arising from brand IP development initiatives and enhanced support for high-quality store operations.
As of June 30, the company had built a network of 63,987 stores across 17 countries, up 20.7 percent. Among them, the number of stores in mainland China increased by 23.5 percent to 59,609.
