Mixue Group, a Chinese ice cream and beverage chain, experienced a significant decline in its stock price, closing down 8.37% on Thursday and continuing to fall on Friday. The company reported a profit of 2.32 billion yuan ($345.2 million) for the first half of the year, a decrease of 14.7% compared to the same period last year, despite a slight revenue increase of 2.3% to 15.22 billion yuan.
The drop in profitability is attributed to rising costs, particularly in sales and administrative expenses, which surged due to investments in product quality and increased marketing and staffing costs. Mixue's operational scale is noteworthy, with nearly 63,987 stores globally, surpassing McDonald's and Dunkin' in store count.
The company is focused on expanding its presence in Southeast Asia, central Asia, and the Americas, while also aiming to develop its Snow King mascot into a broader cultural brand. The proposed special dividend of 2.65 yuan per share is pending shareholder approval, which may provide some reassurance to investors despite the current profit decline