Budget Tea Giant Mixue Bingcheng Smashes IPO Records and Redefines Global Beverage Dominance
How a 6 RMB Milk Tea Empire Just Shook Up the Hong Kong Stock Exchange
A Record-Breaking IPO: The Rise of Mixue Bingcheng
On March 3, Mixue Bingcheng, China’s budget-friendly tea and ice cream giant, made its debut on the Hong Kong Stock Exchange, sending shockwaves through the financial world. The company’s stock soared nearly 30% on the first trading day, closing at HKD 263.2 per share, with a total market capitalization of HKD 99.2 billion.
Beyond the impressive first-day surge, the IPO itself broke several records. Retail investors and institutions scrambled to secure shares, with an oversubscription rate exceeding 5,257 times—making it the most heavily oversubscribed IPO in Hong Kong history, surpassing Kuaishou’s previous record. The financing frenzy led to a staggering HKD 1.82 trillion in frozen capital. Leading investment firms like M&G, Sequoia China, and Boyu Capital committed $200 million as cornerstone investors, signaling strong confidence in the company's long-term prospects.
Mixue Bingcheng by the Numbers: The World’s Largest Made-to-Order Beverage Chain
The company’s dominance in the global tea market is driven by its aggressive expansion and supply chain mastery. As of December 31, 2024, Mixue Bingcheng operated 46,479 stores, making it the world’s largest made-to-order beverage chain. The company sold 90 billion cups of drinks in 2024, generating RMB 58.3 billion ($8.1 billion) in retail sales, a year-over-year increase of 21.7%.
From 2022 to 2024, Mixue Bingcheng’s retail sales jumped from RMB 30.7 billion to RMB 58.3 billion, demonstrating strong growth momentum. In the first nine months of 2024 alone, the company reported RMB 18.7 billion in revenue and RMB 3.5 billion in net profit, growing 21.2% and 42.3% YoY, respectively.
Industry Comparison: Outpacing Competitors
While the broader tea market remains competitive, Mixue Bingcheng has outperformed peers like Heytea and Naixue’s Tea, which have struggled with stagnating revenue and declining profitability:
- Heytea : Flat revenue growth and significant net losses
- Naixue’s Tea (2024 H1): Revenue declined 10%, net profit down 60%
In contrast, Mixue Bingcheng’s low-cost, high-volume strategy continues to fuel expansion, securing its position as the market leader.
Why Investors Are Betting Big on Mixue Bingcheng
1. Not Just a Tea Brand—A Supply Chain Powerhouse
Unlike most tea brands that rely heavily on franchise fees, 97.6% of Mixue Bingcheng’s revenue comes from selling raw materials and equipment to its franchisees. The company operates an end-to-end supply chain with five major production hubs across China, a 165-million-ton annual production capacity, and a logistics network capable of reaching 90% of China’s counties within 12 hours. This scale drives down costs and ensures product affordability, with signature drinks priced as low as **RMB 4 **.
2. High-Growth, Scalable Business Model
Unlike premium tea brands that focus on urban centers, Mixue Bingcheng has successfully penetrated lower-tier cities and rural markets, where demand for affordable beverages remains strong. With over 4,000 stores in Southeast Asia, Mixue Bingcheng is now the largest made-to-order tea brand in the region, commanding a 19.5% market share—far ahead of its nearest competitor.
With plans to open 12,000 additional overseas stores, Mixue Bingcheng’s international expansion is a major growth driver, particularly in markets with fragmented competition and low chain penetration.
3. The Power of Low-Cost Resilience
Economic downturns typically weaken discretionary spending, but Mixue Bingcheng’s ultra-low pricing makes it an economically resilient player. In lower-tier Chinese cities, where consumers have low debt burdens and stable purchasing power, demand remains strong. In contrast, high-end tea brands reliant on urban, debt-laden consumers have seen declining revenues.
4. Investor Optimism: A $140 Billion Market Opportunity
The global ready-made tea market is projected to exceed $140 billion by 2028, with Mixue Bingcheng well-positioned to capitalize on this trend. Analysts estimate that by 2025, the company’s earnings per share will reach 20x price-to-earnings ratio, corresponding to a market valuation of HKD 1.09 trillion ($140 billion).
What’s Next for Mixue Bingcheng?
Mixue Bingcheng plans to reinvest IPO proceeds into further strengthening its supply chain and overseas expansion. Key initiatives include:
- Expanding Henan production hub to increase capacity by 80,000 tons
- Enhancing cold-chain logistics to improve efficiency in China’s northern and western regions
- Doubling down on Southeast Asia expansion, particularly in Vietnam, Indonesia, and Malaysia
At its core, Mixue Bingcheng’s business model mirrors China’s Pinduoduo: low-cost, high-volume, supply chain dominance, and deep penetration into underserved markets. In a time where affordability is king, Mixue Bingcheng has found its perfect moment to thrive.
Mixue Bingcheng’s stunning IPO performance reflects a broader shift in consumer and investor sentiment. In an era of cautious spending, value-driven businesses with robust supply chains are outperforming premium players. With a massive addressable market, high-margin B2B supply model, and a growing international footprint, Mixue Bingcheng is positioned to become the undisputed leader of the global budget tea industry.
Will the company maintain this momentum and redefine global tea consumption? Investors seem to think so. As the stock price climbs past HKD 1,100 per share, the market is sending a clear message: Mixue Bingcheng’s journey is just beginning.