The actions of Mixue Group, the largest bubble tea chain in China controlled by multimillionaire brothers Zhang Hongchao and Hongfu, rose 43.2% in their long -awaited debut in the Hong Kong stock market on Monday, with a market capitalization of $ 14.1 billion.
The company, better known for selling newly made drinks for approximately 1 dollar, closed its first negotiation day at 290 dollars from Hong Kong, above the price of $ 202.5 of Hong Kong per share. The company raised 3,450 million dollars from Hong Kong (444 million dollars) in the IPO, which attracted a series of key investors, including Chinese investment firms Hongshan and Boyu Capital, as well as existing sponsors Hillhouse and the long-z fund, backed by Meituan. Mixue said he will use income mainly to expand his supply chain and increase the production capacity of food ingredients and store equipment.
The two brothers, Hongchao, president of Mixue, 48, and Hongfu, their executive director, 40, are the largest shareholders of the company, each with a participation close to 41%. After the IPO, they now have an estimated value of 5.8 billion dollars each. The brothers joined the ranks of billionaires forbes In January 2024, when Mixue presented for the first time an initial public offer in Hong Kong. That request expired in a warm market, and Mixue submitted a new application last month.
Although the brothers were not on stage during the initial public offering ceremony on Monday morning, Mixue sent their pet to mark the official start of the operations. The King of the Snow, dressed in a crown and a red cape, took the stage to play a ceremonial gong and then dance when the company’s main song began to sound, “I love you, You love me, Mixue Ice Cream & Tea.”
Mixue has its origins in a small position that sold delicious ice delicates in the city of Zhengzhou, in the center of China, which Hongchao founded in 1997. At that time, Hongchao allegedly requested 3,000 yuan (414 dollars) to his grandmother to open Coldsnap Shaved Ice, the predecessor of Mixue, and served the desserts to the clients with the clients with the clients with the clients. homemade ice scratch.
Two years later, Hongchao opened another scraping position called Mixue Bingcheng, which means “Sweet Snow Palace.” His first success was in 2005, when Mixue launched a soft ice cream, which became a great success thanks to its competitive prices. Hongchao continued to expand the menu, adding items such as lemonade, coffee and bubble tea. Mixue offers, which cost between three cents and approximately one dollar, are the cheapest among the main Chinese bubble tea chains from 2023, according to their prospect. The nickname of “Pinduoduo de Bubujas Tea” has been won, in honor of the Popular Chinese Electronic Commerce Platform of multimillionaire Colin Huang.
Hongfu joined Mixue in 2007 and developed what later became the successful company franchise model. Mixue has more than 40,000 stores in China and almost 4,800 stores in 11 countries, mainly Asians, and more than 99% of them are franchises. The company sold 7.4 billion glasses in 2023, which makes it the largest newly made drink company in China and the second largest in the world after Starbucks, he said in his prospect, citing China Insights Industry Consultancy.
In the first nine months of 2024, Mixue’s revenues increased by 21% year -on -year to 18.7 billion yuan (2.6 billion dollars). The company generated almost 98% of its income with the sale of goods and equipment, such as food ingredients and machines for ice cream, franchisees, and the rest came from franchise rates. During the same period, the net profit increased 42% to 3.5 billion yuan. The company attributed growth to its extended store network. He also cited the improvement of the efficiency of his supply chain, which, he said, is the largest in China in the newly made drinks industry and covers everything, from acquisition and production to quality control.
However, the average sales of cups per Mixue store fell 4% year -on -year to almost 171,000 in the nine months of 2024. The company said that the decrease was due to a slowdown in the industry and the intensification of the competition. China has around 660,000 newly made drink stores, according to the prospect, and some vendors were willing to reduce prices to attract tacaños consumers. To maintain his advantage, Mixue said he will continue with his expansion abroad and create more content with his well -known pet.
Hongchao and Hongfu join a growing legion of Chinese entrepreneurs who have made their fortune selling bubble tea, a sweet drink full of chewable tapioca ball Bubbles became public in an IPO of Hong Kong of 233 million dollars.
However, investors have become cautious about the intensification of competition in the sector. Wang Xiaokun, founder and president of Sichuan Baicha Baidao Industrial, which operates the Cha Panda chain, left the list of billionaires after the company’s shares fell 18% from its debut in the Hong Kong market last April. Meanwhile, Peng Xin and Zhao Lin, the marriage that is behind Nayuki Holdings, lost their status as billionaires when the price of the company’s shares collapsed 90% from its price in Hong Kong in 2021.
This article was originally published by Forbes Us.
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