Bubbles Tea of giant IPO -A that is powered by skill in procurement, production, prices: analysts

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Mixe Group, the largest Chinese chain of fresh drinks, has Launched the most interesting initial public offer in Hong Kong (IPO) about the strength of his supply chain – and his ultra -price prices.

Hong Kong debut retail part of the company has attracted more than 1.6 trillion HK ($ 205.9 billion) on Wednesday, according to a person familiar with the person. As for margin loans, retail investors borrowed nearly 1.8 trillion HK from brokerage for subscription.

In this metric, Mixie surpassed the record set up by Ant Group Scruttled IPO in 2020 and Kuaishou technologyStock sales 2021, which both brought about 1.3 trillion HK in loans.

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Stock trading Mixue begins on Monday.

As the competition heats up in the continental Chinese industry of tea for bubbles, investors’ confidence is rooted in the company supply chain.

According to a recent prospectus, Mixe generates most of its revenue by selling ingredients – milk, coffee and syrup – as well as equipment in its global network of over 45,000 franchises. The model launches a “comprehensive end chain of supply” that includes procurement, production, logistics, research and development and quality control.

The person passes the mixture into the Mong Koku. Photo: Reuters Alt = Person passes a mixture in Mong Koku. Photo: Reuters>

“How market capacity can be uncertain in [fresh-drinks] The industry, the fact that Mixue can sell raw materials to their own franchises and a clear understanding of their request gives him a lot of agency compared to others, “said Kenny NG Lai-Yin, a strategist at Everbright Securities International.

Mixue’s procurement network covers 38 countries on six continents, which gives it access to raw materials. And the huge scale of his shopping means greater negotiating power. For example, a company based in Zhengzhou purchased 2023. 115,000 tons of lemon, making it the largest buyer in the country. The cost of procurement was about 20 percent lower than that of the industry peers, according to a prospectus.

In addition, Mixue has five production drives that cover 0.79 million square meters with the possibility of throwing around 1.65 million tonnes of ingredients and raw materials a year. His 27 warehouses – cover 31 provinces, autonomous regions and municipalities – they also give him an advantage in the acquisition in smaller markets, where there are more than half of Mixue stores, Prospect said.

All these factors allow the combination to offer their products at lower prices than competition, attracting consumers who are aware of the costs.

According to the business prospectus, many of its products cost $ 6 Yuan ($ 0.83) or less, with lemon water with a signature at a price of 4 yuan and fresh ice cream starting at 2 Juan.

While most Chains of tea with bubbles with land,, including gum – who made his debut in Hong Kong earlier this month- competed in the range of 10 to 20 Juan, Mixue had a 60 percent market share in the 10-year-old segment, which gave the company “absolute dominance,” said Richard Lin, a consumer’s main analyst at SPDB International, an investment bank.

As long as the demand in this price range remained stable, the company could continue to spread and acquire a market share, Lin said, especially in the lower lower regions where there is more room for growth. But he said that the spread of mixua had a ceiling: 70,000 locations across the country will be the upper limit.

The company’s low price strategy has paid off. For the first nine months of 2024, the profit of Mixue increased 45.2 percent compared to 3.5 billion Juan a year earlier, while the revenue increased 21.2 percent to 18.7 billion Juan. He sold a whopping 7.1 billion drinks during this period, his prospectus said.

With more than 45,000 stores in continental China and 11 overseas markets in Southeast Asia, Australia, Japan and South Korea, Mixe was the largest freshly made drinking company at September.

The founder and chairman Zhang Hongchao started his job in 1997 with a home -shaved LED machine. After officially rebranding in 1999 as “Mi Xue Bing Cheng”, the company started building its supply chain and became the first fresh drink for a drink to establish centralized factories in 2012. In 2014, she set her own logistics system.

Mixe’s first overseas location was opened at Hanoj in Vietnam in 2018. In the same year, she introduced her iconic Snow King mascot, which quickly gained popularity among young consumers via memory on social networks and Jingles.

This article originally appeared in South Chinese Morning Post (SCMP)The most attraction of the voice reporting about China and Asia for more than a century. For more SCMP stories, explore SCMP app or visit the SCMP -Ove Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.

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