Mixue shares extend slide after profit drop as ice cream-and-tea chain sees costs rise

Pedestrians pass a MIXUE Ice Cream & Tea store in Yantai, China, on April 1, 2025. (Photo by Costfoto/NurPhoto via Getty Images)Nurphoto | Nurphoto | Getty ImagesShares of Chinese ice cream and beverages chain Mixue Group fell more than 7% in Hong Kong on Friday, extending losses to a second straight session after the company reported a decline in first-half profit.The stock closed 8.37% lower on Thursday, when Mixue reported that profit for the period fell 14.7% year on year to 2.32 billion yuan ($345.2 million) for the six months ended June. Revenue rose 2.3% to 15.22 billion yuan. The company also proposed a special dividend of 2.65 yuan per share, subject to shareholder approval.Mixue's profitability came under pressure from rising costs and expenses. Cost of sales grew faster than revenue, primarily due to investments aimed at improving product quality, while selling and distribution expenses jumped 22.9% on higher marketing and staff costs, the company said. Administrative expenses also rose 39.4%, mainly due to higher staff costs. Mixue Group now has more stores globally than McDonald's and more than four times Dunkin's, with its store network totaling nearly 63,987 as o...