Mixue Closes 89 Overseas Stores as First-Half Profit Drops 15%

Mixue cut its overseas footprint by 89 stores in the first half of 2026, driven by closures across core Southeast Asian markets Vietnam and Indonesia.

Net profit fell 15 percent year on year to 2.32 billion yuan, even as total revenue edged up 2.3 percent to 15.2 billion yuan ($2.26 billion). Group filings show higher selling and distribution expenses ate directly into margins across its franchise network.

Rising Distribution Costs Squeeze Margins

The Henan-headquartered drinks giant operated 63,987 outlets globally by June 30, with 59,609 locations in mainland China. That leaves roughly 4,378 international stores, concentrated heavily in Southeast Asia where the brand sells budget soft-serve ice cream and milk tea.

Mixue did not publish country-level closure totals for Vietnam or Indonesia. The company stated in its interim report that reducing store density improved individual unit quality and created a cleaner base for sustainable operations.

Franchisee economics have tightened across the region. Rapid street-level expansion in major cities sparked cannibalisation between neighbouring outlets, forcing operators to absorb higher logistics costs on imported syrups and packaging without room to raise retail prices.

Rebalancing Southeast Asian Footprints

Vietnam was Mixue’s first international market when the chain launched in Hanoi in 2018. By September 2024, the brand ran 1,304 stores across the country, according to its Hong Kong listing prospectus filed in early 2025.

Mass-market tea and coffee chains in Southeast Asia now face heavier competition from local discounters and Chinese rivals copying the low-price franchise playbook. Mixue’s retreat from sheer store count growth signals that overseas networks cannot rely solely on relentless opening schedules to deliver profit.

Investors now await Mixue’s updated capital-raising timeline in Hong Kong, where full-year store productivity figures will test whether the overseas pruning protected operating cash flow.