關於本報告 About the Report 走進蜜雪冰城 Mixue Group Introduction ESG管理 ESG Management 合規經營 遵守商業道德 Operation Compliance and Business Ethics 高質平價 保障產品質量 Value-for-money, Ensuring Product Quality 價值共生 提升夥伴福祉 41 Creating Shared Value & Enhancing Partner Well-being 公益向善 積極回饋社會 70 Giving Back to Society 綠色行動 加強環境保護 Green Initiatives, Strengthening Environmental Protection 目錄 Table of Contents 附錄：香港聯交所指標索引 Appendix: Hong Kong Stock Exchange ESG Reporting Guide Index 01 03 07 15 22 79 99 關於本報告 ABOUT THE REPORT 本報告是蜜雪冰城股份有限公司 ...

Financial Performance - Revenue for the year ended December 31, 2023, reached RMB 20,302,465, representing a 49.9% increase from RMB 13,575,577 in 2022[13] - Gross profit for 2023 was RMB 5,998,967, up 55.8% from RMB 3,846,837 in 2022[13] - Profit for the year increased to RMB 3,186,605 in 2023, a 58.2% rise compared to RMB 2,013,091 in 2022[13] - Basic earnings per share for 2023 were RMB 8.71, reflecting a 56.5% increase from RMB 5.55 in 2022[13] - The Group recorded a revenue of RMB24,828.9 million in 2024, representing an increase of 22.3% compared to RMB20,302.5 million in 2023[68] - Revenue from sales of goods and equipment increased by 21.7% from RMB19,896.8 million in 2023 to RMB24,208.8 million in 2024[69] - Revenue from franchise and related services increased by 52.8% from RMB405.7 million in 2023 to RMB620.1 million in 2024, primarily driven by the expansion of the store network[69] - The gross profit of the Group was RMB8,060.2 million in 2024, an increase of 34.4% from RMB5,999.0 million in 2023[71] - Profit for the year increased by 39.8% from RMB3,186.6 million in 2023 to RMB4,454.2 million in 2024[90] Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 14,593,566, a 46.7% increase from RMB 9,945,356 in 2022[15] - Total liabilities increased to RMB 3,998,101 in 2023, up 62.2% from RMB 2,466,089 in 2022[15] - Cash and cash equivalents, time deposits, and restricted cash increased by 63.8% to RMB11,109.5 million as of December 31, 2024, compared to RMB6,783.6 million as of December 31, 2023[91] - The gearing ratio improved to 23.9% as of December 31, 2024, down from 27.4% as of December 31, 2023[103] - The Group had no significant investments or acquisitions during the year ended December 31, 2024[100] Store Network and Expansion - The company operates over 46,000 stores as of December 31, 2024, expanding its presence in China and 11 overseas countries[17] - As of December 31, 2024, the total number of stores reached 46,479, an increase from 37,565 in 2023, representing a growth of approximately 23.5%[29] - The number of franchised stores increased from 37,516 as of December 31, 2023 to 46,462 as of December 31, 2024, with closures of 1,609 stores in 2024[36] - The number of franchisees rose from 16,784 as of December 31, 2023 to 20,976 as of December 31, 2024, indicating a growth of about 25.5%[39] - The store network includes approximately 4,900 stores outside mainland China as of December 31, 2024, contributing to international expansion[27] Product Offerings - The company has two major brands: Mixue for freshly-made tea drinks and Lucky Cup for freshly-made coffee[20] - The average price of products offered by the company is approximately RMB 6 (around USD 1)[17] - The company’s core Mixue products are priced between RMB2 to RMB8, while Lucky Cup products range from RMB5 to RMB10, catering to diverse consumer preferences[22] - The company has introduced signature products such as Fresh Ice Cream and Freshly-Squeezed Lemonade, enhancing its product portfolio[118] Supply Chain and Operations - The company operates a highly digitalized end-to-end supply chain, with core ingredients being 100% self-produced[40] - The company established a strategic partnership with Junlebao to jointly build the Snow King Dairy Farm, expected to enhance supply chain capabilities and product quality by securing priority access to high-quality fresh milk[42] - As of December 31, 2024, the company's logistics system includes 27 warehouses in mainland China and a localized warehouse system in four overseas countries, covering over 300 cities[44] - The company has built a comprehensive digital infrastructure that supports key business aspects, including online ordering and supply chain management, contributing to operational efficiency[53] - The company maintains robust quality control standards to ensure consistent high-quality outputs throughout its supply chain[45] Financial Management and Expenses - Selling and distribution expenses increased by 21.3% from RMB1,318.6 million in 2023 to RMB1,599.5 million in 2024, accounting for 6.4% of total revenue[75] - Administrative expenses rose by 23.7% from RMB610.6 million in 2023 to RMB755.1 million in 2024, maintaining a ratio of 3.0% of total revenue[76] - Research and development expenses increased by 23.4% from RMB85.0 million in 2023 to RMB104.9 million in 2024, accounting for 0.4% of total revenue[82] - Finance costs decreased by 56.5% from RMB14.7 million in 2023 to RMB6.4 million in 2024, primarily due to repayment of bank borrowings[83] - Income tax expense rose from RMB967.4 million in 2023 to RMB1,356.4 million in 2024, primarily due to increased profit before tax[89] Corporate Governance and Leadership - Mr. Zhang Hongchao has over 28 years of experience in the freshly-made drinks industry, leading the company from a small store to a leading brand "蜜雪冰城" (Mi Xue Bing Cheng) with significant milestones achieved[118] - The management team is focused on enhancing brand building, store operations, marketing, and product management capabilities[124] - The leadership team includes experienced professionals with backgrounds in law and corporate governance, enhancing the company's strategic direction[135] - Ms. Cui is the chairperson of the supervisory board, responsible for overseeing the performance of directors and senior management[157] Marketing and Brand Strategy - The hashtag Mixue garnered over 43.5 billion views on Douyin as of December 31, 2024, showcasing the effectiveness of the company's online marketing strategy[50] - The company engages consumers through various activities, including Snow King parades and music festivals, integrating online and offline marketing efforts[50] - The Snow King IP has become the sole iconic character in China's freshly-made drinks industry, differentiating the brand from competitors[46] Dividend and Reserves - As of December 31, 2024, the total distributable reserves of the company amounted to RMB 1,739.4 million[188] - The company does not recommend the distribution of a final dividend for the year ended December 31, 2024[183]

Group 1: Gold Market - Gold prices have adjusted significantly, with spot gold dropping over $200 to below $3300 per ounce, leading to a 4.55% decline in Shanghai gold futures [1] - A-share gold stocks have seen substantial declines, with companies like Mingpai Jewelry and Chifeng Gold hitting the daily limit down, while others like Laishen Tongling and Sichuan Gold fell over 9% [1] - Domestic gold jewelry prices have also decreased, with the price of 24K gold jewelry dropping from 1082 RMB per gram to 1055 RMB, a reduction of 27 RMB per gram [1] Group 2: Financial Sector in Shenzhen - As of the end of Q1 2025, Shenzhen's total deposits reached 13.97 trillion RMB, with both deposits and loans increasing by over 300 billion RMB in the first quarter [1] - Household deposits and non-financial enterprise deposits have shown significant year-on-year growth, while household loans increased by 430.55 billion RMB, outpacing the overall loan growth rate by 1.2 percentage points [1] Group 3: Payment Industry - The payment industry is undergoing significant consolidation, with five payment licenses being revoked this year, including Shandong Feiyin Payment Technology Co., marking the fifth cancellation [1] - The total number of revoked third-party payment licenses has reached 101, reducing the number of licensed payment institutions to 170 [1] Group 4: AI and Content Creation - The rise of AI tools like DeepSeek has created a competitive landscape for content creators, where quality is more important than quantity for monetization [2] - The market is witnessing a shift where many individuals attempting to profit from AI-generated content may find themselves at a disadvantage, with the real beneficiaries being those who provide educational content rather than original creators [2] Group 5: Robotics Industry - The recent humanoid robot half marathon showcased advancements in robotics, with the Tian Gong team winning the event, indicating a shift towards industrialization of humanoid robots [3] - The Tian Gong 2.0 robot is set for small-scale production and application, with a collaborative network involving several key A-share listed companies in technology development and component supply [3] Group 6: Card Game Industry - The card game company, leveraging popular IPs like Ultraman and Nezha, is making a second attempt to go public in Hong Kong, with significant revenue growth reported [4] - The company achieved revenues of 41.31 billion RMB, 26.62 billion RMB, and 100.57 billion RMB from 2022 to 2024, with adjusted net profits showing a similar upward trend [4] - The card game market is experiencing a boom driven by blind box economics, but concerns about youth addiction to spending remain prevalent [4]

Investment Rating - The report assigns an "Accumulate" rating to the company, indicating a positive outlook for its stock performance [3][40]. Core Insights - The company demonstrates brand dominance in the affordable ready-to-drink beverage sector, supported by an efficient supply chain and the emotional barrier created by the "Snow King" IP [3][40]. - The "Snow King" IP has become a top-tier brand in the IP space, enhancing emotional connections with consumers and improving marketing efficiency [2][34]. - The company is expected to achieve significant revenue growth, with projected revenues of 29.58 billion, 33.37 billion, and 36.35 billion CNY for 2025, 2026, and 2027 respectively, alongside net profits of 5.32 billion, 6.08 billion, and 6.70 billion CNY [3][39]. Summary by Sections 1. Introduction - The report discusses a recent incident involving a store using overnight lemons and oranges, highlighting the consumer's leniency towards the brand due to its efficient supply chain and emotional connection through the "Snow King" IP [1][13]. 2. Brand Dominance in Affordable Ready-to-Drink Beverages - The affordable ready-to-drink beverage market in China is growing rapidly, with a CAGR of 25.6% from 2021 to 2023. The company holds a market share of 32.7% in this segment, significantly leading over competitors [14][22]. 3. Emotional Barrier from "Snow King" IP - The "Snow King" IP was created in 2018 and has been developed through various marketing strategies, enhancing its emotional connection with consumers. The IP has gained high recognition and popularity, contributing to lower customer acquisition costs [2][27][34]. 4. Profit Forecast and Investment Recommendations - The company is expected to open 9,000, 8,500, and 8,000 new franchise stores from 2025 to 2027, with a stable closure rate of 4.3%. Revenue and net profit are projected to grow significantly during this period [39][40].

Investment Rating - The report initiates coverage on the company with a "Buy" rating and sets a target price of 565.67 HKD, corresponding to a 31X PE for 2026 [8][22]. Core Insights - The company is the largest player in the global fresh beverage market, focusing on providing high-quality, affordable drinks around 1 USD. It operates two major brands: "Mixue Ice City" for tea and "Lucky Coffee" for coffee, with a total of 46,500 stores expected by 2024. The company leverages an efficient end-to-end supply chain to create a vast infrastructure network that meets consumer demand for affordable, high-quality beverages, establishing significant competitive barriers [1][22]. - The business model is centered on "supply chain economies of scale," which disrupts traditional franchise strategies. The company maximizes demand through high-quality, affordable products, with a cup price in 2024 being only 5.7% of the average disposable income in China. The vertical integration of the supply chain reduces costs, enhancing efficiency and profitability [2][22]. - Future growth drivers include market penetration in lower-tier cities, international expansion in Southeast Asia, and the cross-brand synergy between "Lucky Coffee" and "Mixue," which is expected to create a non-symmetric competitive advantage [3][22]. Summary by Sections Company Overview - The company is positioned as a leader in the fresh beverage sector, with a focus on providing affordable drinks globally. It has established a robust store network and aims to expand further in both domestic and international markets [1][22]. Business Model - The company employs a unique business model that emphasizes supply chain efficiency and cost control, allowing it to offer high-quality products at competitive prices. This model is supported by a strong franchise system that enhances market reach [2][22]. Growth Potential - The company has significant growth potential, with opportunities for expansion in lower-tier cities and international markets. The report estimates that the domestic store count could reach between 69,000 to 80,000, while international stores could reach 19,000 in the medium term [3][22]. Financial Projections - The report forecasts a compound annual growth rate (CAGR) of 20% for net profit from 2025 to 2027, with expected net profits of 5.29 billion, 6.44 billion, and 7.68 billion RMB for those years, respectively. The earnings per share (EPS) is projected to grow from 13.93 RMB in 2025 to 20.23 RMB in 2027 [5][7][13].

Industry Overview - The ready-to-drink beverage industry in China is experiencing rapid expansion, driven by product characteristics and consumption upgrades, with market size growing from 187.8 billion yuan in 2018 to 627.9 billion yuan in 2024, and expected to reach 746.4 billion yuan by 2025 [1][12] - The proportion of ready-to-drink beverages in the overall beverage market has increased from 20.6% to 39.4% from 2018 to 2024, with projections indicating it will exceed 40% by 2025 [1][12] - The industry is characterized by fresh, customizable, and convenient products, including various types of tea, coffee, and fresh juices, sold through both offline and online channels [1][5] Market Dynamics - The competition in the ready-to-drink beverage sector has intensified, with brands engaging in price wars and rapid franchise expansions, leading to market saturation [9][14] - In 2024, a total of 2,681 new products were launched by 96 representative brands, with tea beverages accounting for 70.7% and coffee beverages 29.3% of new product launches [9][10] - The average monthly new product launches for tea brands (157.9) outpaced coffee brands (65.5), with seasonal trends influencing product introductions [10] Consumer Behavior - 72.6% of Generation Z consumers in China purchase ready-to-drink beverages weekly, with a notable increase in the frequency of coffee purchases compared to tea [7] - The per capita annual consumption of ready-to-drink beverages in China has risen from 8 cups in 2018 to 22 cups in 2023, but remains significantly lower than in developed markets [22] Competitive Landscape - The market is concentrated, with the top five brands (Mizuki Ice City, Luckin Coffee, Starbucks, Guming, and Chabaidao) holding a combined market share of 35%, indicating a strong head effect [14][16] - Mizuki Ice City leads the market with an 11.3% share, followed by Luckin Coffee (8.3%) and Starbucks (6.3%) [16] Future Trends - The ready-to-drink beverage market is expected to continue growing, with projections indicating that the market size could exceed 1 trillion yuan by 2028 [12] - The increasing consumer focus on product quality and experience is driving supply chain upgrades and innovation in product offerings [23][24] - The chain rate for ready-to-drink tea and coffee shops is anticipated to rise significantly, enhancing market growth potential [24]

Group 1 - Hong Kong consumer stocks strengthened in the afternoon, with Mixue Group (02097.HK) rising over 7% to reach a new high [1] - Gu Ming (01364.HK) increased by more than 8%, contributing to the overall positive trend in the sector [1] - Other companies such as Nongfu Spring (09633.HK) and Cha Baidao (02555.HK) also experienced gains [1]

Investment Rating - The report indicates a positive investment outlook for the IPO market, with a notable increase in the number of IPOs and total fundraising amounts compared to previous periods [11][34]. Core Insights - In Q1 2025, a total of 63 Chinese companies successfully completed IPOs across A-shares, Hong Kong, and US markets, representing an 18.87% year-on-year increase in IPO numbers and a 13.57% increase in total fundraising to 31.8 billion yuan [11][20][34]. - The report highlights that the advanced manufacturing sector performed the best in terms of IPO fundraising, with a total of 63.04 billion yuan raised, accounting for 55.91% of the total fundraising across all sectors [84][88]. - The report notes that the VC/PE institutions had a penetration rate of 52.38% in the IPO market, with 33 companies having VC/PE backgrounds successfully listed [12][64][73]. Summary by Sections IPO Market Overview - In Q1 2025, the total fundraising from IPOs reached 31.8 billion yuan, with the highest fundraising amounts coming from the Hong Kong market, which raised 13.5 billion yuan [11][20][54]. - The number of IPOs in the US market remained stable, with 22 companies going public, marking an 83.33% year-on-year increase [60][62]. Sector Analysis - The advanced manufacturing sector led the IPO market with 14 companies listed, followed by the electronic information sector with 11 companies [84][88]. - The electronic information sector reported a significant exit return of 102.83 billion yuan, the highest among all sectors [68][71]. Regional Analysis - Zhejiang province topped the list with 13 IPOs, raising 69.54 billion yuan, which accounted for 21.87% of the total fundraising in Q1 2025 [94][99]. - The report indicates that the IPO performance in Zhejiang has doubled compared to the same period last year [99]. Notable IPO Cases - The top five fundraising companies included Mixue Group, Chifeng Gold, and Gu Ming, with Mixue Group raising 3.187 billion yuan, the highest in the quarter [106][110]. - The report emphasizes that the first-day performance of IPOs was strong, with 25.4% of companies seeing their closing prices more than double on the first day [42][60]. Policy and Market Trends - The report discusses the resumption of the A-share IPO cycle and the approval of new liquidity regulations in the US market, which are expected to enhance the IPO environment [34][30]. - It also highlights ongoing support for traditional industries in the Hong Kong market, which continues to attract consumer brand listings [54][60].

Core Viewpoint - CICC initiates coverage on Mixue Group (02097) with an "outperform" rating and a target price of HKD 470.00, based on a P/E valuation method corresponding to a 2025 P/E of 33x. The company is the largest fresh beverage company in China and the fourth largest globally, with over 46,000 stores worldwide by the end of 2024 [1]. Group 1: Market Dynamics - The fresh beverage market in China and Southeast Asia is large and growing rapidly, with a market size of CNY 658.2 billion in 2023 and a CAGR of 21% over the past five years. The sub-10 CNY price segment is stable and concentrated, driven by consumer demand for affordable and convenient options [2]. - Mixue has established a "flywheel effect" by focusing on high-quality, affordable products, which has led to brand recognition and an extensive store network, enhancing its competitive advantage [2]. Group 2: Operational Efficiency - The company offers high-quality, affordable products (ASP of CNY 6-7), supported by a broad store network and the popular "Xue Wang" IP, contributing to its national brand influence [3]. - Mixue's integrated supply chain, covering R&D, procurement, production, and logistics, ensures stable supply while significantly reducing costs. The procurement costs for key raw materials are over 10% lower than competitors, and the company has a production capacity of approximately 1.65 million tons [3]. - The company's strict franchise management system and shared values with franchisees support high-quality store expansion, with an average franchisee operating about 2.2 stores, and a low closure rate of 3-4% since 2021 [3]. Group 3: Growth Potential - The company is expected to have domestic store expansion potential of at least 65,000 to 68,000 stores, with overseas expansion potential of at least 14,000 stores, driven by the growth of the overseas fresh beverage market and its competitive advantages [4]. - CICC remains optimistic about the company's long-term growth potential overseas, supported by its pricing strategy, supply chain capabilities, and management strength [4]. Group 4: Competitive Advantage - CICC highlights the company's unique pricing strategy and strong supply chain and brand power as key factors supporting its competitive advantage. The company is expected to achieve sustained store expansion and performance growth, with potential catalysts including better-than-expected same-store sales and store openings domestically, as well as overseas adjustments [5].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 MIXUE Group 蜜雪冰城股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：2097） 修訂公司章程 修訂如下： 「公司於2025年1月6日經中國證券監督管理委員會（以下簡稱「中國證監會」）備 案，於2025年3月3日在香港聯合交易所有限公司（以下簡稱「香港聯交所」）主板 掛牌上市，在香港發行17,059,900股境外上市外資股（悉數行使超額配售權前）（以 下簡稱「H股」）。」 第六條，原文為： 於悉數行使超額配股權完成後，本公司的註冊股本及股份總數將分別變更為人民 幣379,618,800元及379,618,800股。為反映本公司註冊股本及股本結構的有關變 更，現對本公司之公司章程（「公司章程」）作出相應修訂。 根據2023年12月29日舉行的2023年第四次臨時股東大會作出的授權，以及本公司 董事會（「董事會」）作出的進一步授權，董事會授權人士已批准根據全球發售的完 成情況 ...