Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company reported a revenue of 14.875 billion CNY, representing a year-on-year increase of 39.3%, and a net profit attributable to shareholders of 2.693 billion CNY, up 42.9% [2] - The company has benefited from increased delivery subsidies from platforms like JD, Meituan, and Ele.me, which has driven growth in single-store sales [3] - The company has accelerated its store expansion, with a net increase of 6,535 stores globally, bringing the total to 53,014 stores [4] - The gross margin slightly decreased to 31.6%, while the company maintained good cost control [5] - The earnings forecast has been raised due to better-than-expected performance in the first half of the year, with projected revenues of 33.426 billion CNY, 38.054 billion CNY, and 41.817 billion CNY for 2025, 2026, and 2027 respectively [6] Summary by Sections Financial Performance - In the first half of 2025, the company achieved a revenue of 14.875 billion CNY, a 39.3% increase year-on-year, and a net profit of 2.693 billion CNY, up 42.9% [2] - The company's single-store sales revenue is estimated at approximately 280,000 CNY, reflecting a growth of 13.2% [3] Store Expansion - The company added 6,535 stores in the first half of 2025, with a total of 53,014 stores globally, including 7,721 new franchise stores [4] - The company is focusing on penetrating lower-tier markets, with a significant percentage of new stores located in third-tier and below cities [4] Profitability and Cost Management - The gross margin for the first half of 2025 was 31.6%, a slight decrease of 0.2 percentage points, attributed to rising raw material costs [5] - The company maintained a sales expense ratio of 6.1% and a management expense ratio of 2.9% [5] Earnings Forecast - The earnings forecast has been revised upwards, with expected revenues of 33.426 billion CNY, 38.054 billion CNY, and 41.817 billion CNY for 2025, 2026, and 2027 respectively [6] - The projected net profit for the same years is 5.880 billion CNY, 6.836 billion CNY, and 7.649 billion CNY [6]

Core Insights - The company reported a revenue of RMB 14.875 billion for the first half of 2025, representing a year-on-year growth of 39.3% [1] - Net profit reached RMB 2.718 billion, with a year-on-year increase of 44.1% [1] - Basic earnings per share were RMB 7.23, up 38.2% compared to the previous year [1] Revenue Structure - Revenue growth was primarily driven by sales of goods and equipment, as well as franchise-related services [1] - Sales of goods and equipment increased from RMB 10.384 billion in 2024 to RMB 14.495 billion in 2025, a growth of 39.6% [1] - Franchise and related service revenue rose from RMB 293 million to RMB 380 million, marking a 29.8% increase [1] Store Expansion - The franchise model is the core driver of store expansion, with 46,500 franchise stores at the beginning of 2025, adding 7,721 new stores and closing 1,187 during the period [1] - As of June 30, 2025, the company operates over 53,000 stores globally, with 48,300 located in mainland China [2] Market Presence - The company has a presence in 12 countries, with approximately 4,700 stores in overseas markets [2] - The distribution of stores in China includes 2,356 in first-tier cities (4.9%), 8,878 in new first-tier cities (18.4%), 9,243 in second-tier cities (19.1%), and 27,800 in third-tier and below cities (57.6%) [2] Product Offerings - The core products of the "Mixue Ice City" brand are priced between RMB 2-8, with top-selling items including lemon water and fresh ice cream [2] - The "Lucky Coffee" brand offers products priced at RMB 5-10, introducing over ten new fruit coffee products during the first half of 2025 [2] Brand Development - The brand IP "Snow King" has been successfully operated, with the animated work "Snow King Arrives" released in multiple languages [3] - The company has engaged in online and offline marketing, achieving over 54.2 billion views on Douyin for the "MixueIceCity" topic [3] Financial Performance - Sales costs for the first half of 2025 were RMB 10.168 billion, a 39.8% increase from RMB 7.274 billion in 2024 [3] - The gross margin for goods and equipment sales slightly decreased from 30.5% to 30.3%, while the gross margin for franchise services improved from 81.7% to 82.7% [3] Cash Position - As of June 30, 2025, the company had cash and cash equivalents totaling RMB 17.612 billion, a 58.5% increase from RMB 11.110 billion at the end of 2024 [4]