Mixue Group 2H25 First Take: Overall, second-half results were mixed, with revenue beating expectations. However, a lower GPM and higher admin expenses left core OP slightly below consensus.

1) Revenue: 2H25 revenue reached RMB 18.7bn (+32% YoY), and with store count up 33% YoY, growth was largely driven by expansion rather than same-store sales. With weaker delivery subsidies in 2H, Dolphin Research estimates low single-digit same-store revenue growth, driven by higher cup volume. The average selling price per cup was likely flat to slightly down.

2) Store openings: Mixue added 6,809 stores in 2H, accelerating vs. 1H. Growth skewed to lower-tier cities, while overseas store count fell by 266 vs. 1H. Dolphin Research believes the company continued pruning overlapping, underperforming, and less-compliant stores in Southeast Asia.

3) GPM: To protect franchisee economics amid slowing same-store growth, Mixue likely lowered supply prices on core inputs (e.g., milk base, jams) to franchisees. As a result, GPM fell 220bps to 30.7%.

Sales expenses benefited from the maturation of the Snow King IP, with low-cost social traffic substituting for traditional ads, bringing the sales expense ratio down 70bps to 6%. Admin expenses were temporarily elevated by one-off integration costs from the Oct acquisition of "鲜啤福鹿家".