10 Operating and Ownership Details from Mixue Bingcheng’s IPO Filing

This is an English adaptation of a FoodBud historical article originally published on September 22, 2022.

On September 22, 2022, Mixue Bingcheng disclosed its prospectus. FoodBud summarized 10 data points and operating details from the filing.

1. Revenue and profit

Mixue Bingcheng’s revenue grew very quickly in 2020 and 2021. Revenue nearly doubled in 2020 and doubled in 2021.

In 2021, revenue reached RMB 10.35 billion, with net profit attributable to the parent of RMB 1.9 billion.

The company’s main revenue came from selling raw materials and packaging materials to stores. These categories accounted for nearly 90% of principal operating revenue.

2. Planned fundraising

Mixue Bingcheng planned to raise RMB 6.68 billion.

3. Financing history

In December 2020, Wandian Investment, backed by people from Hejun Consulting, invested RMB 20 million at a valuation of RMB 2 billion and took a 1% stake.

Later, Meituan Longzhu, Hillhouse Capital and CITIC subscribed at RMB 208.5 per share, investing RMB 930 million, RMB 930 million and RMB 470 million respectively. Their stakes were 4%, 4% and 2%, implying a valuation of about RMB 23.3 billion.

If Mixue Bingcheng reached a post-listing market capitalization of RMB 50 billion to RMB 80 billion, Wandian Investment’s RMB 20 million investment would be worth more than 20 times its original value.

4. Subsidiaries and management

As of the reporting period, Mixue Bingcheng had 19 wholly owned subsidiaries.

Beyond the two founding brothers, individuals with relatively high shareholdings in the senior management team included Shi Peng, Sun Jiantao, Luo Jing and Cai Weimiao. Shi Peng and Sun Jiantao were born in 1987, and Cai Weisen was born in 1988, making the management team relatively young.

Shi Peng was responsible for core raw-material supply management. Sun Jiantao led the Chengdu branch and managed Mixue Bingcheng’s overseas business. Cai Weimiao managed warehousing and logistics.

5. Store count

At the end of each reporting period, Mixue Bingcheng had 7,225, 13,126, 20,511 and 22,276 stores respectively.

From 2019 to 2021, the company added an average net 6,643 stores per year, with a compound annual growth rate of 68.49%. From January to March 2022, the store count increased by a net 1,765 stores.

As of the end of March 2022, the Mixue Bingcheng brand had 21,619 stores. Lucky Cup had 636 stores, and Jilato had 21 stores.

6. Competitors

The prospectus also listed Mixue Bingcheng’s main competitors.

7. Top suppliers

Bangli Tea, C&D Foods, Jiahe Food, Friesland and Xianhuo were core suppliers to Mixue Bingcheng. In 2021, the top five suppliers accounted for 21.6% of procurement value.

The filing also disclosed the top five prepaid suppliers.

8. Overseas business

As of the end of March 2022, Mixue Bingcheng had 249 stores in Vietnam, with revenue of RMB 9.29 million and a net loss of RMB 320,000.

In Indonesia, it had 317 stores, with revenue of RMB 25.41 million and net profit of RMB 2.23 million. Other markets, including Laos, Malaysia and the Philippines, had 5 stores.

FoodBud noted that Mixue Bingcheng’s overseas store count had already exceeded 1,000 in 2022.

9. Related businesses linked to the founder’s spouse

Tian Haixia, spouse of Mixue Bingcheng founder Zhang Hongfu, controlled and operated Fulujia convenience stores with a 75% stake, as well as Fulujia Beer Factory. Tian Haixia also invested in Kamen, a foodservice-focused media account, with a 9% stake.

As of the prospectus signing date, Fulujia Convenience Store had 62 franchised stores either open or in preparation, plus 11 directly operated stores. Fulujia Beer Factory had 32 franchised stores either open or in preparation, plus 3 directly operated stores.

10. Investments in other foodservice brands

In October 2021, Mixue Bingcheng invested in tea-drink brand Huicha through Xuewang Investment, contributing RMB 11.4 million for a 19% stake, implying a valuation of RMB 60 million.

In 2022, Mixue Bingcheng also invested in fried-chicken brand Ji Zhuang Xiang, which had begun accelerating franchise store openings.

Note: Fundraising, IPO, valuation, store-count and forward-looking figures are historical as of the September 22, 2022 source article.