In 1997, university student Zhang Hongchao launched a modest shaved-ice shop in Henan, a province then among China's least affluent, utilizing funds borrowed from his grandmother. Almost three decades on, Zhang and his sibling Hongfu, who serves as Mixue's CEO, each possess an estimated net worth of $8.2 billion. Zhang's initial shaved-ice venture, now operating as Mixue Ice Cream & Tea and recognized for its frozen desserts and drinks, boasts a greater worldwide presence (53,000 outlets) than McDonald’s (43,500). Its initial public offering in March on the Hong Kong Stock Exchange secured HK$3.45 billion ($450 million) — ranking as the fifth largest in Hong Kong during the initial six months of 2025 — and saw demand exceed supply by 5,000 times. Mixue is anticipated to inaugurate its inaugural U.S. Establishment in New York City, having purportedly secured a decade-long lease on Canal Street.
TL;DR
- Zhang Hongchao started Mixue in Henan in 1997, growing it to 53,000 outlets globally.
- Mixue's IPO raised HK$3.45 billion, with demand exceeding supply 5,000 times.
- Affordability, a strong supply network, and franchising drive Mixue's rapid expansion.
- Mixue plans U.S. expansion and diversifies into coffee and beer offerings.
Mixue's swift global expansion highlights its robust supply network, its expansion through a franchise system, and its widespread brand recognition, but it also underscores the enduring impact of Zhang's initial strategy to attract budget-minded consumers with an ice cream cone priced at a mere 15 cents.
To those familiar with it, a Mixue establishment is immediately identifiable. Its illuminated emblem and characteristic red decor attracted patrons on a Friday in November within Hong Kong's primary retail area. In a metropolis renowned for its high-end commerce, Mixue's menu costs are also noteworthy: a succulent grape delight for the equivalent of $1.67, bubble milk tea for $2.06, and frozen yogurt for 64 cents, even less expensive than McDonald's $1.09 Sundae cone. On a display, the company's mascot, Snow King, is depicted holding a milk tea and giving a wink. “With Mixue in hand, joy is grand,” it states.
Mixue’s recent fortunes are grand indeed. In the first half of 2025, Mixue reported 14.9 billion yuan ($2 billion) in revenue, up 40% from the previous year’s period. Its firsthalf profit of 2.7 billion yuan ($370 million) is tiny compared with, say, McDonald’s first-quarter profit of $1.9 billion, but it represents 44% growth from the year prior. (Mixue did not return requests for comment.)
The appeal of Mixue has consistently been its affordability, even with a slight increase in the cost of its 15-cent cone. However, the ice cream and beverage company offers more than just inexpensive delights.
As Mixue grew, it encountered difficulties obtaining ingredients, leading Zhang to begin procuring the company's raw supplies directly from agricultural workers and manufacturers. In 2012, it created unified production facilities and subsequently organized storage centers and refrigerated transport systems to distribute components such as frozen fruit purees and freshly cut strawberry and mango pieces to its licensed operators. (The company currently operates 23,404 locations globally.) This approach cuts out intermediary expenses, enabling Mixue to maintain its affordable pricing and ensure product freshness. When Mixue initiated its public offering in March, it announced that roughly 66% of the funds raised would be allocated to expanding and enhancing its comprehensive supply networks.
Mixue's strong ties with those who produce and provide its ingredients afford it a pricing edge that rivals find difficult to match. “When they open more outlets, they can immediately send out all these supplies, ingredients…So profit margins are pretty tight, and [food and beverage] brands typically find it challenging to manage this,” states Emil Fazira, Asia Pacific food insight manager at Euromonitor International.
Mixue's approach to franchising also generates significant income by supplying equipment and essential components to its independent operators. The company points to these sales as a primary factor behind its 40% revenue increase compared to the same period last year.
Mixue distinguishes itself from rivals that exclusively offer beverages by providing both desserts and drinks. Fazira observes that the sweet treat represents one of the most rapidly expanding product segments in the Asia Pacific and Southeast Asian regions.
While ice cream is usually perceived as a more indulgent treat, Mixue’s more affordable and accessible soft serve, compared with sit-down ice cream parlors, makes it “a bit more unique,” Fazira says.
Mixue's promotional strategies are equally distinctive. Within China, their establishments transformed purchase records into serialized stories, publishing twenty installments of an engaging tale starring their mascot, Snow King, which ignited a national phenomenon.
Internationally, Mixue is attracting customers through interactive games and giveaways. Andrian Lim, a Malaysian video game streamer, participated in a Mixue Instagram Reel competition during September, aiming to consume a mint lemonade within 45 seconds. This 31-year-old was one of many who endured intense brain freeze for a chance to receive a special Snow King foldable tote.
“I love to challenge myself to the limit, just for the fun of it,” says Lim, who “fell in love” with Mixue’s jasmine tea—and its cheap price.
Looking forward, Mixue intends to satisfy consumers' round-the-clock beverage needs by growing its independent coffee establishments and offering beer. Mixue's coffee brand, Lucky Cup, which offers freshly made coffee at 6 yuan (90 cents), recently launched in Malaysia after securing 8,000 sites in China. In September, Mixue Group purchased a 53% stake in Fulu Fresh Beer, a Chinese draft beer enterprise managed by Hongfu's spouse, Tian Haixia.
“[Mixue] is trying to enter new pockets of opportunity…It is interested, or at least keen to understand, that area of product diversification,” Fazira says.
And naturally, Mixue's latest beer offering is expected to be inexpensive. A Fulu Fresh beverage costs 7.9 yuan, which is equivalent to $1.11 per serving.
This article appears in the December 2025/January 2026 issue of Coins2Day with the headline “Mixue’s hot streak.”
The rapidly expanding market for confectionery items across Asia is a key driver behind Mixue's ascent.
44%
Mixue’s profits soared in the first half of 2025 to reach 2.7 billion Yuan ($370 million).
53,000
Mixue’s sprawling global store count now tops McDonald’s
