Last year, the top five tea beverage brands collectively earned over 10 billion yuan: Guming led in growth, and rapid expansion remains the main trend.

The annual report of the new tea beverage industry has been revealed, showing a “surge” in last year’s performance, but the landscape is further diversifying.

As of March 27, the five new tea beverage companies listed on the Hong Kong Stock Exchange—Mixue Group (2097.HK), Gu Ming (1364.HK), Cha Bai Dao (2555.HK), Hu Shang A Yi (2589.HK), and Naixue’s Tea (2150.HK)—have successively disclosed their annual results for 2025.

According to calculations by The Paper, the total revenue of the five new tea beverage groups exceeded 60 billion yuan last year, with net profit attributable to shareholders exceeding 10 billion yuan. However, the brand landscape continues to diverge, with companies in different price segments and with different strategic layouts showing markedly different development trends in scale, profitability, capital market performance, and expansion pace.

In terms of brand positioning, the five companies have clearly defined tracks: Mixue Group targets affordable tea beverages, with its brands priced around 6-11 yuan, capturing the lower-tier market with extreme cost-effectiveness; Gu Ming, Cha Bai Dao, and Hu Shang A Yi focus on mid-range price segments, primarily targeting street-side scenes and capturing the mass market. Unlike the aforementioned tea beverage groups that mainly rely on the franchise model, Naixue’s Tea, which follows a mid-to-high-end route, primarily operates through direct sales and began franchising in July 2023, mainly situating its stores in first-tier and new first-tier cities.

Leading market capitalization and stock prices, significant stratification

As an “old player,” Naixue’s Tea was listed on the Hong Kong Stock Exchange in June 2021, while Cha Bai Dao was listed in April 2024. Last year was once referred to as the “year of new tea beverages,” with Gu Ming, Mixue Group, and Hu Shang A Yi making their debuts on the Hong Kong Stock Exchange in February, March, and May respectively. Ba Wang Cha Ji landed on the US stock market in April last year.

The performance in the capital markets clearly reflects the differences in the industry landscape, with the valuation gap between leading brands and others continuing to widen. As of the closing on March 27, 2026, Mixue Group maintained its position as the industry leader with a market capitalization of 108.6 billion Hong Kong dollars, followed closely by Gu Ming with 63 billion Hong Kong dollars, forming the first tier; Cha Bai Dao and Hu Shang A Yi had market capitalizations of 8.7 billion Hong Kong dollars and 8.1 billion Hong Kong dollars, respectively, placing them in the second tier; while Naixue’s Tea, as the “first stock of new tea beverages,” saw its market value drop to 1.5 billion Hong Kong dollars, creating a stark disparity with the leading brands.

Since its listing, the fluctuations in stock prices have also shown significant divergence. According to the reporter’s analysis, Gu Ming’s stock price increased by nearly 1.8 times, and Mixue Group rose by over 40%; Hu Shang A Yi’s stock price fell by over 30%, Cha Bai Dao dropped by over 60%, and Naixue’s Tea’s stock price nearly halved, reflecting pressure in the capital markets.

From the perspective of fundamental performance, the disconnect between scale and profitability may be the core reason for the valuation divergence. Mixue Group achieved a revenue of 33.56 billion yuan and a net profit of 5.88 billion yuan in 2025, continuing to rank first in the industry. According to the reporter’s calculations, its revenue scale far exceeds its peers, approximately 7 times that of Naixue’s Tea and Hu Shang A Yi, 6 times that of Cha Bai Dao, and 2.6 times that of Gu Ming. Its net profit is about 11 times that of Hu Shang A Yi, 7 times that of Cha Bai Dao, and 1.9 times that of Gu Ming.

Gu Ming ranked second with a revenue of 12.914 billion yuan and a net profit of 3.109 billion yuan, leading the industry in profit growth; Cha Bai Dao and Hu Shang A Yi had revenues of 5.395 billion yuan and 4.466 billion yuan, and net profits of 805 million yuan and 501 million yuan, respectively, positioning them in the middle tier for both scale and profitability; Naixue’s Tea reported a revenue of 4.341 billion yuan last year, down over 10%, still in a loss state, yet the loss margin narrowed by more than 70% year-on-year, indicating some improvement in operational quality.

Head growth accelerates, high-end brands face pressure to adjust

A horizontal comparison of the 2025 performance growth rates reveals characteristics of the new tea beverage industry as “head acceleration, mid-tier stability, and high-end adjustment.” Gu Ming’s revenue grew by nearly 47% year-on-year, reaching a new high in recent years, while its net profit growth rate soared to 110.30%, leading the industry.

Mixue Group and Hu Shang A Yi both saw revenue growth rates exceeding 35%, with net profits increasing by 73.94% and 52.40%, respectively, showing simultaneous growth in scale and profitability; Cha Bai Dao’s revenue growth rate slowed to 9.7%, but its net profit increased by more than 70% against the trend. Naixue’s Tea, affected by store optimization and contraction in other businesses, was the only brand among the five to report a revenue decline.

Vertically, according to Wind data, Mixue Group, Gu Ming, and Hu Shang A Yi all achieved record highs in revenue and net profit last year. Among them, Gu Ming, Hu Shang A Yi, and Cha Bai Dao accelerated their performance growth compared to 2024. While Mixue Group maintained rapid growth, its profitability slightly slowed compared to the peak in 2023.

However, Naixue’s Tea has experienced revenue declines over the past two years, with fluctuating losses, and it still did not turn a profit last year, although the losses were significantly narrowed. Naixue’s Tea attributed a 12% year-on-year revenue decline in its financial report mainly to the closure of poorly performing stores and decreased revenue from other businesses such as bottled beverages.

Nevertheless, under a series of adjustment measures, key financial and operational indicators for Naixue showed significant improvement. The financial report indicated that last year, the net cash generated from operating activities grew by 35.7% year-on-year to 273.6 million yuan; the average daily sales per store in direct-operated stores increased by 5.2% year-on-year; the average daily order volume per tea shop rose by 15.7% to 313 orders; and same-store sales for direct-operated stores grew by 6.3% year-on-year to 3.551 billion yuan.

In terms of financial safety, Naixue’s financial report stated that by the end of last year, the group held a total of 2.658 billion yuan in cash and deposits. “We have sufficient cash and cash flow to support steady business development and timely adjustments. The board is also confident that a series of adjustment measures will bring ideal benefits to the group.”

Store Expansion: Aggressive Expansion in Lower-Tier Markets, Quality Improvement in High-End

In the face of market skepticism regarding “store saturation,” leading brands in the new tea beverage sector have shattered the speculation with expansion data, marking 2025 as a key year for store expansion in the industry, with brands in lower-tier markets accelerating their land grabs, while Naixue’s Tea shifted towards quality improvement with reduced numbers.

In terms of store opening speed, according to the reporter’s analysis, Mixue Group, Gu Ming, and Hu Shang A Yi are still racing ahead in their expansion paths, with the number of new stores reaching a five-year high last year.

Specifically, by the end of last year, the number of Mixue Group’s stores approached 60,000, with a net increase of nearly 10,000 stores, marking a year-on-year increase of nearly 30%, leading in expansion scale.

Gu Ming and Hu Shang A Yi’s total number of stores has entered the “ten-thousand” range, with Gu Ming reaching 13,554 stores last year, netting an increase of 3,640 stores, a growth rate of 36.7%, achieving a new high in store opening speed; Hu Shang A Yi had 8,621 stores, netting an increase of 2,273 stores, a year-on-year growth of 24.80%, accelerating store expansion in the second half of the year.

Among them, Gu Ming noted in its financial report that the opening speed of new stores last year was faster than in 2024, mainly due to the recovery of the fresh tea drink market; Gu Ming has maintained its store expansion strategy to prioritize gaining a leading market position through deeper store coverage.

In contrast, Cha Bai Dao’s expansion pace has noticeably slowed, with only a net increase of 226 stores throughout the year, bringing its total to 8,621 stores, with a growth rate of 2.7%; Naixue’s Tea experienced a net store closure for the first time, with a net decrease of 152 stores, reducing its total to 1,646 stores.

Naixue’s Tea’s financial report indicated that most underperforming stores have undergone relevant optimization measures, such as proactively closing, renovating, or adjusting store formats. The company plans to complete the optimization of remaining stores by 2026. Additionally, it continues to seek new market opportunities in advantageous cities, matching different store formats to enhance network layout, and meeting the diverse needs of franchisees to promote the continuous expansion of the franchise business, thereby consolidating and securing market share.

The number of stores for tea beverage brands and the scale of franchisees achieved dual growth. By the end of last year, Mixue Group had 27,450 franchisees, an increase of 6,474 year-on-year, with a calculated growth of 30.86%; Gu Ming had 6,675 franchisees, an increase of 1,807 year-on-year, with a calculated growth of 37%; Hu Shang A Yi had 6,974 franchisees, an increase of 1,519 year-on-year, with a calculated growth of 27.8%; and Cha Bai Dao had 5,923 franchisees, an increase of 181 year-on-year, with a calculated growth of 3.15%.

In terms of store layout, lower-tier markets have become the core growth engine of the industry. Last year, nearly 60% of Mixue Group’s stores were located in third-tier and below cities; over 80% of Gu Ming’s stores were located in second-tier and below cities; and more than 50% of Hu Shang A Yi’s stores were in third-tier and below cities, with increasing penetration in lower-tier cities; Cha Bai Dao’s stores were relatively evenly distributed, with new first-tier and fourth-tier and below cities being the main layout scenes, accounting for over 20%; Naixue’s Tea continued to focus on first-tier and new first-tier cities, with store proportions exceeding 30%.

Several tea beverage groups’ financial reports mentioned that there is significant growth potential in third-tier and below cities, possessing advantages in store coverage and supply chain networks.

What are the goals for this year?

After rapid expansion, the new tea beverage industry has shifted from “scale above all” to “emphasizing both scale and quality.” In their financial report outlooks, major brands are focusing on orderly expansion, product innovation, supply chain upgrades, and improving single-store profitability, with high-quality development becoming the industry’s main theme.

Among them, Hu Shang A Yi pointed out that it will expand stores in an orderly manner, enhance single-store profitability, and shorten the investment payback period for franchisees. Gu Ming indicated that it will expand its store network and continue to increase store density in the 17 provinces where it has already established a layout. By the end of last year, Gu Ming still had 17 provinces in the country without a layout, leaving ample space for development. It will strategically enter provinces adjacent to those where it has established layouts and continue to evaluate opportunities to enter overseas markets.

In terms of product development, Gu Ming stated that it would optimize and expand its product matrix. While focusing on the fresh tea drink market, it also plans to continue enriching product categories and expanding new categories. Last year, it made significant progress in enriching coffee beverage products and plans to further expand its coffee product line and explore other new categories (such as dessert bowls and snacks) to seize more cross-selling opportunities. Hu Shang A Yi also stated that it would accelerate the pace of coffee category layout, innovate consumption scenarios and sales models, and promote the integration and innovation of coffee and tea beverages.

Looking ahead, Naixue’s Tea stated that it would continue to push for the expansion of its store network by adapting various highly competitive store formats to different consumption scenarios, further densifying the tea shop network. It will implement differentiated operational strategies to strengthen the profitability of individual stores, as well as deepen the store evaluation mechanism, regularly conducting dynamic evaluations of all stores and making necessary adjustments for those underperforming, optimizing resource allocation.

Mixue Group will also slow down its expansion pace. According to media reports, at this annual performance briefing, management noted that Mixue Ice City would uphold a quality-first development strategy and actively slow the pace of new store openings. Lucky Coffee will also slow its store opening speed compared to 2025, planning to invest more resources into store quality management to enhance single-store revenue and lay a solid foundation for healthy development in the next stage.

(Source: The Paper)