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JOURNEY · DETAIL
Mixue Bingcheng: The Global 4-Yuan Lemonade Empire, King of Extreme Supply Chain Costs and Sinking Markets
Founded: Zhang Hongchao, Zhang Hongfu · Mixue Bingcheng Co., Ltd.
JOURNEY
Key Fields
FIELD STAMPSIndustryFood & Beverage
RegionGlobal
ScaleGiant
ChannelOther
Origin
In 1997, Zhang Hongchao used 4,000 yuan supported by his family to open 'Cold Stream Shaved Ice' in a village-in-the-city in Zhengzhou, selling freshly made shaved ice for 1 yuan per serving. The reason for this choice was that Zhengzhou summers were hot while market prices for cold drinks were high; low margins and high volume became the simplest entry point. However, the shaved ice business was heavily affected by seasons and urban demolition, leading to multiple closures and reopenings in the early years. In 2006, after his younger brother Zhang Hongfu graduated from college, he joined the business. The brothers renamed the store Mixue Bingcheng, upgraded the street-side shaved ice stall into a standardized tea beverage store, and continued to enter the market with ultra-low-priced products, marking the beginning of their branded chain journey.
Milestones
1997
From Shaved Ice Stall to Mixue Bingcheng Failure
In 1997, Zhang Hongchao used 4,000 yuan from his family to open Cold Stream Shaved Ice in Zhengzhou, selling 1-yuan shaved ice and quickly gaining sales due to the summer heat. However, the business was seasonal and the shop was demolished multiple times due to urban construction, forcing him to close and return home to work. In 2006, his brother Zhang Hongfu joined after graduation, and they renamed the brand Mixue Bingcheng, opening the first standardized store in Zhengzhou. This ended the grassroots trial-and-error period, which lasted from 1997 to 2006.
2007
Franchising Begins Turning Point
Mixue Bingcheng opened its first franchise store in 2007 and launched a 2-yuan ice cream as a traffic-driving hit product, rapidly increasing the number of stores in Zhengzhou to dozens. The brothers then built a small processing plant to supply ice cream powder and tea ingredients. Around 2010, they registered Mixue Bingcheng Trading Co., Ltd., and the franchise system began to standardize. The brand shifted from a single store to a chain, deciding that Mixue Bingcheng would not pursue a high-end direct-operation route, but instead bet everything on franchising and low-cost expansion. This stage lasted from 2007 to 2010.
2012
Self-built Supply Chain PMF
Starting in 2012, Mixue Bingcheng established self-operated companies like Daka Food and Shangdao Supply Chain, building ingredient processing plants and cold chain logistics systems in Henan to achieve self-production and supply of core ingredients. In 2013, the 4-yuan lemonade was officially launched, targeting the cost red line with extremely low pricing. It became the store's best-selling item through massive volume, validating the replicability and scale of the 'self-built supply chain + low-margin, high-volume' business model. The company entered a high-growth trajectory, lasting from 2012 to 2013.
2018
First Overseas Store and Snow King Image Growth
In 2018, Mixue Bingcheng opened its first overseas store in Hanoi, Vietnam, replicating its extreme cost-performance model in the Southeast Asian market, followed by entries into Indonesia, the Philippines, and other regions. That same year, the 'Snow King' mascot and theme song were fully launched, creating phenomenal viral spread on platforms like Douyin, elevating the brand from a regional chain to a national consumption symbol and laying the foundation for its eventual 10,000-store scale.
2021
10,000 Stores and First Round of Financing Growth
In 2021, Mixue Bingcheng's global store count exceeded 20,000, making it the world's largest fresh beverage brand. It completed its first round of external financing with investors like Hillhouse and Meituan Longzhu, reaching a valuation of approximately 20 billion yuan. After capital entry, the company increased investment in supply chain and digitalization, further densifying stores in sinking markets and repeatedly validating the single-store model.
2025
HKEX Listing Growth
On March 3, 2025, Mixue Bingcheng was listed on the main board of the Hong Kong Stock Exchange (stock code 02097), with its market value exceeding 100 billion HKD on the first day. According to public disclosures, the company's 2024 revenue was approximately 24.8 billion yuan, with annual lemonade sales exceeding 1 billion cups. Mixue Bingcheng became the world's highest-valued fresh tea beverage company, putting the story of extreme cost control and sinking market expansion under the capital market spotlight.
Turning Points
- In 2006, Zhang Hongfu joined and renamed Cold Stream Shaved Ice to Mixue Bingcheng, upgrading from a street stall to a standardized tea shop, marking the true start of branding.
- Starting in 2012, the establishment of Daka Food and Shangdao Supply Chain marked the shift from terminal retail to a full industry chain, providing a cost foundation for extreme cost-performance.
- In 2018, the launch of the Snow King mascot and the first Vietnam store signaled the brand's shift from a regional chain to a national and international consumption symbol.
- In March 2025, the HKEX listing transformed Mixue Bingcheng from a family business into a public company, with all raised funds directed toward supply chain and digital expansion.
Failures & Pitfalls
- From 1999 to 2003, Cold Stream Shaved Ice was forced to close and reopen multiple times due to urban construction in Zhengzhou. Zhang Hongchao returned home to work, and the business faced repeated setbacks and near-stoppage for seven years.
- In 2021, some Mixue Bingcheng stores were exposed by media for using expired ingredients, followed by multiple food safety complaints and regulatory penalties, exposing the quality control weaknesses of rapid franchise expansion.
- After 2022, the new tea beverage industry became hyper-competitive. Mixue Bingcheng was drawn into price wars and homogenized competition, with store density in some sinking markets reaching saturation, forcing the growth focus to shift overseas.
关键成功要素
- Extreme Low-Price Positioning: 2-yuan ice cream and 4-yuan lemonade have not increased in price for over a decade, creating a consumer mindset where it's so cheap that price comparison is unnecessary.
- Self-built Supply Chain: Full-link self-operation of ingredients, processing, warehousing, and distribution, pushing the cost of a cup of lemonade to a level competitors cannot imitate.
- Snow King Marketing: Using a visual mascot and catchy theme song to dominate social media, keeping customer acquisition costs far lower than traditional advertising.
- Three-tier Franchise System: Coordination between provincial agents, city agents, and store franchisees allows Mixue Bingcheng to rapidly expand its network in sinking markets.
- Avoiding Tier-1 Market Saturation: Focusing on county and township markets, bypassing high rents and direct competition, and trading density for efficiency.
Lessons
- Low price is the widest moat, but it requires a supply chain that can sustain the costs; otherwise, it is just a false prosperity built on subsidies.
- The faster the franchise expansion, the more the quality control and management radius must be extended; food safety crises are the easiest traps to fall into during rapid growth.
- A single hit product is more important than frequent new launches; the 4-yuan lemonade's refusal to raise prices for years became an irreplaceable brand memory symbol.
- The advantage of grassroots entrepreneurs lies not in resources but in empathy for ordinary consumers; Mixue Bingcheng serves essential needs that people can afford, rather than refined fantasies.
Core Data
- 2024 Revenue：Approx. 24.8 billion yuan (based on public data, not independently verified)
- Market Value on First Day of Listing：Over 100 billion HKD (based on public data, not independently verified)
- Annual Lemonade Sales：1 billion cups (based on public data, not independently verified)
- Global Store Count：Approx. 45,000 (as of end of 2024) (based on public data, not independently verified)
- Starting Capital：4,000 yuan (based on public data, not independently verified)
- 2021 Valuation：Approx. 20 billion yuan (based on public data, not independently verified)
Competitors / Peers
Mixue Bingcheng's peers include brands like Tianlala, Guming, and HEYTEA's sub-brands (e.g., HEYTEA/Nayuki's Tea). Tianlala also focuses on sinking markets with low prices and a franchise model, while Guming is known for its strong supply chain and listed on the HKEX in 2025. HEYTEA and Nayuki's Tea have also squeezed downward through price cuts, and numerous regional brands compete closely in county markets. Compared to them, Mixue Bingcheng's core differentiator is its ability to convert its self-built supply chain and economies of scale into extreme pricing power. The 4-yuan lemonade and 2-yuan ice cream price points effectively set the industry's price floor; any competitor following suit faces immense cost pressure, while Mixue Bingcheng continues to strengthen this low-cost model through its procurement scale of nearly 45,000 stores.