Mixue Group Stock Drops 70% as Hong Kong Flagship Store Closes, October 9

Mixue Group’s Hong Kong bet is unraveling. The Chinese budget beverage chain has shut its first Hong Kong store at Mong Kok Bank Centre on October 8, marking the sixth closure this year. The store needed to sell 22,000 lemon water cups monthly at HK$9 each just to cover HK$200,000 rent. Parent company Mixue Group (2097.HK) has plummeted from HK$618 to HK$170.50 since listing March 3, 2025, wiping out HK$1.7 billion in value.

Why the flagship store failed

Mixue’s Mong Kok Bank Centre outlet opened December 2023 as Hong Kong’s first store. It occupied 412 square feet with monthly rent of HK$200,000. At HK$9 per lemon water, the store required 22,000 sales monthly just for rent. Operating costs including staff and utilities reached HK$400,000 monthly, forcing the outlet to sell 2.5 cups per minute during 10-hour days to break even. The math did not work.

Six stores closed in 2026

Mixue opened nine Hong Kong outlets between December 2023 and late 2024. This year, closures accelerated. Stores in Sha Tin Shek Mun, Yuen Long, Tsuen Wan, Mong Kok Moko, and Tsim Sha Tsui Nathan Road all shut down before the flagship. Only three outlets remain: Jordan, Tai Po, and Causeway Bay. The rapid retreat signals the low-price model cannot sustain Hong Kong’s rental costs.

Stock crash mirrors operational collapse

Mixue Group listed March 3, 2025 at HK$202.50. By mid-2025, shares surged past HK$618, up 200 percent. Today the stock trades at HK$170.50, down 70 percent from peak. Market cap fell HK$1.7 billion. Meyka rates 2097.HK a B+ with a 12-month forecast of HK$170.15, suggesting limited recovery. RSI at 24.64 signals oversold conditions, but ADX at 31.13 confirms a strong downtrend remains intact.

Broader retreat of mainland chains

Mixue is not alone. Thirteen mainland restaurant and beverage brands have exited or scaled back Hong Kong since 2024. Lao Matan Hot Pot, LMM Lemon Tea, and Xita Lao Tai Tai Barbecue all closed within months of opening. The pattern is clear: aggressive expansion followed by rapid retreat when rents and labor costs exceed revenue. Hong Kong’s market punishes the low-margin, high-volume model that works in mainland China.

Final Thoughts

Mixue’s Hong Kong collapse shows that extreme low-price strategies cannot overcome Hong Kong’s structural cost disadvantage. With Meyka grading 2097.HK a B+ and the stock down 70 percent, investors face a turnaround story with no clear path. The company must prove its core mainland business can sustain shareholder value after this expensive Hong Kong experiment.

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