Mixue (MIX) Shares Drop 14.7% on First-Half Profit Decline

Shares of Mixue Group (MIX) fell over 7% in Hong Kong and closed 8.37% lower on Thursday following the announcement of a 14.7% year-on-year drop in first-half profit to 2.32 billion yuan ($345.2 million) for the six months ending in June. Revenue increased by 2.3% to 15.22 billion yuan, but rising costs, particularly with a 22.9% spike in selling and distribution expenses and a 39.4% rise in administrative costs, pressured profitability. The company has proposed a special dividend of 2.65 yuan per share, pending shareholder approval. This information is significant for investors as it highlights potential challenges in Mixue's profitability amidst rising operational costs.